Innovations in Reinsurance...Blackberry Tom Tom Share price (local currency) RDG Presentation |...
Transcript of Innovations in Reinsurance...Blackberry Tom Tom Share price (local currency) RDG Presentation |...
Innovations in ReinsuranceAndre Eisele, Swiss Re Head of Client Management P&C ANZRDG Presentation8 March 2017
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Innovations in Reinsurance
Agenda
1/ Coverage of the Presentation – scope and purpose?
2/ Why Innovation is key & what kind of culture drives it?
3/ Technology as the “catalyst” and engine of innovation/change
4/ Swiss Re “innovative” product/solution examples
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Innovations in Reinsurance
Agenda
1/ Coverage of the Presentation – scope and purpose?
2/ Why Innovation is key & what kind of culture drives it?
3/ Technology as the “catalyst” and engine of innovation/change
4/ Swiss Re “innovative” product/solution examples
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Innovations in Reinsurance
What this Presentation is Not about ->1/ Does not give all the answers to what Innovation is all about2/ Not about Blockchain, Wearables, Cyber, Self-drive cars, Drones, and new digital apps3/ Does not distinguish between reinsurance and insurance (also not about RI structures)4/ What all reinsurers are doing, it does focus more on Swiss Re examples5/ Not specific to ANZ market
What this Presentation is about ->1/ Provides a view into the culture and importance of Innovation in our industry2/ Talks about one of the key drivers of innovation in (re)insurance -> Technology3/ Presents several specific Swiss Re “innovative” products/solutions4/ Presents ideas and products/solutions from a global marketplace5/ Hopefully leaves all of you with “fresh thoughts” around innovation in our industry
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Innovations in Reinsurance
Agenda
1/ Coverage of the Presentation – scope and purpose?
2/ Why Innovation is key & what kind of culture drives it?
3/ Technology as the “catalyst” and engine of innovation/change
4/ Swiss Re “innovative” product/solution examples
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Body Sensors & WearablesTiny, wearable, sensors collect data without inferringwith our daily lives in order to make better, more informedquantifiable decisions.
Smart Toilets: Doctors in Your Bathroom
Smart Homes
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Nokia
‘Digital Darwinism’ – The consequence of not adaptingbusiness models
Eastman Kodak
Blackberry
Tom Tom
Share price (local currency)
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Most Innovative Companies report published by BCGsince 2005
• For the 10th year, BCG published alist of the 50 Most InnovativeCompanies
• Findings represent the responsesof more than 1,500 seniorexecutives across various roles /functions, regions, and industries
• The Most Innovative Companiesreports are the most widely readreports of consultancies
• Survey addresses most innovativecompanies as well as respondents'company's innovation practices
RDG Presentation | Swiss ReSource: BCG Global Innovation Survey, 2015.
The World's most Innovative Companies 2015
1 11 21 31 41
2 12 22 32 42
3 13 23 33 43
4 14 24 34 44
5 15 25 35 45
6 16 26 36 46
7 17 27 37 47
8 18 28 38 48
9 19 29 39 49
10 20 30 40 50
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Innovation Remains at the Top of Most Companies’Agendas
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40
23 23 25 26 24 24 22 22
47
32
43 43 3945 52 53
5357
0
20
40
60
80
2007
66
2006
72
2005
66
2015
79% respondents
Top priority
Top-three priority
2014
75
2013
77
2012
76
2010
72
2009
64
2008
66
Where does innovation/product development rank among your company'stop strategic priorities?
Source: BCG Global Innovation Survey, 2005–2015.
CAGR2%
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Speed of adoption
Four main differentiators between leading innovatorsand the rest
Lean Methodologies
• Defined product specifications• Modularized product lines• Parallel development with stringent funnel• Intelligent launch plan• Short cycles and iterations• Standardized processes• Strong project manager• Meaningful KPIs• Systematic cross-functional integration• Accepts failure• Global knowledge management system• Designs quickly modeled and tested
Strong role of central teams Leveraging most impactful levers
Which of the following areas of innovation/R&D/productdevelopment will have the most impact on your industry over thenext three to five years?
8922
50
20
40
Change in % respondents citing significant impact, 2014–2015
Operationsprocess
Technologyplatforms
Big-dataanalytic
s
Speed ofadopting
newtech
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Cultural conditions must be modified to supportinnovation agenda
Innovationconditions Definitions
Time outside day-to-day activities to think of new ideasTime to think
Freedom to experiment
Balance of creativity &functional expertise
Collaborative teaming
Link to language
Aligned incentives
Freedom to think, as well as walking-around space in which thoseactivities are expected, even protected
Ability to possess or obtain a great deal of knowledge about an issue,problem, or inquiry and develop creative solutions
Engagement with cross-functional, cross-geographic teams to increaseexposure to ideas, experiences beyond innovation team
Common language agreed upon to describe desired culture and keyactivities – used across functions and geographies
Incentives to encourage idea generation
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Innovations in Reinsurance
Agenda
1/ Coverage of the Presentation – scope and purpose?
2/ Why Innovation is key & what kind of culture drives it?
3/ Technology as the “catalyst” and engine of innovation/change
4/ Swiss Re “innovative” product/solution examples
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Technology has three major implications for the insuranceindustry
Catalysts / Inhibitors(e.g. technological diffusion, regulation, consumer, competitors)
Technological advancements(e.g. internet of things, blockchain)
Implications for the industry
Changein risk pools
(e.g. new risks)
Transformationof value chain
(e.g. automation)
Disruption ofindustry structure
(e.g. changing roles, newecosystems)
1 2 3
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Technology is transforming the industry
Exponential increase of data on people andthingsExponential increase of data on people andthings
Common and secure use of distributed dataCommon and secure use of distributed data
Ability to recognize patterns in dataAbility to recognize patterns in data
More natural interaction between humans andmachinesMore natural interaction between humans andmachines
Impact of technological advancements
Digital engagementof consumers
Improved riskmeasurement
& modeling
Faster and moreinsightful processing
Automated, trustedtransactions
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Current prediction show, that by 2019, approx. 213mwearables will be shipped (up from 88m)
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Technology investments to date
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Remaining on the cusp of business innovation
Distribution channel for micro insurance
• Combines mobile technology with insurance, reaches out to affinity groups in African markets
Monitor wearables
• As well as offering medical-grade devices Biovotion is building a platform to analyse data, whichcould help with automated underwriting
Individual data aggregation
• Provides individuals with one platform for their social media data, to be expanded to cover healthand financial data
• Individuals can then choose what to share for personalised benefits and services
Online health platform
• A variety of costumer engagement mechanisms are combined in a single platform
1 100% acquisition, not part of “tech fund”
App based telematics solution1
• Provide a customised, app based telematics solution to primary insurers
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Potential new entrants or attackers
Search engines• Google• Facebook• Yahoo
Social media• Amazon• Whatsapp.• Facebook
Those who own the route toknowledge
Telecommunication/Internet
Retailers• Tesco• Carrefour• Walmart
• Telekom• Vodafone
Those who have big customerbases used to buying
• Samsung• Microsoft• IBM
Technology andElectronics
Data and Research• Apple (via HealthKit and
ResearchKit)• Samsung (via SAMI)
Those who have access tonew data and insights
Online shops• Amazon• Ebay
Payment providers• American Express• TransferWise• PayPal
Those who own thetransaction relationship
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Risks mitigationand prevention will
decrease existing riskpools
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The size of today’s risk pools will change
Existing RiskPool
OtherReinsurers
Brokers
Swiss Re
New risks increase theoverall risk pool
Primary InsuranceTerritory
Change in risk pools
New technologies willcreate shifting risk pools
Greater systemic riskincreases need for
reinsurance
Technology – Innovation / Changes to (RI) Landscape
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Innovations in Reinsurance
Agenda
1/ Coverage of the Presentation – scope and purpose?
2/ Why Innovation is key & what kind of culture drives it?
3/ Technology as the “catalyst” and engine of innovation/change
4/ Swiss Re “innovative” product/solution examples
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Innovations in Reinsurance
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Innovations in Reinsurance
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• 1/ Culture is key to innovation and innovation is key to success – let’s allplay our parts
• 2/ Technology is the biggest “catalyst for innovation” – let’s embrace itfurther and “make it part of us”
• 3/ The (re)insurance landscape will drastically change over the next 10years – let’s drive these changes instead of being changed……
• 4/ (Re)insurance markets should work close together in driving change –still too much silo mentalities in our industry
• 5/ Swiss Re is ready to drive “innovation changes” and wants to be moreactive in ANZ with you as key partners
AE Conclusions
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Legal notice
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