© 2012 CELENT, a Division of OLIVER WYMAN CONFIDENTIAL Mike Fitzgerald Senior Analyst Creative...

© 2012 CELENT, a Division of OLIVER WYMAN CONFIDENTIAL

Mike Fitzgerald

Senior Analyst

Creative Disruption Symposium

September 13, 2012

New York, New York USA

CREATIVE DISRUPTIONMANAGING INSURANCE INNOVATION

2© 2012 CELENT, a Division of OLIVER WYMAN CONFIDENTIAL April 21, 2023

Tradeoffs in performance of activities that define a business model (Porter)

Continuum leading to disruption (big “D”)

STRATEGY

INNOVATION

DISRUPTION

Breaking those tradeoffs (Raynor, Christensen)

A theory of innovation, where:

• Technology changes the “productivity frontier”

• Success in fringe markets sets the stage for “up-market march”

• Managing innovations as a portfolio will increase the probability of success

1

2

3

3© 2012 CELENT, a Division of OLIVER WYMAN CONFIDENTIAL

Compared with other industries, insurance companies successfully innovate....

April 21, 2023


Compared with other insurance companies, my insurance company successfully innovates....

April 21, 2023


Innovation in insurance looks like

1 Inconsistent

2 Initiatives rebound

3 Lack of disciplined approach


Model

STATUS QUO

Risk and Compliance

Business model enablement

and partnerships

Market and product agility

Efficiency and expenses

Pre and post sale customer engagement

Liability Management

Growth and retention Profitability and Control

Improvement

Innovation

Disruption


Example initiative

Enable the direct sales capability for life product sales. Quote and bind applications on the company website for term products.


Identify strategic lever

April 21, 2023

Risk and Compliance

Business model enablement and partnerships






Identify type of project

April 21, 2023

STATUS QUO

Improvement

Innovation

Disruption


Where should initiative be placed?

STATUS QUO

Risk and Compliance


and partnerships






Improvement

Innovation

Disruption


Innovation framework

STATUS QUO

Risk and Compliance


and partnerships





Product configurator

Real-time Capital Adequacy

Fraud Analytics

Business ProcessManagementSocial-media enabled

real-time servicing


Telematics

Improvement

Innovation

Disruption


Innovation framework – 2012 Model Insurer results

STATUS QUO

Risk and Compliance


and partnerships





Improvement

Innovation

Disruption



Growth and retention

STATUS QUO

Risk and Compliance


and partnerships



Pre and post sale customer

engagement


Insurer pilot – priority 1 initiatives

April 21, 2023

Profitability and Control

Improvement

Innovation

Disruption


Challenge phase

• Are we being bold enough?

• Are our strategic bets the right ones?

• Are we leveraging disruptive technology?

• Where are we at risk of losing ground against our competitors?

• Are our resources aligned against the right initiatives?

• Have we got our best people on leading the most disruptive initiatives?

• Do we have the capacity / skills to implement the technologies required?

• What trade-offs in the portfolio need to be made?

• Is the organization ready for the changes required?

April 21, 2023

Agree actions to realign the portfolio in order to match the strategic intent


Case studies

• What is truly new?

• Why was it a success?

• What else can be done?

April 21, 2023

© 2012 CELENT, a Division of OLIVER WYMAN CONFIDENTIAL Mike Fitzgerald Senior Analyst Creative...

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