34 How to make collaborations work There is no one-size-fits-all blueprint for collaboration, but there are three key enterprise innovation models that PwC has identified as having had some success. 1. Innovation centre - The innovation centre (also named “lab” or “hub”) is a structure at a corporate level that bridges external innovation with business unit needs and innovation opportunities. It relies on internal subject matter experts and/or innovation champions to ignite and drive innovation initia- tives at a business unit level. With this model, innovative new products and services go to market under the company’s brand. 2. Incubator - An incubator can drive innovation from idea to end product by identifying new opportunities and developing related solutions. Although it does require a significant investment of both budget and resource, it has proven especially effective in addressing complex problems and devising new approaches to them. 3. Strategic venture capital - The SVC model offers the opportunity to participate via a stake or acquisition in relevant InsurTech related players. This is a way to influence and shape the development of specific start-ups (e.g. pushing them to solve specific problems), acquire key capabilities and talent, 13 and/or as a way to derive value from strategic investments. Each of these models has their benefits and large insurers will often use a combination but nearly all will have looked to practically engage with start- ups via the PoC model – sometimes called proof-of-value. It is a quick way for insurers to test the potential value of an idea from which they can build a business case whilst providing start-ups with the experience and data to roll out their ventures on a larger scale. PwC’s work with Startupbootcamp and its insurance partners has identified a number of best practices that underpin the most effective PoCs, with a high-level plan illustrated on the next page. 13 PwC, Insurance Top Issues, 2017