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Innovation in the Insurance Industry

Innovation in the Insurance Industry

At Salt Associates we get to know lots of forward-thinking people in our industry.  One of these is Chris Murumets, Co-Founder of LOGiQ3 Group http://www.logiq3.com/, an innovator in insurance services based in Toronto.  We were fortunate to be invited recently to the opening of LOGiQ3’s “CookHouse” facility  http://cookhouselab.com/ in Toronto. CookHouse Lab is an open-collaboration innovation space for companies and professionals looking to bring new solutions to insurance.  We were so impressed we invited Chris to share his thoughts on how we all can be innovators in our own part of the insurance industry.  Without further ado, here’s Chris Murumets of LOGiQ3:   

Just before I started to write this blog I watched a number of video clips of SpaceX’s successful Feb 19 launch of the Falcon 9, carrying 5,000 pounds of supplies to the International Space Station.  I find what this company does awe-inspiring.  Not only has it built a space ship (seriously, THEY BUILT A SPACESHIP) from scratch, they were also able to land the first stage of the rocket, vertically, for re-use.  They have landed it on a remote control barge in the Pacific, and the touch-down was on land at Cape Canaveral.  SpaceX was formed in March 2002.  They are coming up to their 15th year anniversary, and look what they have accomplished.  They build rocket ships… that come back to earth… and land vertically… sometimes on a remote controlled barge on the ocean.  Incredible!!!!!!

I find companies like SpaceX, that set enormous (unreal!) targets and actually achieve them, incredibly exciting.  It hasn’t been a perfect path for SpaceX, and it has certainly come with set-backs, but they keep going.  This same sentiment holds for what Tesla has accomplished in just over a decade.

Our insurance industry needs to apply some of this thinking to our world.  I recently spent some time with Don and Jeff at the launch of our Cookhouse Lab in Toronto.  We commiserated over some of the unfortunate complexity in the insurance industry today.  Sometimes, a simple letter to a client can require multiple systems, numerous steps, and what seems to a be a lifetime.  As an industry, we should want to and CAN do better.

SpaceX and Tesla have brought big changes to old industries by challenging the accepted way of doing things.  Some might say they “disrupted” the status quo.  In my opinion, “disruption” is a much over-used word.  At its core it simply means that we need to evolve from existing practices.  We need to think differently, and progress.  The very encouraging observation is that I am beginning to see numerous examples these days where our industry is working together for the ultimate good of the consumer.

By looking at what leaders in other industries are doing we can learn to see old problems in new ways—and find new solutions.   Believe it or not, we as an industry can also evolve.  Collectively, we can openly collaborate and disrupt. Cookhouse Lab was created with that mission in mind.

The first step to disruption is take critically evaluate “how things have always been done in the past” and to focus on the problem faced by the consumer, rather than the solution.  As insurance industry leaders, it’s our responsibility to strive for a better future.  And I know there are a lot of people out there–not just within LOGiQ3 Group and our friends at SALT Associates–that feel the same way.

If we all commit to positive change every day, whether that is learning a new technology, better mastery of data or improving customer experience, we are already contributing to moving the insurance industry forward. Small wins count, not everyone builds spaceships!

How about you?  What needs to evolve in your part of insurance and what are you doing to tackle it?  We’d be interested to know.