For a while now, Silicon Valley has been viewed as a leading destination for innovation, as it is home to some of the world’s most forward-thinking technology companies, as well as exceptional talent. While insurers may not be able to replicate the exact science of Silicon Valley in their own regions, they should understand that significant organizational and cultural shifts can both attract the right talent and encourage the emergence of internal ideas.
Insurers should look towards the companies in The Valley to provide an optimal model for success, which includes rethinking traditional spending and IT management. Increasingly, carriers are migrating to, and implementing new systems in, the cloud. Cloud is on the horizon as both cloud and SaaS options are maturing.
The insurance industry is ripe for the kind of disruption offered by the innovative thinking found in Silicon Valley. Advances in digital and artificial intelligence have the potential to fundamentally change how to think about insurance. Enhanced capabilities and platforms may give way to new products, methodologies, and business models. Employee expectations are also changing, along with a shifting talent landscape, and nontraditional pipelines may be the key to sourcing talent in the future.
As insurers look to bring their organizations into the future, Silicon Valley can offer valuable lessons to help them stay in stride with the pace of change. Approaches must be consistent with a carrier’s business goals, risk appetite, and cultural preferences to be successful.
For more on this, please see the report on Novarica’s recent trip to Silicon Valley: Enabling Innovation, Vol.3: More Lessons from Silicon Valley.
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