Insuring Shared Value
“Insurance can be a powerful tool for improving the lives of vulnerable individuals and enhancing society’s overall productivity.”
Shared Value Defined: A strategy by which one finds business opportunity in social problems. It allows for economic benefit and business generation through the actions taken to address societal challenges.
The following offers you the Lowdown on a great report I posted this past week in Research & Trends by the Shared Value Initiative:
How Insurers Gain Competitive Advantage by Better Addressing Society’s Needs.
Why a Lowdown? Because this 24 page report covers a lot of ground and provides a number of powerful examples of what “pioneer” insurers are accomplishing. My hope is a quick introduction will spur you to read on, so here goes. Shared value within the insurance industry is best described by the author:
“Shared value in insurance moves the industry from a passive guardian to an activist model, where companies anticipate, prevent, and mitigate societal risks.”
See page 5: “Shared value is a business strategy that helps companies re-conceive society’s needs as business opportunities driven by changing realities, eroding trust and blind spots.”
See page 7: The results can be seen through:
- Increasing profitability through prevention and dynamic risk reduction rewards
- Growing revenues by closing the protection gap for the under-served
- Reaping synergies through asset investment in prevention/ protection systems
See page 19-22: Elements of success by those embracing this strategy:
- Innovation Space and Budget
- Trusted Use of Data and Technologies
- Shared Value Measurement
- Systems Change
- Upgrading services and sharing data across the insurance value chain
- Engaging government and communities
- Mastering behavioral sciences
See page 23: A great flow diagram for putting your strategy into action
While I encourage you to jump over to Research & Trends and download the report, I leave you with this quick video produced by the Shared Value Initiative as final food for thought. While Shared Value is not a new concept, we are about to start a new year and as always, that is a great time to consider a new initiative for a better tomorrow.
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