The Role of R&D in Shaping Insurance Innovation

In a rapidly changing risk landscape, Research & Development (R&D) is crucial for insurers to stay ahead, not just react. From climate risk modeling to new health predictors, data-backed innovation is becoming the industry’s compass.

R&D enables insurers to explore and validate emerging products like parametric insurance, ESG-linked coverage, and dynamic life insurance plans. It also informs better customer segmentation, product pricing, and personalization strategies.

However, most insurers don’t have a formal R&D structure. Innovation is often siloed or driven reactively. This leads to missed opportunities and innovation fatigue.

Establishing structured research pipelines, integrating behavioral studies, product testing, and market foresight, is essential to identify and scale high-impact solutions.