Innovative Trend of Digital Insurance

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1 Innovative Trend of Digital Insurance ebaotech Presentation at Thailand Insurance Symposium 2018 March 28, 2018

2 Outline Digital Insurance now means too many things. Where should we focus immediately? Connectivity: digital insurance is connected insurance Dramatic reduction of cost of connectivity enabling insurance to be connected to various other businesses and people of all levels of incomes Potential action plans? While keeping insurers core competencies in risk and investment management, insurance industry can learn many things from the best internet companies Think of an insurance company as an App company: Connect to users digitally: real time, fully automated Start from top users: policyholders; agents/brokers Then add more and more affinity partners and experiment new products and new models One big challenge for this immediate opportunity is legacy core system. Insurance Middle Office is a solution for massively connected insurance ebaotech is keen to become a strategic partner of digital insurance in Thailand and ASEAN ebao Software for core systems ebaocloud InsureMO for massively connected insurance 2018 ebaotech Corporation. All rights reserved. 2

3 Agenda 1 2 Digital Insurance Trend Immediate Actions and Real Examples 3 ebaotech Brief Introduction

4 Digital Insurance Trends

5 Digital Insurance: Immediate Opportunities Digital Insurance: Too broad; too big; too hard to act on Technologies: internet; cloud; artificial intelligence; block train; internet of things New products: new risks; new ways of pricing; new ways of funding; new ways of servicing New sales channels: internet New business models: P2P, and so on What are real and immediate opportunities and proven? Connect insurance to everywhere, digitally Then plus AI and big data And then some others? 2018 ebaotech Corporation. All rights reserved. 5

6 Digital Insurance: Opportunities and Challenges Digital insurance is connected insurance Insurance to be embedded in numerous affinity businesses Supporting other businesses and life events of people of all income levels Opportunities Big growth potential Less commodity competition Huge room for differentiations and data driven strategy Challenges Very difficult to connect insurance to other businesses Complex products and processes Conservative regulatory framework Culture of slow action and risk aversion Outdated systems in almost all insurers Embed insurance in numerous affinity businesses 2018 ebaotech Corporation. All rights reserved. 6

Long Tail (Inclusive) Insurance Made Possible Insurance has been dominated by few top channels and limited product offerings Cost of connectivity and transaction too high in the past To the right

7 Long Tail (Inclusive) Insurance Made Possible Insurance has been dominated by few top channels and limited product offerings Cost of connectivity and transaction too high in the past To the right (yellow) is the long tail; to the left (green) are the few that dominate. In this example, the areas of both regions are equal. Can digital enable long tail and inclusive insurance? Insurance everywhere needed? 2018 ebaotech Corporation. All rights reserved. 7

8 Fast Drop of Connectivity Cost Leading to Long Tail Economy SKU (stock keeping unit) numbers in retail industry Small stores: hundreds Department stores: thousands WalMart: Tens of thousands Amazon.com and Alibaba: around 1 billions Video channels of different eras Radio broadcast era: a few dozens Cable TV era: hundreds YouTube and similar internet based broadcast: hundreds of millions Micro video apps: everyone is broadcaster 2018 ebaotech Corporation. All rights reserved. 8

10 Million Typical Insurance Companies 1 Million Bubble color: Red = low conversion rate Yellow =

9 Connectivity of Various Companies User Number Billion Taobao Users: 500M Facebook Users: 2 Billions WeChat User: 1 Billions 100 Million Insurer A in China Users: 130 Millions Uber User: 300 Millions 10 Million Typical Insurance Companies 1 Million Bubble color: Red = low conversion rate Yellow = medium Green = high 2018 ebaotech Corporation. Blue All rights = potentially reserved. high Frequency 9

10 How Insurers Can Learn from Internet Companies? Insurance basics still fundamental and advantages of insurance companies Rick management Capital management Learn from internet companies on how to connect to their users Lower cost of connectivity Improve user experience Increase frequency of interactions User groups of insurance companies Policyholders Agent/brokers Bank clerks Car dealer shop clerks Travel agency clerks Wealth advisors Broad users of many internets with potential affinity for insurance 2018 ebaotech Corporation. All rights reserved. 10

11 Challenge for Insurance Industry Low user numbers Very slow and difficult to grow customer base Focusing on selling big premium policies Low frequency interactions Mostly annual interactions Extremely high unit cost of interaction with customers Too much manual work Everything is so slow Decision making is mostly human judgment instead of data driven Core system today not designed for massive external connectivity: Need of insurance middle office 2018 ebaotech Corporation. All rights reserved. 11

13 Immediate Plan & Real Examples

14 Potential Immediate Actions 1. Digital connectivity to top user groups: Policyholders Agents/brokers (maybe banks?) 2. Digital connectivity to many other user types Offline Online Mixed online/offline 3. Experiment new products and new models 2018 ebaotech Corporation. All rights reserved. 14

15 Typical Approaches at Leading Insurers in China Use WeChat official accounts to enable policyholder self services Almost all basic services done in real time with full automation Use Apps to enable tied agents and key brokers to work in real time Sales Services on behalf of policyholders Claims reporting and continuous communications Use API integration to enable bank channels to issue policy and conduct basic services in real time and fully automated Try to add more and more! 2018 ebaotech Corporation. All rights reserved. 15

23 Agent App: Creating Proposal Support online proposals creation 23

Agent App: Benefit illustration Support benefit illustration and

electronic signature with safety control

Datong (Top Life Broker in China): All Sales via App Datong Quick Insurance Mobile App WeChat Mobile App Key figures of Datong in 2016 Partner with more than 100 insurers.

28 Datong (Top Life Broker in China): All Sales via App Datong Quick Insurance Mobile App WeChat Mobile App Key figures of Datong in 2016 Partner with more than 100 insurers. Products: more than 1,000 insurance products, including Life, General and Health. Users: more than 30,000 agents and 300,000 other users. Revenue: USD 373 million, at a growth rate of 111% (YoY). ebaocloud Middle Office Life Auto Health Accident Powered by ebaocloud Connected Carriers HuaXia TianAn ICBC-AXA EverGran d ebaocloud Launched on October 8, 2016 Use case: social marketing platform, real time quotation, benefit illustration, and while-you-wait policy issuance, assembly done via just a mobile phone. Variety: support diversified product types from multi-number of insurers. Velocity: On average, 100+ new products go-live on a monthly basis. Volume: Currently having agents and 300,000+ registered users. API called more than 3 million times every month ebaotech Corporation. All rights reserved. 28

29 Traditional Channel: China Grand Auto, #1 Car Dealer Guang Dong Si Chuan Jiang Su China Grand Auto Cloud Platform Powered by ebaocloud Connected Carriers First major car dealer company using own platform for insurance sales, powered by ebaocloud Sales Service Claim CRM Report PICC Tai Ping Fu De Du Bang China Continent Key numbers of China Grand Auto in 2016 Number of car dealership stores: 670 Revenue: USD 19.3 billion Number of cars sold: 825,000 units Number of auto insurance policies sold: 2.38 millions with total premium of USD 1.1 billion. ebaocloud Launched early 2017 and now in national roll out Customer-Centralized Cloud Platform : Lifecycle management and one screen access of multiple insurers products Bundling insurance products across lines: Able to package auto, non-auto, even life products from multiple insurers Improved Renewal Ratio: Easy to follow up renewal tasks and approach customers with automatic renewal management Improved Customer Service: Enable full chain customer service including claim status updating and vehicle repair ebaotech Corporation. All rights reserved. 29

30 Potential Immediate Actions 1. Digital connectivity to top user groups Policyholders Agents/brokers (maybe banks?) 2. Digital connectivity to many other user types Offline Online Mixed online/offline 3. Experiment new products and new models 2018 ebaotech Corporation. All rights reserved. 30

31 Connectivity at Leading Insurers in China Typical range of channel connected digitally Top tier and most digital: thousands Tier 2 and modestly digital: hundreds Laggards: still only PC based website little traffic; some with WeChat accounts but no transactional capabilities Hundreds of connectivity demands every month from all parties 95% of rejected outright Cost and time to connect still too poor to accommodate Challenges to make fast and cheap connections Technology: Middle Office being adopted fast Operations Culture Regulatory 2018 ebaotech Corporation. All rights reserved 31

Online Sales of Non Auto General Insurance: Almost all by Third Party Apps Non auto Insurance Premiums (RMB 100M) Percentage in Total Online Sales

32 Online Sales of Non Auto General Insurance: Almost all by Third Party Apps Non auto Insurance Premiums (RMB 100M) Percentage in Total Online Sales Data Source: CIRC Premium Incomes of Non auto insurance sold online Percentage in total online insurance 2018 ebaotech Corporation. All rights reserved 32

33 Products of Non Auto General Insurance 2017 Non auto general insurance sold online: by product lines A&H Propert y Credit Liability Other Data Source: CIRC 2018 ebaotech Corporation. All rights reserved 33

36 China Continent Insurance Company Connectivity PaaS (InsureMO) enable CCIC to rapidly expand non-auto products to 20+ Channels with low effort API by InsureMO Quotation Underwriting Issuance Endorsement Cancellation 保险师云中保渠道亿保网渠道保险师保险盒子兴民保险向日葵渠道员工通道渠道小程序孕产妇渠道易保中利机构学平险渠道汇金保渠道流量用户渠道疫苗险渠道百度地图渠道辽宁航意微信通融普华阿里体育渠道零花钱 APP 渠道非车营销流量用户渠道非车营销零花钱 APP 渠道动宝运动意外险北京保易通渠道唯品会纪家保险 APP 体育保渠道 2018 ebaotech Corporation. All rights reserved 36

ebaocloud: enablement and connectivity platform to bridge insurers and channels Xing Min: provide business connection and operation support

37 Affinity: Sina Weibo; JD.com; and Many Others ebaocloud connect and enable multiple stakeholders in insurance ecosystem Insurers: provide insurance products ebaocloud: enablement and connectivity platform to bridge insurers and channels Xing Min: provide business connection and operation support to insurers and digital channels Digital channels(sina, Xinhua net): contribute traffic Operation Support Business Connection Business Connection VariFligh t APP Sina Finance API calls ebaocloud 易保云 API calls Insurers 2018 ebaotech Corporation. All rights reserved 37

A MNC Life Insurer Adopting InsureMO in Asia Business Case Partnership with telco, e-commerce web site to offering insurance product as membership benefits One platform on public cloud to serve

41 A MNC Life Insurer Adopting InsureMO in Asia Business Case Partnership with telco, e-commerce web site to offering insurance product as membership benefits One platform on public cloud to serve different countries includes Indonesia, Malaysia, Philippines etc. Insurance products with flexible coverage, term and payment cycle (pay-as-you-go) Highly automatic sales, policy servicing and claims Architecture Detail - Product factory offering flexible and quick product rollout capability - API to connect with partner s front-end providing online, real-time insurance service - Full lifecycle capability include sales, servicing and claims - Offering transaction detail to back office through variable integration mechanism(mq, API, file etc.) 2018 ebaotech Corporation. All rights reserved 41

42 Potential Immediate Actions 1. Digital connectivity to top user groups Policyholders Agents/brokers (maybe banks?) 2. Digital connectivity to many other user types Offline Online Mixed online/offline 3. Experiment new products and new models 2018 ebaotech Corporation. All rights reserved. 42

Micro Credit Insurance for Truck Drivers Trucking sites for good owners and

SME and Individual 2 B-B-C model, leverage 3 rd part platform for customer

credit risk assessment Fully automated ebaocloud 3 Credit Insurers Fully

and lending management supported by big data Integrate with 100+ partner, RMB

44 Micro Credit Insurance for Truck Drivers Trucking sites for good owners and drivers to meet Niche segment Credit Insurance for micro loans to High risk SME and Individual 2 B-B-C model, leverage 3 rd part platform for customer acquisition and risk management Banks 1 Trucking fee AR loan Big data based credit risk assessment Fully automated ebaocloud 3 Credit Insurers Fully automated process including credit check, risk evaluation, fraud indication and lending management supported by big data Integrate with 100+ partner, RMB 2 billion premium in 6 months 4 Truck Drivers 2018 ebaotech Corporation. All rights reserved. 44

45 Customer in Europe: Enabling Product Innovation External risk data / profiling used to calculate client specific premium Insurance offering easily integrated into channel websites via automatically generated and exposed APIs API calls Policy and claims data for insurance carriers API calls MOONSHOT powered by ebaocloud Data Extraction ebaocloud provides premium quote and issues policy API calls Reports and financial data for Moonshot Train timetable Real-time parametric information from relevant data providers triggers automatic claim processing and settlement Shipping cost 2018 ebaotech Corporation. All rights reserved. 45

Social Responsibility: Local Charity Insurance

qualify potential receivers of donations 2

practice by government institution Donors 1 Offline

insurance Fully automated ebaocloud 3 Insurers 4

46 Social Responsibility: Local Charity Insurance Platform Local Charity Organizations Maintain and qualify potential receivers of donations 2 Technology change Charity Awarded as pioneer IT+ practice by government institution Donors 1 Offline qualification of old people with no children A&H insurance Fully automated ebaocloud 3 Insurers 4 Elderly with no children 2018 ebaotech Corporation. All rights reserved. 46

47 ebaotech Brief Introduction

48 Who We Are Established in Year INSTALL BASE S/W and Cloud 30+ COUNTRIES 1,500+ PEOPLE Asia Pacific: Shanghai (Global HQ and R&D) Bangkok Beijing Jakarta Kuala Lumpur Mumbai Pune Singapore Sydney Tokyo Wuxi Europe: Zurich London Rotterdam Americas: New York Sao Paulo CLOUD SOFTWARE GENERAL 50+ customers 150+ install base Insurers Core systems Broker/agents Fast components Affinity partners FinTech Startups HEALTH LIFE Implementation Individual Group SME Maintenance 2018 ebaotech Corporation. All rights reserved SERVICES 48

ebao Offerings: Software and Cloud ebao Cloud CHANNEL Long tail Traditional Traditional

Big potential near term Traditional PRODUCT Connected Insurance: embedded anywhere, anytime,

across LOB Long tail/scenario based Product Factory Policy Admin Claims RI ebao Software Party

50 ebao Offerings: Software and Cloud ebao Cloud CHANNEL Long tail Traditional Traditional products connected to numerous new channels digitally Traditional/old business going digital: Big potential near term Traditional PRODUCT Connected Insurance: embedded anywhere, anytime, anyhow Product Innovation: new risks; new pricing; slicing and mixing benefits at any level, across LOB Long tail/scenario based Product Factory Policy Admin Claims RI ebao Software Party Management (customer centricity) Data Warehouse and Analytics 2018 ebaotech Corporation. All rights reserved 50

52 ebaocloud InsureMO Architecture Dockerized Micro Services powered by Kubernetes Mobile APP Web Site Social Media Internet of Things Channels API Dashboard Logging Analysis Trace Monitor Service Registration Service Discovery API Gateway Routing Rate Limit Control API Authentication API Authorization API Gateway InsureMO PAAS powered by Tenant Management API Test Case Design Alert Service Micro Service Monitor CPU/RAM/OS Monitor SMS Service Service 2FA Service Print Service Encryption Service Payment Service QRCode Service Image Service Product Service Quotation Service Policy Service Claim Service Proposal Service Permission Management API Registration API Publish Payment Account Config API Aggregator SMS Template Config Config Configuration Center Monitor & Analysis Common Services Insurance Services Management related Services Database Service Queue Service Cache Service K/V Store Service Search Engine Service Foundation Services 2018 ebaotech Corporation. All rights reserved. IAAS Vendors

ebaotech in Thailand API Platform (ebaocloud) 1.

Big C Broker LS & GLS (Life Core System) 1.

55 ebaotech in Thailand API Platform (ebaocloud) 1. SEG-SEIC, Southeast Insurance 2. NSI-Namseng Insurance 3. NKI-Navakij Insurance 4. Thaisri Insurance (TSRI ERGO) 5. AIG 6. MSIG TH 7. Lockton Broker 8. Big C Broker LS & GLS (Life Core System) 1. Chubb Life (ACE Life) 2. TSLI Thai Samsung Life Insurance 3. SELIC Southeast Life Insurance GS (General Core Insurance) 1. SEG-SEIC 55

56 Recap Immediate focus Connectivity: digital insurance is connected insurance Dramatic reduction of cost of connectivity enabling connected insurance Potential action plan Basics still fundamental: risk and investment management Think of an insurance company as an App company: Connectivity to top users: policyholders; agents/brokers Massive connectivity to many other user types New products and new models Insurance Middle Office needed for massively connected insurance ebaotech keen to be a strategic partner of digital insurance in Thailand and ASEAN ebao Software for core systems ebaocloud InsureMO for massively connected insurance 2018 ebaotech Corporation. All rights reserved. 56

ALLFINANZ Digital New Business & Underwriting

ALLFINANZ Digital New Business & Underwriting Digital New Business & Underwriting Transform underwriting into a sales enabler and profit driver Life Group Health Disability www.munichre.com/automation-solutions Digital New Business and Underwriting