24 However, there are a number of barriers to overcome in order to embed One challenge will be in tackling the failure is not an option mentality, managing innovation in a meaningful way within the business: the risk that innovation inevitably brings. Indeed, while many InsurTech • Innovation not aligned to strategy - often, innovation and proof of concept solutions are predicated on helping the insurance sector better manage risk, collaborations have taken place in areas not aligned with the strategic experimentation with new ideas carries risks of its own. Not every initiative will direction of the company. Such exercises may generate positive learnings deliver the hoped-for results; insurers will need to be ready to change tack or but are unlikely ever to reach scale. Both insurer and startup resources could simply to back off as the situation requires. A commitment to “fail fast” is a key be better deployed elsewhere. element of successful innovation. • Lack of ownership from business units – for now, much of the innovation Understandably, risk and compliance teams are concerned about working with and progress with startups is being driven from insurers’ satellite innovation unproven and new startups. Partnering and scaling with a startup, opens up the teams. Such teams are a step in the right direction, but this approach can business to risk, but taking the easier option of keeping the partnered startup at lead to many organizations struggling to embed an innovation mindset in arms-length (see earlier section on partnership model) means that insurers don’t their businesses. The innovation teams’ main barrier, and what should be top see the benefit of the collaboration. of the priority list, is getting buy in from the business units. How do insurers move forward? Innovation teams have had great success in scouting relevant startups and creating proof of concepts. They are now looking to be as embedded as possible within business units. Consider: • Running strategy or problem-solving workshops with business units; supporting them to express their pain points will help encourage business units to get involved; • Celebrating and promoting success; the innovation team should promote successful proof of concepts that meet the needs of the business as widely as possible, including externally; • Allocating KPIs and resources within business units since a leadership truly invested in innovation will carve out the time and resources necessary for business units to embrace it - giving allocated time and KPIs demonstrates the priority the business is giving to this.