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Bringing Ingenuity to Lifepaconsulting.com

Open InsuranceBankene er nå gjennom PSD2 (EUs reviderte betalingstjenestedirektiv) pålagt å åpne opp for tredjepartsaktører og konkurrenter som ønsker tilgang til kundeinformasjon på vegne av sine kunder. Open Banking og plattformbaserte forretningsmodeller vil være nøkkelen for at bankene skal lykkes i fremtiden. PAs studie gjennomført sammen med Handelshøyskolen i Stockholm, viser at en tilsvarende utvikling er i gang innen forsikringsbransjen. Dette baner vei for InsureTech-selskaper som vil inn i markedet og redefinere måten forsikring produseres, pakketeres og selges på.

5th of June 2019

From steady state to disruption?

Technology• IoT & AI• Big data and

analytics• Everything

“as a service”

The current state• AUM of 1100b NOK• Steady growth• Individualization continues• Inflow of regulations • New bank assurance

constellations

Macro• Aging

population• Health

consumption• Climate change• Mobility

Disruptive changes emerging?

Estimated revenue loss ~800 MNOK

672

610

2018

1 282

Revenues Adm.fee (MNOK)Revenues Asset mgmt. (MNOK)

~800MNOK(est.)

?

2022

Profit (MNOK)

Profits?

How will the industry respond to “Egen penskjonskonto”?

Sources: Finans Norge, Finansdepartementet, PA analyse

Insurance companies need to reinvent their consumer interaction and delivery models

Ren

t /

mor

tgag

eFu

rnitu

reUtili

ties

Gifts

Leisure Holidays Transport

Food &

groceriesC

lothingH

ealthcare

How do insurance providers stay relevant for consumers?

“We tend to overestimate the effect of change in the short run and underestimate the effect in the long run”*

What will it take to create lasting competitive advantages?What we’ve seen so far is

• A lot of investments made

• Banks are enhancing their customer experiences

• …but they have opened up a lot less than anticipated

• A myriad of smaller service providers with a lot of overlapping services

• New payments services, such as IATA Pay and Coop. Rema and Norgesgruppen?

A large and existing user base

Physical distribution power

A lot of money

* From Amara’s law. (Roy Amara, American researcher, scientist and futurist)

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6

March 2014-20% revenues

”Digitalization of Industries –When is your tipping point?”

Customer behavioursValue chain disruptionAPI:s

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Susanne Berg, Länsförsäkringar

“When autonomous cars get more common and car ownership

declines, the car pools that offer these transportation services are

not going to appoint a Swedish insurance company to cover their

fleets.”

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The Pension Dashboard in UK is similar to Open Banking

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Everybody is talking about platform business models – So what?

Source: Marshall W. Van Alstyne, Geoffrey G. Parker, and Sangeet Paul Choudary from “Pipelines, Platforms, and the New Rules of Strategy”, April 2016

PRODUCERS CONSUMERS

PROVIDERS

OWNER

PLATFORM

Creators of the platform’s offerings (for example, apps on android)

Interfaces for the platform (mobile devices are providers on Android)

Buyers or users of the offerings

Controller of platform IP and arbiter of who may participate and in what ways (Google owns Android)

Value and data exchange and feedback

BusinessServices

Groupfunctions

OperationsMarketing& Sales

Straight Through Processing

Business Management & Compliance

The operating model needs to be flexible

3rd Party Commercial Platform

Straight Through Information

Directdistribution Connectivity

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Challenges and opportunities

Customer buying power is increasing due to digital1 Exposure of cost

structures will increase interest of alternatives2

”Fri flytträtt” may come soon and will release capital3 Cost structures need to

be addressed, cost leaders will struggle4

About PA.

An innovation and transformation consultancy, we believe in the power of ingenuity to build a positive human future in a technology-driven world.

As strategies, technologies and innovation collide, we turn complexity into opportunity.

Our diverse teams of experts combine innovative thinking and breakthrough technologies to progress further, faster. Our clients adapt and transform, and together we achieve enduring results.

We are over 2,600 specialists in consumer, defence and security, energy and utilities, financial services, government, healthcare, life sciences, manufacturing, and transport, travel and logistics. And we operate globally from offices across the Americas, Europe, the Nordics and the Gulf.

PA. Bringing Ingenuity to Life.

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This report has been prepared by PA Consulting Group on the basis of information supplied by the client, third parties (if appropriate) and that which is available in the public domain. No representation or warranty is given as to the achievability or reasonableness of future projections or the assumptions underlying them, targets, valuations, opinions, prospects or returns, if any, which have not been independently verified. Except where otherwise indicated, the report speaks as at the date indicated within the report.

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