The challenges driving the digital transformation of insurance. May 2018 Stewart McEwan

Transcription

1 The challenges driving the digital transformation of insurance May 2018 Stewart McEwan Retail Banking Country Snapshot: Italy

2 Taking a moment to reflect Why are we here? Existing and emerging challenges need to be resolved. A re-thinking of what insurance looks like is required. An understanding of this allows us to: Frame the solutions needed on the road to delivering excellent customer experiences. Critically assess individual ideas amid the storm of insurtech concepts out there. 2

3 A trio of critical considerations A new form of customer The rules have changed and we need to play to them to succeed. Trust as a critical currency Already foundational to insurance, creation of trust is more vital than ever. The countdown to preventative solutions Time is running out before players re-write the game with preventative, smart-tech based solutions. 3

4 A new form of customer They may call, but if they do, they have probably already looked online to resolve their issue. And if they don t get the level of service they expect, they will let their friends, and the world, know via social networks that barely existed 10 years ago. Accenture In a world of instant and mass connectivity, enabled by technology; Knowledge has been democratized The truth is set by the customer Expectations are changing Responsiveness Communication 4

5 A new form of customer - responsiveness & communication 5

6 A new form of customer - responsiveness & communication 6

7 Trust as a critical currency 27% trust insurance providers Source: PwC, % cited personal experience with a provider for distrusting view 6% Trust had increased in last year 20% trust insurance providers Source: Accenture, pp less than banks -1pp On previous year 7% have complete trust in providers Source: EY, % more UK customers were distrustful of insurers than the global average 53% Moderately trust insurers If you set out to design a system to bring out the very worst in people you would end up with something unnervingly like an insurance company. Daniel Ariely, Lemonade 7

8 Trust as a critical currency - transparency Transparency can be achieved by: Being honest and open with the customer on how their money is being used. Being clear and fair about any changes in terms or alterations to premiums. Ensuring policy terms and coverage are as easy to understand as possible Offering customers a helping hand and empowering them. 8

9 Trust as a critical currency - credibility Credibility can be won through: Positive reviews - encourage feedback, leverage it effectively. Measured and personalized responses to feedback positive or negative. Let actions speak louder than words New approaches and business models flat fees, returned premiums, or giving to charity. 9

10 Trust as a critical currency - Lemonade Lemonade s model is built on developing trust; 1 Takes a flat fee. Revenue decoupled from money paid back in claims. 2 Premiums not used on claims, or part of the flat fee, are donated to a charity of the customer s choosing. 3 Slick, transparent platform intuitive and clear. 4 Use of AI in claims, leading to speedy handling times. 5 Opened up to customers and the public blog posts and videos. 10

11 Emergence of game-changing preventative solutions Risk transfer Risk management A wrap-around complement of services, built to; 1 Empower the customer to manage own risks 2 Guide and support 3 Prevent or minimalize harm 4 Comprehensive cover as additional security 11

12 Emergence of game-changing preventative solutions Neos, By Miles, PitPatPet 12

13 Thank you! 13