Webinar for January 2019 - InsurTech – 10 Trends for 2019

1. 1
InsurTech 10: Trends for 2019

2. Panelists
Simon Phipps
Head of Global Development
The Digital Insurer
Parmjeet Kaur
Head of research & Analytics
The Digital Insurer
Simona Scattaglia
Partner
KPMG Italy
Paul Brenchley
Partner, Insurance Advisory
KPMG Singapore
Will Pritchett
Partner
KPMG
Co-Host: Hugh Terry
Founder
The Digital Insurer
Andrew Dart
Head of AUS/ NZ
The Digital Insurer
Rick Huckstep
Chairman
The Digital Insurer

3. Discussion Agenda
• 90 minutes in total
• 10 Trends
• 10 rapid fire polls on
predictions and Q&A
throughout– wisdom of the
crowd
• 15+ minute panel discussion
with your Q&A + consolidated
poll results

4. Wisdom of the crowds – poll format
Do you think this prediction will be centre stage during 2019?
1. Don’t agree
2. Way too early but directionally correct
3. A year to early
4. Agree will come into focus this year

5. Questions & Answers
How to participate:
If you have a question please type into the Q&A area
If you have a comment please type into the chat area
Session format:
The moderator will use a combination of his own questions and those
from the audience
Each presentation will have a Q&A and poll

6. Hugh Terry,
The Digital Insurer

7. Improving Today & Reinventing Tomorrow
7
Transform Disrupt
Value Chain
Innovations
New Digital
Business
Models
Microinsurance
P2Pcommunity
Health &
W
ellness
Eco-systems
On Demand
Direct
Commercial
Platforms
Comparison
Sites
Claims
Management
Sales
M
arketing
Analytics
Risk
Assessment
Underwriting
Product
Development
Administration
Least trusted sector compounded by
lowest consumer satisfaction scores
InsurTech is THE catalyst for innovation and
disruption, creating new market space for
Digital First business models
Insurers are struggling to keep informed &
know what to change when, & how`

8. Digitalisation of Distribution
8

9. Trend 1: Digitize or Die
9
KPMG TDI Prediction
“ Incumbent insurers must fundamentally change their business models, moving
from siloed operations to fully connected enterprises. This requires a cultural
change, to focus away from product and to organize themselves entirely around
the customer, their experience and outcomes”
Do you think this prediction will be centre stage during 2019?
Participate in poll: Respond to the question when it appears on your screen

10. Paul Brenchley,
KPMG

16. Trend 2: Ecosystems Rock
16
KPMG TDI Prediction
“Many insurers will attempt to orchestrate ecosystems – and not many will succeed. Agile
participation in ecosystems will become a more important strategy“
Do you think this prediction will be centre stage during 2019?
Participate in poll: Respond to the question when it appears on your screen

17. Hugh Terry,
The Digital Insurer

18. Reinventing Tomorrow - Disruption
18
Transform Disrupt
Value Chain
Innovations
New Digital
Business
Models
Microinsurance
P2Pcommunity
Health &
W
ellness
Eco-systems
On Demand
Direct
Commercial
Platforms
Comparison
Sites
Claims
Management
Sales
M
arketing
Analytics
Risk
Assessment
Underwriting
Product
Development
Administration
• New Digital business
models
• Agility at a premium
• New tech stacks using
APIs & Microservices
are a necessary
investment

19. Trend 3: It’s a new game – press the reset button
19
KPMG TDI Prediction
“There will be a more urgent focus on middleware solutions to reduce
dependence on legacy systems and improve access to data”
Do you think this prediction will be centre stage during 2019?
Participate in poll: Respond to the question when it appears on your screen

20. Hugh Terry,
The Digital Insurer

21. Indemnification to risk partner
• Digital Solutions that reduce risk
are emerging across most lines of
business
• Indemnity is no longer enough
• New products for more holistic
needs

22. Partnering on health is an enormous opportunity & a challenge

23. Trend 4: Digital Risk Reduction
23
KPMG TDI Prediction
“Health & Life insurers who fail to secure a place within a health ecosystem
within the next few years will find their business models challenged and possibly
undermined. ”
Do you think this prediction will be centre stage during 2019?
Participate in poll: Respond to the question when it appears on your screen

24. Rick Huckstep,
The Digital Insurer

25. 25
Focus on the Digital Customer
• Digital distribution - making it easy to buy insurance
• Engagement - lifestyle products offer value over price
• Claims – improved customer satisfaction, lower costs
• Data – new sources and new ways to handle it

26. Trend 5: Focus on Digital Customers
26
KPMG TDI Prediction
“The need for cultural change and alignment with the specific markets insurers
service is essential. However, peer to peer insurance is one model that has a
significant chance of succeeding in a way that has not been possible in the
mature, western markets and tech changes the economics of these models”
Do you think this prediction will be centre stage during 2019?
Participate in poll: Respond to the question when it appears on your screen

27. Andrew Dart,
The Digital Insurer

28. 28
Some Technological Advances in 2018
Working together to accelerate the digital transformation of insurance
FDA approval as a medical device. Battery-less Bluetooth devices.
Ingestibles: proof of medication adherence

29. 29
Earning Trust and the Price of Compliance
Working together to accelerate the digital transformation of insurance
Winning customer trust will be key
for data-driven insurance
programmes
Emphasis on shared value creation
from the data rather than insurer self-
interest alone
Failure to comply with data regulations will
carry a hefty penalty both financially &
reputationally

30. Trend 6: Data is the New Oil
30
KPMG TDI Prediction
“Insurers need data for the insights that analytics will provide them to assess risk
from the individual up to macro trends. Insurers without access to data will
come under incredible commercial pressure and have uncertain futures.”
Do you think this prediction will be centre stage during 2019?
Participate in poll: Respond to the question when it appears on your screen

31. Simona Scattaglia,
KPMG

32. 32

33. 33

34. 34

35. 35

36. Trend 7: Master AI & Machine learning Now
36
KPMG TDI Prediction
“AI and machine learning is a transversal tech with applications across the value
chain and will be the biggest driver of efficiency”
Do you think this prediction will be centre stage during 2019?
Participate in poll: Respond to the question when it appears on your screen

37. Parmjeet Kaur,
The Digital Insurer

38. 38
Autonomous Vehicles - Predictions
‘Large Scale tests are now taking place in a
number of metropolitan areas – autonomous
vehicles are becoming a reality’
(TechCrunch, 2022)
‘Auto Insurance continues to decline in face
of growing autonomous vehicle numbers’
(Insurance Day, 2027)
‘First vehicle manufacturers gain certification
for their autonomous vehicles in a number of
US States’
(Financial Times, April 2023)
‘After the recent spate of accidents, industry
struggles to reach consensus on how to
define success criteria from inevitable
crashes.
(Insurance Times, April 2028)
‘Who could have foreseen the tipping point
happening so quickly. Autonomous Vehicles
now certified to Auto-Drive in most 1st World
Countries‘ (InsureTech News, 2025)
‘The Wilmott Accord agreed between all
major AV Service providers agreeing crash
protocol guidelines’
(AV News, December 2030)

39. Trend 8: Auto Insurance Disruption
39
KPMG TDI Prediction
“We see a major shift in auto coverage, moving away from insuring individuals
to insuring the vehicle itself. Ecosystems will dominate the future of car
insurance and insurers need to plug in and/ or orchestrate eco-systems”
Do you think this prediction will be centre stage during 2019?
Participate in poll: Respond to the question when it appears on your screen

40. Simon Phipps,
The Digital Insurer

41. Actuarial
Pricing
Underwriting
Risk Assessment
Trend 9: New Role for the Oldest Skills
Analytics

42. Trend 9: New Role for the Oldest Skills

43. Trend 9: New role for the oldest skills
43
KPMG TDI Prediction
“While InsurTech may have the effect of reducing work in certain general areas
of insurance, there will always be a place for specialist in actuarial and
underwriting functions who will use even more data to apply their experience
and data.”
Do you think this prediction will be centre stage during 2019?
Participate in poll: Respond to the question when it appears on your screen

44. Simon Phipps,
The Digital Insurer

45. Skill up and re-organise urgently for a digital world
DISRUPTTRANSFORM
Sales
Administration
Marketing
Claims Management
Product Development
HR, Finance….

46. Transform Disrupt
Value Chain
Innovations
New Digital
Business
Models
Microinsurance
P2Pcommunity
Health &
W
ellness
Eco-systems
On Demand
Direct
Commercial
Platforms
Comparison
Sites
Claims
Management
Sales
M
arketing
Analytics
Risk
Assessment
Underwriting
Product
Development
Administration
“Improving Today” “Reinventing Tomorrow”
• Wider (BU-wide),
focus
• Multi-faceted
incremental change
• “Internal consultant”
– getting things done
within existing world
& politics
• Operates within
extended / modified
existing processes &
systems
• Often internal hires
• Narrower, disruptive
focus
• Fewer, bigger steps
• Leaders largely
detached from
existing world &
politics
• Requires new
processes , systems &
governance to enable
delivery
• Often external hires
Skill up and re-organise urgently for a digital world

47. Skill up and re-organise urgently for a digital world
Some obvious industry challenges:

48. Skill up and re-organise urgently for a digital world
…and some obvious gaps:
• Innovation
• Change Management
• Partner & Community Management
• Data Leverage
• Customer Lifetime Value / Retailing
• Vendor selection & management
• How to leverage new technologies
• Customer Experience & Behavioural Science

49. Skill up and re-organise urgently for a digital world

50. Skill up and re-organise urgently for a digital world

51. Trend 10: Skill up and reorganize urgently
51
KPMG TDI Prediction
“Insurance needs new high calibre staff and, once it has managed to attract
them, it needs to retain them. There is a business benefit to keeping employees,
happy, because customers will never be happy if the employees aren’t, too.
Keeping customers happy with happy employees is just another form of business
continuity. Reversing the process will give insurers insights that they can use to
satisfy their internal customer –their employees”
Do you think this prediction will be centre stage during 2019?
Participate in poll: Respond to the question when it appears on your screen

52. Paul Brenchley
Partner, Insurance Advisory
KPMG Singapore
Will Pritchett
Partner
KPMG
Co-Host: Hugh Terry
Founder
The Digital Insurer
Andrew Dart
Head of AUS/ NZ
The Digital Insurer
Rick Huckstep
Chairman
The Digital Insurer
Panel Discussion and Q&A
Simon Phipps
Head of Global Development
The Digital Insurer
Parmjeet Kaur
Head of research & Analytics
The Digital Insurer
Simona Scattaglia
Partner
KPMG Italy

53. Consolidated Results
53
Available Now !

54. Post webinar activities
Recording will be emailed to registered participants
Please give us your feedback
A copy of the report “InsurTech 10: Trends for 2019” will be emailed to you when it is
available
If you would like to follow up with any of the panelists
- Andrew Dart: Andrew.dart@the-digital-insurer.com
- Hugh Terry: hugh.terry@the-digital-insurer.com
- Simon Phipps: simon.Phipps@the-digital-insurer.com
- Rick Huckstep: rick.huckstep@the-digital-insurer.com
- Parmjeet Kaur: parmjeet.kaur@itrconnect.com
- Will Pritchett: Will.Pritchett@KPMG.co.uk
- Paul Brenchley: paulbrenchley@kpmg.com.sg
- Simona Scattaglia: sscattaglia@KPMG.IT

55. Next webinar – 27th February Digital Actuary
EVENT HIGHLIGHTS
Some of the topics we are going to discuss
• What are the key trends impacting actuaries?
• Data is the new oil – will actuaries be running the
machine?
• How to actuaries need to change?
• How should insurers re-skill their actuarial functions?
• How do we train people and organise insurers to
deliver actionable data insights?
• How do we create an agile data analysis capabilities?
• How can data scientists and actuarial work together?

56. LIVEFEST 2019
What to do now – get
ready?
• Prepare for award entries from
March – InsurTech, Insurers,
Distributors and Established Tech
• Insurers – apply for the LIVEFEST
Knowledge programme (it’s free !)
• In studio global finals on 3rd
December – register interest on site
now (tickets limited) – see the
LIVEFEST ZONE on the main site
• LIVEFEST 2018 session recordings
and summary also available in the
LIVEFEST Zone

57. 57