Internet of Insurance What will insurance of 2025 look like?

Ken Marke, Head of Strategic Futures

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The market is changing at pace

Autonomous cars

Blockchain

Connected homes

Ogden discount rate

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The Dawn of a New Era

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Horizon scanning - sole purpose: • Track trends • Identify disruption • Deal with future uncertainties

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Looking out for tsunamis

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From pooling risk to personalisation

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Haves vs. Have nots

Traders

Reinsurers

Phone

Web

Aggregators

Smart tech

AI, Chatbots

Changing distribution landscape

9 The emerging ecosystem

“Why didn’t we see this coming?”

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Technology - changing what and how things are sold

Customers - Expectations and behaviours changing

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“We created Cuvva because of our own poor experiences dealing with insurance companies. Too often they were slow, painful and were only interested in their own agenda. Not us! We weren't insurance guys at the time, but we did know a lot about

tech and believed we could build a much better and smarter experience for customers. One that helps them get about, puts them in control, cuts out the

middleman and also saves money. So, we started with Cuvva for sharing and will be launching a subscription product too.”

Start-ups give clues about what is emerging

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Increased expectations: • Personalisation

• Self-Service/control

• Speed

• Seamless experience

• Convenience

• Trust & transparency

• Usage based and on-demand services

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Prominent trends: • AI, Robotics & automation

• Data – Volume, variety & use

• IoT & connected things

• New user interfaces

• Employees will be far more productive and efficient as their work is augmented by machines

• Customer engagement and experience will be far more engaging as conversations will be centred on judgement and empathy rather than data gathering and interrogation

• Employees are more engaged as we “take the robot out of the human”

• Partnerships with start ups and entrepreneurs will grow as companies take advantage of their innovations, skills and agility

• Traditional distribution will be challenged

• Consumers will be more distant from providers as they perform far more self served transactions

• Marketing and underwriting will be more targeted and personalised and will be largely automated through algorithms & AI

• Human contact points will diminish as call centres are replaced by robotic and machine learning systems

So, what might the future look like in 2025?

So, what might the future look like in 2025?

The need for insurance will not change but how we buy, what we buy and how problems get sorted when things go wrong will change significantly by 2025.

“It is always wise to look ahead, but difficult to look further than you can see.”

Winston Churchill