Innovating Insurance

Women Play Important Role as Insurance Industry Change Agents

The lack of organic growth and the soft market cycle has made operating in the insurance industry difficult in recent years. Yet the key to surviving in the insurance world of the future is to keep pace with innovation and to stay ahead of the curve. And part and parcel to implementing a successful innovation strategy is including women in your insurance organization.

Women overwhelming play large roles as change agents and promoting new ideas, and as a result they have developed a perfect combination of skills that makes them great innovators. Strong values, good collaborators and a keen eye for unfulfilled client needs make them natural innovators.

Furthermore, “my bet is that the market for fresh innovation talent in the insurance industry will become tighter and more recognized as it seeks a path of recovery and rejuvenation,” according to Anna Smith, president of the California Women’s Network Group. CWNG is designed for leaders of new or rapidly growing companies with less than 1,000 employees and leaders of autonomous business units in larger organizations. With staffing shortages likely as Baby Boomers retire, insurance organizations would be foolhardy not to be more inclusive of women.

To date, the number of women working in the insurance industry has not been exponential — and the industry has generally had weak overall performance. The lack of female innovators in the insurance industry is also a lack of CEO vision in some areas. This isn’t to say that including women in an organization will automatically boost profits. Nevertheless, women working in the insurance industry can take small steps everyday to try and improve overall industry performance, which has been lackluster at best.

With that in mind, companies should seek to create an environment where women can openly present ideas for new products and services. Historically, women have faced internal challenges of climbing the corporate ladder with an innovative mindset. But allowing women to lead innovation strategies can boost a company internally and in the marketplace.

Following are top suggestions for women to lead innovation efforts in their organization.

Reframing problems and opportunities is key in establishing and refining target niches. Business leaders need to use thought leadership to reframe problems and marketplace opportunities. Many tools are available to better understand client’s challenges and problems. Such tools can help insurance leaders — men and women — to think about alternatives and develop new products, services and ideas.

Enhancing approach to client segmentation. Client segmentation is one of the most important client management and production tools available, but so many carrier and brokerage firms overlook the opportunity to segment their opportunities more creatively to get an endless stream of pre-endorsed prospects and grow their income, in light of downward pressures on fees and commissions. More industry creativity is needed than segmentation by size, geography and industry. Staff diversity can aid in coming up with creative solutions.

Program business, niches and mass-market offerings should be reconceived. While program business has been an important source of growth, it has reached a period of time that it should be reconceived. With now more than 100 professional liability classes, consumers can get frustrated in identifying the insurance products that are right for them. Through observations and insights, a more streamlined, and creative, approach is needed to better connect with the marketplace. Women tend to be service-oriented and good communicators, which can help improve those connections.

Create an atmosphere where people are inspired to succeed. As Thomas Edison will tell you, failure is a necessary part of any innovation. But in today’s extremely tough insurance market, women can be reluctant to take risks on new ideas, and that energy drain can stifle organizations. Their unique skill sets are key to reforming the insurance industry and risk-taking should be rewarded.

Create an environment that lifts employees’ spirits. The difficult insurance industry has taken a toll on morale, and it has created an energy drain. Consider the fun and unique cultures that the technology industry creates. People — men and women — need to enjoy working. When they do, they will perform their best.

Creative collaboration gets the right result. Growth is connected directly to harmonious relationships with internal and external business partners. Providing a creative and safe haven for all employees to share their great (and crazy) ideas is important to innovation success and that should extend to regular brainstorming sessions with partners central to your growth.

Topics InsurTech Market