Looking at one of the conclusions to the report, it lays the responsibility for incubating the innovation full square with the organisation;
“There is still a long way to go in changing the (innovation) mind-set and breaking down the barriers to achieving success in this field”.
However this is not the case. The burden of successful innovation does not rest solely with the organisation or staff. We at Cenata welcome the opportunity to work with you to lighten the load.
Whilst there is no discussion in the report about how innovation is triggered, there are typically two drivers for innovation;
- Client service level improvements
- Internal client (staff) process improvements, which directly or indirectly translate into Client service levels improvement
“There is still a long way to go in changing the (innovation) mind-set and breaking down the barriers to achieving success in this field”.
The key is to nurture that idea for innovation whilst acknowledging the above guidelines. A truly effective start point for innovation is to talk to potential suppliers, who have acknowledged expertise in your area of interest. This will help you to gain more clarity around the achievable benefits and, as importantly, the degree of change and the impact of those changes.
The Cenata approach is to work together to help shape the ideas in the first instance. This involves understanding the potential opportunity, the current situation, and the perceived barriers to change. From this start point, we can then work towards the delivery of the innovation and the supporting ROI.
Only at this stage can we look to mitigate, by careful collaboration and planning, the challenges that organisational fear of change creates. The CII report rates reluctance to change as the biggest barrier to innovation at 22.03%. At Cenata we also see reluctance to change ‘dressed up’ as; Cost (19.41%) Cultural Issues (14.51%), Lack of resources (10.14%), Fear of Failure (8.57%) and Lack of Collaboration (8.57%). With a collaborative ROI embracing all of these areas, you remove over 80% of those reasons for not innovating.
As such it is not difficult to see why the majority of innovative ideas never see the light of day. There is no scarcity of bright people with bright ideas in the London Market. There is a simple lack of understanding of how to bring those ideas forward.
The benefits of correctly cultivating innovation are prodigious as McKinsey point to:
“The urgency for innovation is clear: Already, insurers with more sophisticated IT capabilities have an obvious advantage in terms of agility, growth, and cost ratios, and they are better able to match the increased need for digital offerings. And insurers with market leading analytics capabilities have a five-year revenue CAGR (compound annual Growth rate) that’s four times higher than that of competitors”.
Irrespective of how well formulated your ideas are, don’t hesitate to bring them along to us. We have an unmatched track record in turning innovative ideas in the Outwards Reinsurance space into tangible and measurable business benefits.
“The urgency for innovation is clear, Already, insurers with more sophisticated IT capabilities have an obvious advantage in terms of agility, growth, and cost ratios. Insurers with market leading analytics capabilities have a five-year revenue CAGR (compound annual Growth rate) that’s four times higher than that of competitors.
