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The South African Insurance Industry Survey 2016 | c

Beyond

the ordinary

Video killed the radio star, sang the one-hit wonder band, These are the four factors that must be considered, implemented
The Buggles. and embraced if insurance players want to make a notable
difference in a market, where innovation has not always been at
The song predicted and lamented how technology was the forefront, and the market is becoming more saturated.
changing everything and is often used to suggest a big The landscape is changing and this must inspire to innovate and
shift underway in an industry1. We are all familiar with the to conduct business unusual.
diffusion of innovation model – but why are there only
2.5% innovators and 50% remain behind the curve? Diffusion of Innovation Model
Typically there are four factors that amplify innovative
disruption in a sector: 100

–– a new entrant refocuses on customer needs to address 90
an existing issue with a product or service;
80
–– the new entrant usually uses a technology enabler to
gain the advantage over the incumbent; 70

–– the nature of the disruption was not foreseen and so 60
regulations are absent or insufficient; and
50 34% 34%

40

30 13.5% 16%

20 2.5% Laggards
10

0

Innovators Early adopters Early majority Late majority

–– the availability of well-funded investors with an appetite Essential marketing models http://bit.ly/smartmodels
for risk2.

1 http://www.702.co.za/features/110/business-unusual 2 http://www.702.co.za/features/110/business-unusual