Post on 29-Nov-2014
description
The Future of Finance Michael Spiteri The London Insurance Club
Disrupt or be disrupted?
79% Of smartphone users are using devices to shop at least once a month
CMOs will spend more money on technology than CIOs. By 2017
Predicted number of connected devices by the year 2020. 50 Billion
higher revenue growth forecast for companies who prioritize innovation to a greater extent than their peers. 10%
We have observed a rapid shift in customer expectations
64%
of shoppers read customer reviews always or most of the time before making a
purchase decision
Easy access to research and data will expose efforts to mislead and enable comparison to your competitors; transparency and authenticity are required
Easy access to research and data will expose efforts to mislead and enable comparison to your competitors; transparency and authenticity are required
!50%
of UK mass market, wealth and private
banking clients use social media at least once a day
Vehicles for communicating experiences with your brand – both good and bad – are ubiquitous and free, and your customers are not shy about voicing them
Vehicles for communicating experiences with your brand – both good and bad – are ubiquitous and free, and your customers are not shy about voicing them
90%
of consumers trust recommendations from
people they know
71%
of consumers would pay more for good customer
service
85%
of UK shoppers would go out of their way to use a
company that offered better service
Brand loyalty has been replaced by peer conversations and other social media interactions; those who fail to participate risk being sidelined
Undifferentiated products and services, lack of loyalty, easy access to alternatives and low barriers to defection mandate extra effort to retain your customers
Expectations are being shaped by experiences outside of your industry, where content, interactions and features may be much richer and more compelling
Expectations are being shaped by experiences outside of your industry, where content, interactions and features may be much richer and more compelling
Brand loyalty has been replaced by peer conversations and other social media interactions; those who fail to participate risk being sidelined
Undifferentiated products and services, lack of loyalty, easy access to alternatives and low barriers to defection mandate extra effort to retain your customers
... trust their peers ... are informed ... have choices ... have a voice ... expect more
We have observed a rapid shift in customer expectations
64%
of shoppers read customer reviews always or most of the time before making a
purchase decision
Easy access to research and data will expose efforts to mislead and enable comparison to your competitors; transparency and authenticity are required
64% read customer reviews
always or most of the time before making a purchase
!50%
of UK mass market, wealth and private
banking clients use social media at least once a day
Vehicles for communicating experiences with your brand – both good and bad – are ubiquitous and free, and your customers are not shy about voicing them
Vehicles for communicating
experiences with your brand – both good and bad- are ubiquitous and free, your customers are
not shy about using them
90%
of consumers trust recommendations from
people they know
71%
of consumers would pay more for good customer
service
85%
of UK shoppers would go out of their way to use a
company that offered better service
Brand loyalty has been replaced by peer conversations and other social media interactions; those who fail to participate risk being sidelined
Undifferentiated products and services, lack of loyalty, easy access to alternatives and low barriers to defection mandate extra effort to retain your customers
Expectations are being shaped by experiences outside of your industry, where content, interactions and features may be much richer and more compelling
85% of UK customers would go
out of their way to use a company that offered a
better service
90% of consumers trust
recommendations from people they know
71% of consumers would pay more for good customer
service
... trust their peers ... are informed ... have choices ... have a voice ... expect more
New and different types of customer behaviours are here to stay – A decade of disruption
Decade of change
0
20
40
60
80
100
120
% U
K A
ctiv
e A
dult
Popu
latio
n
The changing mix of consumers in the UK, and the rising influence of the Digital Natives
Traditional Consumer Transitionals Digital Natives
Up to 2008 Traditional consumer behaviour is the majority
2008–2018 Transitional behaviour is the majority
2019 and beyond Digital native
behaviour dominates
Data sources continue to proliferate and offer further customer context and insight Mobile devices and sensors are now interconnected and are communicating in unprecedented ways …
• Devices and sensors continue to decrease in size while increasingly communicating via the
internet
• Adaptive, “smart” environments with
embedded and connected devices will enable
innovative usage models
Telematics is often seen as more of a technology rather than a customer play. However, in insurance telematics is frequently used in a product context around Pay As You Drive/ Pay How You Drive etc. We strongly believe that telematics and other sensor based technologies will have a major impact on how businesses engage with their customers. This is closely aligned with the ‘Always On Customer’ and will further accelerate customer interactions and expectations. Sensor based solutions enable a much richer understanding of a customer and can radically disrupt the ‘annual premium’ and ‘claims moment of truth’ events that have dominated the insurance industry for so long. The ability to listen, learn and engage with customers and offer them products or services that are good for them will separate those companies who succeed in this space from companies who will struggle.
If used sensitively this can transform the relationship between the Insurer and the Insured
Accident Response
Roadside Assistance
Accident Avoidance
Traffic Pattern Detection
Entertainment
Car Sensors
On Board Diagnostic Report
Mobile Device
Telematics Platform
Anti-Theft/ Location Accident Detection
Traffic Pattern Detection
Navigation
Accident Report
On Board Diagnostics
Marketing Alerts
Driver Scoring
Remote Entertainment
Vehicle History Report Vehicle Repair Estimate
Anti-Theft/ Location
Medical Info
And it’s not just motor …the Connected Home
Core premise: The earlier that an event can be predicted, the more it can be controlled. Home Intelligence solutions now offer home automation solutions that covers security, HVAC, energy management, remote access and appliance monitoring & control
In fraud detection, rigorous real-time sophisticated analytics engines for ‘search word’ patterns online can help understand the occurrence of falsified behavior based on the nature of search patterns traced to certain geographies, and accordingly preempt it
In the world of preventative diagnostics, ‘Real-time’ information could be fed into claims/risk prevention functions so that early warnings of an event could trigger action to reduce or even prevent it from occurring
From the Big! - the world at your fingertips ....To the Small! - when seconds matter
Global Asset Optimization
“Obama campaign uses big data to address concerns of individual voters” – MIT Tech Review
“The Climate Corporation raises $50M for big data driven weather insurance”
– Tech Crunch
Global Asset Optimization
“Google Driverless Car Worth Trillions” - Forbes
“New genetic diagnostics save NICU lives” - NY Times
And it’s not just at the personal level