Successful Insurance Innovation at LV=: Implementing Test and Learn Through a Fast Track Approach
A targeted innovation program has delivered hard savings exceeding £3.5 million and completed 35 projects since 2012.
Insurance innovation typically lacks consistency, clear definition, and appropriate governance. Many valuable initiatives rebound from year to year as good ideas, but are abandoned for lack of a test and learn process. The result limits insurers to the implementation of known approaches which fall short of customer expectations and do not create a competitive advantage.
Through its implementation of the Fast Track process, LV= has begun to overcome these barriers and is on its way to making innovation a continuous part of its business process. As the company has progressed in implementation, it has delivered business value and rekindled its entrepreneurial drive. The lessons learned are instructive for other insurers that seek to improve their innovation performance.
“A distinguishing feature of the Fast Track program at LV= is the close cooperation between IT and the business areas,” says Mike Fitzgerald, a senior analyst with Celent’s Insurance practice and author of the report. “Many programs see internal IT as a barrier to innovation, but LV= has been successful at overcoming these obstacles.”