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Obstacles to Innovation at ISO

Obstacles to Innovation at ISO. What is Insurance Services Office (ISO)?. Premier provider of data, analytical and decision support products Serves customers in and outside the insurance industry Trusted intermediary to the P/C industry

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Obstacles to Innovation at ISO

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  1. Obstacles to Innovation at ISO

  2. What is Insurance Services Office (ISO)? • Premier provider of data, analyticaland decision support products • Serves customers in and outsidethe insurance industry • Trusted intermediary to the P/C industry • Leading source of information about property and liability risk

  3. ISO History and Structure • In 1971, ISO, a nonprofit organization owned by the larger companies in the industry, was formed replacing a number of state insurance bureaus. • In 1996, ISO became for-profit which enabled it to perform as an independent company focused on providing value to the insurance industry. • Structure • 4 independent Strategic Business Units (SBUs) • Large somewhat federated IS&T organization • Shared Marketing/HR/etc • Many recently acquired independent subsidiaries

  4. Examples of Innovation at ISO • ISO Score Small Business • ISO Score Small Business is an automated, intelligent, and low-cost system for scoring small commercial risks (Like a credit score but for insurance) • Workers Comp FROI/SROI Transactional (FST) • Each state requires submission of Workers Comp claim info in slightly different formats • FST allows insurers to submit data to the ISO transactional system and ISO satisfies each states reporting requirements obviating the insurer of this expensive task

  5. Innovation at ISO • The creation of value through the implementation of new ideas • Innovation is composed of: • Conception and refinement of new value-adding idea • Little understood • No processes in place – Lightning bolt we hope occurs • Huge room for improvement • Implementation: Advancement of new idea from concept to utilization • Well understood • Many repeatable processes in place (ex. BCP to SMC) • Incremental improvements are possible

  6. General Obstacles • Strong past performance • High market share • Results in complacency • Non profit history • Strongly decentralized org structure • Different SBU’s are not inclined to work together • No dedicated resources for innovation • Stricter controls

  7. Actionable Obstacles • ISO does not have enough individuals purpose-fully searching for and defining opportunities • The idea-capturing process at ISO has fallen into disuse and needs renovation • The full potential of the CRM Process as a valuable resource in the search for and development of new opportunities is not being realized • Job rotation is not being purposefully used as a means of fostering innovation • We do not do enough training in support of innovation • The rewards system at ISO could be used more effectively to support innovation

  8. Innovation Proposal – July 05 • Authorization to refine and begin progressing the general recommendations • Dedicate Individuals to Innovation • Renovate and re-introduce process for idea capture • Train in Innovative Methodologies • Passively Screen New Hires • Formally Rotate Jobs • Enhance and Leverage CRM • Create Incentive Programs

  9. Recommended Next Steps • Better determine ISO’s current Innovative status • Conduct Stevens Innovation Audit • Research origins of recent new products • Determine barriers to implementing an innovative ISO • Refine recommendations based on findings • Publicize initiative among employees (and update status periodically) • Align with other initiatives to create a stronger case for change toward an innovative culture • Implement recommendations

  10. Update • ISO’s 2009 strategic objective is in pursuit of growth, large portion tied to improving innovation • ISO does not have enough individuals purpose-fully searching for and defining opportunities • Developing white space opportunity attack teams • Developing common processes/deliverables managing innovation within SBUs • The idea-capturing process at ISO has fallen into disuse and needs renovation • Different SBUs are developing their own basic idea-capturing tools • The full potential of the CRM Process as a valuable resource in the search for and development of new opportunities is not being realized • No change • Job rotation is not being purposefully used as a means of fostering innovation • No change • We do not do enough training in support of innovation • Working on developing grassroots education in basics of Innovation • Followed by more focused training and attempt at culture change • The rewards system at ISO could be used more effectively to support innovation • No change

  11. Comments

  12. End of Slides

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