Barriers to Innovation in InsurTech

Barriers to Innovation in InsurTech

September 15, 2017/ 0 Comments / / by Jim Gardner

Innovation is exciting at the beginning and the end. At the start, it is buzz word driven and all upside potential. At the end, we hope for a successfully implemented solution that delivers lots of wonderful things. In the middle are many tough decisions and challenging work, which is complicated by many barriers to actual innovation.

For example, yesterday I calendared an hour to evaluate HubSpot’s free CRM tool. After watching the HubSpot video I was excited enough to make the move. I was past the evaluative stage and ready to innovate.

From that hour of research and exploration, I had determined that HubSpot could address the issue of improving my sales and marketing work flow. The impact of not addressing the issue would be continued difficulty in tracking a growing number of contacts…loss of business.

However, I froze up when I got into the importing process. Who has not been through the hell of importing your contacts and mapping them into a new system?   I came very close to pulling the plug on the endeavor! But I kept on going and only a few minutes later, was up and running.

While this is a minor example of a barrier to innovation, it made me think of what our customers at ViewSpection go through as they decide to walk through the insuretech, innovation process.

For this post, I reached out to several of my favorite innovators to get their take on barriers they often see pop up in the innovation process. Enjoy!

It’s Complicated!

Peggy Klingel, Claims Innovation Team at Allstate

I believe we often get distracted by the daily operations of the business and business leaders don’t take time to think more broadly about the future.  Incremental change is easier and usually has readily apparent paybacks.

Truly strategic innovations may take a leap of faith that is hard to cost justify. Building an innovation culture to support both, is difficult.

Seeing Barriers That Are Not There

Billy Van Jura, Partner at Fraleigh and Rakow Inc

Barriers to innovation; It matters how you perceive them. I view all of them as opportunities. Sometimes the biggest barrier to me personally and to our company is I see too many opportunities, disguised as barriers of them.

For example, we are very close to launching something very interesting with a carrier partner…. we’ve been very close for 6 months  Not my speed, but it does keep moving forward. We have a better relationship with the carrier and the third party than when we started. We have a better idea of how to apply this to other projects.

Focusing on the barriers is not a good use of time, so I don’t. I have 20+ partner companies. One of them will get it…and the others will follow.

The Big Mo

Herb Gibson, ‎Founder & CEO at GAPro System

I think one of the biggest “Barriers to Innovation” is the “Status Quo”. That may sound very broad. If you’re an innovator, you’re fighting against “…but we’ve always done it this way”. This is still a people business and if people are ok operating with the “Status Quo” nothing gets changed or innovated. The one thing that can change all of this is the “Momentum Factor” where from a macro perspective the industry begins to recognize the convergence of technology (enabler) with new business models.

Barrier Breaking

Jay Kramer and I attended the first InsurTech Connect (ITC) and are excited to be attending this October in Las Vegas. We are looking forward to gathering with over 3,000 innovators.

Our favorite part of the ITC is the facilitated meetings using the Brella app. Last year, I had 33, 15-minute meetings in 2 days. It was amazing!

ITC is the place to be to for innovation and to get more ideas on how to avoid the barriers to success.

~Jim

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