A report published by management consultant KPMG suggests that many insurance executives are struggling to kindle the spark of innovation within their companies.
KPMG surveyed 280 insurance executives from around the world and found that 48% say they are being disrupted by new, more nimble, competitors, and 83% believe that their organization’s future success is "closely tied to its ability to innovate".
While the report shows that insurers recognize the need for change, 79% of the executives say they are struggling simply to keep up with their day-to-day requirements, and 74% say they lack the "internal core skills" needed to drive innovation.
Many insurance executives are looking outside of their industry for innovative ideas, with two-thirds of survey respondents saying they watch sectors such as automotive, retail, healthcare, and technology for inspiration.
“Striking your own path for innovation does not mean starting from scratch,” says Mary Trussell, author of the report and member of KPMG's Global Insurance Leadership group. “Instead, it is about leveraging experiences and successes including the ideas of others to create new propositions and approaches to delight customers and create value. It’s about learning from both traditional competitors and new disruptors. And it’s about shamelessly borrowing best practices and new ideas from outside the insurance sector and its traditional allies.”