Real-Time Data-Driven Services in Insurance

Expert Opinion and Customer Needs

Dr. Carlo Pugnetti – ZHAW

Mischa Seitz – Cognizant

03. June 2020

Principal Investigators

Carlo Pugnetti

Ph.D. Risk Analysis, Stanford University

Research Focus:

Customer Behavior in Insurance

Allianz Group

CEO, Allianz Global Assistance Switzerland

Head of Allianz Services, Mondial Assistance Paris

VP Group Development, Allianz SE Munich

VP Claims, FFIC San Francisco

Mischa Seitz

MSc in International Business

Account Executive Insurance CH

Cognizant

Previously: Consultant in Digital Strategy

Research & Publication: Data in Insurance in Schweizer

Versicherung Magazin

Jury Member FinTech & SmartCity at Kickstart 2019

Cognizant (Nasdaq-100: CTSH) is one of the world’s leading professional

services companies, transforming clients’ business, operating and

technology models for the digital era. Our unique industry-based,

consultative approach helps clients envision, build and run more

innovative and efficient businesses.

The ZHAW School of Management and Law (SML) is one of Switzerland’s

leading business schools. Our main principle “Building Competence.

Crossing Borders.” reflects our commitment to quality degree programs

and continuing education, as well as a global mindset. The SML has formal

partnerships with over 180 universities worldwide.

2

3

12 Core Experts Interviews

What are the critical questions?

Expert Panel Survey

35 Experts

What do experts think?

Study on Data-Driven ServicesOverview

Customer Survey

1,451 Respondents

What do customers think?

Adoption

Impact

19 Services

4 LoBs

5 Types of Service

13 Insurance Companies

Results & Deliverables

Public presentations

Company-Specific

Workshops

Professional

Development

Academic and Industry

Publications

Male43%

Female57%

25%

27%

25%

23%

20% 25% 30%

Age: 18 - 25

Age: 26 - 35

Age: 36 - 50

Age: >50

Industry ExpertsExplorative Interview Panel

Mathew Chittazhathu

HelvetiaSr Manager Innovation

Anne-Katrin Maser

GeneraliLead Partnerships and

Ecosystems

Miriam Hürster

ZurichSr Manager Private

Customer Innovation &

Transformation

Ulrich Moser

Die MobiliarHead of Software

Engineering NonLife

Raphael Troitzsch

SwissReHead of Automotive

Solutions & Smart

Homes

Christoph Geering

BaloiseStream Manager –

Business Intelligence &

Sales

Tiziano Lenoci

GVB ServicesCEO

Sebastian Pfister

AXAProduct Owner Customer

Intelligence

Benno Keller

Geneva AssociationSpecial Advisor, Digital

and Innovation

Kai Kunze

LINGSCEO

Julian Stylianou

mitipiCEO

Angela Zeier-

Röschmann

ZHAWDeputy Head, Institute for

Risk & Insurance

84

Research Questions & Setup (1/2)

ExpertsPanel of 35 Swiss

insurance experts

CustomersSurvey of 1’451

customers

What is likely

to happen?

Should we

worry about it?

Adoption of

services in

3-5 years

Impact on

industry in

5-10 years

Desirability of service

vs. «cost» of

information required

Interest in

purchasing service

from other providers

?

?

9

Exp Cust

Dev

Imp

RADAR

5

Executive Summary

Customers have very high trust in insurance and are open to data-driven

services in insurance

We therefore have a window of opportunity to develop services – however

the gap can be closed quickly, especially by new entrants

The insurance industry is focusing on cost control and operation, but

customers are interested in assistance and prevention services

Customer portfolios of different insurance companies give very similar

responses, indicating low market maturity and an opportunity for first movers

6

-0.6

-0.4

-0.2

0.0

0.2

0.4

0.6

-0.6-0.4-0.20.00.20.40.6

Type of Service

-0.6

-0.4

-0.2

0.0

0.2

0.4

0.6

-0.6-0.4-0.20.00.20.40.6

Line of Business

Impact of ServicesExperts and customers are aligned on the potential impact of different services

KEY MESSAGES

Experts and customers

are aligned on the long-

term impact by type of

service, with Life

Services and Prevention

showing the highest

potential

However, the insurance

industry could be

underestimating the

potential for disruption in

Health / Wellness

LIFE SERVICES

PREVENTION /

RISK MGMTASSISTANCE /

EMERGENCY

COST CONTROL /

CLAIMS MGMT

PROTECTION /

ADMINISTRATION

AUTO / MOBILITY

HOME / LIVING

HEALTH / WELLNESS

OTHER

Where customers may switch provider

Wh

at

isim

po

rta

nt

Exp Cust

Dev

Imp

7

-0.60

-0.40

-0.20

0.00

0.20

0.40

0.60

-0.60 -0.40 -0.20 0.00 0.20 0.40 0.60

Type of Services

Adoption vs. ImpactWe are implementing services with lower impact

-0.60

-0.40

-0.20

0.00

0.20

0.40

0.60

-0.60 -0.40 -0.20 0.00 0.20 0.40 0.60

Line of Business KEY MESSAGES

Insurance companies are

focusing too much on

services with low strategic

impact

Cost Control & Administration

instead of Prevention, Risk

Management and non-

insurance services

Differences are more visible

by Type of Service than by

Line of Business

LIFE SERVICES

PREVENTION /

RISK MGMT

ASSISTANCE /

EMERGENCY

COST CONTROL /

CLAIMS MGMT

PROTECTION /

ADMINISTRATION

AUTO / MOBILITY

HOME / LIVING

HEALTH /

WELLNESS OTHER

What we are implementing

Wh

at

isim

po

rta

nt

Exp Cust

Dev

Imp

8

Preference for Provider (by Industry)Customers have a high opinion of insurance – but not in all areas a high loyalty

Auto / Mobility

Home /Living

Health / Wellness

Other / Cross-LoB

Protection / Administration

Prevention / Risk Mgmt

Assistance / Emergency

Cost Control / Claims Mgmt

Life Services

KEY MESSAGES

Swiss customers show a

great affinity for insurance

companies

Other incumbents do not

seem to threaten insurance,

except for automotive in

mobility

Technology companies score

low on customer preferences

Dedicated startups provide

the most significant threat

to insurance

This is true especially for

Health / Wellness and Life

Services

Exp Cust

Dev

Imp

9

2.0 2.5 3.0 3.5 4.0 4.5

Customer Preference (Scale 1-6)

Insurance Telcos Automotive

Technology State Owned Startups