Turning Digital Disruption into Innovation

Turning Digital Disruption Into Innovation In Insurance

Pat Saporito, CPCUSr. Director, Global Center of Excellence for Analytics, SAP and Industry Analytics Expert

Digital: 4th Wave of Info Technology

1850

Industrial economy

2020

Digital economy

1990

Internet economy

IT economy

1970

$0.36T

$12.10T

All figures are in Trillions; 1990 international dollars; Source: Department of Economics, UC Berkeley, BAIN 8 MacroTrends Brief.

$27.50T

© 2016 SAP SE or an SAP affiliate company. All rights reserved.

$90.0TGrossworld

product

2

Living in a Digital Economy

Last 2 yrs. Last 2 yrs. End of 2020 End of 2020 In 2014

1 ScienceDaily, May 22, 2015 2 Technology Adoption Report on Business Networks, Ardent Partners3 Internet of Things (IoT) 2013 to 2020 Market Forecast: Billions of Things, Trillions of Dollars, IDC 4 Statista5 Cisco Global Cloud Index: Forecast and Methodology for 2013–2018, Cisco Systems Inc.

90%Of the world’sdata has been

generated1

40%Growth in

adoption of business

networks2

212 Billion

“Things” willbe connected3

9Billion

Mobile usersin the world4

51%Of workloadsprocessed in

the cloud5

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 3

Insurance Industry Disrupters

Trends

Peer to Peer Insurance

Usage Based Insurance

Spot Insurance

Contract/or Management

Aggregators/Quote Engines

More InsurTech Sources:CB Insights InsureTech BlogTechCrunch Insurance

© 2016 SAP SE or an SAP affiliate company. All rights reserved.4

http://www.cbinsights.com/blog/category/insurance-tech

https://techcrunch.com/tag/insurance/

The Analytics Native

• Began as an analytics company; morphed into an insurer• Acquired by Monsanto (seeds) for ~ $1 Bil.• Bayer (insectide) recently made a $62 Bil. Bid for Monsanto!

200+ data scientists analyzing 50 terabytes of weather data/day!

The Climate Corporation aims to help farmers around the world protect and improve their farming operations with uniquely powerful software and insurance products. …proprietary technology platform combines hyper-local weather monitoring, agronomic data modeling, and high-resolution weather simulations to deliver climate.com, a solution that helps farmers improve their profits by making better informed operating and financing decisions, and Total Weather Insurance, an insurance offering that pays farmers automatically for bad weather that may impact their profits.

Backed by Founders Fund, Khosla, Google Ventures, NEA, Index Ventures and Atomico.


http://www.foundersfund.com/

http://www.khoslaventures.com/

http://www.googleventures.com/

http://www.google.com/

http://www.indexventures.com/

http://www.atomico.com/

The Innovator

!

Insurers are using their venture capital funds to invest in innovation!


World Class Data & Analytics; Often Described, Rarely Achieved

Chasm between what we hear … and what we see!

© 2016 SAP SE or an SAP affiliate company. All rights reserved.

7

Individual Customer Journey


Digital (R)EVOLUTION?

Extend the addressable market and ecosystem

New digitally enabled insurance products

Today Tomorrow

Core insurance business

New non-insurance offers

New digitally enabled premium services

Core insurance business

Property & casualty insurance

Life insurance

Health insurance

Banking

Property & casualty insurance

Life insurance

Health insurance

Banking

Telematics (e.g., Pay as you drive (PAYD); Pay as you live (PAYL)

Simple insurance

Context based offerings and next best offer

Smart pricing

Retargeting

Infotainment; gamification

More advanced digital sales support for brokers and agents

Vehicle road service; financial investment/coaching; health and wellness management; home protection; et al.

Ecosystem/partner offers; auto tires/batteries; gym/health club; home improvement; et al.

Use case examples


Smart ArchitectureNo Touch, Real Time, Agile

Hybrid – Cloud

CORE APPLICATIONS

ECOMMERCE APPLICATION(S)

PLATFORM

C O N N E C T

CONFIGURATION PORTAL

C O N N E C T

MARKETING PORTAL CRM

Sales/Service New Bus Acquisition, X-Sell/ Up-Sell, Renewals/Winbacks

Integration into existing(customer) portals

CLOUD

New analytics capabilities, build

natively in the Cloud

ON PREMISEExtend, leverage, scalable

on-premise capabilities

MARKETING SUBMIT/QUOTE POLICY BILLING CLAIMS REINSURANCE

Customer Data App/Quote Data Policy/Coverage Data Prem./Comm. Data Claims data Reinsurance Data

SALES

Agent/Sales Data


Enterprise Analytics: Strategy to Execution

Execution

Feedback to

Strategy

Strategy

Link & AlignStrategy to ExecutionBusiness Driven

Strategically Aligned

User Access & Usability

Improved Decisioning

Analytics

Strategy &

Roadmap

Corporate

Strategy

New Data /

Capabilities

Real Time

Analytics

Operational

Reporting

Exploration &

Visualization

Predictive

Analytics

Ad Hoc

Reporting

Corporate Data

Strategy &

Metrics

Performance

Management

Governance, Risk

& Compliance

Business Strategy

Analytics Strategy

Data Strategy


SAP Data & Analytics Strategy Framework

Objectives Business Needs Business Benefit Technology Organization

Background and

Purpose

Current State and

History

Objectives and

Scope

Summary of

Needs

Envisioned To-Be

State

Priorities and

Alignment

Value Proposition of

Analytics

Expected Benefits –

Future State KPI

Business Case

Information

Categories

Architecture and

Standards

Tools &

Applications

Governance

Structure

Program

Management

Roadmap and

Milestones

Measurement

Education /

Training

Support

• Digital must be part of the overall business-driven data & analytics strategy

• Strategy is operationalized by an Analytics Competency Center


Digital Transformation Roadmap

Define a Digital Strategy

• What does digital mean to your organization? Your customers? Your partners?

• How does digital relate to your strategic plans/initiatives?

• What are digital Opportunities? Risks?

Conduct a Pilot

• Conduct pilot with existing / new capabilities

• Test capabilities needed to support pilot.

• Conduct next pilot

Review your Digital Capabilities & Culture

• Data management

• Analytics

• Data bases/ platform

• Business Processes

• Skills & Behaviors

• Agility


Thank You!

Available on Amazon Pearson /FT Press & other channels in print and/or digitally

Download 1st chapter (industry overview) free

Patricia SaporitoSr. Director, BIGlobal COE for Analytics

SAP Labs, LLCNew York, NY

+1 (201) [email protected]: www.patsaporito.com

Digital/Innovation Resources:SAP Digitalist! Blog www.digitalistmag.com/SAP Analytics Strategy Self Assessment Tool https://sap-bi-strategy-assessment.com/(includes links to Strategy and BICC Best Practices ebooks)

Hasso Plattner Institute for Design Thinking at Stanford Univ. http://dschool.stanfor.edu/The Digital Insurer Forum www.the-digital-insurer.com/


https://www.amazon.com/Applied-Insurance-Analytics-Framework-Technologies/dp/0133760367/ref=sr_1_1?s=books&ie=UTF8&qid=1405435096&sr=1-1&keywords=applied+insurance+analytics

http://www.patsaporito.com/books/applied-insurance-analytics/

mailto:[email protected]

http://www.digitalistmag.com/

https://sap-bi-strategy-assessment.com/

http://dschool.stanfor.edu/

http://www.the-digital-insurer.com/