Creativity, Innovation Will Propel Success of Insurance Industry, Aon Exec Tells Women’s Conference

That was part of the message Julie K. Davis, executive vice president of Aon Corporation’s Wired for Growth program, delivered as a featured speaker at the Women’s Network Group in Sacramento last month. Her address focused on innovation in the insurance and professional services industry.

Davis, who has been tracking new product innovation in the insurance industry for the past year, gave evidence that such innovation can take flight. New products and services have ranged from pet insurance and privacy liability protection to programs designed for new industries (clean technology and nanotechnology). However, Davis noted, even though the market has seen a wide range of new insurance products and services in the last 12 months, innovation is still not at a level needed to meet growing customer needs and boost the insurance industry economically.

Davis suggested that business leaders in insurance industry could take the following steps to protect against an economic downturn and move the industry forward:

• Review all of the market segments you currently serve. Some may be growing faster than others and are poised to perform better in an economic recession.
• Review all of the products you offer. Traditional insurance products and services haven’t changed much over the years, but specialty insurance products and markets have the biggest opportunity for innovative and creative review. For example, there are now over 100 classes of professional liability opportunities.
• Don’t overlook opportunities to sharpen and design your distribution channels.
• “Thought leadership” is an increasingly important factor in the success of agents, brokers, wholesalers, and carriers. This goes beyond the ability to create innovative products and services; it’s a skill set needed to engage with more informed clients and prospects.
• Rely on diversity of thought and innovation in your organization. Establish an innovation group that has cross-industry experience and ideas. Too many efforts on product innovation fail for lack of diversity of thought in the industry.
• Listen to customers. Customer groups can guide your new product and service innovation efforts. They provide insights on the seemingly small things that can make a difference.
• Change your marketing mix to include something other than the traditional means of advertising, sponsorships, and prospect communications. If you don’t include consumer and industry insight, your efforts may be slower than your competitors.