The economy is getting more complex and the marketplace continues to soften. Creativity and innovation in the insurance industry is now necessary and key to long-term success.
Julie K. Davis was a featured speaker at the Women's Network Group in Sacramento in March 2008. Her focus was on innovation in the insurance and professional services industry. The group of women shared ideas on ways to promote new innovation throughout the industry.
Julie Davis presented ample evidence that new product and service innovation in the insurance and professional services industry can take flight. Ms. Davis has been tracking new product innovation in the insurance industry for the past year. New products and services have ranged from pet insurance and privacy liability protection, as well as programs designed for new industries (clean technology and nanotechnology). Over the past 12 months the market has seen a wide range of new insurance products and services, but innovation is still not at a level needed to meet growing customer needs and provide an economic lift in the insurance industry.
Business leaders in the insurance industry can play an important role in new product introductions and moving the industry forward to help cushion any economic downturn. Steps the insurance industry can take include:
-- Review all of the market segments you currently serve. Some may be growing faster than others and is poised to perform better in an economic recession.
-- Review all of the products you currently offer. While traditional insurance products and services haven't changed much over the years, specialty insurance products and markets have the biggest opportunity for innovative and creative review. There are now over 100 classes of professional liability opportunities.
-- Don't overlook opportunities to sharpen and design your distribution channels.
-- Thought leadership is an increasingly important driver of the success for insurance agents, brokers, wholesalers and carriers. Thought leadership goes beyond the ability to create innovative products and services. It is also a skill set needed to engage with more informed clients and prospects.
-- Depend on diversity of thought and innovation in your organization. Establish an innovation group that has cross-industry experience and ideas. Too many efforts on product innovation fail because the initiative did not involve enough diversity of thought in the industry.
-- Listen to customers. Customer groups can guide your new product and service innovation efforts. They can have insights on the seemingly small things that can make a difference.
-- You must change your marketing mix to include something other than the traditional means of advertising, sponsorships and prospect communications. If you don't include consumer and industry insight, your efforts may be slower than your competitors.
The Women's conference held in March 2008 included professionals from across the nation who shared ideas on how to promote innovation and thought leadership in the insurance industry. Julie Davis, Aon Corporation, has been tracking new insurance product and service introductions across the industry. While the industry is making progress on innovation of new products and services, some national economies are outpacing the American economy on innovation. The insurance industry is one of those industries being challenged. Leadership at insurance agents, brokers, wholesalers and carriers needs to include innovation as an urgent agenda item to position for positive economic growth. -- Women's Network Group
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