Innovation comes in two flavours: Enablement and Disruption.

Insurance incumbents are much better at Enablement as often it just requires an evolution of the existing model. The people running insurance company are not at all stupid. Indeed they completely get the need to innovate. However, they are driven by quarterly targets and as true innovation is usually strategic, they rarely have the opportunity to reap the benefits of long term strategic change.

Disruption on the other hand needs wholesale change to business models. Often this is a step too far for corporations with a lot to lose to change the status quo too radically.

The key is to build a Technology Capability that is agile and has every functional capability built in, rather than building a Point in Time, hard coded system for today’s needs.

Bob Mozeika is spot on with what he says…