Innovation is when customer needs are met by new or adapted products, services or processes. A classic example of such an improvement is the combination of mobile phone and iPod – today, hardly anyone still has both devices in their pockets. Nevertheless, the line between when an improved product is considered an innovation is a fine line. Just because a company sells an existing product as a new version does not mean that the product or company is innovative. Only if customers actually experience added value, i.e. an additional benefit, then there is effectively a significant innovation.

With increasing globalization, i.e. the worldwide networking of different companies and the associated increasing transparency, products can be imitated and improved more quickly. Also, Baloise is in constant competition with other companies and must be innovative if it is to remain successful in the long term.

One example of this is the changing customer needs in private transport: car sharing and car alternatives such as Uber are currently gaining in popularity, so in a few years' time it will no longer be necessary to drive or own a car yourself. This means that today's car insurance for private individuals will have to evolve to remain attractive to customers. One possible solution could be to develop alternative solutions for car sharing providers today. Because in the end, customers want to use the new mobility solutions with a clear conscience – without worrying about their insurance coverage.

Because not only our car insurance, but all products are subject to such a product life cycle, it is important as a company to promote innovation in a structured way such that innovation can deliver added value.