Innovation in Insurance: Why We think Innovation is crucial to the Insurance Sector

1. Risks are evolving faster than insurance solutions. Climate change, Coronavirous, Cyber are examples of an evolving global risk environment. Is COVID-19 business interruption covered under a standard business interruption policy? The challenges faced by the potential claimants is the fact that their business closures are precautionary. The closure are not the results of actual, proven presence of virus at, or anywhere near, the insured site. A tremendous amount of uncertainty but also opportunity for those able to meet the challenge.
2. Capacities are being tested by New Exposures encouraging Insurers to cooperate to mitigate their own maximum potential loss.
3. New and Existing segments of opportunity. Society is changing an ageing population, emerging affluence in segments of the population around the world. Insurance must evolve to meet the demand and opportunities that these segments represent.
4. New Products for New opportunities. There are many innovations that have not yet been dreamed of. A specific coverage for Business interruption arising from a pandemic.

Barriers to Insurance Innovation

1. Cost of Implementation. The high cost and time of successful technology implementation leads to many projects being rejected.
2. Failure of business case. Will it really meet the premium targets?
3. Time to implement .Can you effectively implement when the opportunities present themselves?
4. Ability to effectively reach customers.
5. Corporate Fit. Culture is a really hard thing to change and can be an extremely long journey.
6. Scare Resources. There are very few that can dedicate resources to be available when innovation is required.

Conclusion:

Innovation is becoming increasingly critical to long term success of all insurers. With innovation, Companies can develop sustainable competitive advantages and better respond to challenges such as evolving consumer preferences, Growing business, Shifting markets dynamics and ever expanding technological advancements.

Insurance Samadhan can guide clients through the many changes and challenges facing them now, next and beyond. Get in touch with us to discover how we can help today to ensure insurance is ready for the opportunities of the future. We have helped resolve over 12,600 customer grievance cases in the past related to insurance, ULIPs and other financial products.

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