Oldwick, NJ (Aug. 25, 2023) \u2013 As the pace of innovation accelerates within the insurance industry, the top performers in more complex lines of business may be those that overcome the innate challenges of their segment to develop new products, processes, services, and business models, according to a new AM Best special report.<\/p>\n
A new Best\u2019s Special Report, titled \u201cInsurer Innovation Accelerated by COVID-19 Continues Post-Pandemic,\u201d takes a closer look at the insurance industry\u2019s innovation efforts, with this installment evaluating innovation efforts by business segment. It also marks the third year since AM Best released its Scoring and Assessing Innovation criteria.<\/p>\n
While COVID-19 propelled changes in the way live and work since 2020, subsequent technological changes have continued to alter consumer behavior and transformed the insurance landscape. These trends have created challenges and opportunities for insurers, accelerating the need for innovation and rewarding the most innovative insurers. The report notes that certain lines lend themselves more readily to innovative strategies than others.<\/p>\n
\u201cIn response to the evolving risk environment, insurers accelerated their shift to digital technology and intensified their focus on product innovation,\u201d said Jason Hopper, associate director, industry research and analytics, AM Best. \u201cCertain lines lend themselves more readily to innovative strategies than others. Complexity influences innovation adoption. Because the auto\/home and health insurance lines deal with large homogeneous risks, initiatives can be scaled and replicated relatively easily.\u201d<\/p>\n
The special report notes that applying innovative strategies can be difficult for some lines of business, such as non-standard auto. For others, such as credit life and accident & health, the arm\u2019s-length distance between the insurer and the consumer, limited competitive pressures, and low-risk products have moderated the drive to innovate.<\/p>\n
Other key findings in the report include:<\/p>\n
The report gauges the effectiveness of a rated insurers\u2019 respective innovation efforts by scoring its performance with respect to leadership, culture, resources, and processes and structure. In terms of leadership, reinsurers again recorded the largest presence in this category.<\/p>\n
\u201cReinsurers are one or more steps removed from the ultimate policyholder and therefore have had to innovate in areas of enterprise risk management, portfolio construction, and risk accumulation,\u201d said Edin Imsirovic, director, AM Best. \u201cThis has become evident recently with the series of significant natural catastrophic storm activity which has been exacerbated by secondary perils and heightened inflation.\u201d<\/p>\n
To access the full copy of this commentary, click here<\/a>.<\/p>\n AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com<\/a>.<\/p>\n Copyright \u00a9 2023 by A.M. Best Company, Inc. and\/or its affiliates. All rights reserved.<\/p>\n SOURCE: A.M. Best<\/i><\/p>\n Tags: A.M. Best<\/a>, coronavirus<\/a>, Digital Innovation<\/a>, epidemic<\/a>, Innovation<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" Residual economic and societal impacts from the pandemic are spurring insurers\u2019 innovation initiatives: Best\u2019s Special Report Oldwick, NJ (Aug. 25, 2023) \u2013 As the pace of innovation accelerates within the insurance industry, the top...<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[],"tags":[1],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/posts\/20636"}],"collection":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/comments?post=20636"}],"version-history":[{"count":0,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/posts\/20636\/revisions"}],"wp:attachment":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/media?parent=20636"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/categories?post=20636"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/tags?post=20636"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}About A.M. Best<\/b><\/h4>\n