28 th Oct 2010
The ACORD 2020 View Puneet Bharal ACORD
A Quick Recap...on last month s presentation by David Smith, CEO of Global Futures and Foresight
Five Mega Trends 1. Globalisation 2. New consumption patterns Moral economy and informed consumers 3. Changes in the world of work War for talent and productivity 4. Energy and resources Towards sustainable business 5. Climate change and environmental pollution Finding solutions http://csr news.net/main/2008/08/04/megatrends and the future ofcorporate social responsibility/
Insurance leading drivers of change 1. Ageing population 2. Urbanization 3. Cultural changes 4. Climate change 5. Emerging markets 6. Talent 7. Claims inflation 8. Consumer expectations 9. Regulatory compliance 10. Government burden 11. Cyber-risk 12. Piracy and terrorism 13. Disruptive business models 14. Technology 2020 - Voice of the members 2010
Operational Priorities Financial Crisis Being competitive Increasing sales Getting rid of the paper systems Implementing technology faster 24x7 service expectation Products to market quicker Client access info via the agent Talent, acquisition & retention Learning from partners Building client relationships Responding to customers Generational needs Faster underwriting Claims inflation Differentiation Standardization Stop resisting change 2020 - Voice of the members 2010
Operational Priorities RLC Community Financial Crisis Being competitive Increasing sales Getting rid of the paper systems Implementing technology faster 24x7 service expectation Products to market quicker Client access info via the agent Talent acquisition & retention Learning from partners Building client relationships Responding to customers Generational needs Faster underwriting Claims inflation Differentiation Standardization Stop resisting change 2020 - Voice of the members 2010
Operational Priorities Financial Crisis Being competitive Increasing sales Getting rid of the paper systems Implementing technology faster 24x7 service expectation Products to market quicker Client access info via the agent Talent acquisition & retention Learning from partners Building client relationships Responding to customers Generational needs Faster underwriting Claims inflation Differentiation Standardization Stop resisting change 2020 - Voice of the members 2010
Operational Priorities / Drivers 1. Ageing population 2. Urbanization Financial Crisis 3. Cultural Learning changes from partners 4. Climate change Being competitive 5. Emerging Building markets client relationships Increasing sales 6. Talent Responding to customers Getting rid of the paper systems 7. Claims Generational inflationneeds Implementing technology faster 8. Consumer Faster underwriting expectations 24x7 service expectation 9. Regulatory compliance Claims inflation 10.Government burden Products to market quicker 11. Cyber-risk Differentiation Client access info via the agent 12. Piracy Standardization terrorism Talent, acquisition & retention 13. Disruptive Stop resisting business change models 14. Technology 2020 - Voice of the members 2010
Operational Priorities Financial Crisis Being competitive Increasing sales Getting rid of the paper systems Implementing technology faster 24x7 service expectation Products to market quicker Client access info via the agent Talent, acquisition & retention Learning from partners Building client relationships Responding to customers Generational needs Faster underwriting Claims inflation Differentiation Standardization Stop resisting change 2020 - Voice of the members 2010
Operational Priorities Financial Crisis Being competitive Increasing sales Getting rid of the paper systems Implementing technology faster 24x7 service expectation Products to market quicker Client access info via the agent Talent acquisition & retention Learning from partners Building client relationships Responding to customers Generational needs Faster underwriting Claims inflation Differentiation Standardization Stop resisting change 2020 - Voice of the members 2010
Operational Priorities / Drivers 1. Ageing population 2. Urbanization Financial Crisis 3. Cultural Learning changes from partners 4. Climate change Being competitive 5. Emerging Building markets client relationships Increasing sales 6. Talent Responding to customers Getting rid of the paper systems 7. Claims Generational inflation needs Implementing technology faster 8. Consumer Faster underwriting expectations 24x7 service expectation 9. Regulatory compliance Claims inflation 10.Government burden Products to market quicker 11. Cyber-risk Differentiation Client access info via the agent 12. Piracy Standardization terrorism Talent, acquisition & retention 13. Disruptive Stop resisting business change models 14. Technology 2020 - Voice of the members 2010
Operational Priorities / Drivers 1. Ageing population 2. Urbanization Financial Crisis 3. Cultural Learning changes from partners 4. Climate change Being competitive 5. Emerging Building markets client relationships Increasing sales 6. Talent Responding to customers Getting rid of the paper systems 7. Claims Generational inflation needs Implementing technology faster 8. Consumer Faster underwriting expectations 24x7 service expectation 9. Regulatory compliance Claims inflation 10.Government burden Products to market quicker 11. Cyber-risk Differentiation Client access info via the agent 12. Piracy Standardization terrorism Talent, acquisition & retention 13. Disruptive Stop resisting business change models 14. Technology 2020 - Voice of the members 2010
Paper on its own is not viable you need to be electronic and global
Dig a little deeper... So what for ACORD members? External pressures Business challenges The role of Standards
External Pressures Increasing levels of Regulation Shareholder pressure Competition from other markets
Business Challenges Realising shareholder value and growth Achieving greater process efficiency Speed of Policy issuance Speed and accuracy of insurance Quotes Understanding insurance requirements Claims service Improving service to customer Satisfying the Authorities Accessing management and risk information Managing legacy systems Addressing the competitive landscape
The Role of Standards
Standards Standards remove inefficiencies and increase trading options Standards lead to better quality and consistent processes and data Standards enable greater accuracy, less queries and straight through processing (STP) STP enables faster turnaround of payments Administrative processes are harmonised Third parties have clarity and services are more reliable Reporting is easier and more understood Less reliance on estimates The ability to move data between legacy systems Merging g teams and systems is achieved more consistently and quickly
Standards Business people can spend more time on high value tasks The greater quality and availability of data means: More efficient underwriting to capacity More accurate quoting, rating and pricing Greater control A better understanding of risk exposures and outwards RI requirements More accurate reserving Better modelling and planning for established risks and emerging issues like: Terrorism, liability jurisdictions, climate change, natural catastrophe, nanotechnology... Real data governance Agility readiness for the future... Whatever it brings
Engaging Your Future 05d 0.5d workshop to help to develop some strategies for the future
Engaging Your future 1. Assess your priorities 2. Identify impact on your company 3. Develop your possible responses 4. Agree Next steps
Outcomes Exploit IT for innovation, efficiency and service. Corporate social responsibility and transparency to grow trust Recruit for adaptability Align vision i and foresight Develop an innovation culture Network for ideas and partners Mash-up business models Identify strategic thinkers Enable them to act Roll-out out to next level http://www.coachingcompany.co.za/include/images/pictures/coaching_outcomes.jpg outcomes
Puneet Bharal pbharal@acord.org
Last Club of 2010: Wednesday 24 th Nov London Office Blog www.acordlondon.org