Macaii S1 E008: Critical Pillars for Stimulating Innovation with Ed Gaze

People in Insurance: Changing the Conversation

How will Insurtech continue to reshape the industry in the coming years?

What factors, material and psychological, continue to curtail the insurance market from innovating at a steadier pace?

In this episode of Changing the Conversation, we are thrilled to be speaking with Insurtech trailblazer Ed Gaze! Whilst Insurtech is having a substantial impact on the wider market and facilitating innovation more broadly, many insurance businesses remain steeped in archaic traditional processes. Ed argues that this, along with considerable red tape around gaining capacity and distribution for new ideas, drains momentum from the market’s efforts to innovate. Ed suggests that businesses that wish to do so must assemble diversely minded teams who share a unanimous passion for experimentation and are motivated by the prospect of trying new ideas and alternative approaches.

Quote of the Episode

“I think, generally, we need to get everyone on better data. The better the data, the easier it is to move and change things, and understand what's going on. But the core thing [behind fuelling innovation] is having people [who are] motivated to make change happen and are not motivated to hold back. Sometimes we can be a bit risk averse. Insurers are in the business of risk, but they're also super risk averse. Trying to help them take a bit more measured risk in certain places would be really helpful.”

Ed observes that insurers’ attitude towards risk is somewhat oxymoronic – whilst we work to manage and evaluate the risks of our clients, we are very reluctant to take any risks to assist in this process. He notes that while there is a general need across the industry for greater access to and examination/implementation of data, the primary obstacle curtailing innovation is one of attitude.

Key Takeaways

The insurance industry is steeped in history, and as such, it is underpinned by an array of seemingly cemented processes. The digital revolution poses a significant challenge to this, as other financial services transition to data-first approaches, so too must insurance. Innovation is also often stymied by a reluctance to justify change. Profitable businesses may see no reason to innovate given their present success, and non-profitable businesses may lack the necessary funds to try something new. As such, for innovation to become more firmly cemented, there needs to be motivation within a given business to pursue change.

Ed notes that innovation must be underpinned by a passion for new ideas, a motivation to pursue them, and a no-judgement attitude towards mistakes when they happen. Innovation should be allowed to unfold quickly and fluidly, so that lots of new ideas can be tested and embraced or abandoned in quick succession. It’s key, therefore, to get the right people on board in a business, who are all motivated in the same way.

However, Ed highlights that diversity of thought is also crucial with regards to innovation. This can manifest in many different ways – for example, people from different cities or countries may therefore have contrasting life experiences, for example. Alternatively, people who studied radically different subjects at college or university will be equipped with unique skillsets and knowledge. When placed in a team of uniquely minded people, all inspired to innovate, great new ideas and approaches will emerge. Innovation, ultimately, is about applying ideas in new ways that are commercially viable. A diversely minded team will be far more equipped to pursue this end than a room of people who have all vaguely pursued the same path in life.

Ed’s long-term vision for the future of insurance is to make it easier for Insurtechs to innovate and for innovative ideas within corporates to be tested. There are considerable roadblocks to quick experimentation of ideas from capacity and distribution. Ed’s fast-paced approach to innovation is underpinned by a desire to learn more – even if an idea fails, so much can be gleaned from the attempt, hence why innovation in insurance is never wasted effort.

Best Moments/Key Quotes

“Sometimes if you don't give yourself a deadline and you just let things tick along, you just don't get that kind of drive to finish it. When we're all so motivated and pushing and working hard to do it, we then get that passion across to the other people within the insurer that need to approve it.”

“Culture is hugely important. You take a person in one business who's not able to get stuff done, put them in another business – same person, same skills – and they could be super successful because of the culture, because of people being willing to listen to what they've got to say, or being willing to experiment and learn.”

“Innovation is about applying the applying ideas in new ways that are commercially valuable. Innovation isn't necessarily about creativity. It's not about creating something brand new, necessarily. It's about taking things that are right there already, and applying them in a new way. And doing it in such a way that's commercially valuable.”

Resources

Innovative Risk Labs: https://www.innovativerisk.co.uk/

JustParent: https://www.justparent.co.uk/

About the Guest

Ed Gaze is a paragon of Insurtech innovation. Having managed the Lloyd’s Lab for four years, Ed has since become the CEO of Innovative Risk Labs (IRL), a broker which helps to launch new Insurtech MGAs in the UK. He is also the CEO of JustParent, the UK’s first parental leave insurer.

About the Host

Sarah Myerscough is the Chief Ideas Officer at Macaii, formerly Boston Tullis. She hosts/co-hosts several podcasts and is known for her knack in connecting with people. Sarah excels in bringing out the best for video, podcast, and live events, helping clients showcase the human side of their business.

Sarah is passionate about the evolving dynamics of the insurance industry and enjoys conversing with innovators, trailblazers, and long-term advocates of change.

Website: www.macaii.co.uk