Innovation snapshot of UK protection insurance sector
Over two-thirds of respondents to a survey commissioned by Life Insurance International (LII) do not view their companies as innovators.
The data was generated as part of a Protect Association commissioned by LII.
Asked if they would describe their companies as innovators, of those Protect Association members who completed the survey, 69% said no, with 23% saying yes.
Respondents were next asked to rate innovation in their companies’ departments. The results were as follows:
- Claims Management – very dissatisfied 8%, neutral 46%, satisfied 38%, very satisfied 8%
- Sales & Marketing – neutral 39%, satisfied 38%, very satisfied 23%
- Product Development – dissatisfied 8%, neutral 15%, satisfied 46%, very satisfied 31%
- Customer Services – dissatisfied 8%, neutral 31%, satisfied 54%, very satisfied 7%
- Risk & Pricing – very dissatisfied 8%, dissatisfied 8%, neutral 46%, satisfied 30%, very satisfied 8%
Asked what percentage of their time is spent on innovation,
- 31% said 1-20%
- 8% said 21-40%
- 23% said 41-60%
- 30% said 61-80%
- 8% said 81-100%
Of those Protect Association members who completed the survey, just over a third (38%) said they have no FinTech involvement.
A total of 8% said they are funding some Fintech innovations separate to themselves and some 8% said they are talking to Fintech companies about how they may help them.
Short/medium terms priorities
Asked what are the short/medium term imperatives in your company, answers included introducing new products and services, refreshing or enhancing current products and services, investing in new technology and breaking into new markets.
Other short/medium term imperatives included:
- Working more efficiently/ saving costs/ increasing productivity
- Customer experience /engagement initiatives
- Working with new external business partners
- Profitable growth with existing clients and some new partners.
Respondents at Protect Association also gave their insights on the biggest restrictions to innovations.
- Other business priorities 23%
- Technology platforms and existing infrastructure 23%
- Budget availability 23%
- Other 15% –
Lack of insurer buy-in at early stage trialling,
Resistance from industry to refresh distribution models
Traditional players protecting their current position
The fear of failure 8%
Having suitable partners available 8%
Commenting on the survey, Paul Yates, product strategy director at iPipeline, said: “Innovation in our market has largely focused on product design and improving the submission process. Over the last 20 years this has not helped reduce the Protection Gap one bit. Now things are changing.
Focus has shifted to helping financial advisers deliver tailored solutions which include the right messages, the right products, and the right compliance process to consumers at the time they need it.”
Due to limited timescales, not all the members of the Protect Association completed the survey.