1. Innovation is crucial as it evolves the industry with domino's effects onto other industries as processes becomes easier or faster.
2. The innovation cycle starts by problem identification, generating ideas to solve the problems and to execute the idea. Below are some of my comments on the innovation cycle.
3 Identify Problem - Is enough market Research being done? Are there distribution channel gaps? Market segment Gaps?
4. Ideas - Are there enough ideas to solve the Problem?
5. Execution - How fast is the execution to achieve first mover's Advantage?!
6. Below are some current trends that may or may not disrupt the industry follow by examples of innovative products found globally.
INSURANCE INDUSTRY TREND DISRUPTORS
1. Predictive Analytics - Improves pricing. Targeting good risks with right prices and renewing/retaining them.
2. Usage Based Insurance - Accurate pricing to stay competitive and acts as an incentive to encourage insured to improve risks environment
3. Insurance-Linked Securitization - Cat Bonds!!! Risks transferred to investors and diversification option for asset managers.
4. Micro-Insurance - Low-Premium Insurance products for third world countries. There will always be a right product for the right people with the right price!
INNOVATIVE INSURANCE PRODUCTS
1. Pay-As-You-Park - Premium is charged base on car usage.
Source: - Private passenger auto policy from Progresso.
2.GreenMaker - Insurance for Home businesses that are manufacturing goods.
Source: R.W. Barkley
3. Commercial Specific Liability (CSL) - Specific exposure specified by contractors for ex:- damaging pipes, causing pollution.
4. Vanishing Coverage - Coverage to high-end coastal properties and antique autos with reducing premiums and deductibles increasing at same time. Until premium reaches zero or deductibles hitting limit.
Source: Hubb Insurance
5. Home Business Interruption Protection (HBIP) - Business interruption policy for legal businesses conducted from home (covers internet, telephone connections, etc)
Source:- Revelers insurance.
BANKING INDUSTRY DISRUPTORS
1. P2P Lending - Have the potential to expand into real estate, SMEs, and other FI products.
2. Cryptocurrency - Actual value is realised only when there is usage for it. Otherwise it would be the same as art & diamond collections.
3. Tighter regulations - AMLAs, ATFAs, BASEL III affecting the expansions of business especially for Tier-2 banks
4. Corporate bankers are spending more resources meeting demands for customized advice, end-to-end solutions, and industry-specific consultation.
5. Tech-Based services for payments - e-wallet, mobile-POS, faster payment processes.
1. Rewards Transaction Account - Rewards when you spend & save with points coming from debit & credit cards.
Source: Bankwest
2. Smart Current A/C - Built on an Application Programming Interface (API), Customers can select range of products an services from either the bank or third party providers. Features include credit transfers via Social apps, virtual currencies and social trading.
Source: Fidor Bank
3. P2P Loan - Connect to investors online or to invest with a 10% return on various personal loan portfolios.
Source: Society One
4. Mobile ATM Services for SME - Mobile ATM and depository service housed in a car driven by bank employees to reach SMEs.
Source: Idea Bank SA
