Collaboration is vital to growth for insurance companies says innovation expert
Published: June 2, 2019
Updated: June 30, 2019
Author: Luke Jones
CATEGORY: Industry News
The insurance industry is ultra-competitive, especially in hard markers like personal auto. However, the industry does not have to be winner takes it all, and instead collaboration can be the key to success. In fact, one industry insider believes a lack of collaboration is holding insurers and brokers back.
Sven Roehl, co-founder of insurtech innovation leader Cookhouse Lab, says the most successful insurance providers value collaborations. Although, he adds to make the most of collaboration, companies must work outside their comfort zone.
“What they’re now doing more than ever is focusing with industry peers and also with organizations outside of the industry where they get more knowledge [and] access to new customer profiles,” he said during a talk at InsurTech North last month.
“This is really where you learn more. I would really encourage anybody working in the industry to try to get out of the box and try to collaborate with other organizations. It will open your horizons in such a tremendous way.”
Roehl says many companies get locked into a cycle where they maintain the status quo. He cites insurers that stick to a strategy they have used for years because they believe it is the only way of conducting business. Roehl points out this is a poor strategic position because it stifles innovation.
“I think this is now the opportunity to say, ‘Okay, what kind of new business models do we need?’” Roehl said.
“The one thing that is very important when doing this is you need to connect and understand your customer even better, even more than you ever did before,” Roehl added. “This really means you need to be able to connect to the customer using technologies like [the internet of things], but also using customer experience information from feedback and other behavioural data – getting closer to the customer and understanding the risk.”