Digital Transformation

Insurance Industry 2.0

“We have reached an inflection point where

digital transformation has become a strategic business imperative”

IDC

▶ Disruptive business models (Amazon, Uber, Netflix)

▶ The Internet Of Things creating Big Data (data from inexpensive sensors, wearables, medical, cell phones, connected devices/automobiles)

▶ Changes in how identities are managed (Blockchain)

▶ Changes in how payments are made (Apple Pay, BitCoin)

▶ The ability to perform real-time advanced analytics (Artificial Intelligence, Cognitive Computing, Machine Learning)

▶ The use of tools to deploy application changes at will (DevOps, Continuous Integration, Continuous Development)

Digital Trends Around Us…

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Digital transformation – across lines of business

Select Examples

• Decreased car ownership & high ride sharing – US private car ownership to drop by 80% by 2030

• Autonomous vehicles will shift risks from individual to fleet managers?

• Smart home devices will provide real time data for accurate risk assessment; better loss prevention

• In commercial business, smart sensors will protect against a range of threats

• Wearable technology will track consumer behavior

• AI & Robo-advisors to change the game for Annuities & Pensions

• When cars don’t need drivers who-or what- will insurers insure?

• If homes are smart can they buy their own insurance?

• How do insurers accurately track & proactively manage risks?

• How do insurers reposition themselves to become partners for health, safety & financial security?

Shape New Customer Experiences | Acquire Customers through New Products & Channels | Revisit Business Models

Answers lie in Digital…

Digital transformation – new business models

Peer to Peer Insurance• Peer-to-Peer (P2P) insurance is a risk

sharing network where a group of individuals pool their premiums together to insure against a risk. If no claims are made by the customer or any of their connections, the customer receives a pre-agreed maximum cashback

Personalized pricing• Telematics collect real-time driving

habits for the pricing of auto cover, data from wearable devices (fitness bands) and apps can inform life cover

• Some carriers have experimented with using social media data as a basis for underwriting and pricing decisions

Strategic partnerships

• A leading insurer has set up a joint venture with internet giant to use data on consumers’ online behavior to create customized offers

• Leading Commercial Insurer has formed strategic partnerships with IBM and other technology vendors to boost its expertise in risk analytics and cybersecurity

• Autonomous vehicles and advanced driver assistance systems help reduce premiums and shift liability from car driver to car manufacturer or its software vendor.

• A Mutual Insurer, is collaborating with a manufacturer of smoke detectors and other connected home products, to reduce homeowner risk

Investing in start-ups• A Commercial Insurer has invested in

Human Condition Safety, a provider of wearable devices aimed at maintaining workplace safety

• A Reinsurer has partnered with company that uses sensors, analytics to monitor heating, ventilation, cooling systems, improving maintenance and prevent break-downs

In-house Innovation Factories

• Insurers have launched labs in Singapore, where the government has backed the development of an insurtech industry and companies have access to the growing Asian market

New Business Models Product InnovationNew Value Propositions

Digital transformation– how is it impacting organizations

Digital Customer Experience Solutions that engage customers in new ways to deliver

a transformed sales and service experience

Digital FactoriesNew delivery models that incubate and accelerate digital

business outcomes for clients

Automation and Intelligence Automation of processes increases customer satisfaction

while reducing operating costs; Robotics with artificial

intelligence and analytics help make better decisions, faster

Connected DevicesGive insurers the opportunity to interact more often

with their customers and to offer new services on

the basis of data collected

App & Cloud TransformationSolutions that provide consumable technology upon

which other digital technology services are built

Digital WorkplacesSolutions that provide employees with better ways to

connect, communicate and collaborate to accelerate

business performance

Business OperationsHarness digital to make insurance operations

more efficient, aggressively lowering costs; improve

accuracy of pricing and underwriting

Digital disruption is challenging organisations to re-think how they consume and deliver technology…

How Digital Technology is changing the Insurance business?

1. Customer experience

2. Internal Efficiencies

3. Product innovations

4. Business models

ExperienceDesign

1. Improve Customer Experience

Advanced UX

Conversational AI Driven Chatbots

Portal Modernization

Mobility

Deliver a best-in-class user experience by utilizing User Centric Design (UCD) and Design Thinking to ensure consistent design and user experience across all channels

Implement Chatbots to integrate customer’s pleasure (e.g. Facebook) with his need (e.g. Insurance Claims tracking) with NO human touch points

Modernize your classical web solutions to break out of legacy limitations and make touch-points more user friendly and multi-device compatible

Develop native mobile applications, with rich user experience, to enable customer journeys on Mobile…from Quotes to Policy Issuance to MTA to ClaimsLeverage Microservices

2. Improve Efficiency

Automation How we can help Insurers? Solutions we can build

Robotics

• Automate Processes, DevOps, IT Operations

• Modernization – Rules Extraction, Cloud Enablement, Language Transcoding (e.g. Mainframes / VB to Java / Dot Net)

Automation of business processes like:

• Enrollment

• Midterm Changes; Renewals & Payments

• Multiple Channels Management processes

Machine

Learning /

NLP /

OCR• Data Management (Modeling &

Analytics; Visualization)

• Machine learning algorithms

• Chat Bots

• Deep Learning networks for text mining and contextual understanding

• Fraud Detection; Claims Leakage

• Customer Service & Support

• Automated Data Capture

• Claims Processing

AI & Deep

Learning

• Customer Discovery & Acquisition

• Personalized Underwriting

• Sales & Support

• Claims Management

Business Benefits

Cost of Operations

Claims Fraud

Underwriting Efficiency

Time to Market

Claims Processing

▶ New products for new risks—protection against cyber risk

▶ Low-cost, micro-crop insurance for farmers that does not require claims adjusters to trek to remote locations to settle claims

▶ Insurance to owners of vacation rental properties, are adding cover for short-term rentals

▶ Short-term insurance on demand against loss or damage for items such as sports equipment and computers

▶ Enable customers to “name their price” and choose elements of a policy that fit their budget—the level of deductibles

3. Product Innovation

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Insurers have a choice: be disrupted or be the disruptor with new products, services,

and business models.

How can we help you?

Insurance Domain Expertise

Digital Technology Experts

Program Management

Strategy Partner to Insurers

▶ High time to market for new products

▶ Not capable to write cover for new types of risk that are emerging in a digital age

▶ Low customer satisfaction due to poorly designed, less responsive systems

▶ Low cross/up sell of products due to lack of Customer 360-degree view

▶ High costs and low scalability

Innovative Product ExamplesChallenges due to Legacy Systems

▶ InsurTechs are disrupting the landscape. Some examples:

– Lemonade: Claim settled in 3 seconds

– Cuvva: Sign up, get a quote and buy car insurance in minutes

– Friendsurance: Peer-to-peer insurance

– Bestow: Direct online term life insurance

– Extraordinary Re: Platform for trading insurance-linked securities. Enables market liquidity via “liquid insurance contracts,” allows investors to buy and sell shares of liability or risk on an exchange

– Jointly: Peer-to-peer auto insurance

– Jumpstart: Direct online disaster insurance that pays out claims as soon as a disaster occurs

– Neptune Flood Insurance: Flood insurance priced using data collected via aerial mapping and sensing. Guaranteed claims resolution within 10 days of FNOL, payments within 48 hours of settlement

– Pie: Direct online workers’ compensation insurance

– Slice Labs: Pay-per-use on-demand commercial insurance policies

4. Disruptive Business Models

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Case Studies

Redesign existing web portal to make it Responsive and have enhanced user experience

Enhance the Search functionality

Build web analytics and SEO (Search Engine Optimization)

Case Study 1: Portal Redesign@ Insurance and Financial Services Firm

Website Redesign

User Experience

RESULTS

Unified

Designed and developed Responsive web portal which can be accessed for optimal viewing across multiple browsers, platforms, devices and screen sizes using a single code base

+

Implemented content scheduling features controls; Removed manual intervention of content update

+

Liaised with business to identify Title, Description and Keywords for each page that is used to develop Search Engine friendly portal

+Brand Awareness

Increased

Performance of website

Improved

SOLUTION

Customer Experience

Case Study 2: Integrated Claims Analytics @ Fortune 100 Insurer

BUSINESS CHALLENGES

SOLUTION

BENEFITS/RESULTS

▶ Insurer experienced high claims losses, but lacked holistic understanding of factors driving claims

▶ Claims assessment solution was required to lower the financial risk owing to risky claims

▶ Integrated HDFS platform by combined raw data from source systems

▶ Stratified the property and vehicle portfolio into low to high risk claims

▶ Root cause identification of risky property, vehicle insurance claims

▶Machine learning model to predict probability of getting high risk claim

Reduction in risk by focusing on low-risk

enrollments

Annual claims losses saved through proactive identification of

high claims loss pockets

Reduction in claims ending up

in litigation

Unsupervised and Supervised Machine Learning

70% $25M 30%

Case Study 3: Leading Insurer – Contact Centre Automation

Self ServiceAutomation

Agent Self Service

Customer Self Service

Plug and Play

Robotic Automation

No change to systems and processes

Integrated Digital Platforms

Agile Transformation

25%

TCO Reduction

2X Faster

Customer Service

25%

Digital Self Service

Improved

CSAT

Zero

Errors

Contact Center Operations: From 8 Applications, 55 Fields, 15 Minutes Per call

TO 1 Screen, 5 fields, 8 minutes per call

Modernization

Process Automation

Case Study 4: Virtual Insurance Agent leveraging Amazon Alexa @ Leading Insurer

John: Hey Alexa, please check the status of my claim with ABC Insurance.Alexa: Sure John. Please tell me your claim number……Alexa to ABC Insurance Bot: What is the status of my Claim No: 73600530?ABC Insurance Chatbot: The claim no: 73600530 for Mr. John has been approved and payment will be effected on May 20th.…

Alexa: John, the claim has been approved and the payment will arrive by 20th

May.

BUSINESS SCENARIO

The ultimate frontier of customer centricity is the ability to connect with

your Insurance company as you would with a friend – i.e. “talk to your

Insurer,” without the hold time and tedium of dialing a call center.

Alexa – Voice based status updates on policy and claims

Facebook Messenger – Policy endorsements directly from an SM

platform

Seamless Experience Hassle-free & quick Anytime response

OBJECTIVE AND BENEFITS

AI Chatbot

Thank You