1. A CHANGE MANIFESTO FOR THE CIO: A BUSINESS PERSPECTIVE
Hugh Terry, The Digital Insurer
Asian Insurance Review, 3rd Annual CIO Conference
21st November 2014, Mandarin Orchard, Singapore

2. Discussion Agenda: CIO manifesto for change
1 Becoming more customer centric
2
2 Becoming more Agile
3 Data: stop talking “Big” – start collecting &using it
4 Be prepared to change your organizational structure

3. Becoming more customer centric
3
Asian Insurance Review, CIO conference, 21st November 2014, Mandarin Orchard, Singapore
1

4. The Digital Revolution: “It will not be televised”
DIGITAL
CONVENIENCE
DIGITAL
CONNECTIVITY
DIGITAL
EXPECTATIONS
Always on
Always there
Universal
Almost free
Access to information
(Google)
Access to each other
(Facebook)
Access through
devices (Apple)
Location-agnostic
(cloud services)
Data “on demand”
Desire for clarity
& simplicity
Dialogue not
monologue
Easy to promote a
product .. And
complain
4
Change, Change, Change….

5. Two digital “Mega” trends: forces beyond our control
Changing consumer behaviour –
they are more demanding and
looking for a different experience
2
Technology is cheaper and easier to
implement than ever – it is the fulcrum
to meet consumer needs, reduce
operating costs and to change your
culture
1
5

6. 66
Our Digital World in 2014: Every 60 seconds we…
A different world
A real-time and rapid
change in the way we live
Source: blog.Qmee.com

7. 77
3 Changes in customer behaviour: Transforming our industry
3. Less Trust
in Financial
Services
brands
2. Multi-channel
service
1 Research on-line
and purchase
anywhere

8. Consumer’s research on-line: …& then purchase anywhere
All Products
23% research online / purchase online 46% research online /purchase offline
8%
19%
Global- % of purchasers who did research online
only before purchasing online
Global- % of purchasers who did research both
online and offline before purchasing online
Global- % of purchasers who did research
online only before purchasing online
Global- % of purchasers who did research both
online and offline before purchasing offline
Base : People who purchased the product / service and are part of the online population
Around the world 69% of the online population
15%
27%
researches on-line before purchasing a product or service
Source : www.consumerbarometer2013.com. 8

9. 9
Multiple sources of information: but digital has won
Percent of survey respondents
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
1 2 3 4 5 6 7 8 1 2 3 4 5 6 7 8
Developed Asia Emerging Asia
Legend:
1. Internet
2. Family friends and colleagues
3. Insurance agent
4. TV
5. Bank
6. Independent financial adviser
7. Internet enabled mobile
phone
8. Social media
Source: Swiss Re Sigma 02/14 9

10. 10
Welcome to digital customers: “they are multi-channel”
10
Myth #1: Digital is a new distribution channel
Reality : Digital enables customer (& distributor) engagement
Online
Face To Face
Phone
The multi-channel customer is…
Better informed
More demanding
Uses multiple customer touch
points for both sales & services
Will jump channels at any point –
catch them if you can!

11. Make claim
Post rating and
11
The cross channel journey
”mono” communication channels are going the way of the dinosaur
Gather
Information
Online
search
Seek advise Purchase policy
Compare
quotes Browse
reviews
Targeted
advert
Receive quote Check with
friends
Buy online
After sales
service
Online customer
Text/email
confirmation
survey
Fill out on-line
claim request
review
Tweet
review
Like
Renewal
notification
Tweet
review
Referrals to
family/friends
Follow-up call
Buy through
agent
Approach
agent
Product
related call
Request further
information
Report claim
Internet
Mobile
Social media
Agent/broker
Call center
Retail
branch/bank
Note: The red line shows an example buying journey initiated by a mobile advert, and the blue line a purchase experience via
online search.
Source: Swiss Re Sigma 02/14 11

12. Digital only = +33% over traditional only
12
Customers prefer digital customer service: Telco example
The more digital the journey, the higher the satisfaction (and the lower expenses are)
Channels Customer service journey1 Share of
transactions
Customer
satisfaction,2 %
Traditional
Phone
Vendor
Mail/fax
E-mail
Click to call
Starts Ends
57
Digital
E-chat
Forum
FAQ
Personal account
Virtual assistant
Social media
Traditional
Only
11%
Digital to
Traditional
Traditional
to digital
41%
41%
Digital Only 15%
61
76
62
Also > 25% cheaper
1Telecom example, Western Europe; 4 service journeys were identified based on an analysis of 11 touch points spanning traditional and digital channels. For
traditional-to-digital journeys (and voice versa), the first channel switch was used to allocate the journey.
2Respondents who ranked their satisfaction in the top 3 on a 7-point scale, where 7 = most satisfied.
Source : McKinsey Study 12

13. 71% would rather go to the dentist than listen to
what their banks are saying to them
Source: survey by Viacom
90%
80%
70%
60%
50%
40%
30%
20%
10%
54%
52%
50%
48%
46%
44%
Source : Edelman 2014 Trust barometer
…..We have a Trust
Challenge
13
Trust is at the heart of financial services: and…
78%
69% 67% 64% 64% 61% 59%
55% 55% 52% 49% 48% 48%
32%
0%
Tech Co.1 Pharma
Co.1
Tech Co.2 Food &
Bev Co.1
Food &
Bev Co.2
Energy
Co.1
Energy
Co.2
Food &
Bev Co.3
Pharma
Co.2
Tech Co.3 Food &
Bev Co.4
Pharma
Co.3
Financial
services
industry
Pharma
Co.4
48%
52% 52%
47%
46%
42%
Financial services industry Banks Credit/Payments Insurance Financial advisory/asset
management

14. Personal view: 3 core strategies
Transform existing face-to-face
models
2
Create or participate in
new models
3
Manage existing models for
profit – “business as usual”
1
14

15. The Digital Advisor
Business Model
Customer Portal / App
Policy Systems
Sales
Opportunities
Advisor
Portal Lead/Prospect Management
Tablet
15
Transforming face-to-face insurance

16. Would a new insurer establish a distribution centric model?
Agency Channel
Incumbents have scale
Operations are complex and inefficient
Models don’t deliver value to the consumer on the investment component
Part-time sellers – very hard to manage
Low productivity
Product range is too narrow
Bancassurance
Has a lot of advantages but….
Banks have consistently chosen $$ over customer centricity
Lacks the personal touch on servicing
Technology hard to deploy in banking environment
Existing models are ripe for disruption:
Agency is a cash cow that needs renewal
Bancassurance is an increasingly expensive game – and banking is going digital
A personal view for life insurance industry In Asia
16

17. There are untapped opportunities
Figure 6
Buyers and non-buyers of life insurance, US households(%), 2011
Didn't shop for life insurance (78%)
Seriously shopped but didn’t buy life
insurance (10%)
Seriously shopped and bought life insurance
(12%)
Can digital Strategies change the paradigm that “life
insurance is sold not bought”?
Source : To Buy not to buy life insurance, LIMRA 2011
Extracted from Swiss Re Sigma 06/13
17
78%
12%
10%

18. 7 operating models for Asia: breaking down the value chain
18
Acquire New Customers Selling to Customers Servicing Customers Taking Product Risk
1. Traditional Agency Insurer
2. Bancassurance Bank Insurer
3. Digital / Direct Insurer
4. Digital Managing Agents Single Insurer
5. Price Comparison Sites Multiple Insurers
6. Digital IFA Multiple Insurers
7. Digital Affinity Marketing Co. OR
Affinity Partner Multiple Providers
Brand Financial Service Co e.g. TESCO Bank
EMERGING IN ASIA NOW

19. Becoming more agile
19
Asian Insurance Review, CIO conference, 21st November 2014, Mandarin Orchard, Singapore
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20. Agility in action
Configurable tech
from partners
Q1: Does you
company still think
it can produce
world class
software in-house?
Rapid Pilot focused
on the used
Q2: Are your
specification
processes and
approval gates an
iteration of the
mainframe world
of the 1970’s?
Embrace the cloud
Q3: Do you have
internal vested
interests that
prevent you
using cloud
solution?
20

21. Data: Stop talking “Big” and start using it!
21
Asian Insurance Review, CIO conference, 21st November 2014, Mandarin Orchard, Singapore
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22. BIG data for sales generation: what is it?
22
Data Source % available in Asia
Policy Data
Customer service data
Distributor customer
interaction data
<50%!
0-100%
0% common
Marketing offer information 0% common
Social Data Not yet
Actions:
Send info
Make a call
Send an offer
Warren Buffet’s
Advice on black
box complexity is
very sound !
Black Box
Analytics

23. Making better use of data
Collect it
Q3: Are you
digitizing all of your
data? Are you
striving to get the
data to
communicate with
customers?
Analyse, Action &
Communicate
Q2: Can you
translate insight to
sales quickly?
Data Warehouse
Nightmares
Q1: Is your
organization
waiting for the
delivery of a
mega data
warehouse
project?
23

24. Change your organisational structure
24
Asian Insurance Review, CIO conference, 21st November 2014, Mandarin Orchard, Singapore
4

25. Current state: will it work in our digital world?
25
CEO
Distribution
(CDO)
Marketing
(CDO)
Project
Operations
Management
Office (PMO)
(COO)
Technology
(CTO)
Is the current organization structure broken?
Designed for “ business as usual” not constant change i.e. stifles innovation
Distribution centric
Command and control doesn’t resonate with digital natives or Gen Y

26. Change your company: revolutions change the “natural” order
CIO moves to a
transversal role?
Q1: Can the CIO be
a transversal leader
to co-ordinate
digital & customer
centric strategies?
Is legacy managed
separately?
Advocate customer
centricity
Q2: Are CIOs in a
good position to
become customer
advocates?
Space to innovate
Q3: Is it better to
setup “New Co” to
innovate rather
than try and
change “Old Co”?
Will innovation labs
work- or are they a
distraction?
26

27. 27
Future state: could this be the new best practice?
PMO
CHANGE
AGENDA
Are the traditional power
centres willing to give up
some power for the
collective good?
Is the CIO the best person
to lead the change agenda?
Or CIO + Chief Customer
Officer?

28. 28
Concluding:
“business as usual” is the most dangerous path
Be radical
Now is the time to embrace change and start building digital models.
Be cautious
You don’t need to “bet the bank”. Learn from fast and strategically well thought our pilot
projects. Find people with the skills to transform.
Beware
If you don’t utilise digital thinking, plenty of others will continue to do so. CIOs have a
unique responsibility to be digital advocates within their companies

29. POS Tablet Toolkit drives
agency renewal
10 million connections
on Line
Content anchored on
health & wellness
MULAN mobile
customer service
Direct model exploiting
Airline affinity
Asia’s first dedicated
direct channel
iGenius
content strategy
Digital worksite /
flexible benefits
On-line Life insurance Aggregator model
29
Digital business models: moving beyond theory

30. About The Digital Insurer
30
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