Changing expectations of consumers and employees lead insurer CIOs towards more innovative strategies: Novarica Research
Boston, MA (Apr. 10, 2017) – In an industry as traditional and risk-averse as insurance, innovation efforts are likely to be met with resistance, but today’s generation of tech-savvy consumers and employees have set new expectations surrounding innovation, both inside and outside of insurance. In a new report, Managing Innovation in Insurance, based on surveys of over 90 insurer CIOs, research and advisory firm Novarica examines the approaches that insurers are taking to drive innovation, how widespread they are, and how insurers are judging the results.
“Larger insurers tend to be further ahead than their smaller and midsize counterparts, but success and adoption rates vary, and the path to operationalizing innovation is not always clear,” said Rob McIsaac, Senior Vice President of Research and Consulting at Novarica, and co-author of Novarica’s new report. “Traditional ROI metrics do not necessarily apply to innovation, and this can present itself as an obstacle to executive buy-in. As carriers prepare themselves for the future, adapting to the tides of change and innovation will become ever more imperative.”
2016 realized value in venture investing / working with start-ups (Novarica)
Key findings of the report include:
- More than 40% of large insurers are expanding their innovation programs and venture investing activities, while smaller insurers are less active as they are constrained by resources and culture.
- ROI metrics are not widely used to measure success. Gains such as exposure to innovative technology and business processes for eventual operationalization seem to be the primary goal of most companies’ innovation programs and investments.
- Greater competition, a faster-moving market, and a more obvious application of many new technologies is driving more aggressive experimentation in the P/C space rather than the L/A space.
Enabling innovation is a high priority for insurers, as customer expectations continue to be set by other industries and new entrants stand to disrupt existing business models. However, innovation initiatives are still at an early stage for most insurers.
This report examines the approaches that insurers are taking to drive innovation, how widespread they are, and how insurers are judging the results. Click here for the table of contents.
Novarica helps more than 90 insurers make better decisions about technology projects and strategy through retained advisory services, published research, and strategy consulting. Its clients include more than 90 property/casualty and life/annuity insurers. Its knowledge base covers trends, benchmarks, best practices, case studies, and vendor solutions. Leveraging the expertise of its senior team and of nearly 400 CIO Research Council members, Novarica provides clients with the ability to make faster, better, more informed decisions. Its consulting services focus on vendor selection, custom benchmarking, project checkpoints, and IT strategy. More information at www.novarica.com.