REINVENTING INSURANCE13th Chief Risk Officer Assembly

SwissRe Institute

Christina Kehl

THE FUTURE IS AT OUR DOORSTEP

INDUSTRY COMPARISON: KODAK AND PHOTOGRAPHY

1998 2011

Kodak share price: $ 80

Kodak share price: $ 0.78

2017

Number of photos:1.3 trillion

2010

Instagram: 80 million photos are uploaded per day

Founding of Instagram

Number of photos: 0.05 trillion

window to react

INDUSTRY COMPARISON: KUONI AND TRAVEL

Founding of Kuoni

Kuoni sells travel business

Global international tourism revenue:1.26tr USD

1997

Expedia and booking.com manage 80% of agency bookings

Founding of booking.com and Expedia

First travel bookings

window to react

20151906 2017

INDUSTRY COMPARISON: OTTO GROUP AND RETAIL

Otto catalogue

Otto catalogue stopped

10% of global retail sale is online, with a 23% growth rate per year. Otto retail fashion

revenues 80% online

Beginnings of E-commerce, founding of Amazon

window to react

20131994 2016

2. Rise of new digital business models (core systems with platforms)

1. Decline of traditional business models

INDUSTRY COMPARISON: 3 LEARNINGS

3. Digitization generates new business potential

INDUSTRY COMPARISON: PLATFORMS ON THE RISE

Uber, the world’s largest taxi company, owns no vehicles.

Facebook, the world’s most popular media owner, creates no content.

Alibaba, the most valuable retailer, has no inventory. Airbnb, the world’s largest accommodation provider, owns no real estate.

CUSTOMER DRIVEN DIGITIZATION PER SECTOR

10 20 30 40 50 60 70 80 90 100 %0

Not digitized Ongoing digital transformation Digital business

Consumer goods

Automotive and assembly

Financial services

Transport and travel

Telecom

High tech

Media

Retail

INSURANCE INDUSTRY

Early adopters embrace new channels /models

Mainstream customers adopt

DIGITAL TRANSFORMATION OF INSURANCE

New trends emerge

Innovative startups create disruptive business models

Advanced incumbents begin to pivot

Tipping point

New normal: Advances incumbents, established startups

1996 from 2012 2015 2016 2019 2020

We are here!

HOW TO REINVENT

GREENFIELD APPROACH

Old legacy systems

Keep running Build newly from scratch

New digital

SPEED BOAT APPROACH

Old legacy systems

Digital units

INNOVATION QUALITIES

TECH & PEOPLE

1. CORE SYSTEM

CULTURE

TECH

CORE SYSTEM - DATA MACHINE

Data storage

Underwriting

Contracting

Open API data access

Data transmission

Risk management

Data requests

DIGITAL CORE SYSTEM - DATA AND PROCESS FLOW

Incoming data

Risk ManagementUnderwritingSmart Contract

Blockchain Data storage Open API unique access keys

Secure external data transmission Open API

Predefined parameter set

Parameter selection UI

Open platform

AI

OPEN PLATFORM

DIGITAL OPEN PLATFORM

Distribution SecurityClaims Compliance Reg Tech Asset Management

API API

API

API APIAPI API

DATA CORE SYSTEM

OPEN PLATFORM PARTNER POSSIBILITIES

Growing global insurtech/fintech ecosystem Over 3000 global tech partners to choose from. You mix and match your providers, for example:

ARCHITECTURE

Decoupled Micro Services Allows for future update without stopping the entire system.

Resilient Automated backups, no single points of failure.

Modular Ability for development of custom modules that integrate with the di.os platform.

Secure Automatically handles data encryption both at transmission and at rest.

Upgradable Every component upgradable to newer technologies without breaking the system. This way, insurance companies never end up in the same situation of legacy systems that currently exist.

Cloud and Hosted Compatibility Works both as a self-hosted system or on a cloud environment.

Scalable Automatic scaling of components.

PEOPLE

1. CORE SYSTEM

PEOPLE

„The secret of change is to focus your energy not on fighting the old, but on building the new.

-Socrates

“

THANK YOUChristina Kehl

Twitter: @extrablatt Linkedin: www.linkedin.com/in/christinakehl

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