By: Joe McKendrick
December 7, 2015
A great read on the need for Design Thinking in Insurance.
These days, mention “design thinking” and Apple iPhones come to mind, along with Tesla and hybrid cars, or maybe a funky kitchen gadget or two.
Design thinking, however, is becoming just as important to insurance offerings as it is to any physical product. Design thinking is not only about having attractive products, but also extends to the services, experience and ecosystem around products and services.
Admittedly, the insurance industry is a laggard in this area. A new study out of theUniversity of Potsdam finds that only about seven percent of financial and insurance industry firms are actively encouraging design thinking, versus close to 20% of leading industry groups in this sector, such as IT, communications and education.
“For insurers, the key is to step up with new types of ways to think about offerings. MassMutual, for one, has a very interesting case study on its approach to design thinking, as relayed in a recent Harvard Business Review article written by Tim Brown and Roger J. Martin. They observe how MassMutual was contemplating a new effort to target under-40 consumers to buy life insurance. “The standard approach would have been to design a special life insurance product and market it in the conventional way,” they relate. “But MassMutual concluded that this was unlikely to work. Instead the company designed a completely new type of customer experience focused more broadly on educating people about long-term financial planning””
For more, here.