A client preso for the insurance industry. High level with charts to prompt discussion on external access to insurance services.
Text of Insurance Trends
Agenda CEO Survey Changing the Game New Media Technology Customer reference Next steps
We spoke to 1,130 CEOs and conducted in-depth analysis to determine the characteristics of the Enterprise of the Future CEO Survey What is the Enterprise of the future?
Core Traits of the Enterprise of the Future 1. Hungry for change 2. Innovate beyond customer imagination 3. Globally integrated 4. Disruptive by nature 5. Genuine, not just generous
Hungry for Change
Although CEOs are more confident about managing change, their capability and the challenge ahead is Although CEOs are more confident about managing change, the gap between their capability and the challenge ahead is growing growing The Change Gap* Triples 2006 2008 8 % CHANGE 22 %CHANGE GAP* GAP* 13% 12% 6% 19% 11% We have seen more change in 22% 31% the last ten years than in the 83% 20% previous 90. Ad J. Scheepbouwer, CEO, KPN 65% 61% Telecom 57% Change Needed Past Change Success No/limited Change No/limited Success Moderate Change Moderate Success Substantial Change Successful Change Needed Past Change Change Needed Past Change Success Success
CEOs can no longer focus on a narrow set of challenges and intend to manage a broader agenda and greater uncertainty External Forces Impacting the Organization Market factors 84% 67% 48% People skills 42% 44% 48% Macroeconomic factors 41% 35% Globalization Regulatory concerns Technological factors 33% Socioeconomic factors Environmental factors Geopolitical factors 2004 2006 2008 Source: IBM Global CEO Study 2008; n (2004) = 403, n (2006) = 760, n (2008) = 1130
Companies that delivered higher revenue growth managed change more successfully Underperformers** Outperformers** 29 4% % CHANGE GAP* 19 % CHANGE GAP* 24% 5% 17% 13% 10% CEOs of organizations with outperforming revenue growth are 85% 83% 17% more confident about their ability to 22% implement change 66% 54% Change Needed Past Change Success No/limited Change No/limited Success Moderate Change Moderate Success Substantial Change Successful Change Needed Past Change Change Needed Past Change Success Success * Dif ference or gap betw een expected level of change needed and past success in managing change ** Performance based on industry comparisons w ithin Source: IBM Global CEO Study 2008; n (underperformers) = 173, n (outperformers) = 164 survey sample of revenue CAGR 2003 to 2006
2. Thinking beyond customer imagination
CEOs see even more potential with informed and collaborative customers and are rapidly increasing their investment there Rise of the informed and collaborative customer Negative impact No impact 10% 22 % INCREASE 20.4% 14% 16.7% Positive impact Investment* past 3 Investment* next 3 76% years years The rise of the informed and knowing consumer will We must redefine our value proposition to continue to have an impact regarding our go-to- customers. Information and advisory content market priorities. We must know how to leverage are becoming even more valuable than new media. We've been surprised by the impact that traditional drivers. just a few consumers can have with their blog H. Edward Hanway, Chairman & CEO, CIGNA Corp. entries. Source: IBM Global CEO Study 2008, n = 609; * Total investments: all asset investments + all investments in R&D, marketing and sales Rob Hurlbut, CEO, Attune Foods
Outperformers plan to increase their investment in informed and collaborative customers by 36% over the next 3 years the time is now Investment in the rise of the informed and collaborative customer Underperformers** Outperformers** 14 % INCREASE 24%