The Evolving Insurance Landscape · 2018-03-12 · The Evolving Insurance Landscape. MICHAEL...

The Evolving Insurance LandscapeMICHAEL ARANETA

AVP, IDC FINANCIAL INSIGHTS ASIA/PACIFICmaraneta@idc.com

© IDC

© IDC 2

COGNITIVE

IOT

UBA

VOICEas a

CHANNEL

AR/VR

CYBERSECURITY INDUSTRY COLLABORATIVE

CLOUDS

ROBO-ADVISORS

NEXT-GENPAYMENTS

SELF-HEALING

BLOCKCHAIN

AI

DX

AUGMENTED HUMANITY

APIs

Source: IDC Financial Insights, 2018

We are witnessing3 TRANSFORMATIONS

in Financial Services

Source: IDC Financial Insights, 2018

NOW, 45 of 101 have partnerships with traditional financial services

China and India have higher % of disintermediation

Strong theme of regionalization in 2018

Alipay is #1 in 101

Insurance web aggregation

Digital Insurance for Customer

Experience (Convenience,

Conciseness, Cost)

Chatbots

IoT

P2P Marketplaces Others

We are tracking 77 insurtechs for 2018MOTIVES TO COLLABORATE

Plug-and-play on new technologies

The spirit of innovation and use of new technology

Alternative distribution platforms

WHAT’S HOLDING US BACK

Not sure about scalability Security, non-compliance Still slow to go to market

Source: IDC Financial Insights, 2017

*Application Programming Interfaces

Ready for

IDC PeerScape: Best Early Steps in Deploying Open Banking Application Programming Interfaces in Asia/Pacific, IDC Financial Insights, July 2017

APIs?

INSURER’S DATA

FINANCIAL INFORMATION1. Account Balance2. Auto Loan Exposure3. Credit Card Limit4. Credit Card Spends5. Home Loan Exposure6. Investment Portfolio7. Personal Loan Exposure8. Transaction History

LOAN-RELATED APIs9. Pre-approved Auto Loan10. Pre-approved Home Loan11. Pre-approved Personal Loan

LOYALTY & REWARDS12. Reward Points Management13. Rewards Point Calculator

NON-FINANCIAL INFORMATION14. Customer Details15. Product Availed: CASA Products16. Product Availed: Investment Products17. Product Availed: Loan Products18. Account Aggregation

TRANSACTION-RELATED APIs19. Business Accounts Access20. Card Authentication21. Card Payment Management22. Instant Refund/Settlement23. Transaction Scheduler24. Payment Initiation and Authorization25. Remittance Authorization26. Remittance Exposure

LOCATION-DRIVEN APIs27. Infrastructure Location Management28. Offers Near Me29. Pre-approved Property Search

PRODUCT INFORMATION30. Product Terms and Conditions

MOST COMMON OPEN BANKING APIs

by 2018

*By the end of 2018, 50% of global tier 1 and tier 2 banks will offer at least 5 external APIs

Source: IDC Financial Insights, 2017

© IDCn=37 APeJ FSIs

Source: IDC’s Information Digital Transformation MaturityScape Benchmark Survey, IDC Cognitive/Artif icial Intelligence APeJ, 2017 Survey 12

IN THE ASIA/PACIFIC REGION: Architected but not integrated, real time information 95% of FSIs using traditional data management, integration, and analytics Early efforts in single customer view, Open Partner APIs

BUT… “Improving data quality” to become a key focus for FSIs’ investments in the next 1–2 years Overall weak in integrating external sources of data, new uses of insights, and data monetization

MONOLITHIC CORE

CUSTOMER INTERACTIO

N

PRICING

MARKETING

CHANNELS

RISK

SYSTEM OF RECORD+

TRANSACTION ENGINE

Core SystemAbstraction

Source: IDC Financial Insights, 2017

Core SystemAbstraction

Extricating business logic, especially of systems of engagement, away from the core

Benefits: Ability to handle scale, iterative modernization

Modernise around the coreBenefit: System of engagement becomes digitalized quickly

Microservices-enabled Supportive of Agile development Analytics intersecting more tightly

with core system Product development heavily

leveraging Open APIs Interconnectivity with third parties

through a Platform

Source: IDC Financial Insights, 2017,Getting Ready for the Open Revolution?, IDC Financial Insights, July 2017

YOUR ARCHETYPE YOUR MODEL OF BUSINESS

ISOLATIONIST Provides exclusive products and distribution to own customers. Traditional model.

PRODUCER Provider of syndicated products and services with distribution through third parties. For banks, this creates challenges with customer ownership and branding.

DISTRIBUTOR Distribution of third-party products through owned channels. Third parties such as comparison platforms or marketplaces will assume the distribution of all kind of products.

PLATFORMPlatforms will serve as facilitator or service provider to the ecosystem. For banks, this could open opportunities around shared know-your-customer (KYC), security, processing services.

AGGREGATORCross-industry aggregation of customer data to provide financial management, advisory services to customers, and depending on privacy regulations, monetization of data assets through services to third parties, such as product recommendation and marketing.

INTEGRATOR Interoperability and integration services for open APIs, especially if there is no standardization of APIs, as currently intended by PSD2.

INNOVATOR Development of new services based on opportunities arising from an open ecosystem.

Source: IDC Financial Insights, 2017

OpenCollaborateto

OpenDatafor Platforms Core System

Abstraction

15 CAPABILITIES OF DIGITAL INSURANCE

Asian Financial Services Congress 201124th - 25th February 2011. Marina Bay Sands, Singapore

Presenter NameEmailTel

MICHAEL ARANETAAVP

IDC Financial Insights

maraneta@idc-fi.comMobile: +65 9138 7514

+6686 8938708Twitter: @mcaraneta