A massive 99.6 percent of insurers say they face obstacles to delivering innovation, according to research by FIS and Raconteur. But while innovation may not come easily, this slideshow reveals a new breed of pioneering insurance company, emerging to lead the way forward. Get a lively look at recent research findings, discover challenges and opportunities, and learn to tell natural born innovators from industry laggards. With some surprising statistics along the way, prepare to leave your preconceptions behind. And find out why it pays to stay in touch at every level in the new digital age of insurance innovation.

1. ARE YOU IN
TOUCH WITH YOUR
INNOVATIVE SIDE?
WHY (AND HOW) INNOVATIVE INSURERS
DO IT BETTER
Based on research by
FIS and Raconteur

2. TO INNOVATE
OR NOT TO
INNOVATE?

3. INNOVATION MATTERS IN THE DIGITAL AGE
Nearly 80% of insurance companies
agree they need to innovate
86%80%
86% believe they will lose
market share
… and if they don’t
SOUNDS SERIOUS. BUT WHY?

4. Drive competitive advantageIncrease customer satisfaction
TOP TWO REASONS TO INNOVATE
57%58%
That makes perfect business sense.
BUT (and yes, it’s a BIG but) …

5. of insurers say they
face obstacles to
delivering innovation.
5
A massive

6. WHAT CAN STOP
INNOVATION?

7. Ineffective organizational
structure
Inadequate planning
TOP THREE INNOVATION KILLERS
51%53% 54%
Financial and
resource constraints
PLUS the complexity of legacy systems stops 75% replacing them with new technology.

8. 27%
THERE’S ALSO A
TECHNOPHOBIC
TENDENCY TO TRAIL
BEHIND OTHER SECTORS
59% 14%
C-LEVEL
Less innovative
than others
As innovative
as others
More innovative
than others
More than a quarter of C-level insurance executives agree that
insurance is less innovative than other financial service sectors.

9. But it’s not all doom and gloom. Far from it …
A NEW BREED OF
INNOVATIVE INSURER
IS LEADING THE
WAY FORWARD.

10. MEET THE
INNOVATIVE
INSURER

11. Natural born innovators and digital disruptors aren’t
necessarily the smallest and most agile, but they
are flexible in their thinking.
FORGET YOUR
PRECONCEPTIONS
That said, it’s actually the LARGEST FIRMS that perceive
themselves to be the most innovative – possibly because
they have the resources to invest in disruptive fintech.

12. LIFE INSURERS ARE CONFIDENT INNOVATORS
Regardless of size or years in business, life insurance companies have a greater
opinion of their innovatory prowess than non-life insurers and re-insurers.
“In the current economy, where
digital technologies have a
major influence, life insurance
companies are successfully
adapting to the new demands
of the marketplace and moving
quickly to find new customers,
deliver new products and open
new markets.”
Yi Chen, equity analyst
Ping An Insurance
Group Company of China
Say they are more innovative than others
20%32% 24%
DIRECT INSURER
– LIFE
REINSURER DIRECT INSURER
– NON-LIFE

13. WAKING UP TO
NEW DIGITAL
POSSIBILITIES

14. THE CLOUD HAS A SILVER LINING
More and more insurance
companies are evolving their
operations to embrace
innovative cloud-based
technologies – especially
for managing big data and
complex actuarial calculations.
Not under discussion Internal barriers First thoughts
Team discussions Prototyping Already implemented
CLOUDSERVICES
4% 15%18%3%9% 51%
9% 17%23%4%11% 35%
11% 17%17%5%18% 31%
24% 20%16%8%4% 28%
14% 16%12%6%29% 23%
8% 4%24% 48%
Note: Due to rounding some totals do not equal 100%.
16%
NORTH AMERICA
EUROPE
ASIA PACIFIC
LATIN AMERICA
AFRICA
MIDDLE EAST

15. MANAGED SERVICES
ARE THE OPERATING
MODEL OF THE FUTURE …
More than half of insurers agree they will adopt
some kind of managed service by 2020.
“While cloud services are now more widely used to deliver hosted
solutions and streamline business processes, they have their
own limitations and very much need support from managed
services on a higher all-encompassing IT level.”
head of IT, Netherlands-based life insurer

16. TO INNOVATE
OR NOT TO
INNOVATE?

17. INNOVATIVE INSURERS ARE IN TOUCH AT
EVERY LEVEL
Insurers need to achieve greater levels of connectivity and collaboration between
different functions.
“Most collaboration now and in the future will happen in a digital way,
with departments using smart solutions for real-time communication.”
senior executive, Liverpool Victoria, U.K.
40
30
20
10
Human
resources
Underwriting Claims Sales and
marketing
Policy
administration/
operations
Legal Investments/
asset manager
Customer
service
Finance/
accounting
IT
Current Potential

18. ARE YOU IN TOUCH WITH
YOUR INNOVATIVE SIDE?
Or could you do better?
Learn more about
unleashing your inner pioneer
by reading our full insight report
The Innovative Insurer
empower.fisglobal.com/innovative-insurer-insight-report