CIO Summit 2013 The changing role of IT Nagib Kassis Head of IT & Business Alignment
Overview of Allianz Fast facts World s largest P & C Insurer $3.74 billion in GWP in Australia $490 million net operating profit after tax Over two million policy holders in Australia and NZ Leading Workers Compensation insurer Voted Large General Insurance Company of the Year (2009, 2011-2012) Brands include 2
Hypothesis IT has never been more important in insurance IT will be even more important in the future What are some of the future challenges? Do we know how fast? Are we prepared? 3
IT has never been more important to insurance Social Mobile Big Data Cloud 4
IT has never been more important to insurance Digital innovation Data and processes Complexity Robustness and scalability Architecture Security Business/IT alignment IT in insurance People 5
IT has never been more important to insurance Digital innovation Data and processes Complexity Robustness and scalability Architecture Security Business/IT alignment IT in insurance People 6
Business IT Alignment Business High demand for IT Do IT my way IT Limited capacity Do IT right way Parochial View Higher appetite for risk Enterprise view Lower appetite for risk 7
Business IT Alignment Agile Business IT High demand for IT Do IT my way Parochial View Higher appetite for risk Limited capacity Do IT right way Enterprise view Lower appetite for risk 8
Business IT Alignment Agile Business High demand for IT Do IT my way Tools & frameworks to empower business & give more control IT Limited capacity Do IT right way Parochial View Higher appetite for risk Collaborative Pace Layering Enterprise view Lower appetite for risk Combined Governance Framework 9
Transforming the IT function from order taker to initiative shaper Business/IT Strategy Alignment Translate Bus Strategy into IT Demand Manage Solution Delivery Run & Sustain Understand business Guide business on strategy how to collaborate Understand business with IT processes Proactively Understand suggest solutions technology use in the Apply IT industry capabilities to Set business business expectations about requirements opportunities and Prioritise initiatives limitations and projects Manage pipeline Marshall IT Resources Provide project updates Manage project resources Explain IT Cost drivers Discuss IT Service Levels Inform Business of IT outages Troubleshoot specific issues 10
IT has never been more important to insurance Digital innovation Data and processes Complexity Robustness and scalability Architecture Security Business/IT alignment IT in insurance People 11
Allianz Digital Architecture in Action 12
Allianz Digital Architecture in Action 13
Allianz Digital Architecture in Action 14
IT has never been more important to insurance Digital innovation Data and processes Complexity Robustness and scalability Architecture Security Business/IT alignment IT in insurance People 15
Digitalisation affects the insurance industry Customers getting self-directed and active 55+ age group catching up online usage Social media multiplies impact of customer experience Utilisation of Mobile also in insurance 64% of customers shopped online within the last 3 months³ 100% increase of online purchase of home & car insurance overt the last 5 years in Europe¹ Strong utilization of internet before purchase in Europe 2 +42% 3/4 of 55+ customers rely on Social Media for purchase decisions in US/UK 4 80% increase of unsatisfactory service comments via Social Media in the last 2 years 5 15% insurance search via mobile today 6 Digitalisation Impacts on insurance business model Offers are getting more transparent 50% of people who did leisure travelling within the last 12 months booked at least 1 leisure trip on line 8 Customer centricity calls for a multi-access offer 10% theoretical permutations for online configuration of BMW 7 series 7 30-35% of hybrid customers in Germany / France 9 Source: 1 Forrester Technographics European Benchmark study, 2011 2 BPM data, 2012, P&C only 3 Forrester Technographics (European Average) 4 BrightLocal.com, 2011 (US + UK) 5 Forrester, Q4 2009, Q4 2011 (US) 6 http://mobithinking.com/mobile-marketing-tools/latest-mobile-stats 7 Industry experts 8 Forrester 9 Multi-access business model 16
Trends in Digital/Mobile Business Capability Bundling Mobile Payments Location-Based Services Usage-Based Insurance (Telematics) Mobile Advertising Straight Through Processing Paperless process Rich Media (HTML5, Image Capture, etc.) MDM/BYOD Mobile Device Management Mobile User Interface Design Cross-Platform Enablement Tablet Proliferation 17
IT has never been more important to insurance Digital innovation Data and processes Complexity Robustness and scalability Architecture Security Business/IT alignment IT in insurance People 18
IT has never been more important to insurance Digital innovation Data and processes Complexity Robustness and scalability Architecture Security Business/IT alignment IT in insurance People 19
Complexity is a fact of life - how we manage it is the challenge Complexity within a company 5 4 3 Bad complexity Drives cost Motor examples Special / multiple discount systems Segment-specific solutions without modularisation Special rating Niche products breaking platform logic with low volume/scale effects Customer/channel specific print/wordings 2 1 Good complexity Drives differentiation and competitive advantage Multi-channel provider Multi-labeling/branding Process automation Comprehensive product range 0 1 Time 20
Managing complexity A journey Customer perception Market pricing Sales approach/format Service offering Degree of differentiation Today Zero base Target Complexity is your enemy. Any fool can make something complicated. It is hard to make something simple. - Richard Branson Processes IT Products/tariffs 21 21
IT has never been more important to insurance Digital innovation Data and processes Complexity Robustness and scalability Architecture Security Business/IT alignment IT in insurance People 22
Robustness and Scalability Volume of electronic transactions Increasing demand through: STP Paperless office Shift online New products/services Digitalisation, innovation and consumerisation and big data New Good Complexity Service Growth Business Growth 2010 2005 2015 Today
IT has never been more important to insurance Digital innovation Data and processes Complexity Robustness and scalability Architecture Security Business/IT alignment IT in insurance People 24
Computer Infection (as-a-service) Cyber-attacks-as-a-Service 25
IT has never been more important to insurance Digital innovation Data and processes Complexity Robustness and scalability Architecture Security Business/IT alignment IT in insurance People 26
Hypothesis IT has never been more important in insurance IT will be even more important in the future What are some of the future challenges? HUGE 27
Hypothesis IT has never been more important in insurance IT will be even more important in the future What are some of the future challenges? HUGE Do we know how fast? Faster than we probably think 28
Hypothesis IT has never been more important in insurance IT will be even more important in the future What are some of the future challenges? HUGE Do we know how fast? Faster than we probably think Are we prepared?.. 29