• Thursday, July 25, 2024
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BusinessDay

Innovation in products, distribution to boots sector growth

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As most economies particularly emerging markets grapple with economic difficulties ranging from oil price glut as well as scarcity of foreign exchange impacting on consumption, insurance which is priced low on priority list of most spenders will survive if operators could deploy uncommon innovations in product offering and distribution, analysts have said.

According to experts at KPMG, The future will be shaped by those innovating today. For the insurance sector, it’s an imperative.” – Gary Reader, global head of Insurance, KPMG International said.

KPMG report says Insurers and intermediaries can no longer do ‘more of the same’ and expect to grow. “Technology and innovation have created a new world of opportunity for individuals, businesses and society. The reality is that customers, investors and employees demand innovation. Indeed, they expect it, not only from technology providers and device manufacturers, but also from insurance organizations”.

To explore these opportunities and potential impacts rising for the industry, the firm conducted an online survey with senior insurance executives, augmented with commentary from some of the world’s most forward-thinking insurers, reinsurers, intermediaries, start-ups and disrupters. Combined with insights from its network of professionals in a report tittled- A New World of Opportunity: The insurance innovation imperative – underscores that, in order to make the most of the future ahead – the industry needs to pivot from a traditionally risk-averse culture to one that encourages experimentation while mitigating risk.

“Progress is clearly underway at many leading organizations as they seek to respond to evolving customer demands and differentiate themselves from new, more nimble competitors. But we also found that, there is no ‘silver bullet’ to create a more innovative organization or generate new ideas. Instead insurers and intermediaries will need to navigate their own path. Bold action is required.”

Explore this new world of opportunity and learn how your organization can tap into new sources of innovation, accessing fresh ideas from employees, customers, investors and partners both within and outside the industry, the report said.

The objective of innovation according to the report should be to:

Drive growth by delighting customers, either through improved efficiency, more customer-centric products and services or through new channels and approaches.

Advances that improve Operational efficiency are n‘table stakes’. To create true competitive advantage through innovation, insurers and intermediaries need to rethink – from sales channels and marketing to business models and partnerships.

Today’s Digit ally-enabled customers demand continuous innovation and improved access and service. Those unable (or unwilling) to meet shifting customer demands will quickly be surpassed by more nimble and innovative competitors

Digital channels are challenging existing value propositions, resulting in new battles to retain existing customers and attract new ones.

KPMG International conducted on online survey in April 2015 with 280 Insurance industry executives across 20 countries. Sector profiles include: 25 percent Life and Health, 23 percent Property and Casualty, 29 percent Composite and 23 percent other. Of the organizations surveyed 32 percent indicated their global revenues exceed $5 billion; 33 percent said they have between $500 million and $4.9 billion in global revenue, and 36 said their global revenue is less than $500 million.

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