Innovation in the Insurance sector | Insurance Innovation Lab
The insurance industry is facing unprecedented change. Incumbent insurance carriers are experiencing continuous challenges from all sides. New and emerging risks like climate change and geopolitical tensions are disrupting underwriting models while insurtechs with new digital-first approaches are disrupting old ways of doing business. Out-of-date, inefficient processes are also eating into profits across the insurance sector. Insurers must change and innovate to stay competitive in this environment. That’s where an Insurance Innovation Lab comes in.
Insurance Innovation Labs like world-leading Lloyd’s Lab, designed with L Marks, can help insurers to identify and deploy new solutions to these challenges.
Why innovatE in the insurance sector?
- Innovation can help you to tackle the big challenges you face as an insurer as well as create new opportunities to compete and create new revenue. At L Marks, we have helped our insurance clients to find innovative solutions in every aspect of their business.
- Operational innovation can help your organisation and processes to become more efficient – streamlining operations; improving customer and employee experience; and, most importantly, reducing your combined loss ratios.
- Product innovation can allow you to create or find new insurance products that suit the changing, and increasingly complex, needs of new and existing customers.
- Innovative underwriting solutions such as better data monitoring and modelling or integrating AI and machine learning into your underwriting process can give you more profitable products, new policy offers and better customer experiences.
What are the market opportunities in the insurance sector?
Climate
Insurance is all about risks – and there is no bigger risk facing the planet than climate change. Innovations in everything from natural catastrophe modelling to insuring the new low carbon economy, to carbon monitoring and reporting, can help you to stay ahead of ever growing climate risks and meet your net zero targets.
New product categories
The world is changing and so are the risks that need to be insured. There has been an explosion of innovation in new products including brand new lines of business, new types of products (such as parametric) and better, more flexible customer experience.
Operational efficiencies
Productivity is a huge challenge for the whole insurance industry. Many insurers still rely on old-fashioned and inefficient labour and cost-intensive processes which have pushed many carriers into losses. New digital technologies offer the opportunity to increase operational efficiency – lowering expenses, improving employee productivity and increasing profits.
Better underwriting
We live in an age of data. More data is available than ever before and yet most insurers still aren’t using it in their underwriting processes. New data sources, machine learning, algorithm-based modelling and new underwriting approaches help insurers to make the best underwriting decisions.
Why partner with L Marks?
L Marks has worked with a number of partners to find new insurance innovations.
Working in close partnership with our client Lloyd’s of London, L Marks has created and run one of the world’s leading insurance innovation labs, Lloyd’s Lab. Over 8 cohorts, we have helped them to collaborate with over 90 insurtechs to deploy cutting-edge innovations in the world’s oldest insurance marketplace.
Case Studies
We have also collaborated with BMW Financial Services, with Volvo Financial Services and with BUPA on innovation labs to find and deploy new finance and insurance solutions for their customers.
Gaia – Through the Lloyd’s Lab, Gaia were able to build and launch the world’s first IVF insurance product backed by 3 of the carriers who mentored them in the Lab.
Optalitix – Working with Lloyd’s, AI solutions provider Optalitix created a natural catastrophe data modelling portal for the whole Lloyd’s market reducing data entry hours by over 13,000 per year.
Parsyl – Helping tackle one of humanity’s biggest challenges in the past few years, COVID-19, Lloyd’s partnered with supply chain management platform Parsyl to create the Global Health Risk Facility insuring the storage and transportation of vaccines to developing countries.
Wrisk – Wrisk is a smartphone app that collects home, motor and travel insurance in one place and gives real time control over cover. An alumni of two BMW Innovation Labs, Wrisk is now the sole provider of insurance distributed by BMW and MINI in the UK.
To find out how we can help your organisation, please get in touch.