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Open Innovation Roundtable: Vertical focus approach – Insurance (1/2)
Open Innovation Roundtable: Vertical focus approach – Insurance (1/2)

April 28, 2023

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Open Innovation Roundtable: Vertical focus approach – Insurance (1/2)

 

Open Innovation is broad and can be applied in a variety of fields. Insurance is one of the industries that requires outside assistance to navigate the transformation road. As a result, NASSCOM hosted an insurance-focused roundtable, which was attended by a number of large-scale actors in the insurance sector with the goal of understanding and fostering open innovation ecosystem in their respective organisations. The following are significant takeaways from the roundtable discussion. 

The terms "insurance" and "innovation" are not interchangeable. The current method is being improved to make it more effective and efficient. There are numerous options on the market, so selecting the best one and implementing it is the primary focus.  

Even global corporations lack the capacity to produce technologies at scale, thus collaboration is always desirable. 

How insurance companies collaborate with outside stakeholders: 

  • Need-based external collaboration: Many businesses continue to operate on a need-basis when they realise that technology intervention is required or when they notice that a rival is making progress in that area. 

  • Active external collaboration for consistent technological advancement and innovation:  

    • Partnering with external stakeholders: A strategy in which you invite the external ecosystem to collaborate with you on multiple innovation objectives 

  • Working with Accelerators: Businesses are partnering with global accelerators and developing an open innovation agenda 

  • Understanding internal requirements and seeking external solution: When a company's internal innovation team finds a problem statement internally and then approaches an outside partner for that problem statement 

  • Insurance Start-ups: Instead of looking for tech-specific start-ups, work directly with insurance start-ups so that they can better understand the sector and assist the larger organisation with their business problems 

  • NASSCOM Industry Partnership Program (NIPP): Collaboration with NIPP can aid insurance firms in selecting the right set of start-ups for existing difficulties. With a strong connection to impact start-ups and a year of experience, NIPP can support large corporations in making significant jumps in digital and tech transformation. 

  • Academia: Engaging with professors and collaborating on point challenges. This encourages creative thinking and may result in the development of a cutting-edge product that would have been difficult to create otherwise 

  • Market development monitoring: A focused team that monitors market technology updates that can be integrated into present business operations. 

  • Extended Teamwork: In certain insurance businesses, innovation-led growth is more centrally driven, and teams located around the country simply assist them in pursuing that agenda. 

  • Separate business unit: Establishing a separate business unit focused solely on organisational innovation and digital transformation. 

  • Management mandate and sponsorship: Companies that have an external innovation charter that is supported by management are more likely to execute a successful cooperation programme. 

So, collaboration in this legacy vertical has already begun; what remains is to intensify and deepen it for a better outcome and success. There are certain challenges, but they are manageable if the objective of open innovation is clear and well understood. That will be covered in our next blog. We also look at several sectors of innovation that require technological transformation and can be easily accomplished through a cooperation approach. 


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