Despite investing in departments dedicated to innovation, the road to launching a new product is paved with frustration for many insurance carriers. Most pilot projects linger for years and many never expand to their full potential. Those legacy organizations that are unwilling to launch new products or programs that embrace the benefits of technology are quickly getting left behind by carriers with more agile and flexible approaches to innovation.
The truth is that moving a successful pilot project to full-scale operation can’t be accomplished by an innovation department alone. It takes cross-functional collaboration by claims, marketing, underwriting and other stakeholders. While this can be complicated, having a partner that has been through the process with other carriers can smooth the path to adoption.
For example, Notion, a Comcast company in the insurtech space, has helped some of the country’s top insurance brands develop successful smart property programs that have been eagerly received by insurance customers. While every carrier has unique program needs, there are a few common criteria that are essential for success.
Alignment to Support the Company’s Strategic Objectives
Any new product or program that can help the organization achieve its strategic and competitive goals can bring about alignment between functional groups within the organization. But sometimes even programs with ample potential just can’t seem to get off the ground.
The secret is to engage stakeholders from the beginning. People can’t get excited about things they don’t know about. Taking the time to generate interest early fosters ongoing curiosity and asking stakeholders for input at the start helps to refine the requirements making it easier to get buy-in later.
A Communications Plan to Turn Stakeholders into Champions
Innovation frequently requires a change in the status quo, which means it encounters resistance. When change is framed in terms of how it will help a stakeholder meet their departmental and personal objectives, the reasons to support it become more apparent.
For example, a new smart technology insurance policy that gives a smart home device to customers is a valuable acquisition and retention tool that helps both sales and marketing achieve their numbers. But, for the claims division, the same product can help reduce claims because the smart device alerts homeowners to issues early enough to prevent potential damage to their property.
Clear KPI and ROI Goals
It is difficult for innovation teams to set goals for insurtech programs if the technology falls outside their area of expertise. What makes a successful program? What is the best way to measure success? Working with a technical partner that knows insurance and can bring tech program expertise to the table and eliminates the guesswork.
This is where a smart home tech leader like Notion can help a carrier develop effective goals and KPI reporting to track cross-functional return on investment (ROI).
Commitment to Launching the Most Effective Program
Those companies that have gone all-in and created a fully integrated IoT program that automatically provides a complimentary smart home device to customers have seen the greatest success. The most effective programs have a low barrier to entry with a seamless delivery process that asks customers to take little or no action themselves.
Indeed, while these comprehensive programs take more effort to set up and manage than a basic special offer, they come with a larger business impact and greater ROI. In addition to higher adoption rates, they generate user insights that can help the carrier fuel innovation, retain customers and grow market share. From exposing opportunities for cost reduction to stimulating new product development, smart property data can help a carrier meet the needs of a rapidly evolving market.
Harnessing Teams Across Business Silos Boosts Innovation Program Outcomes
Bringing innovation into the light of day can’t be accomplished in a vacuum. Successful implementation requires collaboration across departments. Engaging the right stakeholders early and keeping them informed about progress helps the innovation team manage conflicting priorities. Choosing a partner that understands the insurance industry and has the experience to help drive delivery will significantly help any insurance carrier launch an innovative IoT program.