Innovation in insurance is key to unlocking ROI

“It’s about doing things better, not necessarily doing something new.”

Innovation is set to play an increasingly critical role across the insurance industry especially as customers are becoming far more sophisticated and demanding.

“Consumers are increasingly using online and mobile self-service functions, and expect the whole experience, from quote to claim, to be quick and seamless. Yet, according to a recent study by global research group Gartner, the vast majority, 67%, are dissatisfied with the speed at which insurers respond,” says Rhys Collins, Head of African Operations for SSP. He adds that the same is true for agent and broker expectations.

“This clearly shows that insurers need to innovate now more than ever and ensure that information is made seamlessly available on any device. However, it’s important to remember that innovation is about doing things better, finding the things we don’t do very well and improving them, not necessarily about creating new products or services,” says Collins.

The need to improve innovation across the industry is backed up by informal research and panel discussions conducted at an SSP event held in the United Kingdom late last year. Of the 75 attendees, representing 57 insurance companies and suppliers, an overwhelming majority (71%) of those polled said the industry could be more innovative. Furthermore, 62% said that innovation within the industry is being driven by customer expectations, with new technology only driving 27%.

With the growth in mobile technology and changes in social behaviour disrupting the industry insurers need to be in a position to respond to meet consumer demands or they will lose out to competitors who are more innovative. This disruption could be an opportunity for insurers to create a truly flexible IT infrastructure that can adapt to multiple channels and devices with few constraints.

For insurers to obtain maximum benefits from deploying mobile technology, for example, they need to make insurance products easy to browse and buy via mobile devices. “Innovative technology is simple and flexible enough to adapt to these changes, but the content also needs to be exciting and engaging, ensuring customers return to the mobile site and share more of their data,” explains Collins.

“As an industry we all need to get better. For insurers to be able to respond to what customers want they need to have a solid business case showing a decent return on investment (ROI) and this is where IT vendors can help by getting better at demonstrating the value of new technology in terms of business benefits,” he says.