This document discusses digital transformation in the insurance industry in Asia. It begins with an overview of strategic perspectives on digital trends like the growing importance of data, changing consumer behavior, and new distribution models. It then examines what digital disruption looks like in insurance, including examples from banking. The document argues that while the industry is beginning to innovate, it still needs to move faster to adapt to the digital world and seize opportunities to transform products, distribution, and customer experience through new technologies. Large insurers are starting innovation programs, but independent InsurTech firms also pose competitive threats as they attract significant funding.
The Digital Insurer - Priviate presentation to Muang Thai
1. Hugh
Terry,
The
Digital
Insurer
Muang
Thai,
Bangkok,
4th
September
2016
DIGITAL
INSURANCE
IN
ASIA
–
THE
“NOW”
AGENDA
2. 22
About
The
Digital
Insurer
Library
In
AcCon
Newswire
Knowledge – Community – Global Outlook
Join more than 10,000 others @ the-digital-insurer.com
3. Discussion
agenda
1
Some
Strategic
PerspecBves
2
What
is
happening
in
Asia?
z
4
GeIng
it
done
3
..And
around
the
world?
3
6. 6
Insurance
X.0:
defining
the
“X”
What’s
coming
up
“Now”
Blue
Sky
V’s
7. Three
digital
“Mega”
trends:
forces
beyond
our
control
2
Technology
is
cheaper
and
easier
to
implement
than
ever
–
it
is
the
fulcrum
to
meet
consumer
needs,
reduce
operaBng
costs
and
to
change
your
culture
1
7
Data
maVers–
we
are
collecBng
more
and
more
data
that
can
be
used
to
create
winning
business
models
3 Changing
consumer
behaviour
–
they
are
more
demanding
and
looking
for
a
different
experience
8. 88
Our
digital
world:
very
new,
addicCve
and
diverse
Source:
The
Economist,
Qmee.com
New
&
Big
AddicCve
Diverse
9. 99
Behavioural
change
remains
the
key
driver
and
opportunity
Source:
Mary
Meeker,
KPCB
:
hPp://www.kpcb.com/blog/2016-‐internet-‐trends-‐report
10. 3
core
strategies
Transform
exisBng
face-‐to-‐
face
models
2
Create
or
parBcipate
in
new
models
3
Manage
exisBng
models
for
profit
1
10
DisrupBon
11. The
InnovaCon
Agenda
in
Asia:
“Now”
OpportuniCes
driven
from
the
current
paradigm
11
Product
Narrowly
defined
view
of
product
DistribuCon
Too
much
face-‐to-‐
face
Customer
Experience
Not
good
enough
Digital
will
redefine
our
industry
.
It
is
early
days..
Digital
enables
DistribuCon,
Product
and
Customer
Experience
innovaCon
12. 12
12
DistribuCon
Analogy
:
How
far
could
bank
disrupCon
go?
12
FT HEADLINE: “MCKINSEY WARNS BANKS FACE WIPEOUT
IN SOME FINANCIAL SERVICES”
Source:
Financial
Times,
30th
September
2015
-‐
quo=ng
from
McKinsey
annual
global
banking
review
OriginaCon
&
sales
acCviCes
US$1.7
trillion
revenue
22%
ROE
Balance
sheet
provision
US$2.1
trillion
revenue
6%
ROE
“A
high
stakes
struggle…
Either
banks
fight
for
the
customer
relaBonship,
or
they
learn
to
live
without
it
and
become
a
lean
provider
of
white-‐labelled
balance
sheet
capacity.”
V’s
No
surprises:
under
aPack
from
digital
disruptors
e.g.
predicBng
profits
from
car
loans
and
credit
card
loans
to
fall
by
60%
D
13. 9
Digital
distribuCon
models:
breaking
down
the
value
chain
13
Acquire
New
Customers
Selling
to
Customers
Servicing
Customers
Taking
Product
Risk
2.
Bancassurance
Insurer
Bank
1.
TradiConal
Agency
Insurer
3.
Digital
/
Direct
Insurer
5.
Digital
Managing
Agents
Single
Insurer
4.
Price
Comparison
Sites
MulBple
Insurers
6.
Digital
Broker
MulBple
Insurers
7.
Digital
Affinity
Insurer(s)
Affinity
Partner
8.
Product
eco-‐systems
Insurer(s)
13
the
insurer
Maybe
the
insurer
NOT
the
insurer
Owned
by
9.
Social
Insurance
(P2P)
14. 14
14
Digital
DistribuCon
Trends
14
Rise
of
new
brands
Opportunity
to
design
more
efficient
distribuBon
channels
–
coupled
with
more
engaging
proposiBons
Affinity
players
are
coming
through
strongly
The
power
of
“free”
in
a
digital
world
Insurance
as
a
“secondary”
purchase
i.e.
complimentary
product
15. 15
15
Transforming
insurance:
Acknowledging
innovaCon
Source:
Transforming
Insurance,
KPMG
InternaBonal,
2014
&
The
Insurance
InnovaBon
ImperaBve,
KPMG
InternaBonal
2015
15
Acknowledge
the
challenges
Seize
the
opportunity
65%
Regulations high costs &
margin erosion
45%
48%
83%
future success =
ability to
innovate
business models
disrupted
16. 16
16
Our
industry
is
on
the
move
Source:
Survey
of
280
global
C
Suite
execuBves
for
«
A
New
World
of
Opportunity:
The
Insurance
InnovaBon
ImperaBve,
KPMG
2015
16
How
fast
can
we
move?
At
our
fastest
is
it
sBll
too
slow?
17. 17
Digital
TransformaCon:
The
industry
is
not
standing
sCll
AXA 571 63
Allianz 315 31
Aviva 230 28
Prudential 166 31
Zurich 162 32
Metlife 102 15
Manulife 93 10
AIA 67 4
HSBC Insur. 59 11
FWD 32 5
Many leading companies are already experimenting with
innovation labs, incubators & accelerators across Asia …
…and have sizable, and growing, Digital workforces
Company
# of LinkedIn Profiles related to
“Digital” as of Apr 2016 worldwide
CXOTotalInitiatives
Launch Year
& LocationCompany
China Life ü 2014
Ping An
ü 2012
ü 2012 – SH
ü Fintech 2014
PICC ü 2014
Taikang Life
ü 2015
ü 2000 – SH
AXA
ü 2015 – HK
ü 2015 - SH/SG
Aviva
ü (2015 UK)
ü 2015 – SG
Metlife ü 2014- SG
AIA
ü 2015 - SG
ü
Health Tech
2 in 2015 - HK
1 in 2016 – SG
Venture
funds
Labs /
Incubator Accelerator
Source: KPMG Analysis, Allianz, 2014; Company annual reports, 2014; Digital Insurer, 2014; Solera, 2015; Linkedln, 2016
18. 18
18
..
There
is
compeCCon
:
InsurTech
DisrupCon
is
geing
financed
18
Source:
CB
Insights
19. 19
DisrupCon
in
the
insurance
industry:
“
Trading
Places”
Insurers
buy
aggregators
Insurers
buy
third
party
administrators
(TPA’s)
Retailers
invests
in
aggregators
Tech
companies
start-‐up
digital
insurers
Reinsurers
invest
in
insurers
Airlines
&
Telco
setup
insurers
20. Ø Propositions are evolving in our digital world
Digital Innovation Curve
Innovation
CustomerSatisfaction
v1.x Digital Basic v2.x Digital First v3.x Digital DNA
Informational
websiteWeb
Forms
User
Account
Dashboards
Personalised
recommendations
Call center
servicing
Digital sales
and
servicing
Pay-as-
you go
Proactive
concierge
Active
sensors
(IoT)
Start
here?
Source:
KPMG
&
The
Digital
Insurer
P
21. 21
21
21
Product
design:
trending
to
“Eco-‐system
ProposiCon”
3. Convenient &
Supportive
Simple to use and supportive
throughout the customer’s life
2. Value Added Services
(with partners)
Personalized and catered to the
customer’s habits and lifestyles.
Integrated with other value added
services. Leveraging the power of
“free”
1. Reducing customers
Risks
Solutions that make our customers
safer / healthier – and also reduce
their costs of insurance
What
will
this
look
like
for
different
lines
of
business?
Ø Looking
through
the
jargon
there
is
a
fundamental
change
in
product
design
in
the
insurance
industry
22. 22
Welcome
to
digital
customers:
“they
are
mulC-‐touch”
22
Myth
#1:
Digital
is
a
new
distribuBon
channel
Reality
:
Digital
enables
customer
(&
distributor)
engagement
Online
Face
To
Face
Phone
/
Virtual
The
mulC-‐channel
customer
is…
BePer
informed
More
demanding
Uses
mulBple
customer
touch
points
for
both
sales
&
services
Increasingly
starts
on-‐line
Will
jump
channels
at
any
point
–
catch
them
if
you
can!
C
23. email
response
Cmes
–
slower
than
postal
mail?
23
Source:
EpBca,
Survey
of
10
health
insurers,
APAC
24. Life
insurance:
There
are
untapped
opportuniCes
around
the
world
Sources
of
financial
advice
Chart
Source
:
Noble
Oak
Life
“Pure
Life
“Survey
March
2016
-‐
Australia.
*Swiss
Re
Asia
Pacific
Mortality
ProtecBon
gap
2015
24
78%
12%
10%
US$55
trillion
ProtecBon
gap
in
Asia*
25. Life
insurance:
There
are
untapped
opportuniCes
around
the
world
digital
strategies
can
change
the
paradigm
that
“life
insurance
is
sold
not
bought”
25
12%
Have
you
ever
used
technology
to
purchase
the
following
product?
Chart
Source
:
Noble
Oak
Life
“Pure
Life
“Survey
March
2016
-‐
Australia.
68%
Would
purchase
Life
insurance
online
with
the
right
resources
But
less
than
12%
have
so
far
27. Started
in
November
2013…
First
online
insurance
seller
in
China
USD
128
million
premium
income
630
million
insurance
policies
150
million
customers
…and
raised
US$1bn
of
funding
in
2015
Advanced
cloud
compuBng
system
Selling
its
#1
product
through
C2C
Taobao
B2B
B2C
Cross-‐industry
cooperaAon
Major
shareholders
are
Alibaba,
Tencent
and
Ping
An
…
by
the
end
of
2014
Direct
Insurance
/
Digital
Affinity:
Zhong
An
Q.
Could
a
mulB-‐naBonal
have
played
the
role
of
Zhong
An?
27
D
P
C
28. 28
Preserve
what’s
important
in
a
secure
digital
hub
Revisit
moments
of
life
again
Record
family
legacy
for
future
generaCon
Build
your
memories
&
stories
into
Cmeless
collecCons
Infinity
-‐
Digital
Cme
capsule
&
legacy
creator
D
P
C
28
Q.
TRUST
=
GeIng
to
the
heart
of
life
insurance?
29. Product
ecosystem
model:
Good
Doctor
(Ping
An)
29
Region:
Asia
(China)
Q.
How
do
insurers
a)
create
eco
systems
and
b)
secure
their
place
in
those
eco-‐systems?
>70
million
registered
users
>1,000
full
Bme
doctors
Access
to
50,000
contracted
doctors
and
5,000
specialists
7/24/365
access
including
video
consultant
Find
a
Doctor
Updates
(May
2016)
• US$500
million
series
A
funding
(approx.
value
of
US$3
billion)
• Goal
of
creaBng
largest
“closed”
healthcare
eco-‐
system
=
“
Internet
healthcare
2.0”
D
P
C
30. 30
30
30
Source:
Ping
An
Health,
hPp://www.pingan.com/app_upload/images/info/upload/5789191e-‐3019-‐4370-‐b8e1-‐a3a81561d4e3.pdf
Ping
An
Good
Doctor:
Establishing
an
Online
to
Offline
healthcare
model
Q.
Does
a
similar
opportunity
exist
in
Thailand?
31. Volume
per
category
Insurance
Categories
Mainstream ‘head’
Served by price-comparison
websites and insurers direct
‘Long Tail’ of Insurance Demand
Traditionally served by
small face-to-face brokers
Target for Bought by Many
“Car Insurance”
“Home Insurance”
“Pet Insurance for French Bulldog”
“Travel Insurance with Diabetes Type 2”
“Young Driver car insurance”
Volume per category of insurance demand
~40% of insurance premiums (Swiss Re) are in the
“long-tail” but niche consumer needs are neglected
by price-comparison websites
BBM–
accessing
the
“long
tail”
31
31
31
Source:
Bought
By
Many
D
P
C
32. We recruit groups through social media and
Search Engine channels
Fulfilment is via the partner’s website
In-depth analysis
of >100m lines of
Google search
data
Micro-targeted
advertising,
tailored for use on
social platforms
Community
engagement and
viral marketing,
acting as
‘consumer
advocate’
32
32
32
Source:
Bought
By
Many
BBM–
using
social
&
search
Q.
Is
this
a
glimpse
at
the
future
of
online
distribuBon?
D
P
C
33. Business
Model
Ø
Metasearch
engine
which
provides
a
complete
overview
of
insurance
products
in
jargon-‐
free
language
supported
by
filter-‐and-‐sort
tools
Ø User-‐driven
plazorm,
leading
the
way
in
democraBsing
financial
shopping
experience
Ø
GoBear’s
unique
Coverage
Score
algorithm
provides
a
clear
indicaBon
of
a
financial
product’s
benefit
quality
Ø
Stacked
against
the
product’s
premium,
users
are
able
to
make
personalised,
informed
and
cost-‐effecBve
choice
Data
Driven
Consumer
Behavior
No
Fuss
–
Simple
and
Easy
Insurance
GoBear
–
Financial
Metasearch
Engine
D
P
C
34. GoBear
-‐
Shaking
up
Insurance
Comparison
Benefits
What’s
Different
Ø Neither
an
aggregator
nor
a
seller
Ø Disrupts
the
“tradiBonally
opaque
and
convoluted”
industry
Ø MoPo
is
to
enable
customers
make
well-‐informed
decisions
Ø
Low-‐cost,
quick
,
transparent
and
user
friendly
Ø “Click
Model”
operaBon
and
not
commission-‐based
Ø Conversion
rate
is
20-‐30%
for
travel
insurance
via
GoBear
Q.
How
to
respond
to
aggregators
–
co-‐operate/
collaborate
/
copy?
Or
all
3?
35. 35
35
MediTech:
HearCsans
35
• Monitors and analyses the user’s heart health data 24/7
• Predicts the occurrence of a sudden cardiac arrest
10 minutes in advance, giving users a chance
to get immediate help
• Immediately notifies the emergency
services and users’ relatives
• Give real-time advices to reduce probability of sudden
cardiac arrest
Advanced cardiology wearable with predictive
hearth care models
Source:
KPMG
Analysis
;
HearBsans
Q.
How
quickly
we
will
see
more
examples
of
Technology
reducing
underlying
risks?
D
P
C
36. CXA
–
DisrupCng
employee
benefits
Employee
health
and
wellness
marketplace
How
it
Works
Ø User-‐directed
and
Internet
based
plazorm
powered
by
AnalyBcs
Ø
Aggregates
Employers,
Employees,
Providers
and
Distributors
Ø Unlocks
workplace
wellness
Ø Customised
and
flexible
Ø Process
automaBon
makes
HR
life
simpler
Ø Similar
Programs
-‐
Discovery
Vitality
(South
Africa),
Oscar,
Zenefits
(USA)
For
Employers
For
Employees
Q.
Will
insurers
be
able
to
fully
exploit
this
employer
/
employee
affinity?
D
P
C
37. DirectAsia
–
MulCchannel
D2C
Model
DirectAsia’s
business
model
reduces
price,
enhancesthe
claims
experience
and
empowers
customers
to
tailor
their
policies
in
real-‐Bme.
This
is
achieved
by
deploying
the
direct-‐to-‐consumer
model
over
mulBple
channels
(online,
call
centre
and
physical
office
and
making
customer
service
a
priority.
Changing
the
Way
Insurance
Is
Sold
Key
Features
The
Results
Q.
Why
has
this
model
not
taken
off
in
Asia?
D
P
C
38. Customer
Portal
/
App
Policy
Systems
Advisor
Portal
Lead/Prospect
Management
Sales
OpportuniCes
The
Digital
Advisor
Business
Model
Tablet
38
Digital
TransformaCon
of
face-‐to
face
Digital
OpportuniBes
1.
More
Leads
2.
BePer
service
3.
BePer
selling
39. 1. Enable
lead
management
&
analyBcs
/
PredicBve
analysis
2. Improved
compliance
to
sales
best
pracBce
(&
regulatory
requirements)
3. Back
office
producBvity
from
digital
proposals
7
OTHER
BENEFITS
AFTER
SUCCESS
POS
tablet
sales
toolkit:
easy
business
case
PRIMARY
BENEFIT
Improved
Sales
effecBveness
through
a
bePer
customer
experience
MEASURED
BY:
High
tablet
usage
from
Advisors
Increased
sales
producBvity
per
month
• More
efficient
• Faster
&
more
accurate
(clean
policies
in
a
day)
4. Reduced
overheads:
premises
&
technology
costs
5. Business
intelligence
6. Recruitment
training
(and
hiring)
tool
7. Plazorm
for
more
automated
underwriBng
• Benchmarking
data
• Usage
data
• “Bigger”
data
39
40. Affinity
model:
Tune
Insurance
Digital
affinity
–
capturing
value
in
Travel
insurance
Background
Tune
Insurance
(now
Air
Asia
Insure)
provides
insurance
soluBons
to
AirAsia
–
the
regions
largest
low
cost
carrier
More
than
5
million
travel
insurance
policies
are
sold
each
year
Incremental
capturing
of
value
as
moved
from
Agent
to
reinsurer
to
insurance
carrier
resulBng
in
successful
IPO
with
Market
capitalisaBon
of
Approx
US$400
million
Commentary
&
Insights
On
line
flight
purchase
experience
Opt
out
approach
drives
take
up
rate
in
excess
of
20%
Nearly
100%
digital
model
ensures
profitability
and
scalability
to
meet
demands
of
enterprise
level
Investment
in
middleware
allowed
Tune
to
deliver
a
cost
effecBve
and
customer
friendly
soluBon
Region:
Asia
40
Q.
Can
insurers
collaborate
&
move
into
broader
provision
of
services
D
P
C
41. Affinity
Model:
BIMA
41
Region:
Africa,
Asia
and
LaBn
America
Q.
Many
Insurers
don’t
have
D2C
mobile
plazorms
with
payment
connecBvity.
Opportunity?
Accessing
airBme
as
the
method
of
payment
Low
cost
fulfillment
and
ease
of
access
PenetraBng
new
markets
Mobile
Microinsurance
D
P
C
42. Agency
Model:
Move
(from
Manulife)
4242
Background
Free
tracker
for
qualifying
products
Up
to
10%
discount
on
premiums
TelemaBcs
for
agency
sales
Q.
Will
this
become
mainstream?
D
P
C
44. Commentary
&
insights
Excellent
example
of
“service
for
Free”
model
disrupBng
two
industries
(HR
so}ware
and
employee
benefits)
Window
of
opportunity
was
Affordable
Care
Act
that
simplified
raBng
for
health
insurance
for
small
companies
Not
so
“Zen”
–
very
public
argument
regarding
use
of
ADP
payroll
accounts
Suite
of
HR
services
Background
Fastest
growing
SaaS
business
ever
Offering
free
HR
so}ware
plazorm
and
integraBon
to
third
party
services
in
return
for
insurance
on
employee
benefits
Focused
on
SME’s
Just
raised
US$500
million
on
US$4.5
billion
valuaBon
Revenue
target
of
US$100
million
by
Jan
2016
Region:
North
America
Broker
Model:
Zenefits
44
Q.
Could
an
insurer
enable
this
business
model?
D
P
C
45. Managing
Agent
model:
PetSure
Region
:
Australia
Background
Founded
in
the
1990’s
Pet
insurance
is
one
of
the
fastest
growing
forms
of
healthcare
around
the
world
>A$2
billion
spent
in
Australia
each
year
on
Vet
services
Hollard
insurance
is
a
significant
shareholder
Evolved
into
a
Brand
of
brands
approach
with
key
strength
being
underwriBng
and
fulfilment
of
pet
insurance
Handling
40,000
claims
per
month
Commentary
&
insights
Focus
on
brand
partnership,
product
design
and
administraBon
services
to
support
PetSure,
with
Hollard,
have
developed
a
model
that
allows
them
to
dominate
the
pet
insurance
market
in
Australia
–
they
have
created
a
pet
insurance
“eco
system”
A
brand
of
brands
approach
45
Q.
Why
is
brand
innovaBon
so
slow
in
Asia?
D
P
C
46. Cuvva
Cuvva
offers
a
totally
new
type
of
UK
car
insurance
that
gets
you
covered
on
a
car
for
only
as
long
as
you
need
it
-‐
from
a
single
hour
to
a
whole
day.
It
means
you
can
borrow
a
friend
or
family
member’s
car
and
get
fully
insured
for
as
long
as
you
need
it
without
the
tradiBonal
headache
associated
with
short-‐
term
insurance.
Cuvva
is
designed
to
be
mobile
first
and
is
available
for
iPhones
operaBng
iOS
8.1
and
above.
It
only
takes
three
clicks
to
get
covered
through
Cuvva
app.
Cuvva
is
a
mobile
first
insurance
start-‐up
company
co-‐founded
by
Freddy
McNamara
and
Leo
Kellgren-‐Parker
and
is
based
in
Scotland.
Launched
in
October
2015,
Cuvva
provides
the
UK’s
first
short-‐term
car
insurance
app,
which
allows
users
to
get
fully
covered
in
less
than
60
sec
on
any
car
in
the
UK
for
as
liPle
as
an
hour.
Along
with
offering
a
seamless
customer
experience,
Cuvva
aims
to
reduce
the
Bme-‐consuming
nature
of
securing
temporary
insurance
by
disBlling
it
down
to
a
simple
three
step
process.
IntroducBon
Commentary
and
Insights
Q.
Just
in
Bme
–
inline
with
the
Bmes?
D
P
C
47. TelemaCcs
for
the
car:
Discovery
Vitality
Drive
Background
Discovery
,
founded
in
1992,
is
a
South
Africa
based
insurer
Serves
over
seven
million
clients
in
South
Africa,
UK,
US,
China
and
Singapore
Runs
Vitality,
the
world’s
largest
scienBfic,
incenBve-‐based
wellness
programme
Discovery
Insure
Vitalitydrive
programme
was
launched
in
2011
in
South
Africa
leveraging
the
behavioural
experBse
of
Vitality
and
the
latest
telemaBcs
technology
Commentary
&
insights
Vitalitydrive
–
safer
driving
Ø
Discovery
Insure
clients
experience
1/3
of
South
Africa’s
vehicle
accident
mortality
rate
Ø
Over
120
clients
per
month
helped
through
ImpactAlert
Ø
Behaviour
Change
is
immediate
and
real
Bme
feedback
keeps
drivers
at
their
best
HolisBc
Rewards
based
appoach
to
incenBvising
changes
in
driving
behaviour
Rewards
programmes
creates
a
sustainable
and
differenBated
eco
system
managed
by
the
insurer
Driving
app
provides
an
aPracBve
plazorm
for
markeBng
Perhaps
a
narrower
target
market
than
others
e.g
as
no
direct
discounts
on
insurance
offered
for
good
driving
behaviour?
Q.
Is
this
a
soluBon
to
price
compeBBon
in
motor
insurance?
D
P
C
48. The
Dental
Eco-‐system
Smart brushes to track the
brushing habits of you…
and your family
Connecting life and family
Competitive pricing that doesn’t skim on
quality
“We’ve got you covered”
• Dental insurance plans are 10% - 25%
cheaper than other insurance providers
• Sophisticated brush design
• Accurate mechanism
• Secured data storage
• Launched late August 2015
• Plans covering individuals, families and companies
• $5 million investment from Drive Capital in 2014
• >200,000 access points; 50 states in
USA
• 100,000 dentists
Insurance plan covers
• X-Ray
• Cleaning
• Cavities
• Orthodontia
• Preventive Measures
including toothbrush; toothpaste and floss
Source:
KPMG
Analysis;
Beam;
SiliconAngle;
Forbes,
2015
D
P
C
49. Strong
focus
on
creaCon
of
customer
centric
culture
Puts
customer
needs
ahead
of
profits
Strong
focus
on
employee
training
Ø Comprehensive
integraBon
process
for
new
joiners
to
familiarise
them
with
the
USAA
values
and
culture.
Ø Ethos
Training
AllocaBon:
3%
of
yearly
budget
vs.
insurance
industry
average
of
1.5%
Ø Intense
communicaBon
to
members,
around
shared
values
and
daily
concerns
of
military
staff.
Ø USAA
consolidated
all
of
its
customer
interacBon
groups
into
a
single
organizaBon,
Member
Experience
Ø By
bringing
together
all
customer-‐facing
groups,
USAA
hopes
to
deliver
more
cohesive
experiences
to
members
Re-‐configuring
organisaConally
Ø Agile
Labs:
This
iniBaBve
puts
product
experts
and
IT
pros
together
in
a
workspace
to
develop
prototypes
without
the
need
of
phased
approval.
It
delivers
45%
faster
than
its
tradiBonal
waterfall
development
approach.
Embedded
within
company
culture
D
P
C
50. Beagle
Street
–
Value
ProposiCon
Business
Model
Ø Applying
P&C
business
model
learning
to
life
insurance
Ø Cheaper,
faster
and
infinitely
scalable
business
model
Ø Direct-‐to-‐consumer
only
–
no
tradiBonal
distribuBon
Ø
A
digital
approach
to
acquiring
customers
Ø Complete
online
fulfilment
-‐
Engaging
online
applicaBon
Ø Truly
omni-‐channel
delivery
Ø
InnovaBve
business
model
that
capitalises
on
transparency
of
pricing
and
low
cost
of
sales,
service
and
distribuBon
Ø
Google
and
others
are
now
pushing
this
model
in
the
US
Ø Beagle
street
products
can
be
bought
online
within
10
minutes
via
any
device,
usually
at
prices
30
percent
lower
than
tradiBonal
players,
and
with
a
basket
of
value-‐added
services
included
free-‐of-‐charge
DistribuCon
and
Experience
What’s
different?
D
P
C
51. Vitality
Life
–
Value
ProposiCon
Changing
the
Face
of
Insurance
Ø Vitality
gathers
user
data
through
health
assessments
and
wearable
tech
and
uses
analyBcs
to
improve
underwriBng
and
change
customer
behaviour
Ø Healthy
customers
are
less
likely
to
make
a
claim,
which
means
higher
cost
saving
for
VitalityLife
AnalyCcs
driven
UnderwriCng
Vitality
OpCmiser
Vitality
OpBmiser
allows
clients
to
receive
an
upfront
discount
on
their
protecBon
premiums,
meaning
they
don’t
have
to
wait
for
something
bad
to
happen
in
order
to
benefit
from
their
insurance.
The
discount
is
based
on
the
term
of
the
cover,
and
can
be
as
large
as
25%
1. Pay
lower
protecBon
premiums
in
the
first
year
2. Keep
your
protecBon
premiums
low
in
future
years
if
you
look
a}er
your
health
3. Get
exclusive
rewards
to
keep
you
moBvated
4. The
opportunity
to
earn
cash
back
by
looking
a}er
your
health
D
P
C
52. Vitality
Program
–
Global
Reach
52
Quick
IntegraCon
and
Highly
Scalable
Model
Discovery
Vitality
Program,
South
Africa
AIA
Vitality
Program,
Singapore
John
Hancock
Vitality
Program
,
USA
Ø
The
flexibility
of
Vitality’s
structure
allows
it
to
enter
markets
where
the
barriers
to
entry
are
just
too
high
for
new
insurer
entrants.
Ø
Discovery
enters
into
partnership
with
established
insurers
in
those
markets
by
scaling
their
Vitality
model
as
needed
Ø
Discovery
has
partnered
with
AIA,
John
Hancock,
Ping
An,
and
Generali
to
implement
vitality
program
in
Singapore,
USA,
China
and
Europe
53. Panasonic
Allianz:
The
connected
home
Devices
to
keep
you
safe
Assistance
services
to
keep
you
safe
Insurance
to
recover
from
loss
KEEP
ME
SAFE
+
INSURE
ME
D
P
C
54. Trōv
Commentary
&
Insights
Trōv
is
the
world’s
first
on-‐demand
insurance
for
personal
items.
Trōv
collects,
secures,
and
acBvely
manages
informaBon
about
tangible
assets
and
is
currently
available
on
iPhone
and
Android
in
the
US
and
Australia.
With
a
planned
expansion
in
2016,
Trōv,
customers
will
also
be
able
to
insure
just
the
things
they
want
-‐
exactly
when
they
want
-‐
enBrely
from
their
phone.
Whether
you’re
at
home
or
on
the
go,
your
things
will
be
protected
against
accidental
damage,
loss
or
the}.
Trōv
also
processes
claim
with
a
few
taps
on
your
phone.
Background
San
Francisco
based
Trōv
is
dedicated
to
reinvenBng
insurance
by
making
it
simple,
flexible
and
transparent.
Trōv
offers
consumers
an
app-‐based
plazorm
that
allows
them
to
organize,
value
and
protect
their
belongings.
Founded
in
2010,
the
core
of
the
Trōv
plazorm
is
a
private,
cloud
based
digital
locker
where
informaBon
about
property
and
possessions
is
securely
managed
and
valued.
Trōv
has
raised
total
funding
of
$13.3
million
which
it
will
use
to
accelerate
the
development
of
technology
that
supports
a
whole
new
way
to
insure.
Q.
Just
in
Bme
-‐
but
needing
2
steps.
1
too
many?
D
P
C
56. Digital
innovaCon
in
insurance:
what
ingredients
are
needed?
56
• Customer
at
the
heart
of
the
process
• “Outside-‐in”
approach
to
iniBaBves
• Respect
customer
choice
• DistribuBon
partners
• Tech
partners
• MarkeBng
partners
• Eco-‐system
models
1.
Customer
Centric
2.
CollaboraCve
ü
ü
5.
Data
centric
&
scalable
operaBng
models
leveraging
technology
plazorms
4.
New
challenger
brands
–
disrupt
own
business
if
necessary
3.
Agile
frameworks
and
mindsets
6.
Strong
internal
support
for
a
clear
plan
with
risk
miBgaBon
via
piloBng
Enablers
57. OrganisaConal
structures
for
insurance
innovaCon
57
Labs
• For
bets
on
ideas
not
yet
fully
formed
New
Business
Unit
• Centralise
digital
to
create
impact
• Digital
Centre
of
excellence
• Co-‐opt
exisBng
+
bring
in
new
staff
Partnerships
• Look
for
partners
with
connecBvity
and
selling
products
needing
insurance
• Venture
capital
and
private
equity
• Third
party
innovaBon
centres
Innovator
Brand
• New
Digital
insurance
co
• Start
afresh
58. 58
Key
success
factors
for
digital
proposiCons
Awareness &
demand
• Compelling
proposition
• Client connectivity
• Content marketing
• Distribution
partnerships
Sales Fulfillment
• Mobile and digital
first
• Configurable so
easy to change
• .. But PLENTY of
room for face-to-
face advice /
support
Collaborative
Partnerships
• Distribution
• Rewards
• Marketing
agencies
• Wearables/IoT
• Technology
Organisational
• Agile as a reality
not an aspiration
• Low cost as a
hygiene factor
• TOM operational
architecture
• Talent
management
• Budgets and buy in
Ø Not
a
simple
process
59. 59
Future
state:
the
new
best
pracCce
in
a
digital
world?
59
PMO
THE
CUSTOMER
Are
the
tradiConal
power
centres
willing
to
give
up
some
power
for
the
collecCve
good?
Is
this
enough
–
or
do
we
loose
the
entrepreneurial
thrust
needed
for
innovaCon?
Change
engines
60. 60
Digital
Co:
Do
we
need
a
new
business
unit?
Digital
MarkeCng
New
Digital
Partnerships
MulC-‐touch
Customer
experience
Center
of
Excellence
Digital
enabler