Is this new trend the future of insurance innovation?
Is this new trend the future of insurance innovation? | Insurance Business America
Insurance News
Is this new trend the future of insurance innovation?
Holmes Murphy CEO on selecting partners
Insurance News
By
Lauren Johnson
The concept of coopetition – where companies collaborate with their competitors to achieve mutual benefits – has become more
prevalent across various industries. Dan Keough (pictured), chairman and chief executive officer at Holmes Murphy, is a firm advocate for this approach within the global insurance sector. In his view, embracing coopetition is not only strategic but essential in navigating an increasingly complex and competitive marketplace.
The organization has taken steps to adopt the mindset that competitors can sometimes be beneficial partners, particularly in areas that could have been proprietary to them. Instead of keeping these capabilities in-house, the company chose to share them with other brokers across the country This led to the co-founding and creation of BrokerTech Ventures (BTV) in 2019 – the first broker-led Insurtech Accelerator and innovation community.
“Instead of keeping something that would be proprietary to Holmes Murphy, we just chose the path to partner with other firms who share the same abundance mentality,” Keough told IB.
Keough’s perspective on coopetition goes beyond the typical win-or-lose mentality. He emphasizes that some competitors can push you to improve and learn, whereas others may not share the same values. However, he is clear that this approach does not apply universally.
And, when it comes to determining whether to compete or collaborate, Keough explained that it’s crucial to draw a line between what is pre-competitive and what is competitive. However, there are instances where each company’s leadership must decide whether to keep a resource or capability within the organization – or to share it for broader benefit.
“We have ambitious growth goals for Holmes Murphy, and believe we are a better firm because of our BrokerTech Ventures community and relationships built around co-opetition,” he said.
Keough shared that at the Holmes Murphy level, there are conversations around who to partner with in the pre-competitive space, and the open dialogue allows for alignment to the organization’s overarching goals and values.
“You have to have a sense of who you are and what you stand for from a value set, and this drives your partnership decisions” he said.
How to find strategic partners
The process of identifying strategic partners within the coopetition framework is no small task, especially in the ever-evolving global risk landscape. Holmes Murphy looks at potential partners based on their value sets, approach to business, and geographic differences.
“Those differences actually paint a bigger and fuller picture of the opportunities, challenges, and issues,” he said.
Keough emphasized that it’s not just about choosing partners that align perfectly – but also those whose strengths complement any areas of potential weaknesses throughout the community.
However, while coopetition offers significant advantages, it is not without its risks. Keough acknowledges that managing innovation and growth through collaboration requires careful planning and execution. This shift brings opportunities but also challenges, particularly in the insurance sector, which tends to move slowly in adopting new technologies.
“If you look at the industry and the shift that’s occurring, we’re moving to a tech-enabled industry,” he said. “The insurance industry is not one open to change very quickly. Tech entrepreneurs want to change; they’re very iterative, but we move more slowly in the insurance space.”
Balancing the need for innovation with the realities of the insurance industry’s pace of change is a constant challenge. Keough points to BrokerTech Ventures as a proven and thriving example of how coopetition can drive innovation.
The BTV initiative allows the company to work closely with tech entrepreneurs while maintaining a focus on what is best for their clients and the broader insurance value chain. And, as the global insurance landscape continues to evolve, Keough believes that the coopetition mindset will only become more important. While the industry is generally collaborative, particularly among brokers, there are still areas, particularly in tech, where incumbents resist opening up.
“Our ethos is to serve our clients as we identify risks sooner, and can drive down their costs, faster,” he said. “At the end of the day, we are on a mission to change and better the insurance industry, through collaboration.”
For Keough, coopetition is not just a strategy; it’s a way of thinking that permeates how Holmes Murphy approaches business. By embracing collaboration with competitors, the company aims to stay at the forefront of innovation while maintaining its commitment to delivering the best possible outcomes for its clients.
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