Transcription
Session 2A, Innovation Shaping InsurancePresenters:Jerome Matrundola, FSA, FCIASOA Antitrust DisclaimerSOA Presentation Disclaimer
The 8th SOA Asia Pacific AnnualSymposiumMay 24, 2018
InnovationShapingInsurance2
What is innovation?New, value-creating matchbetween a need and a solution.Breaking existingperformance trade-offs.Expanding the realm of thepossible.3
Importance of Innovation“Delighting” customers creates tremendous value4
Importance of InnovationSteady revenue growth butlittle earnings growth?5
Innovation is happening around usEverywhere everyday6
Recognizable brands synonymous withInnovation7
How do they do it?“Our job is to invent new options thatnobody’s ever thought of before and seeif customers like them.”“Our customers are loyal to us right upuntil the second somebody offers them abetter service.And I love that.It’s super-motivating for us.”8
How do they do it?Innovation starts with culture Innovation is not about Supports and encouragesreasonable risks and uncertainty Copying systems or processes Based on experimentation anddiscovery Quick wins Understanding that great ideas existoutside corporate boundaries Blame and finger-pointing Separate innovation team Resources, values, behaviours thatpromote an innovative mindset andability to evolve Empowered employees Collaboration9
InnovationShapingInsurance10
Risks will continue to evolve and we mustevolve tooRegulationsLow Interest RatesEconomic EnvironmentEmerging AsiaWealth accumulationAging societiesMillenialsSmartphone trendsPolitical outlookDigitalizationCyber securityData Privacy11
Why is innovation important forinsurance?Brand imageProfitabilitySolutions mustevolve to meetcurrent and futureneedsMotivatedistributors12
Innovation in life insurance is easy right?Running to keep upwith day-to-day requirements74%Lack of internal skills todrive innovation79%71%Lack of investmentand rising costpressures(KPMG 2015)13
Focus on the fundamentals14
Product SolutionsProduct that adapts with a customer’s lifecycle The “first ever life insurance” that changes with you as your life changes Needs-matched life insurance is different from other products Uniquely structured to allow customer to create the best life insurance solution – just for you. It’s made for you at the start and changes as your life changes. Best of all, because it’s more efficient, youcan save 30% on your premiums from day one.15
Product SolutionsProduct that adapts with a customer’s lifecycle Cover is designed to exactly match each specific financial need. Saves average of 30 percent of premiums Easy to adjust cover (add, remove, change) to match customerneeds Unique policy designed to meet each customer’s specific needs: Customer decides exactly how to cover different financialneeds if get ill, suffer an injury or die For each different needs, customer chooses payment,amount of cover and duration Can change cover as needs change. Customer is guaranteed it can always buy more death cover, evenwhen claims against policy Ability to change payment options to maximize tax efficiency16
Distribution What is the future of distribution? Buying behaviours will be influenced by experiencesfrom other industries 4 fundamentals that will be critical SpeedSeamless cross-channel serviceOn-demand, high quality serviceDigitalization17
DistributionArtificial Intelligence to provide a bettercustomer experience Consumers demanding more self service ,using multiplecustomer access pointsMillennial's will engage using the technology of theirchoice24/7 access to full suite of servicesCellphone messaging platforms allow easy to usecustomer service entry pointsCloud-hosted gives secure, cost effective high speed andefficient delivery to marketSingle channel distribution and servicing model will become obsolete18
DistributionArtificial Intelligence to provide a bettercustomer experienceA Conversational Agentpowered by machinelearning that customersinteract with via a chatinterfaceBased onArtificial Intelligence, theplatform is both autonomousand intelligent and isconstantly learning frominteractions with customersMany insurers investing in multi-channel servicingthat will ultimately lead to multi-channel distribution19
Data why so important?Data is growing exponentially as is computing powerCompanies investing in trying to acquire data and better understanding of theircustomers Comprehensive risk profilesAccurate and competitive pricingTargeted product salesCompetitive advantage Converting data into actionableinsights Developing products based onresults Tapping into market quickly andeffectively20
CustomerEngagementInnovate with data: What’s under your hood? Other industries are already using predictive modeling andanalytics to improve efficiency and profitabilityIdentified uses of Predictive Modeling in life insurancePropensity to BuyPropensity to ClaimFraudPropensity to LapseRisk selectionAgent QualityPricingDistributionCreate a‘what’s under your hood’competitive advantage21
CustomerEngagementUsing data to drive value22
CustomerEngagementUsing data to drive valueTescoFTSE 100SainsburySales were up but Tesco wasn't sure why. When we presented our findings, Sir Ian MacLaurin [then Tesco chairman]said, 'What scares me about this is that you know more about my customers after three months than I know after 30years'“Clive Humby23
What does the future hold? Relentless focus on innovation Must constantly challenge the status quo and makeenhancements and improvements to providesustainable competitive differentiators to counterdisruptions ahead. Remember, it starts with culture once the culture isright, positive outcomes will follow24
Innovation Shaping Insurance Author: Jerome Matrundola, FSA, FCIA Subject: Innovation: A key contributor to the growth of life insurance The presentation will be split into two key focus areas: innovation and its importance, and then live examples of very ne
