Innovation in Latin American Insurers

A Snapshot
by Juan Mazzini,  Michael Fitzgerald, July 30, 2013
Industry Trends
Latin America

Abstract

Increasing commoditization, a need to improve speed to market, the multiplication of distribution channels, increased consumer expectations—these and other business challenges demand innovations that deliver new corporate capabilities.  But how do leaders successfully engage their organizations in the identification and delivery of significant business and technology change?  What “works” regarding business/technology planning, and where are the opportunities for improvement?

Over the past 18 months, Celent has been researching what practical steps insurers are taking to manage insurance innovation.  A new report, Innovation in Latin American Insurers, extends these efforts by examining the trends in Latin America in detail. It is based on a survey of 58 insurers conducted in May/June 2013. The objectives of the survey were to: 1) gauge the importance of innovation to current business strategy, 2) identify key benefits from innovation in insurance processes, and 3) detail the common barriers to implementation.

“Practically all of the insurers who responded to the survey identified innovation as important or critical to their company strategy,” says Mike Fitzgerald, Senior Analyst with Celent’s Insurance Group and coauthor of the report. “However, a majority of them also observed that, as a whole, insurance tends to lag other industries in its successful implementation of innovative technology and processes. Clearly, there is work to be done by companies that want to excel in this area.”

“We were pleased at the broad geographic representation of respondents to the survey,” says Juan Mazzini, Senior Analyst with Celent’s Insurance Group and coauthor of the report. “Insurers from all major markets participated, and we are confident that the data provides a current, accurate snapshot of how insurers are performing in this important initiative.”

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned subsidiary of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

Executive Summary

1

Introduction

2

 

Background

2

 

Survey Demographics

2

The Business Case for Innovation in Insurance

5

Execution of Innovation in Insurance

8

Moving Forward with Innovation

11

 

Barriers

11

 

Responses

11

Conclusion

13

Leveraging Celent’s Expertise

14

 

Support for Financial Institutions

14

 

Support for Vendors

14

Related Celent Research

15

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