Life on MarsSome next steps for Life Insurance

Ilan Leas

© Actuaries Institute

This presentation has been prepared for the Actuaries Institute 2018 Financial Services Forum. The Institute Council wishes it to be understood that opinions put forward herein are not necessarily those of the Institute and the Council is not responsible for those opinions.

Not many good stories

For such an important market

2012

2016

$3.8 Tn$5.2 Tn

Total Industry Sum Insured ($ trillion)

Some consumer successes

$9.3bnpaid to consumersin the 12 months

to March 2018

90%of claims

are paid

80%-85%of group premiums

are returned to

to members

Only

1018disputes sent to

FOS for 2016-2017

Only 1018disputes sent to

FOS for 2016-2017

But structural disconnects remain

Affordability

All claims get paid

Encourage early diagnosis

Increase awareness

Increase coverage

Top predictions1. Spending on life insurance will reduce

2. Superannuation distribution will win out over banks and insurers

3. Best interests of consumers will be the primary test inproduct design and management

4. Medical testing, new entrants and transition easewill break down the traditional risk pools

5. Claims will focus on impact rather than diagnosis

6. There will be a shift towards standardisation and transparency

7. Data usage will see increased controls being applied

8. Insurers, Reinsurers and Funds will move into each others value chain

9. The spotlight on the life industry will disappearfrom media but not regulators

Where to start?

Help meunderstand

Make iteasier for me

Modernisemy products

I want fairtreatment

Shift towards simplicity,

standardisation

and communication

Streamlining processes,

increasing convenience and

increasing portability

A framework to move

to modern products

Genetics above a threshold and

review data privacy and usage

“It kind of reads like Shackleton’s ad for Antarctic explorers: Difficult,

dangerous, a good chance you’ll die, excitement for those who

survive,” Musk said when describing the types of people who will be the

planet’s first pioneers. “…there will be some for whom the excitement

of the frontier and the exploration exceeds the considered danger.”

Elon Musk on the journey to Mars, 11 March 2018.

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