Digitalization in InsuranceEIET CONFERENCE 2015

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AA

Agenda

Digitization in Insurance and it’s Impact on Product Distribution

Business Context & Competitive Environment

Digital Customer Journey

Digital Maturity and Alignment of Capabilities

Success Criteria of Digital Transformation

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Digitization in Insurance

Market Capitalisation

2011 2012 2013 2014 2015 2016

Insurer with Advanced Digital Capabilities

Insurer X

Insurer with Little or No Digital Capabilities

Digital progressive insurers generated an 83% increase in market capitalisation and a 62% return on assets (ROA) during the 3 years between 2011 and 2013. By contrast, those insurers that are just beginning their digitalisation efforts averaged a 47% increase in capitalisation and suffered from a 15% decrease in ROA during the same period.

In just 3 years digitally progressive insurers outgrew those not investing

in digital capabilities by 36%

Gartner predicted that, by YE16, digital leaders in insurance

will financially outperform digital

laggards by 100%.

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Insurer with Advanced Digital vs. Little or No Digital Capabilities

Embarking on the digital journey is not an option, but a necessity to sustain market position.

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Impact of Digital on Product Distribution

DEVELOP CUSTOMER INSIGHTS

ENGAGE WITH CUSTOMERS

BUILD CONNECTED CUSTOMER CHANNELS

Develop a multichannel digital customer experience

Digital Strategy

Transform data into an asset to be leverage by Digital processes

Deliver an authentic engagement by personalizing customer experiences

ENABLE PROCESSES

AND SYSTEMS

Establish a stable landscape of core systems and processes to support the customer journey

Customer Journey Distribution Channels

AWARENESS

CONSIDERATION

VALUE PROPOSITION

INTENTION

SALES

CUSTOMER RELATIONSHIP

CUSTOMER SERVICE

BA DtC F2F EB

Moderate Significant CriticalLevel of digital enablement required in different channels

Digital capabilities have become a critical „hygiene” factor as customer expectations are turning towards a fully digital customer journey.

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Business Context & Competitive EnvironmentAnalysis of life insurance trends and leading practices has shown that many insurers are not in-line with the market.

Data Management

Advanced Analytics

DigitalUser Experience

MultichannelDistribution

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DATA MANAGEMENT Data mining across 4 dimensions - internal, external, structured, and unstructured

ADVANCED ANALYTICS Providing in-depth views of the market that enable more meaningful segmentation, inform product development,risk management and underwriting, and enrich the customer experience

DIGITAL Strategic and deliberate use of technology to improve business models and automate internal and external operations

USER EXPERIENCE Consistent, client-centric user experience at every touch point on the customer journey

MULTICHANNEL DISTRIBUTION Omni-channel capabilities, allowing flexibility for customer to use preferred channel with the ability to switch between channels without losing context

Key market trends Positioning against market leaders

EMEA Market leaders Industry average

Key:

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Business Context & Competitive EnvironmentMany players are lagging behind market peers that are driving competitive advantage through the adaptation of new technologies and leading practices.

Best market practice*Advanced technology capabilities Comparison to best practices

Technology theme

Digitally enabled multichannel customer experience with robust self-service offering

DIGITAL

UX

Web/mobile/tablet customer portal allowing clients to view full engagement with the insurer and enabling self-servicing (bill payment, product purchasing, claims filing)

Sophisticated agent supporting tools enabling digital pre-sales, sales and servicing

DIGITAL

UX

Web / SMS lead generationFast pricing with web quotesIllustration softwareCommission reporting solutions

Use of data and advanced analytics to support identification of cross-selling opportunities, drive better understanding of customer needs, support customer segmentation

CRM

ANALYTICS

Leverage actuarial risk platforms to develop CLV (Customer Lifetime Value), propensity to buy models

Flexibility to drive product personalisationand engagement with short time to market

Easily configurable product platform with fast time to market

PRODUCT DEVELOPMENT

TECHNOLOGY REFRESH

Ability to provide customers with a timelyand accurate insurance offer

BPM

TECHNOLOGY REFRESH

DIGITAL

Mobile apps / on-off line capabilities for KAMs with automated underwriting function providing direct linkage between sales and actuarial function to deliver faster quotes to customers

Data management practices enabling a central view on customer data

CRM

DATA MANAGEMENT

Customer data warehouse, standardised data structure, reporting tools and integrated front-end

SELECTED EXAMPLES

In line with market leaders

Significantgap exists

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• Targeted Advertising Based on Behavioural Analytics

• Cross Channel View of Customer Through CRM

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• Submit Claims Online• View Claim Status in Portal• Share Experience with Social

Network

E• Buy Online• Automated Underwriting• Paperless Policy Issuance• Issue Review Online• Share Experience on Social Media

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• Access to Portal for Policy Amendment

• Interact with Agent via Video ChatD

• Online Search• Self-educate• Compare Quotes• Targeted Advertising• Receive Quote

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• Browse Reviews• Check With Social Media Network• Validate Options and Suitability

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AWARENESS

• Social Media• Viral marketing• Content, Search Engine Optimisation (SEO)

and Digital brand marketing

CONSIDERATION

• eEducation• eAdvertising• Ratings & customers feed-back• UX Journey Design – Connectivity

VALUE PROPOSITION

• Social listening• Survey and research• Analytics and Big Data

INTENTION

• UX Journey Design – Connectivity• Product and Price Comparison• eTools• Remarketing

SALES• Lead generation/nurturing• eSale (eSignature, ePayment, eFulfillment)

CUSTOMER RELATIONSHIP

• Personalisation and targeted content• Cross-sell & Up-sell through Big data

CUSTOMER SERVICE

• Social Servicing (Twitter)• eClaims• eService

Gather Information

Seek Advice

PurchasePolicy

After Sale Service

Claims

Ongoing Sales

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Customer Journey Digital Levers

The Digital Customer Journey The enhancement of the customer journey is enabled through digital capabilities that support all customer touchpoints.

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Social Media eEducation Social listeningUX Journey Design – Connectivity

Lead generation/nurturing

Personalisation and targeted content

Social Servicing (Twitter)

Viral marketing

Content, SEO and Digital brand marketing

eAdvertising

UX Journey Design – Connectivity

Ratings & customers feed-back

Survey and research

Analytics and Big Data

Product and Price Comparison

eTools

Remarketing

eSale (eSignature, ePayment, eFulfillment)

Cross-sell & Up-sell through Big data

eClaims

eService

Customer Journey

AWARENESS CONSIDERATION VALUE PROPOSITION

INTENTION SALES CUSTOMER RELATIONSHIP

CUSTOMER SERVICE

Awareness building through online channels strengthens the brand and generates prospects

Internet Users

Targeted messaging and prospect education results in further engagement

A value proposition developed based on customer/ prospect input build acceptance and credibility

Once the customer accepts the value proposition the quality of tools provided will drive the sale

Quality and ease of the sales process will determine the level of sales conversion

Level of customer integration and responsiveness to further sale offers is driven by the adequacy and quality of content

Strength of the relationship with the customer is driven by the ease and quality of engagement

The level of digital maturity should be aligned across the customer journey to yield the highest benefits

Digital Maturity

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Alignment of Digital Capabilities

Product development

Marketingand sales

New Business/Underwriting

Billing andcollections

Claimsmanagement

Policy adminand service

INSURANCE VALUE CHAIN

REQUIREMENTS FOR DIGITAL INSURER

Product personalisation

Streamlined product

development process

Customerinvolvement and

feedback

Lead generation & campaign

management

Lead management

Digital sales process

Multichannel distribution

Predictive UW model

Automated underwriting

Underwriting status

Real timeunderwriting

Collectionmanagement

Automated billing and

reconciliation

E-billing

E-payment

Claimsmanagement

Automated claim processing

Claims statusing

Proactive lossadjust offerings

Customer service

Policy admin automation

Self-service

New business processing

CUSTOMER JOURNEY

Gather Information Seek Advice Purchase Policy Claims After Sale Service

Ongoing Sales

AWARENESS

CONSIDERATION

VALUE PROPOSITION

INTENTION

SALES CUSTOMER RELATIONSHIP

CUSTOMER SERVICE

Digital capabilities driven by the customer path and touch points in the customer journey (Illustrative)

Relationship Management

Data and analytics

Customer Intelligence

Digital marketing

Data and analytics

Digital marketing

Digital enablement will drive business growth, but has to be equally applied to the entire customer journey as opposed to fragmented capabilities.

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Digital Transformation In order for Insurers to execute a successful Digital Transformation , the operating model needs to be adapted to bring technology closer to the business.

TECHNOLOGY

DIGITAL

DATA

IT Delivery

Governance

People & Organisation

Sourcing

Financial Management

OPERATING MODEL

Project Portfolio Management

The Operating model needs to align with the business strategy and identified business drivers for change in order to deliver the required ROI on Digital enablement

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Build Connected Consumer Channels

Enable Processes & Systems

Develop Consumer Insights

DIGITAL ENABLEMENT

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REDEFINE THE CUSTOMER EXPERIENCE

DIGITALLY ENABLE DISTRIBUTION

GOING MOBILE

DIGITISE PROCESSES

DIGITAL MARKETING CAPABILITIES

ENHANCE CUSTOMER ANALYTICS

ACCELERATE DIGITAL INNOVATION

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ADVANCED ANALYTICS

• SINGLE CUSTOMER CENTRIC EMEA

DATA MODEL AND DATA WAREHOUSE

• 360 VIEW OF THE CUSTOMER

• UNIFORM DATA STRUCTURES

• REAL TIME ACCESS TO DATA

• ADVANCED ANALYTICS CAPABILITIES TO ENABLE THE ANALYSIS OF EXISTING AND PROSPECTIVE CUSTOMERS

• DRIVE CAMPAIGNS ACROSS CHANNELS AND ENHANCE MARGINS VIA STARTEGIC PRICING

• LEAD GENERATION BASED ON BIG DATA AND BEHAVIORAL SEGMENTATION

DATA MANAGEMENT

Data and Analytics in Digital TransformationSuccessful digital transformation needs to be underpinned by robust data and advanced analytics

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