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Drive growth with innovative new insurance products




Innovation-led revenue is ready to increase traditional revenue in many product lines. According to Accenture’s research, Innovate for resilience and new insurance revenues, the global insurance industry will grow by $ 1.4 trillion between 2020 and 2025. Including that growth, we estimate that almost 5% of global premiums – about $ 280 billion – will affected by product innovations ($ 140 billion) and transitions to digital third-party platforms ($ 140 billion).

Start with unsatisfied customer needs

For insurers wondering where to start when it comes to developing innovative new products, I recommend starting by identifying your customers̵

7; unmet needs. Through research, data analysis and workshops for design thinking, you can look beyond what you do today to see solutions that can be meaningful, relevant and valuable to your customers tomorrow.

For example, our 2021 Accenture Global Insurance Consumer Study found that consumers are interested in:

  • Personal, use and behavior based insurance such as car insurance
  • Life insurance premiums that reward customers for healthy lifestyle choices
  • Cyber ​​insurance where the premiums are linked to using the latest virus protection software, password manager and other tools
Click / press to see a larger image.

Source: Technology Trends 2021 | Tech Vision | Accenture

See also my previous post where I shared four innovation areas to consider.

Innovative new products focused on specific needs

New product offerings that are designed to meet very different consumer needs include:

Three of Berkshire Hathaway. Three offers comprehensive insurance for small businesses. The solution is based on three pillars – simple (an uncomplicated policy in ordinary English), comprehensive (an inclusive policy to protect the entire business) and cost-effective (designed to cost 20% less than comparable coverage). A single insurance policy can cover corporate liability, business interruptions, cyber attacks, work injury compensation, company car and property and assets. For small business owners who qualify, this offer is a game converter.

Toggle, a farming company. Toggle offers customizable rental and car insurance with rewards for each damage-free year and matched with millennial priorities. Customers can choose from a range of options, including coverage for expensive items such as cameras, phones and computers, coverage for side life companies, identity protection and pet and non-life insurance. The company also handles the change from another insurer to make it as easy as possible for new customers. Accenture worked with Toggle to analyze millennial attitudes towards rental and insurance – research that showed that the new offer must be accessible, fast and adaptable, and the experience unsurpassed.

Experiment, launch and scale

According to Harvard Business Schools Clayton Christensen, 95% of all new products fail. We have discovered that successful products are the result of development strategies that put the customer experience at the forefront and focus on utilizing data. Reducing costs and the time it takes to get knowledge from customers is the key to moving forward. This is in stark contrast to the slow and deliberate approach that historically risk-averse insurance companies have usually advocated. This means building a data link, fast experimentation capacity, perhaps even innovation hubs and incubators, which allow you to test a range of hypotheses and build prototypes without risking huge investments. My colleague, David Boycott, talks about how to escape the pilot’s purgatory.

Given that so many products fail, the launch and scope of new products is also crucial. To do that, you need to set key goals, use data-led marketing, and create a framework for deployment to scale them across new channels. If you are interested in learning more about this, see our page on launching your next big opportunity. Another option that my colleague Jim Bramblet has talked about is to use intelligent digital twins.

In my next post, I’ll look at how a marketing transformation can help you drive growth.


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Disclaimer: This content is provided for general information purposes only and is not intended to be used in consultation with our professional advisors.


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