Innovation in Latin American Insurers 2016: A Current Snapshot

by Juan Mazzini,  Michael Fitzgerald, December 22, 2016
Industry Trends
Latin America

Abstract

Celent has released a new report titled Innovation in Latin American Insurers 2016: A Current Snapshot. The report was written by Juan Mazzini and Mike Fitzgerald, Senior Analysts in Celent’s Insurance practice.

Over the past four years, Celent has been researching what practical steps insurers are taking to manage innovation. This report extends these efforts by examining the trends in Latin America in detail.

Practically all of the insurers that responded to a survey about the innovation of Latin American insurers identified innovation as critical to meeting customer expectations. However, a large group continues to identify innovation as important but not critical to their strategy.

A large group observed that, as a whole, insurance continues to lag other industries in its successful implementation of innovative technology and processes. In contrast to findings in other regions, top-level leadership is cited as the main barrier for innovation.

“The data suggests a certain level of complacency in Latin American insurers regarding the need to change the status quo and a possible reluctance to criticize the current business model. Most efforts continue to focus on incremental innovation; the implication is that the insurance industry believes they still have time to adapt and adopt the myriad of changes flying over them. Disruption is not a looming threat,” Mazzini said.

“The survey underscores that there are opportunities for Latin American insurers to brand themselves as innovators and position their company, in the minds of consumers, as one that is responding to new preferences about customer engagement. It remains to be seen who will accept this challenge,” Fitzgerald said.

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 part 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

 

Key Research Questions

1

Introduction

3

 

Key Research Questions

3

 

Background

3

 

Survey Demographics

3

The Business Case for Innovation in Insurance

5

Execution of Innovation in Insurance

9

Moving Forward with Innovation

12

 

Barriers

12

 

Disciplined Innovation Management

13

 

Recommendations

15

Conclusion

17

Leveraging Celent’s Expertise

19

 

Support for Financial Institutions

19

 

Support for Vendors

19

Related Celent Research

20

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