Things: Creating a Connected World, the Io T is rapidly being
adopted by the industries that insurance companies have as
their customers. From automotive, retail, home, manufacturing,
energy, transportation, agriculture, and more, the Io T is radically transforming stand-alone products into “smart, connected
products” that provide more worth through new, innovative,
and valuable services. As a result, new companies are emerging,
business and revenue models are being redefined, and customer loyalty is shifting to those who provide the most valuable
Look at the disruptive potential of the connected car. The
technology will make vehicles safer by helping avoid or even
eliminate accidents. The obvious result will be decreased
premiums due to decreased risk. Less obvious is that due to the
technology, automakers may include insurance as part of the
sales price of the car because the technology will make it more
of a product liability issue than a personal driving issue.
Add to this the potential that the Io T will make vehicles a
greater part of making everyday life easier, more productive, and
more enjoyable. From recommending restaurants to assisting with
scheduling auto service, paying an insurance bill, helping to manage daily tasks such as grocery shopping, and more, these connected services will change customer relationships and loyalty.
With this level of customer engagement, automotive companies
are readying themselves to own the customer, from sales through
service, including insurance and repair needs. Don’t believe this
is real? All of these scenarios are already in experimentation and
pilot, allowing them to be rapidly deployed to gain market share
and customer momentum. The impact? P&C insurance will be
significantly disrupted unlike anything we have experienced before.
Emerging technologies like gamification, biotechnology,
wearables, drones, and others along with emerging trends like
the shared economy, the digital wallet, and personal digital
data lockers owned by customers are influencers and levers of
change that are placing unprecedented pressure on insurers to
reimagine their businesses as a Next-Gen Insurer. These levers
of change, primarily come from outside the insurance industry.
They affect all the touch points and redefine the entire insurance value chain. Together they are transformational and highly
Embrace the Opportunity
Insurers have an unparalleled opportunity to unlock a revital-
ization of competitiveness and customer value, reinvigorating
the creativity and innovation that made them successful in the
first place. To awaken, enlighten, and inspire the possible and
the impossible, forward-thinking insurers are looking at how
they can replicate what the most innovative companies are do-
ing. Consistently, a culture that is powered by open innovation
and an outside-in ecosystem that connects people and organiza-
tions with diversity of thought, information, and expertise can
be tasked to break down legacy assumptions by understanding
the comprehensive number of influencers and trends, both
within and outside the insurance industry, and their impact on
Developing business scenarios based on the implications—
including how to respond over the next three to five years—is
mandatory for growth and success. The top innovative compa-
nies like Google, Apple, Ford, Proctor & Gamble, and GE have
embraced open innovation and an ecosystem with game-chang-
ing, market-leading results.
This is why open innovation and an ecosystem are crucial
for insurers to embrace in order to remain relevant and com-
petitive in this fast-changing digital economy: Both of these can
be formidable for companies in positioning, retaining, or more
importantly, leapfrogging market leadership status and why
SMA has embraced open innovation and an ecosystem through
our Next-Gen Innovation, to help lead the way for insurers.
Following the release of the The Next-Gen Insurer: Fueled
by Innovation report in April, 2014 that identified eight major
influencers (inside and outside the industry), the explosion of
data, and the need for an innovation culture, we have:
K Researched and published well over 30 reports, articles, and
blogs that provide more in-depth information, insights, and
calls to action for insurers to consider as they define their
vision as a Next-Gen insurer;
K Established an innovation community to share and discuss
topics and information that are influence, impact, and
reshape the industry; and
K Provided access to an ecosystem of futurists, academia, tech
start-ups, technologists, venture capital firms, thought leaders, outside industry leaders, and others to participate in our
innovation communities and selected research and provide
their outside-in perspective.
Combining the power of our innovation communities with
our growing ecosystem, Next-Gen Innovation is empowering
insurers with collective intelligence and ideas that can accelerate innovation within their companies and the industry. SMA
is dedicated to transforming the insurance industry, inspiring
insurers to aspire to a new vision as a Next-Gen Insurer. Next-Gen Innovation has become an extension for insurers’ innovation, strategy, and R&D efforts, inspiring and activating the
changes necessary for becoming future market leaders.
Step toward the future. Embrace the disruption and change.
Engage others outside your company and outside the industry.
Leverage an ecosystem offering information, collaboration,
knowledge, and insight. In the process, be inspired. Be creative
and collaborative and bold. Become a Next-Gen market leader.
Be one of the Top 50 most innovative companies. ITA
Contact Denise Garth at dgarth@strategymeetsaction.
com if you’d like to learn how SMA can help you on the
innovation journey and discover new opportunities for the