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Great Lakes E-Day 2017

TechnologyAdvancements in the

Life, Health and AnnuityProduct Lines

May 18, 2017

John B. Palmer, IIIJ.D., CLU, ChFC, FLMI, AIRC, ACS

Interaction

Your input is the key ØWhat have you experienced?ØWhat is your Company doing?ØWhat are you excited about?ØWhat scares you?ØWhat do you want to know more about?

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Tuesday April 11, 2017 Dilbert Enters The Jargon Matrix

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Wednesday, Apr 12 2017

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Phoenicians Share Risk

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Preprinted Forms

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Universal Life

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Earth Moving Changes

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Insurtech

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What is 'Insurtech‘?What is 'Insurtech'Ø Insurtech refers to the use of technology innovations

designed to squeeze out savings and efficiency from the current insurance industry model. Insurtech is a portmanteau of “insurance” and “technology” that was inspired by the term Fintech. The belief driving insurtech companies is that the insurance industry is ripe for innovation and disruption. Insurtech is exploring avenues that large insurance firms have less incentive to exploit, such as offering ultra-customized policies, social insurance, and using new streams of data from internet-enabled devices to dynamically price premiums according to observed behavior.

http://www.investopedia.com/terms/i/insurtech.asp#ixzz4fqAzEkU7

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BREAKING DOWN

InsurTech

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Topics

Ø Big Data- AnalyticsØ IoTØ AIØ WearablesØ Genome SequencingØ BlockchainØ Voice & Video Recognition

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Life, Health and Annuity

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Trade -Offs

7 Million Jobs Lost By 2025

Privacy and Security Issues

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Disruption

Natural starting pointØTop Tech Tools for ProducersØCRMØDocument & Content ManagementØCybersecurity ØRobo-AdvisorsØMobile Apps

ØNext Insurance ØAnnounced Chatbot 3-14-17ØWill use Facebook Message

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Companies

Thrivent Financial

Haven Life Mass Mutual

RGARE

iptiQ SwissRe

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Agencies

Ø LemonadeØ TrovØ Ladder

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Innovation Units

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Artificial Intelligence

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AI

Artificial IntelligenceØBusiness & Consumers are warmingØNo longer thought of as just a job-killerØPwC study 63% an emerging technology that

will help solve complex problemsØ 58% would turn to in next 5 years as a tutorØ 72% Business leader - AI differentiator of the

future

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AI

Ø Technology now capable of learning with contentual annalysis, image recognition and deep algorithms

Ø Underpinning- Date capture and recognition, robotic processing and cognitive robotics

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AI

Ø Natural languageØ Virtual personal assistantØ Recommendations Ø Discuss systemsØ Machine Learning

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AI

Ø Fraud AnalysisØ Automatic UnderwritingØ Customer Service

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AI

TrainingØNavy research has proven training is faster

and better retained with the use of computer and AI in trainingØAfter 3-4 months trainees were out

performing personnel with 7 to 8 years experience.

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AI

Are dangers for many workersØClearly many in the Life & Health Insurance ØJobs will be lost but other createdØShort term maybe net loses

Reluctance to adaptØHeavy regulationØJurisdictional legal baggageØCapital Required

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AI

Haven Life ØFast single life sales and policy delivery

anytime day or night without any human

GeicoØVirtual Assistant “Kate”

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Distributive Ledger Technology

BLOCKCHAIN

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Bitcoin

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Blockchain

Revolutionary Because:1. Decentralized - No one in charge, no one

owns information2. Believed to be incorruptible - Would need to

modify all records at same time3. Data Flows are public, but also fully

encrypted

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Blockchain

Benefits1. Event triggered Smart Contracts via IofT2. Increased back-end efficiency3. Making intermediates obsolete4. Better pricing & risk selection\control5. New types of insurance flexibility -

Reaching underserved

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Blockchain

ProblemsØHandling high-frequency large volume

transactions such as stock exchangesØ Immense amounts of data in all participating

networks raises storage and optimatizationissuesØStruggles with 2-way transactions

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Blockchain

As of 5-1-17 No Operation Use

Blockchain Initiative B3iØ15 InsurersØAchmea, Aegon, Ageas, Allianz,Generali,

Hannover Re, Liberty Mutual, MunichRe, RGA, SCOR, Sompo Japan NipponkoaInsurance, SwissRe, Tokio Marine Holdings, XL CatlinThØZurich Insurance GroupØCover Asia, Europe and the Americas

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Big Data

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Big Data - Analytics

Big DataØDatasets too large for traditional databasesØHas expanded to cover technologies that

capture, store, manage and analyze

Predictive AnalyticsØGrowing, but not yet widely used

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Big Data - Analytics

Aggregator/ Compare SitesØPower of insurance to pool and prohibit

access – including to technologies

New Risk Analysis

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IoT

Internet of ThingsØ From watches and Fitbits to doorbells and

thermostats

Includes WearablesØ John Hancock Offer if you share Fitbit

readingsØ Fabric that can measure blood sugar

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Genome Sequencing

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Genome Sequencing

It is hereØNow $1000 Could go as low as $100ØWill it become common in blood testing?

Restrictions on use of DNA for underwriting

What does it mean for risk reduction?

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Genome Sequencing

Biggest News in Gene Research may not be sequencing but

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Genome Sequencing

Biggest News in Gene Research may not be sequencing but

Ø Researchers at Columbia and New York Genome Center have stored and retrieved a French movie, an entire computer operating system, and a $50 Amazon card on a single drop of DNA

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DNA Storage

Storage of the entire

Library of Congress on a small cube of DNA

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3-D Printing

3-D Printing of Human organs has started

What are the ramifications for ØHealth Insurance?ØLife Insurance?ØAnnuities?

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Voice and Video Recognition

Voice Recognition to replace passwords

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Voice and Video Recognition

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Lapetus SolutionsØ Uses Facial Analytics from a Selfie and other

data to estimate life expectancy

Several insurers testing

Voice and Video Recognition

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Your Turn

What have we forgotten?

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Your Turn

Thank You!49