A Snapshot of Innovation: Insurance Market Scan for 2009

by Catherine Stagg-Macey,  Nicolas Michellod, November 20, 2009
Case Studies
Global, Asia-Pacific, EMEA, Latin America, North America

Abstract

Innovation requires some leaps of faith, but could have some significant rewards.

In a new report, A Snapshot of Innovation: An Insurance Market Scan, Celent takes a closer look at examples of innovative application of technology in insurance. Insurance organizations have risk aversion in their DNA, but there is more innovation than the industry is given credit for. The use of telematics in pay-as-you-drive insurance is a great example, as is price optimisation among UK insurers. This report will provide several examples of technologies that are being used to create innovation in product and process.
 
"It may seem like a peculiar time to talk of investing in innovation, given the backdrop of the global financial crisis” noted Catherine Stagg-Macey, senior insurance analyst and coauthor of the report. "But there is remarkable interest in using innovative technology to achieve business objectives."

The report discusses in some detail applications for the smart phone, digital pens, social marketing with social media, and digital assistants. The business case behind many of these initiatives is unclear. Innovation requires a leap of faith, more in some areas than others. There remain several unknowns in all the initiatives, such as consumer behaviour in social networking or adoption rates of smartphones and their applications. Few of the initiatives in this report are today able to create a high impact on the business process.

"There will be leaders and followers in innovating business processes,” noted Nicolas Michellod, senior insurance analyst and coauthor of the report. “CEOs and CIOs need to be clear on which category they want to be in. Leaders could reap benefits for early investment in an innovation that gains broad acceptance, but could also bear the costs with minimal benefit if it does not work."

The report will hopefully stimulate ideas for the reader and present some new and interesting ideas that are worth exploring.

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

3

Introduction

4

 

Managing Innovation

5

 

Technology and Innovation

6

Leveraging Smartphones

7

 

Smartphone Apps in Insurance

8

 

The "How To" of Smartphone Apps

9

 

Where To?

10

Digital Pens Offer Efficiency Gains in the Field

11

Smart Marketing with Social Media

13

 

Generali France Launches the Concept of Micro-Insurance

13

 

CSC Nimbus

15

Virtual Worlds and Digital Assistants Become Real

17

Conclusion

20

Leveraging Celent’s Expertise

21

 

Support for Carriers

21

 

Support for Vendors

21

Related Celent Research

22

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