Most insurance players recognize that employees represent their greatest potential source of new ideas. While many have tried to transform their culture to encourage innovation, our experience and research suggest this remains a sticky point for the insurance industry to overcome.
With half of our respondents saying that the greatest number of new ideas are currently generated by diverse working groups of cross-functional teams, it seems clear that insurers can drive enhanced innovation by creating a more collaborative culture. Easier said than done. Half of our respondents said their ability to break down internal silos is creating significant challenges to innovation.
The industry is shifting, as insurance players recognize the value of experimentation, and where new ideas and skills are thoughtfully deployed. Sixty-one percent claim they actively encourage employees to experiment.
“It seems obvious, agile and dedicated leadership can be a defining factor for success”, noted Mary Trussell, Global Insurance Innovation Lead Partner, KPMG in Canada, yet, just 11 percent say they have an executive team member (or group of members) responsible for innovation.
We believe that innovation should be discussed at every Board meeting, however 47 percent say it is discussed just once a year, and 9 percent of respondents said it isn’t discussed at all.
“Our exerience suggests that innovative cultures tend to emerge when individuals feel a sense of ownership and control over the innovation process.” - Mark Spears, kpmg’s global head of people and change