The last years there have been a lot of changes in the financial industry. Banks went through a rough decade and Insurance companies are starting to feel the urge to innovate.
I have been working for over a decade in the insurance business and when I look back on these last 10 years I believe that I can look back on a relatively stable period.
0smosis creates world-class start-ups that change the Fintech world. And after 3 weeks at 0smosis I have realized we have the capabilities to kickstart the Insurance disruption.
The banking industry got hit very hard. This is completely different in the insurance industry. They have been ‘saved’ … so far. But let there be no doubt it will hit and when it does it will hit insurance companies and brokers hard. “But as always, challenges come gradually… and then suddenly.”
What has happened so far?
Banks have gone through a very rough period. The past years a lot of people were laid off due to digitalization (link). Insurance companies have actually not suffered at all. The innovation train in the insurance industry came very late. According to Fernand Dimidschtein this is going to change. Insurance companies “are waking up when it comes to innovation”. (link)
And to prove my point here are some questions to you:
- How many insurances do you have or did you ever had?
- How many of them did you close online?
- Would you be willing to buy an insurance online?
I assume most of the people will answer ‘yes’ to the third question. When you look at the current practice → even for ‘standard’ insurance-products like car, family, bike, ... most companies don’t offer you to close the insurance online. They only provide a quote...
Euhm, boys and girls. We are 2019 already !
Everyone is looking for new ways to create new services, new products, … . I think I can say without hesitation that we are currently at the tipping point !
Everyone I talk to understands that companies who don’t step on the innovation train will not survive.
Some companies focus more on their internal processes to become more efficient or to make it easier to create alliances. Other companies are mainly looking for ways to create new services
My personal advice: it is best to do both.
Take a look at Lemonade, Qover, Generali, ...
What is innovation?
I don't like this question. The real question should be: what does innovation mean to you?
Famous people like Steve Jobs, Elon Musk, Henry Ford, George Lucas, … they all have created something ‘new’. They actually mainly followed their own vision. And even today there are companies who do their 'own thing' (eg. hyperloop).
But more and more in the last decade companies feel the urgent need to understand their clients. I highly recommend to read this article. Jan De Witte (CEO of Barco) explains that companies have to listen carefully to really understand the customer and to keep up with the high expectations of customers nowadays.
So innovation also means creating new services or new business models by using existing technology combining with the customers needs.
So what does innovation mean to you? And ...
... what kind of company do you want to be?
- Do you want to improve your underwriting-process? Or do you want to improve the claims-process?
- Do you want focus on new clients? Or do you want to focus on retention?
- How do you want to improve customer experience?
When you want to invest in these changes I would advise to make a clear distinction between: listening to your customers on the one hand and creating added value via new technology on the other hand.
The world still needs people who can think outside the box. But listening to your customers is very important.
So how do you do it then? 🚀
Well, you can say that innovation is like teenage sex. You have to do it to get better at it.
Contact us and let us share some thoughts and a cup of coffee ☕...
... because no wall is big enough for Nick's ideas !
Check out www.0smosis.com
About Hendrik (Fintech Advisor at 0smosis)
+10 years experience in Insurance industry
and euhm ... did I mention Star Wars?