Insurance in a Digital World: The Time Is No ?? · 2 Insurance in a digital world: the time is now EY Global Insurance Digital Survey 2013 Insurance in a digital world: the time is now Contents

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<ul><li><p>Insurance in a digital world: the time is nowEY Global Insurance Digital Survey 2013</p></li><li><p>2 Insurance in a digital world: the time is now EY Global Insurance Digital Survey 2013</p><p>Insurance in a digital world: the time is now</p><p>Contents </p><p> Executive summary 4</p><p>01 802 28 03 36 </p><p>41</p><p>04 44</p><p> 56</p><p>Voice of the customer: time for insurers to rethink their relationships The journey toward greater customer centricity</p><p> distribution channel </p><p>Overview</p></li><li><p>1Insurance in a digital world: the time is now EY Global Insurance Digital Survey 2013</p><p>Introduction</p><p>Insurance in a digital world: the time is now</p></li><li><p>2 EY Global Insurance Digital Survey 2013</p><p>EY Global Insurance Digital Survey</p><p>Research approach and methodology</p><p>Scope</p><p>EuropeMiddle East</p><p>Target countries</p><p>UKSpainFrance</p><p>USCanadaMexicoChile</p><p>AustraliaHong KongThailandSingaporeMalaysiaIndonesiaJapanSouth KoreaIndia</p><p>South Africa</p><p>Other countries</p><p>GermanyIrelandItalyNetherlandsPolandTurkey</p><p>ArgentinaBrazilColombiaUruguay</p><p>ChinaTaiwanVietnamPhilippinesBangladesh</p><p>KenyaNamibiaNigeriaUAE</p></li><li><p>3</p></li><li><p>4 EY Global Insurance Digital Survey 2013</p><p>Executive summary </p><p> 1 </p><p>2 </p><p>3 </p></li><li><p>5EY Global Insurance Digital Survey 2013</p><p>Executive summary </p><p>4 </p><p>5 </p><p>6 </p><p>7 </p></li><li><p>EY Global Insurance Digital Survey 2013</p><p>Executive summary </p><p>6</p></li><li><p>EY Global Insurance Digital Survey 2013</p><p>Section 01</p><p>of key themes</p><p>7</p></li><li><p>8 Insurance in a digital world: the time is now EY Global Insurance Digital Survey 2013</p><p>1 </p><p> 79% say they are not setting the baseline for digital or are still learning.</p><p>01</p><p>of key themes</p></li><li><p>9Insurance in a digital world: the time is now EY Global Insurance Digital Survey 2013</p><p>Digital strategy and leadership</p><p>Do you see your organization as a digital leader in your industry?</p><p>Do you have a business case for digital and is your investment integrated into the financial planning of the company?</p><p>Do you have a clear, well-executed implementation plan for your digital strategy?</p><p>Do you have the right operating model in place to deliver and run digital capabilities?</p><p>Has your digital strategy got support from senior management? Do they lead by example?</p><p>Customer experience</p><p>How does digital inform and support segmentation?</p><p>How do you use digital channels to attract prospective customers?</p><p>How do you manage and build brand loyalty through digital channels? </p><p>How do you reduce your cost to serve using digital channels?</p><p>How does digital support your Customer Value Management? (Including cross-sell, up-sell and retention efforts)</p><p>All average scores on scale 1-5</p><p>1 2 3 4 5</p><p>1 2 3 4 5</p><p>Exhibit 1: Current and target future state levels of digital maturity</p><p> Global current Global life current Global non-life current</p><p> Global target future Global life target future Global non-life target future</p></li><li><p>10 Insurance in a digital world: the time is now EY Global Insurance Digital Survey 2013</p><p> 57% have operating models that do not facilitate digital.</p><p>Most respondents say their digital </p><p> Over </p><p> 89%dont consider past interactions when recommending products or services to online customers.</p><p>2 </p></li><li><p>11Insurance in a digital world: the time is now EY Global Insurance Digital Survey 2013</p><p>Exhibit 2: Current and planned future spend on digital development</p><p>Expected increase in digital spend* </p><p>*Excluding Dont knows</p><p>18% 38% 23% 8% 15%</p><p>9% 17% 36% 21% 16%</p><p>7% 8% 22% 39% 24%</p><p>Global</p><p>Current spend on digital* </p><p>68% 23% 8% 0%</p><p>0%-10% 10%-20% 20%-30% 30%+ </p><p>0%-10% 10%-20% 20%-30% 30%+ </p><p>Global</p><p>69% 28% 4% 0%Global life</p><p>79% 11% 10% 0%Global non-life</p><p>84% 9% 7% 0%Europe</p><p>52% 43% 5% 0%Asia-Pacific</p><p>61% 30% 10% 0%Americas</p><p>Over 1 year</p><p>Over 3 years</p><p>Over 5 years</p><p>Over 1 year</p><p>Over 3 years</p><p>Over 5 years</p><p>Over 1 year</p><p>Over 3 years</p><p>Over 5 years</p><p>Over 1 year</p><p>Over 3 years</p><p>Over 5 years</p><p>28% 46% 0% 0% 27%</p><p>5% 29% 29% 9% 27%</p><p>5% 8% 17% 33% 37%</p><p>Europe</p><p>2% 34% 55% 2% 7%</p><p>0% 2% 55% 34% 9%</p><p>0% 2% 26% 60% 12%</p><p>Asia-Pacific</p><p>21% 31% 19% 19% 10%</p><p>19% 14% 31% 27% 10%</p><p>10% 11% 22% 36% 21%</p></li><li><p>12 EY Global Insurance Digital Survey 2013</p><p> 67% implement digital as part of business-as- usual activity.</p><p> 68% believe they have delivered some easy quick wins but not made transformational progress.</p><p>3 </p></li><li><p>EY Global Insurance Digital Survey 2013</p><p>13</p></li><li><p>14 Insurance in a digital world: the time is now EY Global Insurance Digital Survey 2013</p><p> 68% of life companies say internal company structure or culture constraints is the key challenge they face in delivering their digital strategy.</p><p>Exhibit 3: Top inhibitors of digital growth in insurance market</p><p> Global Global life Global non-life</p><p>Legacy technology constraints80%75%88%</p><p>64%66%72%</p><p>40%41%45%</p><p>33%34%30%</p><p>32%29%29%</p><p>24%24%17%</p><p>19%23%12%</p><p>Slow pace of delivery by insurers</p><p>Intermediary/agent channel strength or resistance</p><p>Lack of a compelling business case</p><p>Regulatory restrictions/environment impeding digital growth</p><p>Perceived customer/data security issues</p><p>Insufficient consumer demand</p></li><li><p>15Insurance in a digital world: the time is now EY Global Insurance Digital Survey 2013</p><p>Exhibit 4: Key challenges faced by companies in delivering their digital strategy</p><p>Global life Global non-life</p><p>Lack of methodology framework34% 25%</p><p>Developing a clear technology strategy44% 34%</p><p>Lack of skills/difficult to find expertise50% 45%</p><p>Building solutions with flexibility41% 42%</p><p>Channel conflict46% 44%</p><p>Systems issues in implementation65%63%</p><p>Lack of resources (time and budget)47% 43%</p><p>No business case for investment21% 23%</p><p>68% 64%Internal company structure or culture constraints</p><p>61% 50%Integrating digital with other distribution channels</p><p>40% 29%Designing new digital offerings effectively for customers</p><p>63% 68%Creating a culture of rapid innovation and development</p><p>52% 47%Gaining internal management buy-in and investment </p><p>Shown in descending order for Global life sector</p></li><li><p>16 Insurance in a digital world: the time is now EY Global Insurance Digital Survey 2013</p><p>4 Its all about retention through Voice of the customer survey </p><p>Exhibit 5: Drivers of companies digital strategy </p><p>Enriching the customer experience32%</p><p>Global (life and non-life)</p><p>Regaining more direct control of the customer relationship</p><p>20%</p><p>Attracting prospective customers and increasing sales</p><p>Increasing internal efficiencies</p><p>Other5%</p><p>2%</p><p>3%</p><p>5%</p><p>9%</p><p>9%</p><p>14%</p><p>Reducing cost to serve customers and intermediaries</p><p>Managing and building brand</p><p>Competitors are offering it and we want to keep up</p><p>Increasing up-sell and cross-sell</p></li><li><p>17Insurance in a digital world: the time is now EY Global Insurance Digital Survey 2013</p><p>Retail chain stocks up on digital </p></li><li><p>18 EY Global Insurance Digital Survey 2013</p><p>AirAsias owner takes off in insurance </p><p>6 its </p><p>Only 46% of life companies believe that customers will ultimately leave us if they fail to embrace digital.</p><p>5 Distributors and agents are digital </p></li><li><p>19</p></li><li><p>20 Insurance in a digital world: the time is now EY Global Insurance Digital Survey 2013</p><p>Exhibit 6: Agents use of digital increase in importance over next three years</p><p>These are not % responses; they are weighted scores based on respondents ranking in order of importance.</p><p>Improve efficiency and quality of interactions with customers</p><p>4.09</p><p>2.68</p><p>Reduce risk and improve controls</p><p>1.49</p><p>0.40</p><p>Increase process efficiencies</p><p>2.64</p><p>2.33</p><p>Collect, pay and reconcile commissions</p><p>1.02</p><p>0.81</p><p>Expose/offer self-service capability to customers</p><p>2.39</p><p>1.36</p><p>Capture quantitative and qualitative customer information</p><p>0.98</p><p>0.53</p><p>Using social media</p><p>0.71</p><p>0.65</p><p>Reporting and tracking sales pipeline, policy setup, etc.</p><p>0.78</p><p>0.91</p><p>Providing education/general advice to market, e.g., blog</p><p>0.52</p><p>0.27</p><p>Delivering or receiving training/knowledge</p><p>0.24</p><p>1.29</p><p> Global life Global non-life</p><p> Shown in descending order for global life sector</p></li><li><p>21Insurance in a digital world: the time is now EY Global Insurance Digital Survey 2013</p><p>Supporting agents digital strategies </p><p>6 Analytics are critical to </p><p>Discovery Life leverages wealth of consumer data </p></li><li><p>22 Insurance in a digital world: the time is now EY Global Insurance Digital Survey 2013</p><p>7 </p><p>Exhibit 7: Online vs. mobile digital functionality Online Mobile</p><p>Provide information about our company/products 92%47%</p><p>Provide customer self-service facilities 74%40%</p><p>Provide quote 72%43%</p><p>Transact/purchase online 66%35%</p><p>Educate our customers about brand values 63%30%</p><p>Allow customers to submit complaints 57%21%</p><p>Facilitate online/virtual communication 40%17%Enable customers to submit and process claims online</p><p>39%23%</p><p>Request and process settlement/payment online 39%26%Contribute to product development and market research</p><p>34%15%</p><p>Enable customers to digitally record and document claims</p><p>29%27%</p><p>Provide financial advice 18%9%</p></li><li><p>23Insurance in a digital world: the time is now EY Global Insurance Digital Survey 2013</p><p>Only 43% of insurers provide mobile quotes compared to 72% who provide these online.</p><p>Mobile shopping for time-strapped consumers</p><p>Friendsurance making insurance social again</p></li><li><p>EY Global Insurance Digital Survey 201324</p></li><li><p>25EY Global Insurance Digital Survey 2013</p></li><li><p>EY Global Insurance Digital Survey 201326</p></li><li><p>EY Global Insurance Digital Survey 2013</p><p>How should insurers respond? Section 02</p><p>How should insurers respond?</p><p>27</p></li><li><p>28 EY Global Insurance Digital Survey 2013</p><p> Step 1: </p><p>02</p><p>How should insurers respond?</p></li><li><p>EY Global Insurance Digital Survey 2013</p><p>How should insurers respond?</p><p>29</p></li><li><p>30 Insurance in a digital world: the time is now EY Global Insurance Digital Survey 2013</p><p>How should insurers respond?</p><p>Build analytics capabilities in step </p><p>Mobile Banking: Financial Services Meet the Electronic Wallet</p><p>Exhibit 8: The digital virtuous circle non-linear business case</p><p>Data analysis and segmentation capability </p><p>Digital distribution/customer access</p><p>Digital offerings/capabilities </p><p>Increased productivity/reduced cost to serve </p><p>Increased sales </p><p>More relevant tailored offerings</p><p>Better experience = customers more willing to share data </p><p>More customer insight (data) </p><p>Increased customer retention Increased customer </p><p>satisfaction </p><p>Digital service tools/better customer experience </p></li><li><p>31Insurance in a digital world: the time is now EY Global Insurance Digital Survey 2013</p><p>How should insurers respond?</p><p> Social media in insurance how to interact better with your customers,</p><p>organization</p><p>focus on becoming an innovative company</p><p> Step 2: </p><p>The writing is on the wall for Australian insurer Youi</p></li><li><p>32 Insurance in a digital world: the time is now EY Global Insurance Digital Survey 2013</p><p>How should insurers respond?</p><p>and innovation</p><p>Mutual innovation for NewCo customers</p></li><li><p>33Insurance in a digital world: the time is now EY Global Insurance Digital Survey 2013</p><p>How should insurers respond?</p><p>Exhibit 9: Creating a digital culture </p><p>01 Leadership alignmentAlignment of leadership around a compelling story through the use of tools, methods and approaches that will form the DNA of the future ways of work and digital culture (using video, animates and social media)</p><p>02 Cultural alignmentDefining the cultural shifts necessary for the business to achieve its purpose and creating interventions to achieve this alignment</p><p>03 Collaborative workingCreating the physical, online and cognitive (methods, tools, approaches) environments to support the business and embed cultural change</p><p>04 EnablementDelivering the training, education and development opportunities necessary to shift the ways of working, as well as undertake development activity on specific topics pertaining to cultural change, through the use of the collaborative working environments (03) thinking and learning by doing</p><p>05 MomentumEstablishing the performance management systems to reinforce the new ways of working and sustain the collaborative environment </p><p>01 02 03 04 05</p></li><li><p>EY Global Insurance Digital Survey 2013</p><p>How should insurers respond?</p><p>34</p></li><li><p>EY Global Insurance Digital Survey 2013</p><p>How EY assists clients digital business developmentSection 03</p><p>How EY assists clients digital business development</p><p>35</p></li><li><p>36 Insurance in a digital world: the time is now EY Global Insurance Digital Survey 2013</p><p>03</p><p>How EY assists clients digital business development</p><p>Credential</p><p>Digital operating model</p><p>Credential</p><p>Innovation Center</p></li><li><p>37Insurance in a digital world: the time is now EY Global Insurance Digital Survey 2013</p><p>How EY assists clients digital business development</p><p>Exhibit 10: EY Digital Strategy Canvas</p><p>Digital strategy</p><p>VisionMission </p><p>statement</p><p>Corporate strategy</p><p>Financial objectives</p><p>Customer objectives</p><p>Digital initiatives</p><p>Supplier selection</p><p>Road map</p><p>Benefits model</p><p>Prioritization</p><p>Supplier shortlist</p><p>Digital road map</p><p>Digital governance frameworkCustomer- </p><p>driven innovation</p><p>Information&amp; insight</p><p>Partners &amp; ecosystem</p><p>Benefits realization</p><p>Risk &amp; compliance</p><p>Businessprocesses</p><p>Enablingcapabilities</p><p>People &amp; operating </p><p>model </p><p>Technology&amp; tools</p><p>Customer proposition &amp; strategy</p><p>Intentional customer </p><p>experience</p><p>Brand</p><p>Research &amp; insight</p><p>Customer journeys</p><p>Segmentation</p><p>Customer strategy</p><p>Personas</p><p>Visualization</p><p>Program</p><p>Digital ambition</p><p>Program</p><p> manag</p><p>emen</p><p>t</p><p>Our Digital Strategy Canvas is a visual representation of the EY method for digital strategy projects. It represents all the key elements that need to exist and be in alignment to create a robust and implementable digital strategy. The model is not linear; each dial informs and shapes the other as the project progresses.</p></li><li><p>38 Insurance in a digital world: the time is now EY Global Insurance Digital Survey 2013</p><p>How EY assists clients digital business development</p><p>Credential</p><p>Digital governance</p><p>Credential</p><p>Digital analytics strategy and roadmap </p></li><li><p>39Insurance in a digital world: the time is now EY Global Insurance Digital Survey 2013</p><p>How EY assists clients digital business development</p><p>Strategy</p><p>Technology and </p><p>Analytics </p><p>Understanding the </p><p>Distribution </p><p>Culture</p><p>Mobile</p></li><li><p>EY Global Insurance Digital Survey 2013</p><p>How EY assists clients digital business development</p><p>40</p></li><li><p>41EY Global Insurance Digital Survey 2013</p><p>Conclusion</p></li><li><p>EY Global Insurance Digital Survey 2013</p><p>How EY assists clients digital business development</p><p>42</p></li><li><p>EY Global Insurance Digital Survey 2013</p><p>Section 04</p><p> regional highlights </p><p>43</p></li><li><p>44 Insurance in a digital world: the time is now EY Global Insurance Digital Survey 2013</p><p>around the barriers to digital progress and future investment than their global peers. One reason may be that the regions developing and emerging nations are at an earlier stage in their digital journey. Although Australia aligns more with the digitally developed European and US markets, it is outweighed by the large number of Asian countries included in </p><p>representative of Asia.</p><p>04</p><p>regional highlights</p></li><li><p>45Insurance in a digital world: the time is now EY Global Insurance Digital Survey 2013</p><p>Only 7% of regional respondents see regaining more direct control of the customer relationship as a driver, compared to 20% globally.</p></li><li><p>46 Insurance in a digital world: the time is now EY Global Insurance Digital Survey 2013</p><p>AmericasThe scope of the Americas region in our survey comprises a diverse range of countries. For example, direct insurance and direct to consumer marketing are still only just emerging in Latin America but much more developed in North America. Nonetheless, the region has much in common across many indicators of digital advancement, from budgetary spending, to customer engagement. </p><p>Legacy technology con...</p></li></ul>

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