2016 INSURANCE SYMPOSIUM

Transcription

1 2016 INSURANCE SYMPOSIUM DLA Piper, No. 1 Martin Place, Sydney, Australia Wednesday, 24 February Insurance Symposium Wednesday, 24 February

2 1 Dr Now and when: Digital disruption, social media and the insurance industry Amy Gibbs, Digital Communications and Content Strategy Manager, ANZIIF

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5 I've come up with a set of rules that describe our reactions to technologies: 1. Anything that is in the world when you re born is normal and ordinary and is just a natural part of the way the world works. 2. Anything that's invented between when you re fifteen and thirty-five is new and exciting and revolutionary and you can probably get a career in it. 3.Anything invented after you're thirty-five is against the natural order of things. Douglas Adams, The Salmon of Doubt

6 Techno-panic: a moral panic that centres around societal fears about a specific contemporary technology Would your business survive without: Writing things down? Telephones? Computers? ? Social media fits within this phenomenon Focus is on the risk of being ON social media This ignores the risk of NOT being on social media Social media is a trust signal of progressiveness

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8 E&Y: Insurers are lagging behind the digital curve Failure to embrace digital exposes the industry to considerable risk PwC predicts that by 2020: Balance of trust will shift from advisors to online communities Social networks will become group insurance channels Social networks will become pooling mechanisms Insurers will go from being product manufacturers to administrative service providers McKinsey Institute Some tech and tech-enabled firms destroy more value for incumbents than they create for themselves, and many gains are competed away in the form of consumer surplus.

9 Gartner & ACORD: Most P&C and life insurers underestimate the disruption coming from future industry conditions and are not prepared to respond to new threats. Insurers overestimate the reliance that consumers have on agents, brokers and traditional channels, not realising the potential threat that new competitors represent and the power of these consumer-friendly and recognised brands. Insurers continue to focus locally 53% of insurers believe the most significant threat to their businesses are the top five competitors in their local market

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20 Goal of bridging the trust gap by making insurance social, fair and reasonable again Combines social networking with established insurers Select large claims coverage from comparison list Connect to people and pool money for small claims More connections = higher claims support Up to 50% of premiums back each year Better risk pools, reduced fraud, 40% fewer damage events, less sales, reduced claims handling costs

21 Guiding Gen Y using technology and engagement Everyday goal to make insurance simple, intuitive & human Want to be a health services provider, not only an insurer 24/7 doctors calls, free doctors visits, free generic prescription drugs, find a doctor interactive map Doesn t pander to Gen Y, talks to them in their spaces

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23 People grouping together online to cater for niche insurance needs Build their own group insurance with better coverage, dedicated policies and less expense For example: Travel insurance for people with arthritis Abyssinian cat insurance Over 50s ipad insurance Nintendo insurance

24 Your first premium is calculated via traditional criteria Pool your premium in an online group (public or private) Group pays claims and leftover money remains in the pool Safer the drivers in a group, the more likely you are to get a discount on your renewal More people in the group the bigger your protection and the more the claim cost is spread Transparency is key

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26 Save up to 75% with Inspool a car insurance that unites and rewards polite drivers Pick the people in your pool (e.g. no hooligans) Get premiums back if you don t claim Focus on making insurance not only fair, but actively not unfair 95% of people end up paying for the 5% of hooligans Don t pay for: False claims, profit margins, overheads, commissions, bad drivers

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30 Peer-to-Peer insurance USD $13 million seed funding Backed by Berkshire Hathaway, Everest Re, Hiscox, Munich Re, Transatlantic and XL Catlin Exec team made up from well-known insurance leaders from AIG & ACE Fully regulated insurer with security and backing Will be a pooling mechanism, but with big differences

31 Restructure Digital Labs, Customer Labs & Operation Customer-led and data-driven focus IAG Ventures ShareCover for AirBnB customers using Braintree mobile payments InsureLite low-cost home building insurance in QLD Insurance 4 That insure by item Vocal for insurance products re. ride-sharing eg Uber Setting up an investment fund to buy stakes in start-ups Focusing on disruptive technology companies Keep in touch with innovation Seek new business models and tap into them

32 Already in the aggregator space Understand and drive changing customer expectations Don t just find a way, find the best, easiest, way Gen Y and Gen Z trust Google 2/3 rds would purchase insurance from a non-insurer 23% would purchase from an online service provider Transparency allows them to trust opinions of their peers Self-driving cars Google and Volvo announced they will accept liability Marketing gimmick or ploy? If all Google cars have Google insurance

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34 Play to your advantage Knowledge Position Reputation Focus on customer empowerment Industry is out of step with consumer wants and needs Customers want companies to be: timely, transparent, bold, humble and trustworthy Mean it, don t just tick a box Remember, innovation isn t about technology

35 Set up the right infrastructure Hire a trained social media manager & digital team They will know how to handle a crisis, legalities, content Empower and integrate them Listen Monitor keywords and sites relevant to you Consider a social media monitoring service Have a social media strategy and crisis plan & protocols Train your staff (and train them again)

36 Incumbent industry leaders cannot focus simply on defending their current market niche. Firms with vision, optimism, and agility can realize enormous opportunities if they are willing to disrupt their own operations before some new challenger does it for them. If insurers want to retain customers and acquire new ones, there is no choice but to adapt Change the internal conversation, the culture, ask the hard questions, invest the time and money Embrace the opportunity Not if, but when.

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