ey global insurance digital survey 2013 - insurance in a digital world: the time is now - webcast...

Insurance in a digital world: the time is now

Global insurance digital survey 2013

6 November 2013

Insurance in a digital world: The time is now

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Webcast title

Today’s moderator

Graham Handy Ernst & Young LLP (UK)

Global insurance customer leader

#EY_Insurance Join today’s Twitter discussion:

Webcast title

Today’s agenda

► Welcome, introductions & objectives

► Overview of our research

► Panel discussion: key findings

► Q&A opportunity

#EY_INSURANCE Join today’s Twitter discussion:


Today’s speakers

Edward Moncreiffe

HSBC Insurance Holdings

Global Head of Strategic Partnerships

Shaun Crawford

Ernst & Young LLP (UK)

Global Insurance Leader


Today’s speakers

Gary Angel

Ernst & Young LLP (US)

US Enterprise Intelligence practice

Laurence Buchanan

Ernst & Young LLP (UK)

EMEIA Customer practice


Shifting to digital: job 1 for insurers

Digital is a catalyst for dramatic change and rapid transformation of the

competitive landscape. And insurers are not yet where they need to be.

Our survey shows us that insurers are lagging behind digital today but

have a compelling opportunity and clear course forward for tomorrow

6.8 BILLION:

40%: proportion of world

population that is online

Just how digital have we become?

6 YEARS:

total world population 7.1 BILLION:

# of mobile subscriptions

worldwide

time it took Google+ to reach 50m users

It’s not just a distribution channel – it’s a strategic enabler.

It’s not just a technology – it’s a way of life.

time it took Google to reach 50m users

88 DAYS:


Today’s agenda




► Q&A opportunity



Opinion check – Polling question 1

Where is digital currently positioned on your

organization’s strategic agenda?

A. Absolute top priority

B. It’s up there – one of our key strategic focus areas

C. It is definitely on our agenda but other things sometimes

get in the way or have greater importance/urgency

D. Relatively low priority in short term

E. Don’t know / does not apply (advisor, analyst, other)



Existing findings from GCIS and other

EY Thought Leadership/research

1. Current state analysis from EY desk

based research of market, in each region

2. EY industry survey (over 100

companies, both life and non life)

3. Example Case Studies (Insurance and

non-insurance)

Global conclusions and

themes, with regional

nuances:

Current levels of digital

capabilities

Industry readiness to

grasp this opportunity

Insights from other

sectors’ digital

initiatives and

experiences

Key actions that

insurers should take –

now and in the near

term

EY point of view and recommendations

on how insurers should respond


Today’s agenda




► Q&A opportunity

…with interactive polling questions as we go



Time to move: possibility vs achievability?

Finding 1: Insurers acknowledge

current low levels of digital maturity and

the need to take action

Finding 2: Companies have high digital

ambitions – but are they grounded in

reality?

Nearly 70% spend less than 10% of

business and IT development budgets on digital

Only 5%-10% plan for budget increases of

25+% in the next one to three years

66% implement digital via “business as usual”

or via “test and learn” pilots, far fewer use more

innovative techniques

Only 10% have made transformational

changes to their business’ digital capabilities

Insurers risk being exposed to the loss of existing customers – and to a scarcity

of new ones. They also stand to miss out on the chance to improve the customer

experience in a relatively low cost way

79% say they “only play the digital game”

or are “still learning to use digital for

competitive advantage”

57% of current operating models do not

facilitate digital

47% have no cohesive business case for

their digital strategy


Time to move: the digital maturity gap

Business case

Implementation

plan

Operating model

Digital leadership

Support from

senior

management

1 2 3 4 5

Digital Strategy & Leadership

Attract prospects

Brand loyalty

Customer Value

Management

Segmentation

Reduce cost to

serve

1 2 3 4 5

Customer Experience

Current vs target future levels of digital maturity

= Global

= Europe

= Asia Pacific

= Target Future State = Americas

= Current State



Do you believe your organization is investing

sufficiently in digital?

A. Yes, absolutely (strongly agree)

B. Yes, I think so (agree)

C. No, I don’t think we are (disagree)

D. No, definitely not (strongly disagree)

E. Do not know / does not apply (advisor, analyst, other)


Cultural and organizational obstacles

Finding 3: Insurers are holding themselves back

Finding 5: Distributors are digital customers too

Key challenges in delivering digital strategies:

63% 65%

68% 64% Internal company structure

or culture constraints

System issues in

implementation

63% 68% Creating a culture of rapid

innovation and development

52% 47% Gaining internal management

buy-in and investment

Global life Global non-life

Top inhibitors of digital growth in the insurance market:

#1 Legacy technology constraints 80%

#2 Slow pace of delivery by insurers 64%

#3 Intermediary/agent channel strength or

resistance 40%

#4 Lack of a compelling business case 33%

Last Insufficient consumer demand 19%

#1 most important agent use of digital in next 3

years: “Improving efficiency and quality of interactions

with customers”

For 61% life and 50% of non-life participants:

“Integrating digital with other channels” is the key challenge

Insurers who communicate a clear mutual value proposition for digital, and equip their distributors

with the digital tools to improve their own customer relationships, can help minimise channel conflict


The business case: growth through loyalty

Finding 4: It is all about retention through improved customer experience

With rising acquisition costs, retaining existing customers is an imperative.

Insurers must look to the digital landscape to retain and grow customer value.

If they don’t, others will!

Top drivers of digital strategies: Risk of complacency?

Only 46% of life companies

believe that “customers will ultimately

leave us” if they fail to embrace digital

32%:

20%:

14%:

9%:

Enriching the customer

experience

Regaining more direct control of

the customer relationship

Attracting prospective

customers and increasing sales

Reducing cost to serve

customers and intermediaries



Where do you think your organization is on its

digital journey?

A. We can see the opportunity but struggling to know where to start

B. Not making enough genuine progress on the ground for customers

C. We have delivered some easy “quick wins” but not made

transformational progress

D. We are making good progress but still have some way to go

E. We have made transformational changes to our digital capabilities

F. Do not know / does not apply (advisor, analyst, other)


Insight before action; go where the customers are

Finding 6: Analytics are critical to digital

success Finding 7: Insurers need to embrace the

mobile and social media wave

Analytics

Technology

Marketing/promotion

Financial management

Relationship management

Other

Distribution

75%

72%

58%

21%

20%

17%

17%

Without the appropriate analytics skills

and tools in place, the digital business

case may never be realized

Capabilities most in need in order to deliver

stated digital strategy:

With mobile and tablet use growing

exponentially, neglecting mobile & social

media is turning one’s back on the future

Disparity between online and mobile

functionality:

Provide information about

company/ products

Provide customer self-

service functionality

Provide quote

Transact/purchase

92%

74%

72%

66%

47%

40%

43%

35%

Online Mobile


Today’s agenda




► Q&A opportunity



Questions from the audience


Contact us

Global & EMEIA

Graham Handy Ernst & Young LLP (UK)

America

Kaenan Hertz Ernst & Young LLP (US)

Asia

May Knight Ernst & Young Advisory Services Ltd

Australia

Walter Poetscher Ernst & Young

+ 44 (0)20 7951 8173

[email protected]

+ 1 212 773 5988

[email protected]

+ 852 28499518

[email protected]

+ 61 2 9248 5145

[email protected]

@EY_Webcasts Follow us on Twitter:


Resources

► Voice of the Customer: Time for

insurers to rethink their relationships (Global Insurance Consumer Survey 2012)

► The journey towards greater

customer centricity

► Connect with us

► ey.com/insurance

► ey.com/GL/en/Industries/Financial-Services/Insurance/insurance-

in-a-digital-world--The-time-is-now

► ey.com/GL/en/Industries/Financial-Services/Insurance/Global-

Consumer-Insurance-Survey-2012

► #EY_INSURANCE


Thanks for participating.

Webcast title

Today’s webcast is about to begin

► Launching our new global digital survey

► Insurance in a digital world: The time is now

► Wednesday, 06 November 2013

► 10:00-11:00 a.m. EST


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