Insurance Technology Trends

Insurance Technology Trends Africa Insurance & Reinsurance Conference, Nairobi 23rd June, 2011:

Insurance Technology Trends Africa Insurance & Reinsurance Conference, Nairobi 23 rd June, 2011 Kalpesh Desai CEO, Agile Financial Technologies www.agile-ft.com

Agenda:

Agenda 1 Insurance Technology 3 4 2 Where are we today Technology as an enabler of business agility Technology trends that will impact business About Agile Financial Technologies

Agenda:

Agenda 1 Insurance Technology 3 4 2 Where are we today Technology as an enabler of business agility Technology trends that will impact business About Agile Financial Technologies

The landscape today:

The landscape today Regulatory reforms trigger structural changes Stricter financial viability and capital adequacy norms Less money for business operations, customers, and channels Post-crisis business sustainability pressures have taken their toll on your clients Technology has impacted social habits, and the way your clients interact socially, thus requiring you to re-look at your go-to-market strategy Technology has evolved sufficiently to impact the entire insurance value chain

Get to know your new-age customers:

Get to know your new-age customers Prefer technology over face-to-face interactions Chose what they use Always “on” Expect instant access Oblivious to policies

Slide 6:

"In a time of accelerating turbulence, the valuation of a company will be strongly affected by how it executes change."

The (r)evolution:

The (r)evolution As needs evolve Demand for a flexible technology deployment model evolves Flexibility in processes becomes a must The infrastructure should be conducive to enable innovation You should be able to evolve new user experiences Implement new pricing models Effect change in organization structures and management through effective decision making

Evolution of IT Services Delivery :

Evolution of IT Services Delivery Hardware support Software support Storage services Security services ‘Packaged’ Services (2 or more point services) Managed Services (flexible outsourcing) Full IT Outsourcing BPO & Horizontal Utility Computing Global Sourcing Evolution of IT Services Delivery Point Services More complex services 0% % of IT infrastructure outsourced 100%

Business Expectation and IT Implications:

Business Expectation and IT Implications IMPROVE CUSTOMER SERVICE ENHANCE PRODUCTIVITY GENERATE GROWTH LOWER COST MORE VALUE FOR LESS MONEY

Agenda:

Agenda 1 Insurance Technology 3 4 2 Where are we today Technology as an enabler of business agility Technology trends that will impact business About Agile Financial Technologies

Technology Trends impacting your landscape:

Technology Trends impacting your landscape

Internet Computing : When “IT”s all out there:

Internet Computing : When “IT”s all out there Platform as a Service Software as a Service Database as a Service Virtualization Grid Computing Application Hosting Storage as a Service Infrastructure as a Service Utility Computing

Internet Computing:

Internet Computing Speed to market utilizing the Cloud or Virtualization Eliminate or reduce infrastructure infrastructure capital and ramp-up Enhanced user experience for customers, agents and brokers for new business and client servicing Exciting and easy to use experience to draw customers to Internet presence for quotes, comparison quotes, new business Enhanced channels for interaction with the value chain – brokers, agents, re-insurers, marketplaces, other medium of sales and service Ability to move core and niche areas of the insurance business to BPO models

Internet Computing:

Internet Computing

The possibilities:

The possibilities CRM KIOSKS Database Uniformity POS Remote Claims Adjusting E-Quotes 3 rd Party Transactions Mobile Insurance Actuarial Modeling POS

Examine deployment models:

Examine deployment models Software as Service Entire computing capacity is outsourced to third party/ solution provider Platform as Service Service to create, operate and run applications Infrastructure as Service Fully outsourced infrastructure and application environment Expense Control Cloud Computing Higher return on IT investments Competitive costing

Mobile Computing:

Mobile Computing Rapidly becoming the interface to the world

Mobile Computing:

Mobile Computing Mobile channels can become a highly differentiated channel for core business Immediate impact as common transactions such as payments, alerts, loss submission, emerge as competitive differentiators Carriers can rapidly reach emerging markets where mobile devices and coverage exceed traditional connectivity Mobile features for agents and brokers becomes a mandatory tool to differentiate and to capture/retain distribution channel resources Empowering agents and brokers with just-in-time account and product information will enable a tailored coverage experience when interacting with customers while in the field The mobile device feature set will enable new applications to lower loss-costs and improve underwriting data

Slide 19:

To : 58558 _____________________ POLICY MOTOR Send Cancel From : 58558 _____________________ Thanks for your request for Motor Policy from ABC Insurance Company Please send your name, mobile number and email address as a reply to this message Save Cancel To : 58558 _____________________ RAJESH 9000000000 Send Cancel From : 58558 _____________________ Thanks for your interest Mr. Rajesh. Please visit any Bank Branch and make your payment. Quote Ref # 23412341 while making the payment Save Cancel

Doorstep Insurance:

Doorstep Insurance

Data Analytics:

Islands of information Do not enable collaboration Data Analytics

Data Analytics:

Data Analytics BPM & analytics will result in adaptive BI to support automated decision making and IT process change in response to data Data governance and business process management (BPM) will receive increased attention from your ICT teams Data “outsourcing” will be a growing business especially with data de-duplication, cleansing and farming Traditional BI tools that focused consolidating data centrally will cease to exist giving way to tools that will interface with your operational work-flows and performance management systems

Data Analytics:

Data Analytics Product Definition and Underwriting Excellence through rule and analytics based decision-making “Discovery” of new markets, products, segments through analytics of product, policy, and claim data Segmentation of claims for optimized assignment, routing, and straight through processing Fraud Detection for real-time fraud scoring outcomes Product, Pricing, and Customer Profiles are combined to provide a custom product and buying experience to the customer Increasingly data will be used to drive the behavior of systems and users

Collaborative Communication:

Collaborative Communication The way we communicate has changed Social media Community forums Collaborative tools Content dissemination

Collaborative Communication:

Collaborative Communication Insurers to provide innovation programs and social networking tools as part of their communication and collaborative process A collaborative communication framework can enable the movement of highly skilled adjusters and agents to a centralized model allowing lower-cost field resources to tap into their knowledge base Collaboration enables accuracy in underwriting decisions, loss decisions, and more interactive customer servicing models The distribution channel extends beyond traditional media channels and social networks are used to promote and capture new business

Do Not Ignore Social Computing:

Do Not Ignore Social Computing

Security Imperatives In The New Era:

Security Imperatives In The New Era

How about a virtual branch?:

How about a virtual branch?

Social media portals can be a virtual branch:

Social media portals can be a virtual branch

Social media as a means of identifying fraud:

Social media as a means of identifying fraud

Agenda:

Agenda 1 Insurance Technology 3 4 2 Where are we today Technology as an enabler of business agility Technology trends that will impact business About Agile Financial Technologies

Slide 32:

BUSINESS AGILITY !! NOT A LUXURY !! The ability of a business to adapt rapidly and cost efficiently in response to changes in the business environment .…

Technology as an enabler of business agility:

Technology as an enabler of business agility Increased Response Levels Increased Revenues Cost Efficiency Integrated / Aligned Processes Scalability Create value for your customers Improve experience for distributors, partners and Employees Reduce the sales cycle Enhance interoperability between systems Shift to holistic integrated systems from islands of disparate information Provide integrated view of customer information across various products Improve information-sharing practices

Slide 34:

Thank you Kalpesh Desai