Digital Transformation – The new-age Insurer · v v AUGUST 2017 Digital Transformation – The...
Transcript of Digital Transformation – The new-age Insurer · v v AUGUST 2017 Digital Transformation – The...
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AUGUST 2017
Digital Transformation – The new-age InsurerSamuel Tayengwa Senior Product Consultant
Agenda
The local insurance industry
The international insurance industry
A powerful solution exists
Where to from here?
An Intro to TU Africa: Driving Information for Good
Leading provider of risk and information solutions:• 100+ year history in SA• Listed on the NYSE in 2015
We leverage state-of-the-art global data and analytics platforms/IP to accelerate the ability to provide insights and value-based outcomes to clients.
We want to be a true strategic partner to our clients:• solving complex problems and• co-creating value
We are committed to driving ‘Information for Good’ for our clients, our consumers, and our communities.
Our Global Presence
PropertyConsumer Commercial AutoInsuranceEIR
30 8 #1countries countries in Africa position in South Africa,
Hong Kong, India
Unique Data-sets
Strong Capabilities
• SHAPE/Hadoop - Big data platforms• PRAMA - Analytical & insights engine
• DecisionEdge® - Front-end Decisioning platform• Analytics - Unique algorithms & scores
Insights ActionsDataIngest Analyze Visualise Collaborate Fulfillment Score Decision
An Intro to TU Africa: Data & PeopleA
fric
a D
ata
Ass
ets
Marketing
Contact (Credit & Non Cred)
Data Strategists
Data Scientists
Statisticians
Machine Learning experts
Solution Consultants
Marketing Specialists
Risk Specialists
Fraud specialist
Geospatial
Geocoding
Property Variable
Peop
le
700+ Associates
Insurance
Insurance Claims
Insurance Underwriting
Property data
Deeds & Bonds
NAD
EIR Data baseCommercial
Registered Companies
Trade Data
Trade References
Company Operations
Enquiries
Default Data
Civil Court Judgments
Business Rescue
Bank Codes & Banking History
Notarial Bonds
Trust Data
Auto
Vehicle master
Auto valuation
Vehicle Finance
Consumer
Payment Profile
Consumer Header
Enquiries
ID Verification
Contact Data
Default Data
Civil Court Judgments
Debt Counseling
QVS
Biometrics - Voice
KenyaRwandaZambiaBotswanaNamibiaSwazilandSouth Africa
*Only SA & Kenya
The local insurance industry
Is the local insurance industry dragging its feet?
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Market Context: Fintech in sub-Saharan Africa
Mobile wallets key to fintech landscape
Flourishing start-up sectorFormal fin. services remain under-penetrated
Increased direct backing by major players
80% of adults in Africa do not having access to formal or semi-formal banking services
Increasing opportunity to leverage high penetration of mobile wallets and remittances into other financial services, including credit
Mobile Money
LendingStart-up
AcceleratorSME
Working Capital
Top 10 Global Player; 1M
customers and $100M in 1st 9
months
P2P Lender focussed on
SMEs; $100K loans per day
Global network of industry
focused start-up accelerators
Alternative funding source
for WC
Finnovating for Africa: Exploring the African Fintech Startup Ecosystem Report 2017
• Payments and Remittances- 125
• Lending- 65• Other- 110
• South Africa- 94 • Nigeria- 74• Kenya- 56• Other- 76
300+ Africa Fintech Start-ups in last 2.5 years
The local industry leaped forward in recent months, but will this be good enough to catch up with international best practise?
Overview and the local industry in perspective
Investment into FinTech and InsurTech increased by 117% between 2014 and 2015
At the moment, less than 5% of insurance is purchased online in South Africa
Less than 15% of P&C insurance can be purchased online a ~R500 billion market
28% of the population are millennials, presenting a significant opportunity
Low ranking in consumer perception
Overview and local industry in perspective (cont.)
IOT technology adoption rate slow
Estimated that 90% of data used in the application process is captured manually and the validation of this data is limited with outdated and expense intensive quality assurance processes are still being applied to “mitigate” the risks associated with poor data capturing
High level of sophistication around pricing and risk selection
Lagging international benchmark for online use
Low adoption rate of UBI (telematics) ~ < 10%
The international insurance industry
Do we stack up against international insurers?
REGRETTABLYNOT…
Here’s a couple of things international markets are doing that we should definitely work towards:
Internationally, the picture looks very different
80% of carriers provide online self-service
More than 70% of all online quotes generated in the US in 2015 were created online
More than 20% of insurance was purchased online – increasing every year
Up to 50% improvement in operational expenses has been experienced by businesses that have implemented online strategies
Internationally, the picture looks very different (cont.)
Significant improvement in claims processing time and associated costs resulting in healthier combined ratios and happier customersQuoting and underwriting processing time reduced by as much as 60%Insurance penetration remains the highest in the world and is set to increase as digital channels allow easier and broader access to insuranceOperational efficiency and cost saving generated by process automation has created capacity for insurers to innovate in improving the customer experienceThe use of digital channels to deliver gamified training content ensures continuous skill development translating into better advice and coverage for customers
A powerful solution exists –we just need to make it work for us
EIR DB
1.48 B
Hosted
TU
Acquisition Plan
Employee
Count
Company Financials
14 K
Qualification Data
Judgments1.2 M
Commercial Header
5 M
Active Commercial
1.5 M
Address
4.3 M Auto Valuations
7.2 M
Insurance Claims9.7 M
Consumer
Auto
Health Telco
Commercial
Insurance
Verified ID
33 M
We can respond promptly and decisively through access to some of the best data in the world
Property Valuation Enquiries
2.7 M
Registration Information
4.5 M
Contact1.4 M
Insurance Policies
4 M
Deeds15 M
NAD9 M
Vehicle Master19 M Auto
Finance 3.2 M
TrafficFines
Medical Aid
Policies Contact21 M
Consumer Header51 M
Payment Profile
21 M Defaults3.4 M
Payment data
Home Affairs
Notices35 K
Prefill demo - underwriting a personal vehicle
Insurer
Data pre-populated for insurance decisioning*
<Name> Mary<Surname> Smith
<Registration Number> WXY514 GP<Address> 52 Corlett Drive Illovo
Sandton 2196<Vehicle Make> BMW <Vehicle Model> 320i<MM Code> 12345678<Loss Ratio Score> 680
<Lapse Model Score> 680<Income Estimator> R7500
<Claims last 3 years> 3<eNatis driver license> Yes
TransUnionPremium decision
calculation
Business Rules and Rating Engine
Quote
Match to TransUnion
data
* Data returns indicated above for illustrative purposes only
ID, Name, Surname, Registration Number Agent inputs
minimum data
Incomplete Asset
Information
Poor Policy Demographics
Incorrect Vehicle Data
POLI
CY
DAT
A
INSU
RA
NC
E PO
LIC
Y LI
FEC
YCLE
Quoting
Claims
Underwriting
Renewals
Call Centre
Broker
Self Service
Sources of DataOperational Efficiencies
FraudDetection
IMPA
CTS
Improved Claim Ratios
Underwriting Profitability
SAICBIDSHEALTHTELCOAUTO
INSURANCECOMMERCIAL CONSUMER
Solutions exist to increase the pace of adoption
• How we have helped…
Pace of change is relentless…
New entrants entering the market have digitisation as
the foundation of their strategy .
Business processes are architected around automation, integration
and agility
Significant investment being made by established insurers to digitise acquisition processes, enhance self service and reinvent claims processing
Traditional insurance is set to change forever, finally in favour of the consumer
Where to from here?
Next steps – combining data and technology to solve consumer issues
Automated on boarding processes to increase relevance
Fraud mitigation only possible through investment in technology e.g. machine
learning models have a 5:1 false positive ratio in predicting content fraud
Improved customer experience through true omni-channel capabilities being
widely adopted
The ability to combine structured and unstructured data e.g. web scraping essential for omni-channel and fraud
objective improvements
Next steps – turn data into valuable insights (cont.)
Improvement in profitability through better pricing and risk selection,
reduced operating expenses, reduction in fraud
‘Internet of Things’ data and devices set to increase exponentially allowing first notification of loss and response to a
claim to happen in real time
Increased relevance of telematics in driver education and rewarding safe driving,
reducing distracted driving and improving emergency response time in emergency situations aimed at improving road safety
in South Africa
Access to real-time businessintelligence through new data processing
and analytical tools, which creates a significant competitive advantage by
allowing insurers to quickly identify and react to possible threats and opportunities
Next steps – turn data into valuable insights (cont.)
Growing popularity of P2P insurance e.g. Lemonade, set to threaten
traditional insurance principles and processes
Social media platforms set to re-shape traditional distribution channels through
AI technology like Chatbots
Transformation from a grudge purchase to a practical and engaging risk management
solution partner in a world where risk complexity and exposure is evolving faster
than the solutions to mitigate them
Expanding use of technology to pro-actively manage risk, reduce the impact of a loss after it has occurred and convert the learnings into engaging solutions aimed at
improving consumer knowledge
INFORMATION FOR GOOD
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THANK YOU