Insurance Innovation:Insurance Innovation:An Oxymoron?An Oxymoron?

Singin’ The PL BluesSingin’ The PL Blues

MODERATOR:

• Karen A. Morris, Vice President, Chief Innovation Officer, Product Development, Chartis Insurance

PANELISTS:

• Wendi Bukowitz, MBA, Founder and Managing Director, RGsquared LLC

• Leib Dodell, Principal, ThinkRisk Underwriting Agency, LLC

• Niklas Sandberg, Founder & Managing Partner,

NEXUS Advisors GmbH

• Dr. Peter S. Temes, Founder and President, ILO Institute

AgendaAgenda

• Setting the Stage

• Challenges to Innovation

• Tools of the Trade

• Case Studies

• New, Post-Recession Challenges

• Q&A

Setting the StageSetting the Stage

• Working definition

• Innovation is NOT creating new products every X days

• Hierarchy of innovation in insurance

Challenges to innovation in legacy Challenges to innovation in legacy industries like insuranceindustries like insurance

• Risk and return of innovation hierarchy

• Defending the core insurance products

• Experience/knowledge v. vision/experimentation

• Political and economic risk factors inherent in radical changes

• Fear of FAILURE

• Regulatory constraints

““Tools of the Trade” to create an Tools of the Trade” to create an innovative environmentinnovative environment

• Innovation as a strategic decision Systematic and rigorous investment Analysis Execution Follow through

• Insurance companies need to CHOOSE to be innovative

• External dynamics

Case StudiesCase Studies

• Creating uncontested market space

• Four-point analysis

• Impact of intermediation, disintermediation

• Rhetoric-Reality Gap Leadership

Management challenges in innovation

New Challenges for insurance New Challenges for insurance companies “Post-Recession”companies “Post-Recession”

• Risk has shifted

• Even greater need for innovation

• Possibly greater fear, as well

• New legal/cultural challenges/opportunities, for example: Environmental initiatives Technological innovation (both as insurance

business tool and underwriting opportunity) Possible new health care regulatory regime

Questions&

Answers

Many thanks to …Many thanks to …

• Karen Morris

• Wendi Bukowitz

• Leib Dodell

• Niklas Sandberg

• Dr. Peter Temes