Innovation in Latin American Insurers: A Snapshot
Increasing commoditization, a need to improve speed to market, the multiplication of distribution channels, and increased consumer expectations are just a few of the business challenges which demand innovation. But how do leaders successfully engage their organizations in the identification and delivery of significant business and technology change? What “works” regarding business/technology planning, and where are the opportunities for improvement?
Over the past three years, Celent has been researching what practical steps insurers are taking to manage insurance innovation. In the report Innovation in Latin American Insurers, Celent extends these efforts by examining the trends in Latin America in detail. It is based on a survey of 37 insurers conducted in July/August 2015.
The objectives of the survey were to:
1. Gauge the importance of innovation to business strategy.
2. Identify key benefits from innovation in insurance processes.
3. Detail the common barriers to implementation.
“Interest in innovation continues to increase,” says Mike Fitzgerald, a senior analyst with Celent’s Insurance practice and coauthor of the report. “Consumer expectations continue to rise, and technology is providing opportunities for improved risk management. Innovation helps insurers take advantage of these trends by delivering differentiated service and products.”
“To innovate, insurers have to deal with various types of barriers,” says Luis Chipana, an analyst with Celent’s Insurance practice and coauthor of the report. “To overcome these barriers, insurers have to own a real and credible mandate to innovate, which is going to be reflected in top-level leader attitudes.”
“Three years ago insurers were focused more on asking what. What innovation should I be pursuing? What technologies should I be prioritizing?” says Juan Mazzini, a senior analyst with Celent’s Insurance practice and coauthor of the report. “As organizations moved into their innovation journey, they realized that how was the first question they should have been asking.”