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Embracing Innovation in the Insurance Industry for Growth & Prosperity

Explore key trends & challenges reshaping the insurance landscape, strategies to engage millennials, and technologies driving change. Learn from experts at the IIAW Annual Convention. Stay ahead of the tech wave!

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Embracing Innovation in the Insurance Industry for Growth & Prosperity

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  1. CREATING GROWTH AND PROSPERITY FOR OUR ORGANIZATIONS: GETTING IN FRONT OF THE NEXT TECH TIDAL WAVE Paul Artell Smith Matthew Decker IIAW 118th Annual Convention 3 May 2017

  2. Annual data

  3. Workforce Participation by Age Groups—2000 to 2016 • Ages 65-Older 100% • Ages 55-64 58% • Ages 35-44 20% • Ages 16-24 25% • The older you are the more likely you will stay working. • The younger you are the more likely you will delay working.

  4. The Research • IBM Institute for Business:  Insurance 2020—Now what? Exploring Initiatives for Innovation • PwC:  Insurance 2020 and Beyond—Necessity is the Mother of Reinvention • Capgemini: Top 10 Trends in Insurance in 2017

  5. IBM Says… • [Insurance] is a lethargic industry in the use of innovation. • Technology has leveled the playing field permitting non-traditional industries. • All essential technology for insurance business today can be purchased. • Demographics Matter: • Theywillremake your company. • Your company will not remake demographics.

  6. PwC Says… • CEOs of insurance companies see much more disruption ahead. • Customers want “easy” product when, how & where they want. • Only 10% of insurance CEOs are looking to partner with start-ups. • 1.5 million people are added to the urban population each week.

  7. Capgemini Says… • Chatbot: human communication using artificial intelligence—so good that customers don’t realize they are talking to a computer program. • More Value Added Services: from home monitoring to roadside assistance to lifestyle management. Internet of Things driving shift toward more risk management and risk mitigation.

  8. Online Purchases Trend • Millennials are the canaries in the coal mine. • Make them happy, make everyone happy. • Pleasing millennials is a challenge. Why? • Legacy products aren’t attractive and historical ways of selling won’t work. https://www.ibm.com/blogs/watson-customer-engagement/2016/03/10/millennials-the-insurance-customer-has-changed-will-you/

  9. Millennials Don’t Like “Showing Up” to Spend • 50% of baby boomers bought insurance policies from local insurance agents… • …but only 25% of millennials did so. https://www.ibm.com/blogs/watson-customer-engagement/2016/03/10/millennials-the-insurance-customer-has-changed-will-you/

  10. Millennials Tend to Distrust Insurance Companies • 89% of millennials believe their friends, not you. • 93% of millennials read reviews before making a purchase. https://www.ibm.com/blogs/watson-customer-engagement/2016/03/10/millennials-the-insurance-customer-has-changed-will-you/

  11. What The Experts Say are Megatrends • Greater use of Augmented Reality (VR). • Use of Automation and AI (telematics). • Increase in mobile for risk management and customer experiences. • Greater use of internet of things (IoT) for building data models. • Social Media. Social Media. Social Media.

  12. Venture Capitalists Are Hoping to Put You Out of Business • TechCrunch reports that “since 2010, investors have funneled more than $2 billion in venture capital into the insurance-tech industry.” https://www.ibm.com/blogs/watson-customer-engagement/2016/03/10/millennials-the-insurance-customer-has-changed-will-you/

  13. Scope Technology • Scope is using Oculus Rift VR™ goggles to reconstruct an accident. • The oculus rift creates a full-scale reconstruction of the last moments leading up to an accident. Scope Tech Video Next

  14. Companies That Are Disrupting Insurance Industries Car Insurance Car Insurance Pay-Per Mile Car Insurance Renters Insurance Home Insurance All Insurances Life Insurance Property Insurance

  15. Your Competing With Grocery Stores! • Tesco (UK) and Kroger (US) have implemented the distribution of insurance products in their stores. • Insurance doesn’t have a tech problem—the problem is the use of technology due to culture, internal politics and human resists change.

  16. ROOT Car Insurance • Car insurance: no agents, no phone calls, no hassle. • Telematics Technology: Use your phone to measure your driving behavior for 2-3 weeks. ROOT Video Next

  17. PolicyGeniusApplication • Calculate your life insurance needs • The most accurate online calculator to get the right amount of coverage - no more, no less. • Apply online through PolicyGenius • Our concierge service is with you every step of the way - free of charge.

  18. Trov Application • Insure your valuables with mobile app. • Swipe to protect. • Swipe to make a claim. Available incrementally in the US starting 2017 Trov Video Next

  19. Accepting Obvious Change • It doesn't matter if you like it. • It doesn't matter if you believe it. • It doesn't matter if you object to it. • It is going to happen anyway.

  20. Bibliography and Additional Readings • "Insurance 2020 IBM Global Business Services Insurance Innovating beyond old models." IBM Global Business Services. IBM, n.d. Web. <http://www-935.ibm.com/services/us/gbs/bus/pdf/g510-6291-00.pdf>. • "Insurance 2020: The digital prize – Taking customer connection to a new level." PWC, n.d. Web. <https://www.pwc.nl/nl/assets/documents/pwc-insurance-2020-the-digital-prize.pdf>. • "Millennials: The Insurance Customer Has Changed, Will You?" Watson Customer Engagement. IBM, 10 Nov. 2016. Web. 02 May 2017. <https://www.ibm.com/blogs/watson-customer-engagement/2016/03/10/millennials-the-insurance-customer-has-changed-will-you/>. • "Top 10 Trends in Insurance 2017." Capgemini. Capgemini Consulting Technology Outsourcing , n.d. Web. <https://www.capgemini.com/resource-file-access/resource/pdf/insurance_trends_2017_web_0.pdf>.

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