Digitalization in Insurance
EIET CONFERENCE 2015
Agenda
1
Digitization in Insurance and it’s Impact on
Product Distribution
2
Business Context & Competitive Environment
3
Digital Customer Journey
4
Digital Maturity and Alignment of Capabilities
5
Success Criteria of Digital Transformation
AA
© Deloitte Central Europe
2
Digitization in Insurance
Embarking on the digital journey is not an option, but a necessity to sustain market position.
$
Insurer with Advanced Digital vs. Little or No Digital Capabilities
Market
Capitalisation
In just 3 years digitally progressive
insurers outgrew those not investing
in digital capabilities by 36%
Gartner predicted that,
by YE16, digital
leaders in insurance
will financially
outperform digital
laggards by 100%.
Insurer with Advanced Digital
Capabilities
Insurer X
Insurer with Little or No Digital
Capabilities
2011
2012
2013
2014
2015
2016
Digital progressive insurers generated an 83% increase in market capitalisation and a 62% return on assets (ROA) during
the 3 years between 2011 and 2013. By contrast, those insurers that are just beginning their digitalisation efforts averaged
a 47% increase in capitalisation and suffered from a 15% decrease in ROA during the same period.
© Deloitte Central Europe
3
Impact of Digital on Product Distribution
Digital capabilities have become a critical „hygiene” factor as customer expectations are
turning towards a fully digital customer journey.
Digital Strategy
Customer Journey
Distribution Channels
BA
BUILD
CONNECTED
CUSTOMER
CHANNELS
Develop a multichannel
digital customer
experience
DtC
F2F
EB
AWARENESS
CONSIDERATION
DEVELOP
CUSTOMER
INSIGHTS
Transform data into an
asset to be leverage by
Digital processes
VALUE
PROPOSITION
INTENTION
ENABLE
PROCESSES
AND
SYSTEMS
Establish a stable landscape
of core systems and
processes to support the
customer journey
SALES
CUSTOMER
RELATIONSHIP
ENGAGE
WITH
CUSTOMERS
Deliver an authentic
engagement by
personalizing customer
experiences
Level of digital enablement
required in different channels
© Deloitte Central Europe
CUSTOMER
SERVICE
Moderate
Significant
Critical
4
Business Context & Competitive Environment
Analysis of life insurance trends and leading practices has shown that many insurers are not
in-line with the market.
Key market trends
Positioning against market leaders
Data
Management
DIGITAL Strategic and deliberate use of
technology to improve business models and
automate internal and external operations
5
4
USER EXPERIENCE Consistent, client-centric
user experience at every touch point on the
customer journey
ADVANCED ANALYTICS Providing in-depth
views of the market that enable more meaningful
segmentation, inform product development,
risk management and underwriting, and enrich the
customer experience
3
2
Multichannel
Distribution
Advanced
Analytics
1
0
DATA MANAGEMENT Data mining across 4
dimensions - internal, external, structured, and
unstructured
MULTICHANNEL DISTRIBUTION Omni-channel
capabilities, allowing flexibility for customer to use
preferred channel with the ability to switch
between channels without losing context
User
Experience
Digital
Key:
EMEA Market leaders
© Deloitte Central Europe
Industry average
5
Business Context & Competitive Environment
Many players are lagging behind market peers that are driving competitive advantage through
the adaptation of new technologies and leading practices.
Technology
theme
DIGITAL
UX
DIGITAL
UX
CRM
ANALYTICS
Advanced technology capabilities
Comparison to best
practices
Digitally enabled multichannel customer
experience with robust self-service offering
Sophisticated agent supporting tools enabling
digital pre-sales, sales and servicing
Web / SMS lead generation
Fast pricing with web quotes
Illustration software
Commission reporting solutions
Use of data and advanced analytics to
support identification of cross-selling
opportunities, drive better understanding of
customer needs, support customer
segmentation
Leverage actuarial risk platforms to
develop CLV (Customer Lifetime Value),
propensity to buy models
Ability to provide customers with a timely
and accurate insurance offer
Mobile apps / on-off line capabilities for
KAMs with automated underwriting
function providing direct linkage
between sales and actuarial function to
deliver faster quotes to customers
Data management practices enabling a
central view on customer data
Customer data warehouse,
standardised data structure, reporting
tools and integrated front-end
Flexibility to drive product personalisation
and engagement with short time to market
Easily configurable product platform
with fast time to market
DIGITAL
CRM
DATA
MANAGEMENT
PRODUCT
DEVELOPMENT
TECHNOLOGY
REFRESH
Significant
gap exists
© Deloitte Central Europe
SELECTED
EXAMPLES
Web/mobile/tablet customer portal
allowing clients to view full engagement
with the insurer and enabling selfservicing (bill payment, product
purchasing, claims filing)
BPM
TECHNOLOGY
REFRESH
Best market practice*
In line with
market leaders
6
The Digital Customer Journey
The enhancement of the customer journey is enabled through digital capabilities that support
all customer touchpoints.
Customer Journey
AWARENESS
• Social Media
• Viral marketing
• Content, Search Engine Optimisation (SEO)
and Digital brand marketing
CONSIDERATION
•
•
•
•
VALUE
PROPOSITION
• Social listening
• Survey and research
• Analytics and Big Data
INTENTION
•
•
•
•
SALES
• Lead generation/nurturing
• eSale (eSignature, ePayment, eFulfillment)
CUSTOMER
RELATIONSHIP
• Personalisation and targeted content
• Cross-sell & Up-sell through Big data
CUSTOMER
SERVICE
• Social Servicing (Twitter)
• eClaims
• eService
A
Gather
Information
F
Ongoing
Sales
B
Seek
Advice
E
Claims
C
Purchase
Policy
D
After Sale
Service
A
B
© Deloitte Central Europe
•
•
•
•
•
Online Search
Self-educate
Compare Quotes
Targeted Advertising
Receive Quote
• Browse Reviews
• Check With Social Media Network
• Validate Options and Suitability
C
D
•
•
•
•
•
Digital Levers
Buy Online
Automated Underwriting
Paperless Policy Issuance
Issue Review Online
Share Experience on Social Media
• Access to Portal for Policy
Amendment
• Interact with Agent via Video Chat
eEducation
eAdvertising
Ratings & customers feed-back
UX Journey Design – Connectivity
UX Journey Design – Connectivity
Product and Price Comparison
eTools
Remarketing
E
• Submit Claims Online
• View Claim Status in Portal
• Share Experience with Social
Network
F
• Targeted Advertising Based on
Behavioural Analytics
• Cross Channel View of Customer
Through CRM
7
Digital Maturity
The level of digital maturity should be aligned across the customer journey to yield the
highest benefits
Customer
Journey
Internet
Users
AWARENESS
CONSIDERATION
VALUE
PROPOSITION
SALES
CUSTOMER
SERVICE
CUSTOMER
RELATIONSHIP
Social Media
eEducation
Social listening
UX Journey
Design –
Connectivity
Lead
generation/
nurturing
Personalisation
and targeted
content
Social
Servicing
(Twitter)
Viral marketing
eAdvertising
Survey and
research
Product and
Price
Comparison
Cross-sell &
Up-sell through
Big data
eClaims
Content, SEO
and Digital
brand
marketing
Ratings &
customers
feed-back
eSale
(eSignature,
ePayment,
eFulfillment)
Analytics and
Big Data
eTools
UX Journey
Design –
Connectivity
Awareness
building through
online channels
strengthens the
brand and
generates
prospects
© Deloitte Central Europe
INTENTION
Targeted
messaging and
prospect
education results
in further
engagement
eService
Remarketing
A value
proposition
developed based
on customer/
prospect input
build acceptance
and credibility
Once the
customer accepts
the value
proposition the
quality of tools
provided will drive
the sale
Quality and ease
of the sales
process will
determine the
level of sales
conversion
Level of customer
integration and
responsiveness to
further sale offers
is driven by the
adequacy and
quality of content
Strength of the
relationship with
the customer is
driven by the
ease and quality
of engagement
8
Alignment of Digital Capabilities
Digital enablement will drive business growth, but has to be equally applied to the entire
customer journey as opposed to fragmented capabilities.
Gather
Information
Seek Advice
Claims
Purchase Policy
After Sale Service
Ongoing Sales
CUSTOMER
JOURNEY
VALUE
PROPOSITION
CONSIDERATION
INTENTION
AWARENESS
INSURANCE
VALUE CHAIN
REQUIREMENTS
FOR DIGITAL
INSURER
© Deloitte Central Europe
SALES
CUSTOMER
SERVICE
New Business/
Underwriting
Claims
management
Billing and
collections
CUSTOMER
RELATIONSHIP
Policy admin
and service
Product
development
Marketing
and sales
Product
personalisation
Lead generation
& campaign
management
Predictive UW
model
Collection
management
Claims
management
Customer
service
Streamlined
product
development
process
Lead
management
Automated
underwriting
Automated
billing and
reconciliation
Automated claim
processing
Policy admin
automation
Customer
involvement and
feedback
Digital sales
process
Underwriting
status
E-billing
Claims statusing
Self-service
Customer
Intelligence
Multichannel
distribution
Real time
underwriting
E-payment
Proactive loss
adjust offerings
Relationship
Management
Data and
analytics
Data and
analytics
Digital marketing
Digital marketing
New business
processing
Digital capabilities driven by the customer path and
touch points in the customer journey (Illustrative)
9
Digital Transformation
In order for Insurers to execute a successful Digital Transformation , the operating model
needs to be adapted to bring technology closer to the business.
OPERATING MODEL
TECHNOLOGY
DIGITAL
IT Delivery
Governance
Project Portfolio Management
DATA
Financial Management
People & Organisation
Sourcing
The Operating model needs to align with the business strategy and identified business drivers for change in order to
deliver the required ROI on Digital enablement
© Deloitte Central Europe
10
Data and Analytics in Digital Transformation
Successful digital transformation needs to be underpinned by robust data and advanced
analytics
DATA MANAGEMENT
DIGITAL ENABLEMENT
1
REDEFINE THE CUSTOMER
EXPERIENCE
2
DIGITALLY ENABLE
DISTRIBUTION
3
GOING MOBILE
4
DIGITISE PROCESSES
5
DIGITAL MARKETING
CAPABILITIES
6
ENHANCE CUSTOMER
ANALYTICS
7
ACCELERATE DIGITAL
INNOVATION
© Deloitte Central Europe
• SINGLE CUSTOMER CENTRIC EMEA
DATA MODEL AND DATA WAREHOUSE
Build Connected
Consumer
Channels
• 360 VIEW OF THE CUSTOMER
• UNIFORM DATA STRUCTURES
• REAL TIME ACCESS TO DATA
Enable Processes
& Systems
ADVANCED ANALYTICS
• ADVANCED ANALYTICS CAPABILITIES
TO ENABLE THE ANALYSIS OF
EXISTING AND PROSPECTIVE
CUSTOMERS
Develop
Consumer
Insights
• DRIVE CAMPAIGNS ACROSS
CHANNELS AND ENHANCE MARGINS
VIA STARTEGIC PRICING
• LEAD GENERATION BASED ON BIG
DATA AND BEHAVIORAL
SEGMENTATION
11
THANK YOU
“Deloitte” is the brand under which tens of thousands of dedicated professionals in independent firms throughout the world collaborate to provide audit,
consulting, financial advisory, risk management, and tax services to selected clients. These firms are members of Deloitte Touche Tohmatsu Limited (DTTL), a UK
private company limited by guarantee. Each member firm provides services in a particular geographic area and is subject to the laws and professional regulations
of the particular country or countries in which it operates. DTTL does not itself provide services to clients. DTTL and DTTL member firm are separate and distinct
legal entities, which cannot obligate the other entities. DTTL and each DTTL member firm are only liable for their own acts or omissions, and not those of each
other. Each of the member firms operates under the names "Deloitte," "Deloitte & Touche," "Deloitte Touche Tohmatsu," or other related names. Each DTTL
member firm is structured differently in accordance with national laws, regulations, customary practice, and other factors, and may secure the provision of
professional services in their territories through subsidiaries, affiliates, and/or other entities.
Deloitte Central Europe is a regional organization of entities organized under the umbrella of Deloitte Central Europe Holdings Limited, the member firm in Central
Europe of Deloitte Touche Tohmatsu Limited. Services are provided by the subsidiaries and affiliates of Deloitte Central Europe Holdings Limited, which are
separate and independent legal entities. The subsidiaries and affiliates of Deloitte Central Europe Holdings Limited are among the region’s leading professional
services firms, providing services through more than 3,800 people in 41 offices in 17 countries.
Deloitte provides audit, tax, consulting, and financial advisory services to public and private clients spanning multiple industries. With a globally connected network
of member firms in more than 150 countries, Deloitte brings world-class capabilities and deep local expertise to help clients succeed wherever they operate.
Deloitte's approximately 195,000 professionals are committed to becoming the standard of excellence.
©2015 Deloitte Central Europe