“In financial services, innovation has, in the relatively recent past, gotten a bad name because, I think, it was misused. We’re making it very clear that our culture is to use innovation to help our clients,” says AIG President and CEO Peter Hancock in a Harvard Business Review white paper entitled “Embracing Disruption with Innovation.”
In a special section about “How AIG Is Creating a Culture of Innovation,” Peter explains how AIG is pursuing innovation not for innovation’s sake, but with an eye toward adding to long-term, repeatable earnings – which “come from satisfied clients.”
He cites the large-limit property insurance market as an example. AIG has integrated its balance sheet strength with scientific consulting advice from a team of more than 500 property engineers to create “a customer experience that’s quite different.” This has led to more than 400 mandates, higher persistency of policy renewals, and better underwriting results.
Highlighting the role that collaboration plays in innovation, Peter emphasizes, “We don’t have to be the source of all the good ideas. We just need pathways to collaborate with the best thinkers in the world, whether they be Nobel Prize winners – we’ve been collaborating with three in the past five years – or the very broad and diverse span of clients we do business with, which ranges from 98 percent of the Fortune 500 and the equivalent in Europe to small farmers in India.”
See “How AIG Is Creating a Culture of Innovation” on page 8 of Harvard Business Review’s white paper on “Embracing Disruption with Innovation.”