Innovation in Latin American Insurers: A Snapshot

by Juan Mazzini,  Michael Fitzgerald,  Luis Chipana, September 28, 2015
Industry Trends
Latin America

Abstract

Increasing commoditization, a need to improve speed to market, the multiplication of distribution channels, and increased consumer expectations are just a few of the business challenges which demand innovation. But how do leaders successfully engage their organizations in the identification and delivery of significant business and technology change?  What “works” regarding business/technology planning, and where are the opportunities for improvement?

Over the past three years, Celent has been researching what practical steps insurers are taking to manage insurance innovation.  In the report Innovation in Latin American Insurers, Celent extends these efforts by examining the trends in Latin America in detail. It is based on a survey of 37 insurers conducted in July/August 2015.

The objectives of the survey were to:

1. Gauge the importance of innovation to business strategy.

2. Identify key benefits from innovation in insurance processes.

3. Detail the common barriers to implementation.

“Interest in innovation continues to increase,” says Mike Fitzgerald, a senior analyst with Celent’s Insurance practice and coauthor of the report. “Consumer expectations continue to rise, and technology is providing opportunities for improved risk management. Innovation helps insurers take advantage of these trends by delivering differentiated service and products.”

“To innovate, insurers have to deal with various types of barriers,” says Luis Chipana, an analyst with Celent’s Insurance practice and coauthor of the report. “To overcome these barriers, insurers have to own a real and credible mandate to innovate, which is going to be reflected in top-level leader attitudes.”

“Three years ago insurers were focused more on asking what. What innovation should I be pursuing? What technologies should I be prioritizing?” says Juan Mazzini, a senior analyst with Celent’s Insurance practice and coauthor of the report. “As organizations moved into their innovation journey, they realized that how was the first question they should have been asking.”

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned subsidiary of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

Executive Summary

1

Introduction

2

 

Background

2

 

Survey Demographics

2

The Business Case for Innovation in Insurance

4

Execution of Innovation in Insurance

7

Moving Forward with Innovation

10

 

Barriers

10

 

Disciplined Innovation Management

11

 

Recommendations

13

Conclusion

14

Leveraging Celent’s Expertise

15

 

Support for Financial Institutions

15

 

Support for Vendors

15

Related Celent Research

16

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