Using Innovation to Gain a Competitive Edge in the Insurance Industry

SACRAMENTO, Calif., April 17 /PRNewswire/ -- As the insurance industry
continues to be challenged with softening rates and premiums, innovation is
the key to long term success. Now that we are at the end of the first
quarter, some leaders are recognizing that a strategy without a strong focus
on innovation will not help them achieve their annual goals.
In March 2008, the Women's Network Group met in Sacramento and discussed
new ways to energize the insurance industry. Julie K. Davis led the group
discussion on changes that are necessary in the industry and the top trends
driving success in the Property and Casualty insurance industry. The
following are key points highlighted during the keynote session:
Innovation Pipeline Can Control Your Destiny
Successful development of innovation (product innovation, service
innovation, technology innovation, process innovation) can be a key to your
success. You need to be prepared to respond to market shifts with innovative
responses. Leading change in your industry and your company can help you stay
competitive.
During a recession, selecting of the right innovation tools couldn't be
more important. For example, if your firm earned $10 million in annual
revenue and you were able to achieve 10% organic growth, that end result may
be less than your targeted year end goal. A pipeline of new products and
services may be needed to bridge the performance gap in a soft market.
While new product innovation can help when the going is tough, don't
overlook the reasons why new products fail. Reasons for failure include a lack
of proven market demand, lack of objectivity, inappropriate market research,
underestimating the financial requirements or resources needed to launch the
new product, lack of experienced management or staff or lack of uniqueness of
your product or service.
Business growth can be achieved through the penetration of your existing
market segments, innovation of new products/services or niches, the
diversification of your existing products or franchising.
Industry Knowledge is Key When Developing New Products
Successful agents and brokers in the insurance industry are ones that can
effectively transition from transactional to consulting services. This trend
extends to small commercial accounts as well as program business. No class of
business is untouched. The ability to understand a specific targeted industry
(size or segment) and their needs can shorten the length it takes to engage
key prospects or launch successful new insurance products or programs.
Target Marketing Continues to be Important
There is a growing trend of marketing and communication efforts that are
more meaningful, industry-specific and speaks to the challenges of your target
market. Targeted marketing approaches should include collateral material,
website content, industry-focused news, focused distribution channels and
more. A more intelligent client or prospect wants to know their insurance
provider or partner understands their key business trends and critical issues
in their industry segment.
Client Retention
In order to be most effective at cross-selling, a basic knowledge of the
client's industry or business life-cycle is helpful.
Develop Ways to Attract and Retain the Best People in the Industry
Without dynamic people, the insurance industry would have no revenue,
clients or value proposition. Some parts of the insurance industry still
overlook the importance of hiring great people, developing them and ensuring
that their goals are aligned with the company strategy. People are the most
valuable assets in the insurance industry and a solid strategy on diversity,
talent attraction and retention can't be overlooked.
Over the next twelve months, the Women's Network Group will focus deeper
attention to each of these areas of business.
About the Session Facilitator:
Julie Davis has been with Aon Corporation (AOC) for fifteen years. She is
currently executive vice president of their Wired for Growth program
(http://www.wiredforgrowth.com), serving insurance and risk management needs
for emerging technology, internet and life science firms. She participates
and speaks frequently on career issues for professional women. She is the
recipient of Chicago Innovation Awards, Insurance Innovators Award (Insurance
and Tech Magazine), and finalist in Annual Stevie Awards for Innovation of
Best New Product / Service, recognized by I-Street Magazine in their annual
"Women in Black" Awards and recently named Who's Who for Entrepreneurial Work
in Insurance and Risk Management Field. She attended University of Texas and
Rice University. She can be reached by email at julie_k_davis@ars.aon.com or
by phone at 408-439-2654.
Source: Anna Smith, President, Women's Network Group
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SOURCE Women's Network Group

Julie Davis of Women's Network Group, +1-408-439-2654,
julie_k_davis@ars.aon.com