Insurance digital transformation - key challenges

1. Insurance – Digital Transformation – Key Challenges

2. Agenda
 Digital Transformation And Current Market Offering
 Client And Customer Experience
 2020 Business Priorities And Motivator Goals
 Digital Transformation - Trends, Milestones, Scorecard
 Insurer and Insurtech - Key Challenges & Action Plan
 Short-Term And Long-Term Goals
 Key To Revenue Generation & Differentiator

3. Insurance - Digital Transformation
Digital Transformation
 Cost Reduction
 Customer Experience Enhancement
 Speed To Market
 Sales productivity
 Underwriting Efficiency
 Claims Efficiency
Current Market Delivery - Insurtech
 Low code
 Quick configuration
 Modern distribution channels

4. Digital Transformation – Client & Customer Expectation
Aligning to a customer-centric level from legacy product-centric is revealing a litany of data quality grief
Shifting to the cloud alone will not fix this level of data use mismatch
Linking everything at the customer level is key to success
Data & AI in the cloud is a competitive necessity and new norm
 Structured Data
 Semi-Structured Data
 Unstructured Data
 Spatial and Temporal
 Photography
 Voice and Video
 Sensors
Better
Customer
Experience
Algorithm
Improvements Source: Celent

5. 2020 Priorities And Motivator Goals – Insurers
Data, Analytics and Reports
Is most respected competency and a differentiator by the insurers
Tech Priorities of Property Casualty - 2020 Research
Source: Celent
Insurance Business Motivator Goals
0% 20% 40% 60% 80% 100%
Modernize workforce
Achieve process excellence
Increase process automation
Implement advanced data and analytics
Improve customer / channel experience
Not a motivator at all Somewhat of a motivator Significant motivator
Trend 1
• Reinventing the customer experience
Trend 2
• Making the most of Data with ML
Trend 3
• The APIsation Ramp Up

6. Insurtech Digital Trends
3
4
4
9
10
12
13
20
21
0 5 10 15 20 25
Micro-insurance
Blockchain
Peer-to-peer Insurance
Gamification
Digital/Roboadvisory
IoT
Usage-based Insurance
Big Data / Machine Learning
Software as a service / Cloud
Innovation as % of Total
~500 commercially best-known cases registered on database. Innovations focusing purely on insurance
Source: McKinsey Panorama Insurtech database
Top 2 Trends
 SaaS Platforms
 Data & Analytics
Source: McKinsey

7. Digital Transformation – Milestones
Evolving
Mature
Optimized
Source:
EY

8. Digital Transformation Scorecard
EY Market Research
 Data – 3rd Party, IoT & Others
 Reports, Analytics, AL, ML
 DLT - Blockchain
Cost Reduction
Customer
Experience
Enhancement
Speed to
Market
Sales
Productivity
Underwriting
Efficiency
Claims
Efficiency
Omni-Channel
Big Data Analytics
IoT
Telematics
Voice Biometrics and
Analysis
Drones and satellites
Blockchain
Next Focus :
 Low code
 Quick configuration
 Modern distribution channels
Current Market:
Source:
EY

9. Insurer and Insurtech – Next Key Challenges
Next Phase of Challenge – Insurers and Insurtech
Integrate different sources of data – Social Media to IoT
Build Data, Reports & Analytics structures
Drive process efficiency, upsell and cross-sell through data insights
Undisclosed MGA
 Add more than just distribution
 Need consistent data & use of data end-to-end
 End to End offering – Pricing through reinsurance & Claims
Undisclosed Insurer
 Lack of Reporting platform / MI
 Hard to extract data & no advance data insights
 Gap in technical understanding
Insurance & Technical knowledge Gap
 Insurers: Strong in domain but may be weak in Tech.
 Insurtech: Strong in Tech but may be weak in Domain to
generate insights.
Source: www.globalbankingandfinance.com
User Feedback Market Feedback

10. Insurtech - Next Phase – Digital Transformation
Assess & Identify
Map product offerings across maturity milestones
Discover gaps – Features, Technology and Skilled staff
Short-Term
Off the shelf Template Reports / Custom Report Builder
Simple Analytics / KPI
Stage to long-term
Integrate market & 3rd party data to augment decision making
Build Advance Analytics – Customer Centric & Connected Data
Build Advance policy system using DLT/Blockchain
Data, Reports, Analytics, DLT
Revenue Generator
Market Differentiator
Additional Revenue Generator
Gain Creators
Benchmark

11. Action Plan – Insurtech
Identify potential partners - MGA, Brokers and Insurers
Analyse maturity gap – Internal & External
Identify precise functional targets
Prioritize Investments
Layout digital transformation Plan
Internal:
Upskill on data, analytics & technical knowledge
Define KPITargets – DevOps / Feedback
External:
Establish partnerships – Brokers, MGA, Insurers
Create next generation platform
Promote & Onboard –Training and Branding
DigitalTransformation Planning

12. Digital Transformation – AI – Too Costly to Ignore
Anticipates total insurtech premiums generated by AI
systems will reach $20.6 billion in 2024, from just below
$1.3 billion in 2019, with the continuing development of AI’s
ability to offer enhanced, or even automated, insurance
processes.
- Juniper Research forecasts
Source: fintech-alliance.com
In the next 5 years, most of the largest insurers will
aim to use AI, most likely in the area of claims operations.
The gains to be made in terms of time and money savings
through the implementation of AI are compelling.
- Juniper Research forecasts

13. Q & A