Increased government intervention through regulation and legislation can have a positive as well as negative impact on creativity and innovation in the insurance industry.
In this second of a 3-part series on innovation Ty Sagalow discusses public policy and how a partnership with insurance industry could actually spur new product development.
He believes regulation when appropriately done can be a value add to the industry and its customer base. When regulation goes too far, it can be a “strangle hold on innovation and creativity.” New legislation can spur innovation and creativity. Examples include the Civl Rights Act spurred the creating of sexual harassment insurance and wrongful termination insurance, ERISA(Employee Retirement Income Security Act) spurred the creation of a Fiduciary Liability insurance policy.