accenture life, pensions and investments · accenture life, pensions and investments p. 7 how the...

ACCENTURE LIFE,

PENSIONS AND INVESTMENTS

p. 3Accenture Life, Pensions And Investments

4-5 Overview 6-7 Key Challenges 8-11 Market Influence On Our Clients 12-20 How Industry Issues Drive Our Proposition 21-24 About Accenture

Contents

p. 4

OVER-VIEW

What We Do • Stand alongside our clients as a partner to deliver transformation

• Take accountability for delivering the outcomes that matter to our clients

• Operate in complex, multi-party, multi-geography environments to challenge the status quo and drive change

Our People • Over 6,500 Insurance specialists

• Over 100 UK LP&I experienced resources deployed today

Our Assets • Strategic Alliances - with the top software providers

• Innovation centre - to drive creativity and out the box thinking,

• Accenture delivery method - our standard methodology and tools

Propositions Simplifying and Modernising LP&I IT Estates Driving value from your customers: consumers, advisers, and corporates

Optimising and Operational Effectiveness and Efficiency

Enabling your LP&I business to be part of the Digitally connected world

Managing your IT estate cost effectively and efficiently

Converging and transforming Finance, Risk and Actuarial


401,000 professionals serving clients in 120+ countries170,000 industry aligned workforce Powerful culture of innovation & teamwork, reinforced by our core values

Robust Delivery Network

We work with 9 of the top 10 and 25 of the top 30 life insurers

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There is a fundamental shift to a more customer centric business model, often enabled by Digital solutions and customer insight. However, implementing this vision is also constrained by legacy technology and operational practices and by the burden of regulatory change absorbing significant change budget and manpower.

After a significant wave of regulatory change, resources are being made available to transform the IT and Operations of LP&I organisations.

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How the LP&Iindustry is responding

DigitalBusiness

Key ChallengesGetting closer to your customers (advisors, corporate and end consumer)

• D2C digital centric offering with simpler menu based products • Improved Advisor and Workplace solutions Access to Data – Big Data / Data Lakes

• Improved analytics leading to customer insights, personalisation and “next best actions”

• Customer Engagement Platforms / 360 degree view

• Customer Led• Simpler Proposition• Digital “front to back”• Data enabled• STP• Lower Cost

• Improved sourcing for IT change • Moving to closed book operation • Consolidation and divestment – focused portfolio

• Improving data models with efficient and reliable reporting, and actuarial data flows to meet regulatory needs

Dealing with the regulatory change in a cost effective and timely manner

• New platforms for new products • New sourcing models for both IT and operations and across both change and run

• Legacy modernisation (or replacement) • Customer centric business design • Operational excellence and automation

• Consolidation and divestment • Move infrastructure to the Cloud • Third generation BPO

Improving the capabilities, agility and cost profile of both Operations and IT through targeted transformation

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TSAs the industry moves towards a capital-light, asset-based model, LP&I providers will need to up their game to meet their customers’ needs.


• Trust, convenience and personalisation • Only 20% of UK respondents consider insurers to be trustworthy (versus 25% for online retailers and 29% for banks) • Insurers are also perceived as being not very easy or convenient to deal with compared to banks and most other types of firm • LP&I providers are badly behind people’s expectations when it comes to delivering personalised products

• Product simplicity and transparency • 41% of LP&I customers consider the products to be too complicated • 39% do not understand the pensions landscape or their pensions options • 37% would consider an LP&I provider that covered all their insurance / retirement needs under one simple policy

From risk-basedto asset-based • Shift from protection products and platforms to investment, wealth management and advisory products & platforms • Focus on helping customers achieve better outcomes in their everyday lives, rather than simply paying out upon their deaths or injuries • Reflects the shift ‘from reaction to prevention’ (aka ‘from selling to serving’) also taking place in non-life insurance

More modern, simple products • Growth of workplace pensions (linked to Auto Enrollment) & SIPPs • Simpler Protection products increasingly lifestyle based

Low-capital modelattracts new entrants • Most new market entrants are targeting the capital-light, asset-based products • Some of these challengers are attractive to new customer segments, particularly the younger demographics

CustomerAttitudes

Product Evolution

p. 10 Market Influences On Our Clients

Providers lack a ‘single customer view’ • Many providers are restricted in their ability to deal directly with the customer due to not having a unique customer record, with data instead being spread across multiple systems and platforms • As the need for deeper and more frequent customer engagement becomes more pressing (due to the shift ‘from selling to serving’), this shortcoming will become more problematic if not addressed

Customers lack an ‘aggregated view’ • Most LP&I customers are unable to get an aggregated view of all of their pensions, savings and investment products – even if these are from the same provider, let alone across a mix of different providers • This functionality is available to consumers in other parts of retail financial services (e.g. Money Dashboard does it for banking). The pensions dashboard will enable this to a point for customers but to get a truly holistic view of retirement wealth LP&I providers may need to join forces

From linear to TriangularThe traditionally linear relationship between customers, intermediaries (typically IFAs) and providers is now more of a triangle.

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New Triangular Model:

Old Linear Model

• However, many providers are not yet well set-up for dealing with customers directly, especially from a data perspective • Customer “ownership” needs to be shared

New Lenses Required

DistributionEvolution

Dealing with legacy product platforms remains a key challenge, but some providers are beginning to modernise their people and operations too.


Costly and complex IT estate • LP&I providers support and maintain an IT estate of multiple systems (from modern, open architecture packages to legacy, custom-built mainframe systems) built up over many years. These are mission-critical and may be needed for decades to come

The perceived ‘silver bullet’ • The magic solution everyone craves is the full migration of the existing book of product platforms onto a new, single, modern and low-cost platform • But this is extremely difficult and costly and, as a result, many providers have tried and failed to re-platform

An alternative approach • A more achievable practical option is often to wrap, ‘treat’ or modernise the old products or technology, and then make them selectively available to the new platform and only migrate where there is a clear business case

Driving Operational Efficiency

The Millstone Of Legacy IT

Next-generation digital technologies • Increasing use of analytics and intelligent robotic process automation (RPA) – not just to better understand the customer, but to run the underlying business too • Moving to the cloud whilst improving cyber-security and IT resiliency

Reimagining the Workforce • Tech is just an enabler; having the right people with the right skills is key • Use of non-traditional recruitment methods (e.g. running Instagram campaigns or staging competitive hackathons) • LP&I workforce needs to reflect its modern customer base; if the industry looks old, grey and tired, then its products and services will too • Closer human / machine integration plus robo / AI • Digitally savvy customers demand a digitally savvy workforce and digital engagement

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Life, Pensions and Investment organisations

Our Propositions

Internal Disruptors

• From risk-based to asset-based

• More modern, simpler products

• Low-capital model attracts new entrants

• LP&I providers own a complex IT estate

• Everyone craves a full migration of the existing book onto a new, single, modern but this is difficult and costly

• Trust, convenience and personalisation is important

• Customers demand product simplicity and transparency

• Trust, convenience and personalisation is important

• Customers demand product simplicity and transparency

• The traditionally linear relationship between customers, intermediaries (typically IFAs) no longer applies

• Increasing use of analytics and intelligent robotic process automation

• LP&I workforce needs to reflect its modern customer base

• Increased need for timely access to data

• Evolution of sales and servicing conduct and thus process no longer applies

Key Challenges

Getting closer to your customers (advisors, corporate and end consumer)

Improving the capabilities, agility and cost profile of both operations and IT through targeted transformation

Addressing regulatory change and regulatory reporting in a cost effective and timely manner

Product Evolution

Customer Attitude

Regulatory Distribution Evolution

New Lenses Required

The Millstone of Legacy IT

Driving Operational Efficiency

External DisruptorsSimplifying and modernising the LP&I IT estate

Optimising your operational effectiveness and efficiency

Building innovative propositions on next-generation LP&I platforms

Enabling your LP&I business to be part of the digitally connected world

Driving value from your customers: consumers, advisers and corporates

Managing your IT estate cost effectively and efficiently

Converging and transforming finance, risk, and actuarial

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Accenture has a unique end-to-end transformational capability coupled with deep LP&I knowledge to help you achieve this. Alongside our world-renowned systems integration capability, we have long-established and unique Modernisation and Migration Factories. Our proven Application Modernisation capabilityis underpinned by exclusive tools and methods to help you analyse and modernise your estate.

Our analysis tools help you decide which systems to modernise, which applications can be simplified and which policies to migrate. Our delivery tools, working in conjunction with our experienced team, accelerate the modernisation and migration activity.

LP&I providers support and maintain multiple mission-critical systems, many in-house developed and built up over decades; due tothe longevity of products, these have decades to run. Coupled with potentially high operational risk, the expensive historic infrastructure, increasingly scarce skills, duplication of compliance effort and high fixed costs make total cost of ownership a compelling business issue.

Many have tried - and failed - to migrate all existing books onto a new, single, modern, low-cost platform. A more suitable, manageable and lower risk approach is needed: our approach is a mix of modernising and simplifying the old technology without migration, coupled with migration to new, only where it drives true value.

Our Response and Uniqueness

Issue and Solution

SIMPLIFYING AND MODERNISING THE LP&I IT ESTATE


BUILDING INNOVATIVE PROPOSITIONS ON NEXT-GENERATION LP&I PLATFORMS

Accenture has a unique end-to-end transformational capability coupled with deep LP&I knowledge to help you build your next generation capabilities: customer experience through our subsidiary, Fjord; product design and operational capability from our industry experts; and an unrivalled capability for delivering large-scale, complex, IT-enabled transformation.

We have deep experience in many of the next generation platforms and in new technologies, as demonstrated in our Innovation Labs and have developed partnerships with two of the leading exponents, FNZ and Sapiens. With this combination, we can help you achieve the relevant business and technological flexibilities that you need to succeed in the LP&I market of the future.

The pace of change affecting the LP&I industry shows no sign of abating. Whether it is preparing to meet the expectations of Millennials, responding to that great disruptor, Regulation, or positioning for emerging and disruptive technologies, any provider who aspires to be a growth business must have the agility to respond quickly and decisively with an ability to differentiate from the competition. To do so, providers must invest in their business architecture, creative team, agile organisation and next-generation

LP&I platform to launch new propositions and implement new methods of reaching customers rapidly. The new platform must combine the industrial strength of existing technologies with the flexibility to integrate with newer and emerging technologies: e.g. omni-channel; Digital; Advanced Analytics; AI & Robotics; Enterprise Cyber security solutions; Open APIs; be viable in the cloud and able to integrate with Blockchain solutions.


Issue and Solution

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DRIVING VALUE FROM YOUR CUSTOMERS: CONSUMERS, ADVISERS AND CORPORATE

Accenture has a unique end-to-end transformational capability coupled with deep LP&I knowledge to help you achieve this. We bring proven customer-engagement operating model experience through Fjord and Cloud First. We have partnerships with many of the leading customer-engagement platform providers.

We have developed a market-leading analytics & robotics capability, which encompasses data management, solution design, visualisation and a unique run service underpinned by an innovative commercial model. The combination of our experience, with our unique assets and accelerators will help you to drive increased value from your customer quicker.

LP&I organisations are transforming themselves from a product-centric to a customer-centric and experience-led model to grow their customer bases and incentivise their customers to hold more with them for longer. To achieve this, they need a modern customer engagement platform delivering an outstanding customer experience across any and all channels, supported by timely and actionable measures and insights in a readily accessible form.

As our recent consumer surveys have shown, many of the millennials and younger generation of customers are happier dealing with technology rather than people. Robo Advice and servicing through Artificial Intelligence & advanced Robotic Process Automation will be key to satisfying the next generation of customer.


Issue and Solution


Only Accenture has the breadth of LP&I industry knowledge, business change expertise, technology assets, partnerships and delivery capability. We bring together a unique combination of experience, models, methods and tools to help you optimise your operations, including: experience of developing “legacy” and “new world” LP&I Market Propositions; Operating Models; Organisational Designs; a deep understanding of the end-to-end sales and servicing processes; and a suite of Operational Excellence tools and methods.

We couple this business knowledge with outstanding capabilities across Business Process Management, Robotics, Workforce Management and Analytics along with our leading System Integration capabilities that help to tie together these tools with your legacy applications.

LP&I organisations aiming to build world-class customer-facing sales and servicing functions are constrained by the complexity and longevity of products, their core systems, often with significant functional gaps and their own special “workarounds” plus the sheer range of functions that the organisation has to handle.

To achieve “Operational Excellence” without wholesale and risky changes to the administration systems, LP&I organisations can carefully deploy appropriate technologies to augment the core systems, coupled with optimising the process and people capability to maximise the value these technologies can bring in terms of agility and customer centricity.


Issue and Solution

OPTIMISING YOUR OPERATIONAL EFFECTIVENESS AND EFFICIENCY

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ENABLING YOUR LP&I BUSINESS TO BE PART OF THE DIGITALLY CONNECTED WORLD

Accenture has a unique transformational capability coupled with deep LP&I knowledge to help you deliver relevant, customer focused Digital solutions. Our industry experts can help you build a cost-effective IT and Digital strategy through our end-to-end skills and experience.

Our subsidiary Fjord can bring outstanding Customer Experience design. Our onshore and offshore factories together with our world-renowned System Integration capabilities can engineer Digital assets as demonstrated in the LP&I Digital Showcase in our Innovation Labs. Our business change capability can help you embed these solutions to drive improved customer experience along with the right balance of revenue growth and cost management.

LP&I customer demands are changing – across end consumers, intermediaries and corporate clients. Multi-channel access to information, the ability to transact electronically and the desire to take more control over their financial portfolio are all driving customers to demand Digital solutions – a demand that the industry has to address.

Many have responded to this challenge by developing a standalone “Digital Strategy”. This will not do: Digital capabilities need to be integrated with your IT strategy and, ultimately, your business strategy. To design, build, deploy and run these Digital capabilities requires new skills and ways of working that bring t ogether the right combination of business, creative and technology expertise with an understanding of the underlying IT estate and business operations into which these solutions will fit.


Issue and Solution


Accenture has a unique combination of Application Outsourcing, Managed Service Provision, targeted services (e.g. testing), Infrastructure Outsourcing and transformational capability coupled with deep LP&I knowledge to help you squeeze more productivity, cost and quality from your IT staff and budgets. We have raised the bar on IT provision by uniquely combining an industrial approach to IT provision with global sourcing and intelligent assets to make IT “smarter” and consistently support the automation of repetitive tasks to reduce costs and improve speed and quality.

Accenture have invested heavily in developing the Accenture cloud platform, enabling our clients to migrate their IT to public or private cloud solutions with guaranteed SLAs. This is a major enabler of the agility required in the new lower cost Digital landscape.

In responding to the ever-changing competitive and regulatory business environment, LP&I firms often find their IT is a major constraint: skill shortages, budget constraints and ever-changing technologies, often combined with an aging and inflexible application landscape, makes it hard to provide the IT functionality demanded by rapid shifts in technology and business.

As organisations demand more from IT, LP&I executives increasingly turn to sourced solutions. They need true business partners that can provide industrialised delivery and intelligent insights along with the resources and flexibility to handle changing organisational goals.


Issue and Solution

MANAGING YOUR IT ESTATE COST EFFECTIVELY AND EFFICIENTLY

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CONVERGING & TRANSFORMING FINANCE, RISK & ACTUARIAL

Accenture has a unique data model that can be utilised as the basis for coherent and consistent external reporting. The model is aimed at collection of the most granular set of data elements needed for all current and foreseen reporting requirements, significantly SII and IFRS4 phase 2.

LP&I organisations continue to face regulatory and market pressure to report externally to the same time lines and with consistent data between Finance (IFRS) Risk (Economic Balance Sheet) and Actuarial (reserves and TP).

To respond, they need a consistent data model together with efficient and reliable reporting and actuarial data flows to meet SII, IFRS4 phase 2 and G-SII reporting needs within the same time line or faster than legacy IFRS requirements.


Issue and Solution


Combining unmatched experience and specialised skills across more than 40 industries and all business functions, underpinned by the world’s largest delivery network. Accenture works at the intersection of business and technology to help clients improve their performance and create sustainable value for their stakeholders.

consecutive years in Fortune World’s Most Admired Companies

consecutive years in Fortune 100 Best Companies to Work For

consecutive years ranked in Financial Times’ FT 500 – ranked No. 165 globally (2015)

of the Global Fortune 100 are our clients

of our Top 100 clients have been clients for over 10 years

of Financial Service Institutions in the Global Fortune 500

Accenture is a leading global professional services company, providing a broad range of services and solutions in strategy, consulting, digital, technology and operations.

US $32.9 billionIn annual revenues

401,000Employees

40+Industries served

5,000+Clients

200+Locations across 55 countries serving clients in 120+ countries

150+Powerful alliance network of market leaders and innovators

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Breadth and Depth of Experience to Meet Your Business Needs

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Accenture operates in a fast-changing environment and we are always evolving our business to be even more relevant, differentiated and competitive.

Products Consumer Goods Retail Pharmaceuticals Industrial Automotive Travel Service

Communications, Media & Technology Communications Electronics & High Tech Media & Entertainment

Resources Chemicals Natural Resources Energy Utilities

Financial Services Banking Capital Markets Insurance

Health & Public Service Health Public Service

We deliver services and solutions through five operating groups: Accenture Strategy, Accenture Consulting, Accenture Digital, Accenture Technology and Accenture Operations.


We are the only company with the ability to combine and integrate these end-to-end capabilities—strategy, consulting, digital, technology and operations—in an industry context.

Accenture Strategy shapes our clients’ future, combining deep business insight with the understanding of how technology will impact industry and business models.

Business Strategy, Technology Strategy

Management Consulting, Technology Consulting

Interactive, Mobility, Analytics

Application Services, Technology Labs, Ecosystem Alliances

As-a-Service, Business Process, Cloud Security

Accenture Consulting transforms, bringing the very best of Accenture to help our clients transform their businesses to compete in today’s digital world.

Accenture Digital digitises, enabling our clients to unleash the power of digital, providing analytics, interactive marketing and mobility services to create new value.

Accenture Technology powers our clients’ businesses with “best in class” established and emerging technologies.

Accenture Operations operates business processes and infrastructure as a service on behalf of our clients.

Our business Our vision Our capabilities

ABOUT ACCENTUREAccenture is a leading global professional services company, providing a broad range of services and solutions in strategy, consulting, digital, technology and operations. Combining unmatched experience and specialized skills across more than 40 industries and all business functions—underpinned by the world’s largest delivery network—Accenture works at the intersection of business and technology to help clients improve their performance and create sustainable value for their stakeholders. With approximately 401,000 people serving clients in more than 120 countries, Accenture drives innovation to improve the way the world works and lives.

Visit us atwww.accenture.com.

Richard has over 30 years’ experience in Consulting, the majority in LP&I area supporting most of the major firms in the UK and across EMEA.

Richard focusses on delivering large business change programmes across the operations and IT areas within his clients and has knowledge and experience of the major technology solutions in the LP&I industry.

Recently, Richard has worked with many of the platform providers and also has recent experience of customer engagement platform and operating models.

Neil has worked in LP&I for over 25 years across consulting, product manufacturing, distribution and BPO.

Neil has worked with many insurance clients solving their complex business problems through technology and operational solutions.

Neil has a deep understanding of the technology and platforms used in the industry.

He has specific experience with outsourcing models and has worked with most of the UK LP&I clients.

RICHARD PRYOR MANAGING DIRECTOR UK & Ireland Life, Pensions & Investments [email protected] +44 7824 483337

NEIL RATCLIFFE MANAGING DIRECTOR UK & Ireland Life, Pensions & Investments [email protected] +44 7769 281754

accenture life, pensions and investments · accenture life, pensions and investments p. 7 how the...

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