Innovation within insurance market becoming more crucial source of competitive advantage as clients seek new solutions for emerging risks
Chaucer, the global specialty (re)insurance group, says innovation within the (re)insurance market is becoming a more crucial source of competitive advantage as clients seek new solutions for emerging risks.
Chaucer’s Building for the future: innovation as a strategic tool in (re)insurance White Paper explains that as the (re)insurance industry becomes more competitive, innovation is becoming increasingly crucial to differentiate firms. As well as helping to boost their reputation, durability and growth, innovation can help insurers support clients seeking more sophisticated (re)insurance products which are better equipped to respond to the new risk landscape.
The paper outlines that even though there are multiple ways of approaching innovation within (re)insurance firms, a key unifying factor in driving success is clarity of purpose.
Chaucer has developed two innovation pathways: one to enhance existing lines of business through pushing the boundaries of existing coverage and another to test brand new products and markets which have the potential to become major lines of business. Key themes of interest to Chaucer include weather risk, climate change, intangibles and parametrics.
Chaucer has partnered with several companies as it has built its innovation portfolio. Some examples include:
- K2 Parametric, a parametric insurance provider for commercial companies, which develops bespoke indices specific to client needs
- Kita, the first carbon credit insurer
- Crown Jewel, the first trade secret insurer