About 56% of property and casualty (P&C) insurers regard innovation as extremely or very critical to the success of their business, an AM Best global survey has found.

They believe innovation will help to address customer needs, improve competitiveness and raise operational efficiencies.

The vast majority of insurers have rolled out innovation programs, with just over one-third in the early stages of development. Nearly 60% successfully launched an innovative idea and 71% say they have introduced new or significantly improved products, processes or services in the last three years.

“Generally, insurers look to innovation to address a wide variety of issues,” AM Best COO Matthew Mosher said.

“For much of the property and casualty segment, overcoming system and process inefficiencies is the top priority.

“Advances in technology have made inroads into distribution and claims handling, but P&C insurers need to develop new products to address new kinds of risks, such as driverless transportation and cyber.”

AM Best defines innovation as a multi-stage process where ideas are transformed into new or significantly improved products and services that helps a business stay relevant and successful.

P&C insurers made up 64% of the 459 AM Best-rated providers in 48 markets surveyed in August.

Overall, more than 80% of the insurers surveyed say innovation holds a moderate to extreme critical role in ensuring success.