News

Where has all the creativity and innovation gone?

15 August 2013

Creativity is missing in the Financial Service market today, most especially in the world of Insurance, with the knock on effect that 'the majority are unprepared for the unexpected'. Research from Bright Grey, recently published in their annual Financial Safety Net report, found that 60% of the adult population say they do not have any financial protection in place should the worst happen. This is backed up by L&G data that shows the average UK household has just 19 days worth of savings and financial provisions should an individual be unable to work.

So why are so many huge Companies with thousands of clever staff failing to motivate potential customers to save and insure? I think one of the reasons is a lack of innovation as the company focus turns towards the processes and management levels that evolve to accommodate greater size.

Bryan Pearce, who directs Ernst & Young's Entrepreneur of the Year competition, hits the nail on the head:

The challenge is to balance the spirit that got them started with the corporate culture they've had to evolve as they've grown

He continues,

They need to find a balance where you don't become too corporate and still have people who think entrepreneurially

Unfortunately as companies grow and enjoy success they institutionalise various functions and settle down into comfortable routines. Whereas they should be working out how to retain that flow of new ideas at the same time as managing business as usual. They need to do much more than just 're-innovate their existing products'; they need to branch out into new services, discover new business models, adopt business process modernisation and, in general, keep up the pace of creativity on all fronts. Forward-thinking CEOs understand that innovation should be part of the DNA of their business, just like listening and being close to customers.

Take an example of the Bright Grey research - 43% of those without insurance said cover is too expensive. In most instances I would disagree as life and critical illness insurance can easily be tailored to meet most restricted budgets by reducing cover or term. Multi-benefit products have been designed for just that purpose so why are these not being presented on-line, where customers do their research, in ways that help them understand?

Granted, it takes a lot of leadership and courage to invest when there is no guaranteed pay off - but investing in the right technology will certainly help. Introducing a new idea does not have to put business as usual at risk. Agile software is designed to allow a test, learn and adapt approach. If we are ever to do anything about the 'protection gap' and re-engage people with the need to save, new ideas are desperately needed. History has proved that you can't stay a successful brand without re-inventing yourself.

Latest Blogs

2017

October

What does the future hold for commercial insurance?

September

Insurance is changing – time to adapt and survive

August

Does AI deserve the headlines?

May

Seeing through the eyes of the customer

April

Insurance technology – simplify the complex

March

InsurTech, ignore it at your peril!

2016

December

It’s Crystal-Ball Gazing Time Again

November

How ready are you to combat fraud?

October

Actions speak louder than words

September

Efficiency, agility, and profitability

How can you be more customer-centric?

August

Old Technologies - It is OK to plug the gaps

New Technologies - Same Old Systems

June

Running to stand still

May

Is your business ready to adapt?

March

No, seriously, what can you claim about your claim systems?

What can you claim about your claim systems?

February

It's people that have the ideas

January

Separating the Movers from the Shakers in 2016

2015

November

The challenge to be different – it’s all about the people

September

Security, Simplicity and Speed - the future of Financial Services

July

The New Breed of Quote and Rating Modules

June

INSURANCE INNOVATION SUMMIT 2015 - Hosted by Ingenin Ltd

April

Speed and Personalisation – aspiration or reality?

March

Team spirit is an illusion glimpsed in the aftermath of victory... or is it?

January

David or Goliath?

2014

December

What's your New Year resolution? Here are three of ours

November

2014 Insurance Technology Event - Championing Innovation - Hosted by Post Events

The maverick in the ranks - how do we deal with the talented non-conformist?

September

Are you Responsible, Chilled, Sociable, or Happy?

August

A Customer for Life

July

Being different

June

Cloud computing – a huge opportunity for the Insurance Industry

May

Past failure is a threat to future success

April

It isn’t broken yet - is change too risky?

March

Today’s word is ENABLE

What is Value for Money?

February

How to make vision a reality – it’s not that difficult

The Challenge IS the Opportunity

January

Instil a culture of innovation and creativity

Three steps to success in 2014

2013

December

What customers want from the Life Insurance industry

Themes from Insurance Strategy Insights event

November

The need for competition

Insight must lead to action

What is disruptive technology?

October

Closing the insurance delivery gap

September

Reliability much more important than price

August

Where has all the creativity and innovation gone?

Is there too much fear in business?

July

"Simplicity" is not as simple as it looks

Time for Innovation

Standing out from the crowd

June

Insurers need to innovate and excite - or die

May

The danger of business inertia

April

The BIG Decisions

The work/life balance

Coping with exploding data

March

Trust and loyalty go hand in hand

February

Bold and brave

January

To stand still is to go backwards

2012

December

The year ahead in Financial Services

Love it or hate it, you can't ignore the influence of Twitter

When is it better to 'start again'?

November

Differentiation is the key

October

Solvency ll - may be delayed but certainly won't go away!

Better by the bundle?

Insurance and the net

Personalised technology

September

USA leads the way

August

Technology gold medals

New is not always better

Stand still and get left behind!

July

Social media blamed for poor data flow

Banks will abandon 50 per cent of branches in 8 years