Social Media, Social Good & Good Business Can they fit together?

Philippe Danielski

24th January 2016

Why Are We Here?

2

To be the most professional financial services organization in the world,

providing strong, reliable, trustworthy and forward-thinking solutions for our clients’

most significant financial decisions To bring peace of mind and build prosperity to millions of Indonesians

To be the preeminent specialty global property and casualty

insurer by providing coverage and service that exceed our

customers’ expectations

Help Customers Understand and Protect Themselves From Risk

To help customers live their lives with more peace of mind by protecting them, their relatives and their

property against risks, and by managing their savings

and assets

3

Indonesia

DemographicDividend

Wealth Creation

PopulationExplosion

Infrastructure Spend

Why Are We Here?

© Z

uric

h In

sura

nce

Com

pany

Ltd

Source: Lloyd’s Global Underinsurance Report, 2012

Huge Insurance Gap & Opportunity

High Protection Needs

Low Insurance Understanding

Why Are We Here?

GI Underinsurance as a % of GDP and in US$ billions

5

Banda Aceh, Dec 2004

Why Are We Here?

<$0.5B of $4.4B reported damages insured

167,540 Indonesian dead or missing. 99% had no life insurance

Source: RMS Special Report, 2005 & NOAA publication, 2004

After Tsunami

Why Are We Here?

"Innovation in ASEAN Insurance - Exploring practical strategies to ensure

success in a changing technological landscape"

Image source: http://www.marriott.com/hotels/travel/jktjw-jw-marriott-hotel-jakarta/

Why Explore Innovation?

7

Without innovation margins fall, commoditization occurs, efficiency gains stop,

Entropy is reached.

Innovation moves the curves up and right

New demand, Increased margins,

New markets and segments.

supply

demand

price

quantity

new demand

Innovation and the Customer Journey

Digital Innovation & TransformationDigital

Insurance

Technological Advances

Online Claims

Data Analytics Mobile Technology Advocacy

Loyalty

Satisfaction

Selection

Consideration

Awareness

Knowledge

* Source: Financial Literacy Survey by OJK in 2013

OJK says* only 18% know what insurance is.

A private survey of upper middle class to mass affluent shows <1/2 the market knows what General Insurance is and >1/2 of them

are WRONG

To fill the enormous gap in insurance we need first to

build awareness of risk and knowledge of insurance.

Over 100 Million Internet Users

Indonesia: Social Media Mania

82 Million Users

Source: APJII, 2016, TechinAsia, 2015, www.consumerbarometer.com

308 Million Mobile Connections

People spend 27 hours/week on their smartphones

50 MillionUsers

Indonesia: Social Media Mania

Until it rains.. From Social Media to Social Good

12

People get much more concerned about risk.

The feeds change.

On the last two truly big flood days in Jakarta (9-10 Feb ‘15) there were

872,905 tweets mentioning flood events reported by @petajkt

© Z

urich

Insu

ranc

e Co

mpa

ny L

td

From Uninsured to Insurable

Zurich decided to harness this Zurich Insurance Group was already committed

>USD 5 million 5 year (2014 – 2019)

Flood Resilience Program

13

• Increasing community flood resilience

• Enhancing effectiveness of disaster risk reduction solutions

• Informing policy makers and donors on disaster risk reduction

• Flood Resilience Measurement Tool

A Mobile application free to all 10+ million residents of Greater Jakarta

An early warning system to increase risk awareness,

inform and mitigate the effect of disasters/incidents.

Z-Alert: Social Media for Social Good

© Z

uric

h In

sura

nce

Com

pany

Ltd

Z-Alert: Building Awareness & Knowledge

15

Jakarta per annum averages: >6k serious traffic accidents>1,300 reported fires>1,000 floods

Lloyds City Risk Index ranks Jakarta #20

16

1. Customer: Incident alerts increasing protection Proactive service in claims

2. Partner & Distributor: Innovation and differentiation

3. General Public: Increase risk awarenessBuild understanding of insurance need

4. Government Agencies & NGO’sTool to help manage and communicate

5. Insurer: Big dataReduced lossesIncrease brand awareness

One application: many beneficiaries

Awareness – recognize risk and need to face it

Knowledge – what is insurance and why is it important

Technology

New Devices

Innovation

New Invention

Social Media

Digital

Mobile

18

Let's innovate to raise awareness and knowledge of insurance

Earthquake, Aceh 2016

Social Media, Social Good & Good Business Can fit together!

>11,668 buildings & houses damaged and destroyedOnly 1,324 insured

Thank you