Bob Cummings, Global Head of Insurance, SAP Financial Services Forum, London, June 23, 2015

The Digital Future of Insurance

1347

First Policy

Today – 2020

?

1666

Digital Revolution Fire of London

Connected policing

Connected healthcare

Connected citiesConnected home

Connected car Connected family

Connected retail

Connected assets

Connected supply chains

Connected logistics

Connected maintenance

Connected buildings

Yesterday Tomorrow

How will insurance change?

…a customer protection service A financial service product…

$

Home

Insurance

Car

Insurance

Life

Insurance

Health

Insurance

Business

Insurance

YY

$

$

Home

ProtectionMobility

Protection

Health

ProtectionWealth

Protection

Business

Protection

YY

$

$

Home

ProtectionMobility

Protection

Health

ProtectionWealth

Protection

Business

Protection

&

my Home my Mobility

my Wealthmy Health

my Data Other…

My Protector

i

YY

$

$

Home

ProtectionMobility

Protection

Health

ProtectionWealth

Protection

Business

Protection

Protect my Mobility

$66/mth

3rd Party liability

($22/mth)

Collision coverage

($2/mth)

Safe driving coach

($32/mth)

Winter tire replacement

($14/mth)

Supplemental

accident care

($12/mth)

+Stolen vehicle

locator ($2/mth)

+Savings for no claim

($2/mth)

YY

$

$

Home

ProtectionMobility

Protection

Health

ProtectionWealth

Protection

Business

Protection

Notifications

Water pressure in your house

is not normal. We have shut

down the water supply

Interest rates have fallen

again. You might want to

liquidate this fund and pay

off part of your high interest

mortgage.

You should go for a walk.

You hardly got any

movement today and you

seem a bit stressed.

A storm is coming and your

car seems to be parked

outside. You might want to

put it in your garage.

Notifications

We were sorry to see

the damage done to

your home. We have

made a preliminary

estimate using a visual

from our drone and

have transferred an

initial $5.000 to your

bank account to help in

your initial hardship.

We can clear up the full

claim at your

convenience. As soon

as you are able to

please contact us here.

YY

$

$

Home

ProtectionMobility

Protection

Health

ProtectionWealth

Protection

Business

Protection

When are these changes coming?

What does this mean for IT?

How should my company react to these trends?

Make my products easier to sell on the internet

Add digital capabilities to my products

Understand what my customer is trying to do and provide

(potentially with partners) the optimal experience

Product

Customer

Ignore them and wait till the hype passes

Internet

Sales

Agent / Broker

INSURER Reinsurance

Property & Casualty

Consumer

Weak

customer

connection

TO

DA

Y

Based on

statistical

assumptions

Life

Health

Strong

agent

connection

Investment Regulated

INSURER

Reinsurance

Increased

regulation

Configurable

understandable

Products & ServicesInvestment

International

$

$

$

$

Blurring lines of

business & services

Security

Providers

Wealth

Managers

Healthcare

providers

Service & device

suppliers…

Car

Companies

Consumer

Centric

PARNTERSHIPS

(or competitors…?)

Local

Connected

Networked

No

connection

to object /

behavior

OMNICHANNEL

Advisor / Agent

Web / Bank / Retailer

Social

Service provider

Aggregator

Standardized

complex

products

TO

MO

RR

OW

IT C

HA

LL

EN

GE

S

Operational AgilityDigital Transparency

Big-Data

Agent / Broker

INSURER Reinsurance

Property & Casualty

Consumer

Weak

customer

connection

TO

DA

Y

Based on

statistical

assumptions

Life

Health

Strong

agent

connection

Investment Regulated

INSURER

Reinsurance

Increased

regulation

Configurable

understandable

Products & ServicesInvestment

International

$

$

$

$

Blurring lines of

business & services

Security

Providers

Wealth

Managers

Healthcare

providers

Service & device

suppliers…

Car

Companies

Consumer

Centric

PARNTERSHIPS

(or competitors…?)

Local

Connected

Networked

No

connection

to object /

behavior

OMNICHANNEL

Advisor / Agent

Web / Bank / Retailer

Social

Service provider

Aggregator

Standardized

complex

products

TO

MO

RR

OW

FRONT OFFICE MIDDLE OFFICE BACK OFFICEClaims

Reinsurance

Policy

Billing

Fraud

Payments Investment

PeopleProcurement

Finance Planning

Real Estate

Product Agility

Underwriting

Commissions

Servce

Marketing Sales

Orchestration

Pa

rtners

Life Health P&C Processes from other industries

Insurance HANA

Analytics

SA

P S

TR

AT

EG

Y

FRONT OFFICE MIDDLE OFFICE BACK OFFICEClaims

Reinsurance

Policy

Billing

Fraud

Payments Investment

PeopleProcurement

Finance Planning

Real Estate

Product Agility

Underwriting

Commissions

Servce

Marketing Sales

Orchestration

Life Health P&C Processes from other industries

Insurance HANA

Analytics

Next steps?

Innovation Day Design Thinking Workshop

Bob Cummings, Global Head of Insurance, SAP Financial Services Forum, London, June 23, 2015

The Digital Future of Insurance