Successful Insurance Innovation at LV=: Implementing Test and Learn Through a Fast Track Approach

by Michael Fitzgerald, October 14, 2015
Case Studies
Global

Abstract

A targeted innovation program has delivered hard savings exceeding £3.5 million and completed 35 projects since 2012.

Insurance innovation typically lacks consistency, clear definition, and appropriate governance. Many valuable initiatives rebound from year to year as good ideas, but are abandoned for lack of a test and learn process. The result limits insurers to the implementation of known approaches which fall short of customer expectations and do not create a competitive advantage.

Through its implementation of the Fast Track process, LV= has begun to overcome these barriers and is on its way to making innovation a continuous part of its business process. As the company has progressed in implementation, it has delivered business value and rekindled its entrepreneurial drive. The lessons learned are instructive for other insurers that seek to improve their innovation performance.

“A distinguishing feature of the Fast Track program at LV= is the close cooperation between IT and the business areas,” says Mike Fitzgerald, a senior analyst with Celent’s Insurance practice and author of the report. “Many programs see internal IT as a barrier to innovation, but LV= has been successful at overcoming these obstacles.”

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

 

Key Research Questions

1

Introduction

2

Fast Track

5

 

The Company

5

 

The Challenge

5

 

Fast Track

6

 

Implementation

7

Results

12

Key Success Factors

15

Future

17

Conclusion

18

Leveraging Celent’s Expertise

19

 

Support for Financial Institutions

19

 

Support for Vendors

19

Related Celent Research

20

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