Embed Size (px)
Citation preview
Insurance Sector
Digital Transformation July 2018
Agenda
1 Where is the investment Happening?
2 Insurance Industry Trends
3 Insurance Industry Overview
4 Insurance 360
5 Executive Team Considerations and Challenges
6 Core Offerings
7 About vidEre Soft
Where is the Investment Happening?
Where are VC’s investing their funds
• Internet-First Insurers – Life • Employers Insurance – Benefits & Insurance • Enablers – Back-end Solutions
• Distribution Platforms –Property & Casualty
Source: Tracxn
What Business Models are being pursued in the market?
Enablers Provide software solutions, data analytics etc. to insurance players.
Back-end Solutions
offering data analytics, software solutions to Insurers
and brokers for underwriting, risk management, policy
administration, CRM, Claims management
Data Providers
providing data related to health, auto etc. to insurance
companies so as to enable them issue customized and
usage based policies
Reinsurance
Offering platforms and software solutions for
reinsurance industry
Employer Insurance Offering employers a smarter way to manage employee benefits
Benefits and Insurance
HR and Payroll solutions for employers to integrate
with employee benefits and insurance
Data Providers
Marketplace for shopping employee benefits
Reinsurance
Self-insurance platform for employers to sponsor their
employees
Internet-First Insurer Provides insurance online in P&C, Life and Health sectors
Personal
Offering insurance to consumer online for devices,
auto, life and health
Commercial
Offering business insurance online directly
Suite
Offering insurance to consumer and business online
Distribution
Platform A platform where consumer, business can compare insurance quotes and buy insurance policies
Horizontal
A platform to compare
insurance quotes/buy
insurance across multiple
segments
P&C
Offering a platform to
compare insurance
quotes for P&C segment
Life & Health
Offering a platform to
compare Life & Health
insurance quotes
Commercial
Offering a platform to
compare insurance
quotes for business
On-Demand Insurance
offering on-demand
insurance to consumer
Insurance Industry Trends
Trends (McKinsey)
Personal Lines
• Greater Commoditization due to transparency and social purchases
• Decreasing Profitability due to lack of diversification
• Automated Underwriting due to guidance from talented senior underwriters and predictive modelling
• Greater Loss Control due to usage of telematics to proactively control loss and manage risk
Commercial Lines
• Virtual Business Affinity Groups due to Social networking among small business owners for predictable
risk
• Automated Underwriting due to guidance from talented senior underwriters and predictive modelling
• Business Model Transformation due to real-time data from sensors and devices
Individual Life,
Annuities and
Retirement
• New products for seniors due to ageing population and the need to manage retirement and longevity
• Insurers to step onto government turf due to strained government support for sick and political challenges
• Better Risk Management due to greater availability of medical and behavioral data
• Tailored Products due to increased voluntary coverage
Automation Telematics Self Service Social Analytics
Life Annuity Insurance Outlook
Business
Transformation &
Innovation
Digital
Consumerization
Distribution
Strategies
• Avoid Time consuming Reconciliations
• Setup a Cross Functional team of
Actuarial, Finance and Risk Management
• Build new analytical and risk approaches
• Anytime, Anywhere, Any device access
• Clearer Product Information and Pricing
transparency
• Build ongoing engagement with
customers
• Deliver financial and product information
directly to consumer through digital
platforms
• Adopt robo-advisors as a new distribution
channel for sales and service
Process Re-
engineering
Talent
Management
Cyber security
• Use Advanced analytics for predicting
and stress testing trends
• Re-engineer legacy systems
• Propose data consolidation projects
• Data Scientists and Digital Experience
designers are the need of the hour
• Platform to attract workforce
• Protect digital connections
• Establish data privacy – consumer and
distributor
• Cloud data governance
Robo Advisors Mobility Self Service Security Analytics
The life and annuity industry has long suffered from “low engagement” with customers following the initial sale
Property and Casualty Insurance Outlook (E&Y)
Digital Leadership
M&A
Innovation
• Mobility, Social Media and Telematics – Groundwork for Digital Transformation
• Build a backoffice to support digital frontline
• Single Tech Platforms, self-service customer portals, omni-channel distribution systems
• Analytics to improve pricing, risk, claims
• Insurance for Cyber-risk, ridesharing and drone exposures
• Innovate on UBI to disrupt, Advanced Analytics to absorb risk
Service Orientation
• Understand customer needs and behaviours better for policy retention
• Create personalized robo-risk advisors
Next-gen Distribution
Platform
Drive Performance
Talent Management
• Omni-channel for customer service, product comparision, claim response time
• Integrate systems into core U/W platforms to avoid duplication
• Analytics for home – real time risk assessment
• Automate sales experience
• Hire more data scientists
• Rewards platform to motivate talent
• Personalized risk advisory
Risk Management • Greater Cyber Risk Protection
• Data Governance
Robo Advisors Mobility Self Service Security Analytics
The P&C Insurance Industry is going through heightened political and regulatory uncertainty
Insurance Industry Outlook (PwC)
M&A
Drivers for Disruption
Customer Expectations
Pace of Innovation
Startups
Business Opportunities – External View
Meet Changing Customer Needs
Enhance Interactions and Trust
Build Strategic relationships
Business Opportunities – Internal View
Generate Risk Insights – Data &
Analytics
Underwrite Risk and Predict Loss
Enable sophisticated Operations
Usecases of AI
Personalized Customer Experience
Robo Advisors in Distribution
Automated Underwriting
Robo Claims Adjuster
• Improve Efficiency
• Customer Interaction and conversion ratios
• Reduce Quote-to-Bind
• Reduce FNOL to claim Resolution Time
• Increase New product speed to market
• Improve Effectiveness
• Improve target prospects
• Refine Risk Assessment and Risk based
pricing
• Enhance Claims Adjustment
• Improve Risk Selection
• Identify trends and emerging risks
• Assess risks for individuals
• Assess risks for corporations and LoBs
Robo Advisors Automation Self Service A I Analytics
AI
Be
ne
fits
Other Investment Areas
• Actuarial
• Analytics
• Artificial Intelligence
• Backoffice for Digital
• Customer Need Analysis
• Cyber security
• Direct to Consumer
• Data Consolidation
• Data Governance
• Data Privacy
• Drones
• Enable Sophisticated Operations
• Finance Management
• Home Analytics
• Omni-Channel
• Platform Re-engineer
• Predict Loss
• Real Time Risk Assessment
• Reconciliations
• Ride Sharing
• Risk Advisory
• Risk Insights
• Risk Management
• Robo Advisors
• Self Service
• Single Tech Platforms
• Social Media
• Telematics
• U/W Systems Integration
• Underwrite Risk
• Usage Based Insurance
• Workforce Acquisition Platform
Insurance Industry Overview
Core Insurance Offerings
Core Re-Insurance Offerings
Insurance 360
What is Insurance 360
Have Accurate
Customer Data
Identify
Relationships among Customers
Capture Customer Details across
Lines of Businesses
Understand
multi-channel communications
Analyze Customer’s
Social Behaviour
Profile, Household
Personality, Human
Relationships
Product Relationship,
Policies
Claims
Conversations
Provide
meaningful
insights across
customer
lifecycle to make
meaningful
decisions
Key Tenets of Insurance 360
Have Accurate
Customer Data
Identify
Relationships among Customers
Capture Customer Details across
Lines of Businesses
Understand
multi-channel communications
Analyze Customer’s
Social Behaviour
Identify customer consistently across the
lifecycle
Andrew Hudson = A Hudson = Andrew H
Decipher relationships across
customer lifecycle
Andrew Hudson : Life Insurance,
Amy Hudson (wife) : Auto Insurance
Theresa Hudson (mother) : Health
Insurance
Decipher relationships of customer
across various lines of businesses
Andrew Hudson :
Life Insurance, Health Insurance, Auto
Insurance, Home Insurance, Travel
Insurance, Business Liability
Insurance etc..
Decipher how the customer is
communicating with the company and
why
Andrew Hudson communicates via
email, Physical mail, fax, iPhone,
Android, Tablet, website, social channel
etc..
Decipher how the customer is
conversing about his insurance needs
and about the company on social
channels
Andrew Hudson comments via
facebook, LinkedIn, twitter, YouTube,
Pinterest etc.. Derive meaningful
interactions and
predict
Key Enablers
Have Accurate
Customer Data
Identify
Relationships among Customers
Capture Customer Details across
Lines of Businesses
Understand
multi-channel communications
Analyze Customer’s
Social Behaviour
6. MDM, Datawarehouse, Datascience
3. RPA, AI & Machine
Learning
4. Mobile
Enablement
5. Socialytics
1. Analytics
2. Datascience, AI, Self Service
Executive Team Considerations
Executive Team Considerations when formulating new strategy
• Shape response to change
• Drive Innovation
• Decide target markets, customer segments
• Prioritize Investments
• Risk Management in Organization
• Risk Assessments on new products, services,
distribution channels
• Black Swan Events
• Message to market
• Manage capital and balance sheet structure under
changing regulatory, market and rating agency
expectations
• Transform to Customer Centric Organization
• Tailor products to consumers changing behaviours
CEO CRO
CFO CMO
• Be aware of emerging technology trends
• Experiment with new technologies CTO • Build Information Advantage
• Enable cost-effective tech platforms with insightful
data CIO
• Select and price risk appropriately Actuarial
Head
• Exploit new sources of information to improve better
risk selection and pricing
U/W
Head
• Actively manage losses based on real-time data and
loss management techniques
Claims
Head • Attract and retain the right talent HR Head
Challenges in Insurance Industry
1
2
3
Customer Insight • Changing Customer Interactions, Behaviors and Segments
• Insurer knowledge on products and distribution channels
• Role of payers, claimants, distributors on a policy or a claim
during customer journey
Business Development and Growth • New Distribution channels - captive and in-house agents
• Identification of where customer demand lies prior to NPI
• Identification of differentiated products and services
Operational Efficiency • Identification of process bottlenecks to streamline
• Stricter guidelines on U/W process impacting processing
times
• Redundancy and inconsistency of customer data across
systems
4
5
6
Risk Measurement and Management • Market volatility demands continuous valuation and
monitoring of investments
• Continuous assessment of risk characteristics and rating
factors for a risk type
Regulatory Reporting and Audits • Need for transparency and diligence in regulatory reporting
• Timely response to audit requests by regulators
Information Management • Integrated Information Management or lack of limits
ability to perform
• Recognizing business value of data
• Maintaining data in separate silos
Trends in Insurance Industry
1
2
3
IoT • Analyze Customer Data, Identify risks and needs
• Policyholder service transforms from customer initiated to
insurer initiated
• Reduce TAT for claims – geo tracking and environmental
risk
• As warning systems reduces frequency and severity of
claims
Usage Based Insurance • Better segmentation of risk profile
• Enhanced claim handling capability
• New partnerships for telematics
Big Data to improve Claims Processing • Pick data from right sources
• New models and tools
• New Insights and Predictions
4
5
6
Aerial and Digital Imagery • Becomes a primary tool for insurers to assess assets –
auto, property etc..
• New partnerships for digital imagery
Gamification • Educate people about various insurance policies
• Employee engagement activities – training, performance
monitoring, bonus structure
• Customer Engagement activities
Peer to Peer Insurance • Reduced premium cost
• Reduced Fraud
• Reject bad risk profiles
• Reduced cost of sale, administration cost and process cost
Core Offerings
A Framework for Self Service and Analytics for Insurance
Operations Self Service
Digital Marketing Messaging Event Detection Lead Management Campaigns Offer Management
Analytics
Marketing Sales Pricing Underwriting Claims Operations Actuarial
Campaign decision and
tracking
Channel Spend
Optimization
Loss Modelling Fraud Analysis Claims Propensity
Modelling
Contact Center
Analytics
Price Optimization
Prospect Analysis Agent Reward and
Compensation
Pure Premium
Models
Automated
Underwriting
Claim Fraud Detection IVR Review Economic Modelling
Campaign Effectiveness /
ROI
Agent Productivity Price Optimization Expense Allocation Automated Adjuster
Alerts & Triggers
Call Volume
Forecasting
Solvency II
Customer Segmentation &
Targeting
Forward and
Compensation Analytics
Competitive Market
Analysis
Risk Analytics Expense Management Capacity Planning Igloo Modelling
Customer Acquisition,
Churn and Retention
Reserve Analysis Staffing Optimization Prophet Modelling
Cross-Sell/Up-Sell Subrogation
Effectiveness
Mathematical Reserve
Calculation
IBNR Estimation &
ultimate claims cost
IoT Platform, Data Mining, Data Management, Reporting, Dashboards, Visualization, Model Development and Recalibration
Big Data Platform
Behavioral Data Descriptive Data Interaction Data Deep History Master Data Complex Datasets Social Data
Insurers are Pursuing some promising initiatives
Timeframe Initiative Description Financial Benefit
Other Benefits
Near Term Agent Enablement Give agents software and support to make them more efficient
+ Aids in agent recruitment
Digitization of claims processing
Reduce paper transactions to lower costs ++ Increases attractiveness to business partners
Medium Term Direct Sales Allow consumers to buy insurance products directly, without the help of the agent
+++ Helps insurers compete for less wealthy customers and for digital natives for whom being online is a way of life
Self Service Portals Allow customers to do simple transactions online, without staff help
+ Encourages customers to return to insurers’ website
Long Term Improved Claim Assessment
Use big data, including social media to identify outlier claims
+++++ May keep insurers from being disintermediated by data giants
Improved Loss Prevention
Use sensors to limit damage from insurable events, such as fire, theft, and illness
+++++++ May help insurers avoid losing market share to device manufacturers and utilities
Source: BCG Analysis Note: The number of + signs indicates degree of potential benefit
Key Functional Areas
Marketing Sales Service Collaboration Key Actions
Analytics
Transactional Data Attitudinal Data Demographic Data Campaign Data
Next Best Action Next Best Product Profitability
Social and Mobile Data Unstructured and Other Data Churn LTV
Retention Upsell Cross Sell
Analyze Customer Data Derive Customer Behaviours Extend Customer Lifetime Value
Self Service
Access to multiple products Self Help Decision Support Tools Comparisions
Purchase / Transact Personalized Products
Online Advisory Claims Reporting Self Service Portal
Social Bots Refine Customer Targeting Simplify Service and Support Pricing Transparency
RPA, AI, ML
Deep Learning for Segmentation and Customer Relationships Marketing Automation
Adjancent Products Virtual Sales Assistants
Claims process Automation Underwriting Automation
Bots and Voice Assistants Enhance Customer Experience Know Your Customer Automation for Speed
Enterprise Mobility
Gaming Location Services
mCommerce - Claims & Policy Usage Based Insurance Telematics
Mobile Customer Service Training
Immersive UX mLearning
Engage Anytime, Anywhere Track Usage, Location Sell and Service with ease
Socialytics
Social Campaigns and Tracking Social Event Management Search Engine Optimization User Generated Content
Social Data Analytics Social Mining for Lead Gen Social Loyalty Management Social Commerce
Social Sentiment Analysis Social Customer Service Social Bots
Social Advocacy Social Monitoring Social Storyboards Crowdsourcing & Innovation
Join the Conversation Build Brand Loyalty Enhance Cx
Datawarehouse and MDM
Data integration from multiple enterprise sources | Creation of a unique view of customer master data Extension of master data using Hadoop or access through integration layers | Data is managed using data governance capabilities and principle | Data
quality and management of relevant information
Core Solution Services
Offering Digital Enabler Value Proposition Success Measures Deal Structure Target Market
Digital Distribution • Buying propensity analytics • Avatars • Digitization at Source –
Automated new policy processing
• Build direct distribution market entry for carriers reducing start-up costs
• Drive top line growth with additional distribution channel
• Improve CX • Ensure channel mgmt
conflicts
• 20% reduction in time to profitability
• 30% YoY Growth on Direct channel – B2B policy sales
• 10% increase in NPS
Average value $5M EBIDTA 20% - 100%
Mid size carriers writing $700M - $4B in annual premium
Cloud Underwriting and Insurance Cloud Policy Servicing Digital Claims Support Actuarial Support
• Analytics identifying underperforming products
• Smart Workflow / Document Management
• Robotic Process Automation of Underwriting submission
• Analytics for fraud prevention
• Visibility to underwriting guidelines product mix performance
• Reduced quote turnaround time to brokers
• Reduced costs and increased policy processing
• 30% growth through increased policy processing
• 100% quoting of preferred business
• 50% cost savings of current processes
• 2% reduction in premium leakage
Average value $3M EBIDTA 30%
Mid size carriers writing $700M - $4B in annual premium
Insurance 360 • Data Science for identifying customer relationships
• Data Engineering for accurate customer data
• Data Visualization and Socialytics to analyse social behaviour
• Have accurate customer data
• Identify accurate customer relationships
• Capture customer details across LoBs
• Understand multi-channel and social communications
• 30% growth in new policies due to cross-sell and up-sell opportunities
• 50% growth in re-insurance • 70% growth in customer
satisfaction
Average value $5M EBIDTA 40%
Mid size carriers writing $700M - $4B in annual premium
Leverage Big Data Analytics to engage customers effectively
Use sources of large data for Analytics, Predictions and Visualization with the help of industry leading tools
and technologies
Give us data in any format and we transform – We also provide meaningful dashboards in a visual format, for you to take better decisions
Understand and extract relevant data for your big data streams, and engage solution specific apps. Leverage Big Data Analytics to engage customers effectively
Leverage Blockchain to create truth across the systems
Area Use Case
Underwriting Blockchain offers to be the central repository of truth. Using blockchain, underwriters can source data from external sources to automate some aspects of underwriting, since the data in the blockchain is trustable and is from a verified source.
Claims Processing With blockchain, most of the necessary information that is required for claims verification can be processed in no-time. Since blockchain can take inputs from a variety of difference sources without tampering any information, insurers can use the data available in the blockchain to track the usage of a asset. Provenance is one major area where insurers can take advantage of blockchain.
Client Onboarding Today, every customer is required to verifying their KYC with the insurance company. Insurers and customers waste a lot of time verifying their documents and identity. This can be reduced with a blockchain platform that can talk to other blockchain platforms to verify the identity of the user. The records in the blockchain can be made available with the ones who has permission to view the information. All the user records are securely stored in the blockchain using secure cryptographic techniques.
Source: https://hackernoon.com/blockchain-use-cases-for-insurance-industry-in-2018-f80c46ab2d
About vidEre Soft
What do we stand for?
To visualize the future business problems and resolve now.
Delight our customers by foreseeing business problems and creating transformational solutions using technologies that just make it easy for the customers to operate their businesses.
Our Vision
Our Mission
Passion to Win • Innovate and Take Pride in solving customer issues • Make Customers Happy Act Sensibly and with Sensitivity • Respect the individual • Thoughtful and Responsible Never Compromise on Integrity • Deliver on commitments • Honesty and fairness in actions
Our Values
Solving Business Problems using Digital Levers
Defining Digital @ vidEre
A client interfaces with various systems. These system touch points could be internal (employee, board) or external (customer, partner/supplier).
Digital is a design, for the clients’ systems, to easily conduct business electronically, that brings in customer delight, through
simplicity of engagement and efficiency of experience.
This design when implemented on Client’s Business Systems and integrated with supporting systems through the use of technology is called Digital Transformation.
Employee, Board/Share-holders, Customers, Partners/Suppliers are the 4 pillars of any Digital Transformation.
The Outcome of Digital Transformation is “Customer Value Creation”
Key Tenets of Customer Value Creation
Financial Perspective
Customer Perspective
Internal Process
Perspective
Cost Savings Increase Productivity Customer Acquisition Customer Retention
Profitability Growth
Long Term Economic Value
Product and Service Portfolio
Time
Product and Service Characteristic
Quality Price Service Relation
Customer Relation
Brand
Image
Selection Acquisition Retention
Growth
Customer Management Process
Procurement Production Distribution
Risk Management
Operational Management Process
Recognize Develop Launch
Product Innovation Process
Compliance Financial Health
Culture Legal
Organizational Process
Creating and sustaining customer value is the key to survival in the global economy
Our Approach on creating Customer Value
Experienced professionals
from the industry with
diversified background in
Healthcare, Retail, Insurance
and Government with strong
technology and functional
skills. They have been there, done that
Unlike conglomerates tied to
in-house products, our
consortium approach enables
clients to receive best-of-
thought vidEre solutions
combined with best-of-breed
technologies from like-minded
hardware and software providers.
Digital has different meanings
between different
organizations. It is not a thing
to do or implement but an
approach to do things. Our
focus on transformation is
about creating new business
models that can increase revenue or improve efficiency.
People Focus Consortium Approach Industry Focus
Specific Horizontal Services
Big Data and Analytics
Real-time data insights with self-servicing BI Cloud-based and mobility-powered Web portal and intuitive mobile app Centralized Data warehouse Extensive dashboards with key business insights
Addressing the ever-challenging data integration, interoperability, and analytical needs for informed business decisions.
Cloud Services
Amazon AWS and Microsoft Azure Cloud Application assessment and identify gaps Sizing for cloud environment Application re-engineering Deployment Production Support
Accelerate your application cloud enablement initiatives
Mobility Services
Enterprise Application enablement Employee engagement Custom Applications extensions Consumer driven
Realize your mobile enterprise vision by enriching applications for multi-platform
Business Process Automation Services
Simple Automation Robotic Process Automation Cognitive Automation
Automation as a continuum to reduce fraud, improve productivity
