the changing face of indian insurance bigger, better, fasterfincon 2017_opening session vf.pptx 1...

The Changing Face of Indian Insurance

Bigger, Better, Faster

09 March 201709 March 2017

FINCON 2017_Opening Session vf.pptx 1

Face of Indian Insurance 2020Face of Indian Insurance 2020

5th March 2020 … 07:15 am

Ajay Kumar, lawyer in Lucknow, 40 years old, 2 children

Prepares to go for his weekly game of squash



Your insurance has shifted from home insurer to

driving insurer



65

!!! WARNING!!!Sudden

acceleration & braking can lead to an increase in

insurance premium



65

!!! WARNING!!!Xxxx

I must be careful!!

I should also loginto my insurance

management app after coming back…



XYZ Ltd.

Home

Insurance

Payment

Reward points

Offers

Support

Welcome, Ajay Kumar

Life

Car

Home

Health



XYZ Ltd.

Home

Insurance

Payment

Reward points

Offers

Support

Welcome, Ajay Kumar

Life

Car

Home

Health

We have identified the most optimum pension

plan for you.Click here for a video

chat

x



XYZ Ltd.

Ajay Kumar's RM

08:3008:30

Govind Iyer



Motor Insurance

5000+5000+

You have earned 5000 points for your driving behaviour, use these

points for various services at our partner

network

You have earned 5000 points for your driving behaviour, use these

points for various services at our partner

network

XYZ Ltd.



Health Insurance

You lost 2 wellness stars due to stats from your

fitness band and missed gym sessions, better to get back to the rhythm

You lost 2 wellness stars due to stats from your

fitness band and missed gym sessions, better to get back to the rhythm


Key takeawaysKey takeaways

End-to-end customer journeys

Prevention vs protection

Customised to individuals

"Phygital" going to digital interactions

Partnerships

…

End-to-end customer journeys

Prevention vs protection

Customised to individuals

"Phygital" going to digital interactions

Partnerships

…


Big data

• Build deep insight in customer behavior, based on internal and external (Big) data sets

Internet of things• Connected physical

objects allow insurers to interact with risk objects and their users

Shift to the cloud • Provides insurers with

'out-of-the-box' software and highly scalable computing power

Open ecosystems

• Insurers can tap in to open ecosystems of developers to create value adding solutions

Biometric identification

• Prevent fraud and secure customers' personal data without compromising customer experience

Social, local, mobile • Always-on, mobile

devices allow for context-aware, personalized interaction models

Augmented reality

• New device and display technologies enable visual layer of information overlaid on everyday sight

Intelligent operations

• Dynamic routing of customer requests and automation of process steps

• Intelligent predictive & learning capabilities to offer virtual advice and automate decision making

Machine learning

21 3

4 5 6

7 8 9

Regulation & compliance

Customer centricity

Volatility in economic

environment

Industry evolving rapidlyIndustry evolving rapidlyTechnology and digital disruption


Insurtech Invasion is comingInsurtech Invasion is comingTotal companies: ~ 660Total funding1: $17.7B

Total companies: ~ 660Total funding1: $17.7B

Total companies: ~ 1,090Total funding1: $26.6B




1. 80% of companies founded between 2000—year x received cumulated funding of $x B as of June 2016.Note: Over 1,700 companies were discovered with Quid and allowed to cluster based on similar products, technologies, customers etc. 80% of companies founded 2000 or laterSource: Quid, BCG /Expand/BCG Digital Venture/B Capital analysis

1. 80% of companies founded between 2000—year x received cumulated funding of $x B as of June 2016.Note: Over 1,700 companies were discovered with Quid and allowed to cluster based on similar products, technologies, customers etc. 80% of companies founded 2000 or laterSource: Quid, BCG /Expand/BCG Digital Venture/B Capital analysis

Claims & benefit

handling

Health-care

IT Enablers

Bitcoin/ Blockchain

Big Data & Analytics

Data Protection

Life, Pensions &

Savings

Motor, Home and

P&CDistribution

Early players in IT Enablers

Emergence of Life,

Pensions & Savings

Emergence of Motor, Home

and P&C

Emergence of Claims Mgtm

Emergence of Big Data & Analytics

Strong growth in Motor, Home

and P&C

Emergence of Health

Emergence of Distribution

20052005 20102010 TodayToday

Early players in Data

Protection


Indian insurance ready for digitalIndian insurance ready for digital

2

%

Digital footprint

Digital buyers

Digital influence

31

10

2

12

39

%

3

17

47

%

Conversion rate

6

23

51

%

20142013 2015 2016

Data among Urban consumersSource: BCG CCI Digital Influence Study 2013,2014,2015 BCG analysis (N=20,000 per year)Data among Urban consumersSource: BCG CCI Digital Influence Study 2013,2014,2015 BCG analysis (N=20,000 per year)

32% 31% 36%

10% 17% 18%

45%

26%

Urban Consumers (Health, Life & Motor Insurance)Urban Consumers (Health, Life & Motor Insurance)


Insurer of the Future (Today?)Insurer of the Future (Today?)

Agency Banca Group

Product Factory

The Traditional Insurer(Top Line Marketing / Product Driven)

Ecosystem Partners

Agency Banca Group

Retailers

DigitalServices

Traditional Channels

TelcosInternet

Co's

Health

Education

Life Advisory

DigitalChannels

Facebook

Amazon

WeChat

etc.

etc.

• Product centric, top line marketing

• Protection / products

• Traditional channels, limited

touchpoints

• Core business focus

• Judgement (Basic CRM & Biz

Intelligence)

• Customer-centric, segmented

marketing

• Prevention / Solutions

• Omni-channel, multiple touchpoints

• 3rd party ecosystem partners and

ventures

• Analytics (Predictive, big & small data)

Customer

The Insurer of the Future(Segmented Marketing / Customer Driven)


12 strategic priorities for the industry12 strategic priorities for the industry

Phygital distributionof the future

Bionic Agency

Digital sales

Open architecture

Propensity

Cross selling

Omni channel

1

Tier ¾ citiesRetirees

Rural areasMass markets

Serving the un(der)served2 3

Piggy backing

Infra/customers

5

Seamless experienceSingle customer view

Omnichannel

Customer value

Customer Engagement 1.0

Big data & Analytics

7

3

Process Digitisation2.0

4

Digitize the core STP ProductsandPricing

One Time Insurance From Product to Service

Customized Insurance

Dynamic / Real time Differential pricing

Integrated offerings

6

Insurtechs

Peer to peer

Collaborate

New data sources

Wearables

IoTConnected world

8

People 2.0.2.0

Multiple careers

Workforce values

Millennials

Future of Work

SkillingEvolving cultures

'life' beyond work9

RegulationsNew capital instruments

Data privacyGSTThird party collaboration

11

Technology & data architectureto deliver digital insurer10

12

ChangingshareholdersConsolidation

Buy books of business

Acquisition

Acquire teams

Adjacent businesses

M&A IPO


IS THE INSURER

OF THE FUTURE A

TECHNOLOGY/

DATA ANALYTICS

COMPANY?


We always overestimate the changethat will occur in the next two yearsand underestimate the change thatwill occur in the next ten.

Bill Gates

ARE "YOU"

READY TO

MAKE THE

SHIFT?

Thank you

bcg.com | bcgperspectives.com

the changing face of indian insurance bigger, better, fasterfincon 2017_opening session vf.pptx 1...

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