By their own admission and despite ongoing efforts, incumbent insurers struggle to produce innovative products. Survey data shows that while 82 percent of executives surveyed said they consider product development a core competency, only 12 percent believe their companies have a process that produces innovative products.1 In informal interactions, executives also struggled to name products from the industry that they consider truly innovative. Effective product innovation is tied to a deep understanding of customers’ emotional and practical needs and wants, paired with the ability to quickly get those products to customers—a departure for many incumbents’ default philosophy of aiming to be fast followers. Traditional insurers demonstrate a relative lack of both understanding and ability compared with their digital-native counterparts, and that could be one of the primary factors that accounts for low penetration in Asian markets, ranging from 0.49 percent to 19.97 percent of 2019 GDP at the country level.