Future of the insurance industry - Conference keynote speaker

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globalchange.com - Life expectancy and life insurance, pensions. High net worth clients live longer -- better educated. Impact of future health care improvements. Actuarial forecasts, government planning. Government and social impact, pensions crisis and risk management. Science and research trends into longevity.

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Future of the insurance industry - Conference keynote speaker

  1. 1. Selling Life Insurance, Pensions and Wealth Management - for HSBCDr Patrick Dixon Chairman Global Change Ltd
  2. 2. Patrick Dixon is Chairman of Global Change Ltd, Author of 15 books and has been ranked one of the 20 most influential business thinkers alive today (Thinkers 50) Future of the insurance industry fro HSBC (2008) 500 videos of keynotes www.youtube.com/user/pjvdixon Over 4 million views Dixon’s Futurist Website www.globalchange.com/ 14 million unique visitors.
  3. 3. F astU rbanT ribalU niversalR adicalE thicalAs important as health and education
  4. 4. Advisors need to respond faster• Web makes clients impatient
  5. 5. Wild Card Impact on Insurance / Wealth Management Low probability, high impact events  insuranceYour mission really matters – death with no cover (story)
  6. 6. Sovereign Wealth Funds• >$3.5 trillion by early 2008• Expect big impact on different sectors
  7. 7. Everything you selldepends on emotion
  8. 8. Fast Don’t believe market research Shows what insurance purchasers want today but they will behave differently tomorrow!
  9. 9. This ad about life and death was banned on UK TV! Why?
  10. 10. Fast A news story can destroy a brand in a week TRUST at RISK Hard to gain Easy to lose
  11. 11. Example: Retail Investment Funds• Most fund managers do not recommend their own funds to friends or family• Growing demand for independent financial advice
  12. 12. 1 billion children in Africa and Asia means more parentsneed life cover
  13. 13. China – 23 million people a year  cities 500m  800m by 2020
  14. 14. 66% of over 50s in Asia by 2050• 81 million now over 60 in India• Big impact on China growth
  15. 15. EuropeDying 4 couples needed toproduce just one great- grandchild
  16. 16. 1 millionvoters over90 years old in Italy by 2026
  17. 17. Retirement Age is Last Century Idea• Many will work beyond 70 yrs and still have long retirement• Huge wealth inherited by over 70 year olds – Second generation middle class• Home owners will release capital
  18. 18. Surprised to be still alive and well• Most people think they will die 5-6 years earlier than official figures (UK)• Government figures also too conservative• Result: Most people are going to live at least a decade longer than they imagine
  19. 19. Eat more – weigh less• 30% of US newborns will become diabetic• $100bn cost per year
  20. 20. Can we stop ageing ?
  21. 21. Ageing Hair Follicles Hair in all the wrong places Hair regrowth – boom industrychemicals, gene treatment, cloning
  22. 22. Sexual Performance
  23. 23. Permanent Hair Colour• Adenovirus• Infected mouse hair cells• Permanent colour change
  24. 24. Treatment which restores andmaintains the youthful elasticity of hardened arteries – and helps wrinkled skin. Global sales?
  25. 25. Total body lift – works in mice and rats Elastomore Intravenous Facelift
  26. 26. Grow New Teeth• Pigs teeth grown inside rats• Mice grow new teeth from nerve cells / gum tissue
  27. 27. Urban Successful Heart repair • Inject bone marrow stem cells after bypass • Improves heart function up to 85%
  28. 28. Near-perfect repair of heart or braindamage following coronary / stroke
  29. 29. YourBrain CanRepair ItselfDaily
  30. 30. Brain Function Enhancement
  31. 31. Women with male brain
  32. 32. Cure for old-age loss of sight• Macular degeneration – 10 million affected in US• Single injection could restore sight
  33. 33. Cure for Deafness
  34. 34. Gene in people over 100 is same as that in long-lived yeast and worms
  35. 35. We will copy animals that don’t age Turtles, sturgeon fish , some humpback whales
  36. 36. Expect major unrest from growing gap between rich and poor
  37. 37. Tribal Life Insurance is a Tribal Product People need to belong Sense of identity Community Life insurance is always bought for other members of the same tribe HSBC Insurance culture
  38. 38. UrbanTribal Female tribe • Most online accounts are operated by women • Most household bills paid by women • Most new jobs won by women
  39. 39. Life Insurance: Tribal Messages• Marketing: We are here to protect your family, to pay out generously and quickly if something happens to you, giving you peace of mind at a fair price. We believe in the value of what we do for you.• Investor Relations: Our mission is to make shareholders as much wealth as we can without breaking the law and landing up in prison. We raise life insurance premiums as high as we can get away with, and pay out as little as possible.
  40. 40. Insurance and Pensions Consolidation 2010-2020 Mass market services  Premium relationships + resource management 
  41. 41. UrbanUniversal India Insurance Market • Total Insurance premium 2% of GDP • Below world average of 7.8% • Insurance penetration only 1.95% • Worldwide, Insurance used as risk cover whereas India = tax-saving and investment • 250 million middle class population can be unleashed by repositioning as risk cover
  42. 42. Impact of online competition for lifeinsurance and wealth management la
  43. 43. • 3 years ago who was talking about Youtube? Did not exist.• No advertising• 400 million videos viewed a day• 12 months later bought for $1.6bn
  44. 44. Will beat any direct Life cover quoteCall back in less than an hour
  45. 45. Radical Single Issues Environment Hidden commission Gene tests insurance Iraq war Funding Medicare
  46. 46. Genetic Prophecy – Are We Ready?
  47. 47. Genes for speech, memory, criminality, depression, obesity and stable marriage• FOXP2 gene is vital to language and speech development• 17CREB genes are all needed for learning and memory• Vasopressin receptor gene on chromosme 12 – huge effect on mating and pair binding in prairie voles.• Low monoamine oxidase A activity on X chromosome strongly linked to violent, antisocial or criminal behaviour• Gene for obesity: 6% have MC4R gene• Gene linked to serotonin production strongly linked to depression. CREB1 carries 80% risk of depression – in women
  48. 48. Sustainability
  49. 49. Global Warming - facts
  50. 50. CO2 at highest level for 1 million years
  51. 51. Biased advice?• Commission disclosure not enough• Disclosure of commissions on all products• Payment for advice, not activity
  52. 52. Payment by Commission• Temptation to oversell• Temptation to sell high commission products
  53. 53. Independent or Independent? • UK customers lose £140m a year - sold investments that offer highest commission rather than most suitable • Source UK FSA
  54. 54. Advice – Price Pressure• Few customers will agree to pay as much for advice as they did in commissions
  55. 55. Ethical New trend – get a life• 10,000 US, Japanese and UK managers• Work-life balance is now first or second most important factor in looking for a job• Second greatest career priority in 1,000 young managers Managing imbalance is about friends and family
  56. 56. Making a Difference
  57. 57. Ethical Companies will change how they talk• Growth• Profits• Shareholder value ( + customers…)
  58. 58. Ethical Individuals talk about… • Own needs • Family + friends • Community • Wider world
  59. 59. The basis of every sale for an insurance company• For individuals – protecting wealth• For family – providing for their future• For community – or society enhancing• For the whole earth – the good of all Leaders tell their own good news story
  60. 60. Take Hold of Your Future - Slides globalchange.com/ppt 10 million unique visitors
  61. 61. Patrick Dixon is Chairman of Global Change Ltd, Author of 15 books and has been ranked one of the 20 most influential business thinkers alive today (Thinkers 50) Future of the insurance industry fro HSBC (2008) 500 videos of keynotes www.youtube.com/user/pjvdixon Over 4 million views Dixon’s Futurist Website www.globalchange.com/ 14 million unique visitors.

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