Simon, as usual, puts his finger on the issue!
Insurers have been great at innovating product to assist risk transfer. It is what insurance has been about for hundreds of years.
Providing customers with the service they want is the bigger challenge. It is one insurers have struggled with and what many insurtech startups are looking to address with many different distribution and engagement models, mainly based around technology and particularly live data feeds from the Internet of Things.
Being able to create a technology architecture which drives efficiency and effectiveness in the today's business model is hard enough. Modern insurers need to simultaneously create a platform which also embraces the new business models, predominantly based on Risk Management as a Service (RMaaS).
Their world is moving from incrementally creating better Risk Mitigation products to increasingly providing RMaaS, where the quality of the protection they provide, using real time data will determine success or failure in the customer's eyes.
On one hand, I would argue that the insurance industry has been pretty good at this, evolving to the ever-changing needs of customers, particularly around risk transfer. On the other, I’m not convinced we have been great at consistently adopting technology to innovate, particularly in a way that brings real and tangible value to commercial customers.