Transforming Insurance for the New Technological Age. Ken Cheung

Transcription

1 Transforming Insurance for the New Technological Age Ken Cheung 1

2 Executive Summary What s the problem Our Industry Today has gaps in connecting with our customers What has happened? Key Technological Advancements What do we need to change? Consumer Engagement for the new Technological Age Are we in the Actuarial profession ready? Key to Transforming Insurance 2

3 The problem in our industry today

4 Digital Age in Asia Pacific We are Social Jan

5 DIGITIZATION AND CONSUMERS Blurring the lines between the physical, digital, and biological spheres. The speed of current breakthroughs has no historical precedent. It is disrupting almost every industry in every country. 5

6 INSURANCE HASN T CHANGED MUCH FOR DECADES THE REST OF THE WORLD HAS MOVED ON ENORMOUSLY 6

7 Global Consumer Survey 2017 Methodology China N=1002 Japan N=509 Online interviews with 8,000 insurance customers 14 key life markets, including five in Asia Pacific Indonesia N=503 Nationally representative sample Methodology complies with best practice for each market Malaysia N=503 *This is ReMark s fourth Global Consumer Study (GCS). The 14 markets in this research account for around 85% of global life insurance risk premiums and approximately 80% of global GDP. Australia N=500 7

8 As the Industry Innovates, What Do Customers Think? Existing customer perceptions of the insurance relationship: The insurer asks me for a lot of personal data. I m not sure how it will be used. Answering questions to get my quote/claim is a real pain. The overall claims and underwriting process makes no sense to me. The more personal data I share, the more likely there will be a negative outcome.

9 The Asia Pacific Consumer Study Problem Tough Regulatory Environments Tough Regulatory Environments Pain points in underwriting and claims processes Tough Regulatory Environments Tough Regulatory Environments Distrust in sharing personal data Tough Regulatory Environments Tough Regulatory Environments No loyalty for transactional brands and approaches Takeaways Customers expect better but don t have enough knowledge about the claims and uw process Customers need to know why they should share their data Proactive engagement for more regular customer contact

10 What has happened? 10

11 U How digital transformed our world? Transportation (Sharing Economy) Retail (Internet of Things) Services (On-Demand) P2P insurance Friction-free experience Insurance Chatbots 11 11

12 Take part in the sharing economy 12 12

13 U How digital transformed our world? Transportation (Sharing Economy) Retail (Internet of Things) Services (On-Demand) P2P insurance Friction-free experience Insurance Chatbots 13 13

14 GCS APAC Health is the new wealth The global market for health and wellness offerings is expected to reach US$800 billion by Member of wellness program 41% Millennials 38% Gen X 27% Boomers 9% Silver Willing to pay a monthly fee 65% Millennials 58% Gen X 43% Boomers 27% Silver *Source: Derived from Euromonitor

15 APAC Wearables trends spell opportunity Wearable ownership Wearable model There an increasing ownership of wearable device, that also aligns with various industry data available. APAC 33% % 33% 43% Watch Wristband Laptop/PC Wristband Phone Device checking/ data input (%) 31 7 Hourly+ 10 Hourly Daily Weekly Weekly- Never 24 Device Checking Data Input 15 15

16 APAC Interest in future wearable ownership For those that don t own a wearable, concern for cost. However, among non owners 47% expressed interest in future ownership. Reasons for non-ownership (%) Ownership Intended model Have a healthy lifestyle even without a device 67% No 20% 18% 9% Wristband w/ info input mainly on phone Watch w/ info input directly on the watch screen Wristband w/ info input mainly on laptop/pc Don t believe it is useful Concerns over leaking personal data To avoid mental stress % 39% 32 Just not interested in that kind of thing Don t know Would not consider wearing 41 Too expensive 16 16

17 What do we need to change? 17

18 Implications to Customer-Centric Insurance in Digital Age Builds trust with consumers Better understanding of risk profiles with more data U Allows consumers to interact with insurers in more natural and open way 18 18

19 BIOLOGICAL AGE MODEL BAM A new risk assessment tool based on wearable data 19 19

20 BAM Data behind the model SCOR and Vivametrica partnered to develop the Biological Age Model (BAM), based on a data set curated by Vivametrica comprising personal health data on 18,000 individuals, with a 20-year follow-up period 0 5K Daily Steps 9K+ Daily Steps Yes Yes <30 No <3.5 Age Smoking BMI Sys. BP Chol. Ratio <30 No <3.5 Age Smoking BMI Sys. BP Chol. Ratio 20 20

21 Frequency Mortality BAM Identifying new ways to predict health status Key variables in BAM Steep improvement of mortality and critical illness risks Age Frequency Actual Predicted Partial Dependance Daily steps 4500 Gender Daily Activity Blood Pressure BMI 2000 Waist size Choleterol Ratio Smoking Pulse Demographics Wearables Classic Underwriting <5K 5K-7K 7K-9K 9K+ Daily number of steps 21 21

22 Are we in the actuarial profession ready? 22

23 APAC 5 New Rules with Consumer Engagement HEALTH IS THE NEW WEALTH: PARTNERS IN BETTER HEALTH: TRUST BUILDS SHARED VALUE: LOOK FOR SUSTAINABLE SOLUTIONS: FREEDOM TO CHOOSE: Together, forces will continue to shift the insurance landscape

24 Need to Embrace a Hyper Connected Strategy PROPOSITIONS Effective promotion Understand consumer motivation to pay and stay Longitudinal consumer studies CUSTOMERS ANALYTICS Enables development of more relevant products and sharper pricing Near Instant Assessment & Pricing Online engagement platforms HYPER-CONNECTED STRATEGY MOBILITY WEB IMMERSION HYPER-CONNECTED INFRASTRUCTURE Use data to support the insight and proposition development Efficient and effective customer journeys Covering full underwriting process Reinsurers will play a key role in sharing risks with life insurers as they develop hyper-connected strategies to remain relevant in the changing environment. 24

25 THANK YOU 25