A Calculated Risk: How Innovation in Insurance can build the future

// Michael Watkins // Jan 17, 2023

As one of the oldest and most established industries in the world, the insurance space finds itself at a crossroads. In a global landscape that is fraught with indecision and uncertainty, the insurance industry remains a dependable and constant presence. However, this stability comes at a price.

It makes innovation of any kind seem inherently riskier than in more fluid, less established industries. This puts insurance in a place where it’s in danger of being left behind. When major progress is made, it’s unlikely to originate from an industry that is predisposed to not take many chances.

The time for insurance to innovate is now. The problems that the industry has faced for many years – addressing ageing populations through new pension and healthcare models, enhancing data security – have been joined by newer, fresher hurdles.

The sector has a big role to play in the way in which we all combat climate change as it is has a fundamental say in which programs can be greenlit and which ones aren’t. Similarly, we’re at the start of a new age of technology, as AI and blockchain continue to become elements of everyday life. Insurance firms have to be part of the initial integration of these tools. Otherwise, industry practices will prevent the wider world from integrating these technologies successfully.

To ensure that insurance firms can meet these challenges, organizations need to focus on three things:

  • Ideation – generating new ideas
  • Transformation – turning those initial ideas into reality
  • Planning – creating a roadmap that allows innovation to scale throughout the business

 

There isn’t a silver bullet that would allow any company to achieve this overnight. The appetite for innovation will grow when you increase the number of people within the business that are thinking about ways to improve.

It’s a cultural shift that recalibrates focus within the organization. People begin to think in terms of “how could we do this better?” rather than maintaining current practices that don’t do enough. As more ideas flow, the best ones will garner interest from across different areas of the business, fostering a desire to convert these into a reality.

As more of these suggestions are implemented and prove to be successful, greater complexity and maturity can be built into the innovation program. This allows insurance companies to address problems and explore opportunities for growth at the same time.

 

You can guarantee that most businesses across the sector are contemplating how to innovate more effectively – why not take the lead?

 

With Wazoku, insurance businesses have a place where all this innovation activity can be carried out in one place. We give your organization the tools to run Challenges that solve existing problems, improve existing processes, and explore new opportunities. The best ideas that are submitted to these Challenges can then be optimized and implemented and you can track their progress entirely within our platform.

By hosting all innovation activity under one roof, the risks associated with innovation are minimized. While no real progress is made without risk, with Challenge Driven Innovation® that risk isn’t irresponsible. In an age that demands all businesses – especially in insurance – work smarter to do more with less, reducing the cost and the risk of how you build your future is an invaluable asset to have.

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