Process Innovation with Disruptive Technology in Auto Insurance: Lessons Learned from a Smartphone-Based Insurance Telematics Initiative

Jens Ohlsson (), Peter Händel (), Shengnan Han () and Richard Welch ()
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Jens Ohlsson: Stockholm University
Peter Händel: KTH Royal Institute of Technology
Shengnan Han: Stockholm University
Richard Welch: Concord Group Insurance

A chapter in BPM - Driving Innovation in a Digital World, 2015, pp 85-101 from Springer

Abstract: Abstract Insurance telematics or usage-based insurance (UBI) is a potential game-changer for the insurance industry, especially for innovating auto-insurance. In order to achieve and sustain UBI for auto insurance, insurers are called upon to innovate the marketing and sales processes of the UBI product, as well as related processes such as risk assessment and price calculation. In this chapter, we demonstrate the insurer’s process innovation with smartphone-based insurance telematics, using the example of the “If SafeDrive” campaign which was commercially conducted by the insurer If P & C in Sweden. The results show that although disruptive technology can trigger process innovation, such innovation cannot succeed and be sustained without fundamental changes in a company’s structure, business model and business strategy. We further propose a capability layer model for understanding the insurer’s process innovation behaviour. This chapter provokes the critical thinking with regard to the exploration and exploitation of disruptive technology into process innovation. Further, the chapter contributes new knowledge to the research of process innovation with disruptive digital technologies.

Keywords: Business Model; Process Innovation; Driving Behaviour; Insurance Product; Business Model Innovation (search for similar items in EconPapers)
Date: 2015
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DOI: 10.1007/978-3-319-14430-6_7

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