The insurance industry is uniquely situated in the space where life and risk collide. We cannot live without risk and therefore we cannot get by without insurance. The insurance industry drives global economies, it enables risk taking and it empowers change.
However, by enabling innovation, the insurance industry puts itself under constant pressure to adapt. It must cope with the new risks it plays a part in creating. Wayne Allen, CEO of Insurance Thought Leadership, says the industry is well-placed to adapt because of its “unbelievably innovative DNA.”
Some commentators describe the insurance industry as conservative, risk adverse and slow to adopt change. Allen describes that perspective as “ridiculous” and “completely uninformed.” He said: “When it comes to portfolio and risk management, I can’t imagine there’s anybody more innovative and sophisticated than the insurance industry.”
According to Allen, the challenge for the insurance industry lies not in innovation but rather in changes to human condition spurred on quickly by technological advancements. New technology is speeding up evolution of the human experience with devices and strategies that are “not necessarily in the historic wheelhouse of the insurance company”. Insurance firms don’t need to accept defeat, Allen added, but rather need to “re-train their innovative muscles” to match technological advances and shifts in the human condition.
“It’s not as if the insurance industry needs to learn how to walk. That’s not true at all,” Allen told Insurance Business. “Rather, insurers have to change from long-distance runners to sprinters, and that requires a different training methodology. They’ve just got to train their muscles differently. Everything changes over time and you have to be responsive to the market.”
Insurance Thought Leadership runs a platform called Innovator’s Edge, which focuses on helping companies in the insurance industry achieve growth through innovation. The intelligence platform provides members with access to tens of thousands of insurtech and early stage technology companies across 175+ countries, as well as built-in research tools and algorithms to identify best-fit firms. The aim of the platform is to “operationalize the innovation process at scale and relative to risk,” Allen explained.
“There are lots of technologies on the Innovator’s Edge platform that might inform an agent or broker about how to become more productive. Where the platform could really help an agent or broker to multiply their book is by enhancing their role as a trusted advisor. Brokers can use the platform to show their clients how technology is morphing their risk profile,” Allen commented.
“Exploration of the platform will also inform the broker about new opportunities that didn’t exist before. The broker in the field is the most capable person to understand and advise on the new types of products that need to be brought to market. They’re best positioned to advise clients about the cover they actually need.”
