2016 insurance symposium - dla piper
TRANSCRIPT
www.dlapiper.com 0 2016 Insurance Symposium Wednesday, 24 February 2016
Wednesday, 24 February 2016
2016 INSURANCE SYMPOSIUM
DLA Piper, No. 1 Martin Place, Sydney, Australia
Now and when: Digital disruption, social media and the insurance industry 1 Dr Amy Gibbs, Digital Communications
and Content Strategy Manager, ANZIIF
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
“
”
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?
Email?
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
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.”
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
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
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
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
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
“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
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”
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
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 2/3rds 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…
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
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)
“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.
Dr AMY GIBBS
@AmyGibbsPhD
@ANZIIF