Are you a traditional insurer that wants to do innovative things but cant? Do you feel that you need a Digital, Garage, Lab, Hub, Kitchen or Factory with multi-coloured bean-bag chairs, open offices, slides, and beer to be innovative?
Did you happen to end up spending millions building that Digital Garage, staffing it with your most talented employees and yet still failed on execution? Do you know why?
#Insurtech is just innovation in insurance, and it doesn’t have to happen outside of your organization. Insurer’s don’t need to partner with Insurtechs, although they should buy software if it solves a problem, and they certainly don’t need a separate space with better furniture calling it a “Garage” to do it in.
Do you want to be innovative (which is just code word for better, cheaper and faster)? Then it’s time to get Lean, you know, just like Toyota.
If you haven’t been living under a rock for the last twenty years, you have likely heard of Agile and the Lean movement first invented by Toyota 40 years ago. Now I don’t mean SCRUM ( just because you do stand-ups doesn’t mean you’re Lean). What I’m talking about are Lean principles that have revolutionized manufacturing, logistics and software development. There’s plenty of books, “gurus,” podcasts and the like out there if you want to go deep on Lean, but ultimately Lean is 7 fundamental principles that must be adopted by any organization that wants to be better, cheaper and faster.
In this series of upcoming articles, I have adapted Lean principles for “Legacy” Insurers & Brokers. If you want to know how Lean can help your organization come back and find out how faster is cheaper and faster is better, because ultimately the only advantage #InsurTechs have over traditional insurers is speed.
Having been inspired by Bandersnatch, I’ve attempted to make this article series interactive, so please write your comments and experiences below. I would love to hear from colleagues anonymously or not on how they are bringing agility and lean into their organizations successfully or not and will include tips in the article series.
The 7 Lean Principles
1) Eliminate Waste
See and eliminate waste in your organization
2) Amplify Learning
Learn & improve through iteration
3) Decide as Late as Possible
Build change into the system to manage uncertainty
4) Deliver as Fast as Possible
Develop systems and processes to deliver value, fast
5) Empower the Team
Empower teams and individuals
6) Build Integrity In
Keep customer values front and centre
7) See The Whole
Behzad has deep insurance industry experience, most recently co-founding BrokerLift, a SaaS eCommerce platform for Insurance companies and brokerages. In the past he led the development and launch of uBiz, a Commercial Insurance platform for Gore Mutual Insurance and the marketing strategy & analytics for InsuranceHunter, a digital insurance broker in partnership with Aviva Insurance. Behzad as an independent consultant has also advised some of the largest Insurance Brokers, Managing General Agents (MGA’s), and General Insurers on digital strategy and transformation, marketing and the digital insurance customer.
Today Behzad currently consults, develops & invests in innovative insurance ideas, independently, or along with established Insurance Companies that are looking for a digital edge.