It’s a simple question — can insurance innovate? Think about your answer; I will give you mine at the end of this post. Here’s a quick story from an insurance book that helps set the stage for how the industry got to where it is today: There once was a membership association called the American Insurance Underwriters (AIU). The AIU acted as an agent for member insurance companies in international markets. Each member insurance company held a percentage of the AIU pool by which payments and liabilities were assigned.