Exploring enablers and hinders to business model innovation in the insurance industry

Abstract

The South African life insurance industry has traditionally operated the same way over centuries. However, given the volatile environment that is characterised by uncertainty, complex and ambiguous in recent times, the insurance industry must find other ways to survive. To demonstrate the need, there has been growing interest in understanding Business Model Innovation in a Dynamic Capability lens. To fill the gap, this study explored enablers and barriers of Business Model Innovation in the South African life insurance Industry. Further aimed to understand what key internal capabilities are needed to enable an effective Business Model Innovation process. At the same time, unpacking key initiatives that were implemented during the COVID-19 pandemic. To under answer these objectives a qualitative study was conducted to get deeper insights through 15 semi-structured interviews held with experts in the industry. A thematic approach to research design where themes were assigned to the data gathered was conducted. The findings from the study were that the main enablers and barriers to business model innovation were structured at multifaced levels: individual, organisational, and institutional. In addition, specific finding on internal capabilities that were needed at an organisational level related to the ability to deploy new structures in organisations. Finally, digitalise the business model to be future ready.