Insurance in a digital world: the time is now
Global insurance digital survey 2013
6 November 2013
Page 2 Insurance in a digital world: The time is now
Disclaimer
► This material has been prepared for general informational
purposes only and is not intended to be relied upon as
accounting, tax, or other professional advice. Please
refer to your advisors for specific advice.
► The views expressed by the presenters are not necessarily
those of EY.
► This presentation is © 2013 EYGM Limited. All Rights Reserved.
EY is a global leader in assurance, tax, transaction and advisory services. The insights and quality
services we deliver help build trust and confidence in the capital markets and in economies the world
over. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders.
In so doing, we play a critical role in building a better working world for our people, for our clients and
for our communities.
EY refers to the global organization, and may refer to one or more of the member firms, of Ernst & Young
Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company
limited by guarantee, does not provide services to clients. For more information about our organization,
please visit ey.com.
Page 3 Webcast title
Today’s moderator
Graham Handy Ernst & Young LLP (UK)
Global insurance customer leader
#EY_Insurance Join today’s Twitter discussion:
Page 4 Webcast title
Today’s agenda
► Welcome, introductions & objectives
► Overview of our research
► Panel discussion: key findings
► Q&A opportunity
#EY_INSURANCE Join today’s Twitter discussion:
Page 5 Insurance in a digital world: The time is now
Today’s speakers
Edward Moncreiffe
HSBC Insurance Holdings
Global Head of Strategic Partnerships
Shaun Crawford
Ernst & Young LLP (UK)
Global Insurance Leader
Page 6 Insurance in a digital world: The time is now
Today’s speakers
Gary Angel
Ernst & Young LLP (US)
US Enterprise Intelligence practice
Laurence Buchanan
Ernst & Young LLP (UK)
EMEIA Customer practice
Page 7 Insurance in a digital world: The time is now
Shifting to digital: job 1 for insurers
Digital is a catalyst for dramatic change and rapid transformation of the
competitive landscape. And insurers are not yet where they need to be.
Our survey shows us that insurers are lagging behind digital today but
have a compelling opportunity and clear course forward for tomorrow
6.8 BILLION:
40%: proportion of world
population that is online
Just how digital have we become?
6 YEARS:
total world population 7.1 BILLION:
# of mobile subscriptions
worldwide
time it took Google+ to reach 50m users
It’s not just a distribution channel – it’s a strategic enabler.
It’s not just a technology – it’s a way of life.
time it took Google to reach 50m users
88 DAYS:
Page 8 Insurance in a digital world: The time is now
Today’s agenda
► Welcome, introductions & objectives
► Overview of our research
► Panel discussion: key findings
► Q&A opportunity
#EY_INSURANCE Join today’s Twitter discussion:
Page 9 Insurance in a digital world: The time is now
Opinion check – Polling question 1
Where is digital currently positioned on your
organization’s strategic agenda?
A. Absolute top priority
B. It’s up there – one of our key strategic focus areas
C. It is definitely on our agenda but other things sometimes
get in the way or have greater importance/urgency
D. Relatively low priority in short term
E. Don’t know / does not apply (advisor, analyst, other)
Page 10 Insurance in a digital world: The time is now
Insurance in a digital world: The time is now
Existing findings from GCIS and other
EY Thought Leadership/research
1. Current state analysis from EY desk
based research of market, in each region
2. EY industry survey (over 100
companies, both life and non life)
3. Example Case Studies (Insurance and
non-insurance)
Global conclusions and
themes, with regional
nuances:
Current levels of digital
capabilities
Industry readiness to
grasp this opportunity
Insights from other
sectors’ digital
initiatives and
experiences
Key actions that
insurers should take –
now and in the near
term
EY point of view and recommendations
on how insurers should respond
Page 11 Insurance in a digital world: The time is now
Today’s agenda
► Welcome, introductions & objectives
► Overview of our research
► Panel discussion: key findings
► Q&A opportunity
…with interactive polling questions as we go
#EY_INSURANCE Join today’s Twitter discussion:
Page 12 Insurance in a digital world: The time is now
Time to move: possibility vs achievability?
Finding 1: Insurers acknowledge
current low levels of digital maturity and
the need to take action
Finding 2: Companies have high digital
ambitions – but are they grounded in
reality?
Nearly 70% spend less than 10% of
business and IT development budgets on digital
Only 5%-10% plan for budget increases of
25+% in the next one to three years
66% implement digital via “business as usual”
or via “test and learn” pilots, far fewer use more
innovative techniques
Only 10% have made transformational
changes to their business’ digital capabilities
Insurers risk being exposed to the loss of existing customers – and to a scarcity
of new ones. They also stand to miss out on the chance to improve the customer
experience in a relatively low cost way
79% say they “only play the digital game”
or are “still learning to use digital for
competitive advantage”
57% of current operating models do not
facilitate digital
47% have no cohesive business case for
their digital strategy
Page 13 Insurance in a digital world: The time is now
Time to move: the digital maturity gap
Business case
Implementation
plan
Operating model
Digital leadership
Support from
senior
management
1 2 3 4 5
Digital Strategy & Leadership
Attract prospects
Brand loyalty
Customer Value
Management
Segmentation
Reduce cost to
serve
1 2 3 4 5
Customer Experience
Current vs target future levels of digital maturity
= Global
= Europe
= Asia Pacific
= Target Future State = Americas
= Current State
Page 14 Insurance in a digital world: The time is now
Opinion check – Polling question 2
Do you believe your organization is investing
sufficiently in digital?
A. Yes, absolutely (strongly agree)
B. Yes, I think so (agree)
C. No, I don’t think we are (disagree)
D. No, definitely not (strongly disagree)
E. Do not know / does not apply (advisor, analyst, other)
Page 15 Insurance in a digital world: The time is now
Cultural and organizational obstacles
Finding 3: Insurers are holding themselves back
Finding 5: Distributors are digital customers too
Key challenges in delivering digital strategies:
63% 65%
68% 64% Internal company structure
or culture constraints
System issues in
implementation
63% 68% Creating a culture of rapid
innovation and development
52% 47% Gaining internal management
buy-in and investment
Global life Global non-life
Top inhibitors of digital growth in the insurance market:
#1 Legacy technology constraints 80%
#2 Slow pace of delivery by insurers 64%
#3 Intermediary/agent channel strength or
resistance 40%
#4 Lack of a compelling business case 33%
Last Insufficient consumer demand 19%
#1 most important agent use of digital in next 3
years: “Improving efficiency and quality of interactions
with customers”
For 61% life and 50% of non-life participants:
“Integrating digital with other channels” is the key challenge
Insurers who communicate a clear mutual value proposition for digital, and equip their distributors
with the digital tools to improve their own customer relationships, can help minimise channel conflict
Page 16 Insurance in a digital world: The time is now
The business case: growth through loyalty
Finding 4: It is all about retention through improved customer experience
With rising acquisition costs, retaining existing customers is an imperative.
Insurers must look to the digital landscape to retain and grow customer value.
If they don’t, others will!
Top drivers of digital strategies: Risk of complacency?
Only 46% of life companies
believe that “customers will ultimately
leave us” if they fail to embrace digital
32%:
20%:
14%:
9%:
Enriching the customer
experience
Regaining more direct control of
the customer relationship
Attracting prospective
customers and increasing sales
Reducing cost to serve
customers and intermediaries
Page 17 Insurance in a digital world: The time is now
Opinion check – Polling question 3
Where do you think your organization is on its
digital journey?
A. We can see the opportunity but struggling to know where to start
B. Not making enough genuine progress on the ground for customers
C. We have delivered some easy “quick wins” but not made
transformational progress
D. We are making good progress but still have some way to go
E. We have made transformational changes to our digital capabilities
F. Do not know / does not apply (advisor, analyst, other)
Page 18 Insurance in a digital world: The time is now
Insight before action; go where the customers are
Finding 6: Analytics are critical to digital
success Finding 7: Insurers need to embrace the
mobile and social media wave
Analytics
Technology
Marketing/promotion
Financial management
Relationship management
Other
Distribution
75%
72%
58%
21%
20%
17%
17%
Without the appropriate analytics skills
and tools in place, the digital business
case may never be realized
Capabilities most in need in order to deliver
stated digital strategy:
With mobile and tablet use growing
exponentially, neglecting mobile & social
media is turning one’s back on the future
Disparity between online and mobile
functionality:
Provide information about
company/ products
Provide customer self-
service functionality
Provide quote
Transact/purchase
92%
74%
72%
66%
47%
40%
43%
35%
Online Mobile
Page 19 Insurance in a digital world: The time is now
Today’s agenda
► Welcome, introductions & objectives
► Overview of our research
► Panel discussion: key findings
► Q&A opportunity
#EY_INSURANCE Join today’s Twitter discussion:
Page 20 Insurance in a digital world: The time is now
Questions from the audience
Page 21 Insurance in a digital world: The time is now
Contact us
Global & EMEIA
Graham Handy Ernst & Young LLP (UK)
America
Kaenan Hertz Ernst & Young LLP (US)
Asia
May Knight Ernst & Young Advisory Services Ltd
Australia
Walter Poetscher Ernst & Young
+ 44 (0)20 7951 8173
+ 1 212 773 5988
+ 852 28499518
+ 61 2 9248 5145
@EY_Webcasts Follow us on Twitter:
Page 22 Insurance in a digital world: The time is now
Resources
► Voice of the Customer: Time for
insurers to rethink their relationships (Global Insurance Consumer Survey 2012)
► The journey towards greater
customer centricity
► Connect with us
► ey.com/insurance
► ey.com/GL/en/Industries/Financial-Services/Insurance/insurance-
in-a-digital-world--The-time-is-now
► ey.com/GL/en/Industries/Financial-Services/Insurance/Global-
Consumer-Insurance-Survey-2012
► #EY_INSURANCE
Page 23 Insurance in a digital world: The time is now
Thanks for participating.
Page 24 Insurance in a digital world: The time is now
Page 25 Insurance in a digital world: The time is now
Page 26 Webcast title
Today’s webcast is about to begin
► Launching our new global digital survey
► Insurance in a digital world: The time is now
► Wednesday, 06 November 2013
► 10:00-11:00 a.m. EST
#EY_INSURANCE Join today’s Twitter discussion:
@EY_Webcasts Follow us on Twitter:
Page 27 Insurance in a digital world: The time is now
How do I get my CPE certificate?
► At the end of the webcast, complete the feedback
► Click on the URL in the slide window or click on the
red feedback icon
► Then, click on the purple CPE icon to download your
certificate
► To download a certificate after this console has been closed,
please visit ey.com/webcasts in about a week. The
on-demand version of this webcast will contain your certificate.
Page 28 Webcast title
Watch on YouTube:
Connect with us
@EY_Webcasts
Follow on Twitter:
Search on
EY Webcast
Page 29 Insurance in a digital world: The time is now
Viewing tips
Disable your pop-up blockers now!
Need more help?
► Click the yellow question mark for a help/tips document
► Click the red QA icon to request immediate assistance
If you are having trouble, press the ‘F5’ key
Page 30 Insurance in a digital world: The time is now
Viewing tips
Help/tips
Media player volume
Slide download Related links
CPE/CE certificate: launch at end of webcast
Slide size:
► Click to make larger
► Click again to reduce
Feedback form
Page 31 Insurance in a digital world: The time is now
Receiving CPE/CE credit
► To be eligible for CPE/CE credit, you must meet all
of the minimum eligibility criteria:
► Participate for a minimum of 50 minutes to start earning credit
► Respond to ALL polling questions
► Submit feedback
► Webcast technology automatically determines whether
participants qualify for credit based on the eligibility
requirements above
► Certificates will be available for qualified non-EY participants’ to
print at the conclusion of the webcast by clicking on the purple
CPE icon at the bottom of this interface
► EY participants’ awards will be posted in your CPE history
within 10 business days
Page 32 Insurance in a digital world: The time is now
If you are participating in a group
► Each person who logged in to the webcast should:
► Register for and log in to the live webcast
► Respond to the required number of poll questions
► Complete the feedback form
► At the end of the webcast, the group leader can:
► Print certificates for ALL qualified participants by clicking
on the purple CPE icon at the bottom of this interface
► Or, complete the CPE/CE attendance sheet available on
the Thought Center Webcast site and include all
requested information
► Submit the attendance sheet within 72 hours of the completion
of the webcast by email to [email protected]
► Certificates will then be emailed to participants
Page 33 Insurance in a digital world: The time is now
Technical difficulties
We are experiencing audio/video problems.
Please stand by. We are working with technicians
to correct the problem as quickly as possible.
Thank you for your patience.
Page 34 Insurance in a digital world: The time is now
Technical difficulties
► If you can’t hear the audio through your computer,
you may listen by phone.
► Click on
the green
telephone
widget to
get local
numbers in
your area. Dial-in Numbers
Dial-in Numbers
Page 35 Insurance in a digital world: The time is now
Technical correction
► The audio has been re-established on our webcast
stream.
► If you refresh your browser (press the ‘F5’ key) you may
be able to hear the program through your computer.
► If the audio is coming through your computer, you can
disconnect your telephone.