How IT is driving innovation in global insurance markets

Patrick Molineux, Head of Market Development for Computer Sciences Corporation (CSC) Financial Services sector, explains how multinational insurers are utilising the product development knowledge of national business units to innovate in new geographic areas in a way that is market-tested and which also gives them first-mover advantage at a significantly lower cost

Where does innovation come from for an insurer? Clever actuaries may create new concepts but whether or not they will work is another question. Governments may stimulate innovation through regulation (introducing another flavour of pillar II pensions for example), but every other insurer latches on at the same time and so regulatory-driven innovation typically has the characteristics of a race. The competition may launch new products, but unless an insurer has broken its ethics policy then it will inevitably be playing catch up.