Mark Sherrington on OUTsurance and the search for obvious innovation

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If you are looking for some inspiration for marketing financial services you would do well to keep an eye on South Africa. With its unique first world/third world demographic mix and some highly educated and visionary entrepreneurs this market has consistently produced some great companies and some effective innovations. One of my favourite case studies is OUTsurance. Started in 1998 by Messers Roos, Aron and Otto it has grown to be one of the leaders in short term insurance and has now expanded into commercial insurance and life insurance.

The basis of their business idea was a simple consumer insight that with insurance you are forever paying in and very rarely get anything out. So they introduced the idea of cash pay-outs if you have a good no-claims record. And to drive home the message they called the company OUTsurance – get it? Well, everyone did. They used all the usual aspects of a successful business model in insurance – high levels of customer service, approachable style and simple language and of course smart underwriting that allows them to target best value premiums at the best risks. This was the basis of Directline’s success but they went one step further with this idea of insurance where you get something out, captured not just in their name but also in consistent and high profile communications that have a kind of “we’re on your side” attitude.

So simple, so effective. No reason why someone could not have spotted this in the UK. This got me to wondering. What are the other blindingly obvious category insights that could be the basis of a successful new business or at least a smart new bit of innovation?

Here are a few I have thought of, they are personal observations rather than the output of rigorous consumer research, so they may be, and probably are, daft. But maybe one of them is only as daft as the idea of calling an insurance company “OUTsurance” and giving something back for all the money you pay in year after year.

Let’s stay with financial services. What do I really want from a bank? Utter reliability, no mistakes, just get all the transactions 100% right. So what about a bank that promises never to make a mistake backed by an offer to compensate you generously should they ever slip up. Some would say that banks already offer this, but I have never seen a bank make it their central organizing thought in the way OUTsurance have done with a no-claim pay-out. Their idea wasn’t new in insurance but no one really went for it, let alone embedded it in their brand name.

Ever tried buying and insuring a car for an 18 year old? All you want is something that is as safe as possible, gets them around and doesn’t cost you more to insure than it did to buy. What about a 3000 pound car for students that includes insurance if they pass a specific test designed to weed out the boy-racers? Again you could argue that this already available in component form – you can buy a cheap reliable second hand VW car with a warranty and get a discount on your insurance for passing your advanced drivers test but it has not been well packaged and targeted.

I love drinking beer and hate getting pissed. Can I have a beer at 3-3.5% Alcohol by Volume that is refreshing and tastes good (I know I can, the Australians have had them for years and they are sold by law in some states of America).

B&O offer the best  hi-fi – looks beautiful, sounds great but most of all it can be wired around the house and accessed with just one incredibly simple remote control. Problem is it is really expensive – so give me one easy remote control, something that is almost as good as B&O but affordable (I’ll be running it off my PC or iPod so who cares). The Simple Soap of Hi-fi.

Would someone sell sun tan cream with a really strong anti-mosquito repellent built in? Can I have golf balls with a chip in so I can locate them in the rough? How about the same for sunglasses (I found one pair when I sold my car and the new owner returned them)? Would Apple please sell an IPod that enables me to assemble playlists without having to go back to my computer? Can I have bigger buttons on my cell phone and an on/off switch that works like a switch rather than a delayed reaction gamble?

I bet you have your own ideas that are better than these but my point is that simple, honest, naive category insights are the best source of innovation. Experienced innovation agencies like Eatbigfish and What if use naïve observations in their processes but frankly any business can use this kind “Emperor’s new clothes” approach to unearth the bleeding obvious.

OUTsurance – like insurance but you get something back. Brilliant.

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Posted: June 15th, 2011 | Author: will.armstrong | Filed under: Customer Champions | Tags: , , , , | Leave a Comment »

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