WIR 2014 key findings_australia

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World Insurance Report 2014- Australia vis-a-vis rest of the world

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  • This slide talks about the digital transformation approach that insurers need to takeGiven the increasing rise in customer demands, insurers are expecting digital channels to bring in more business. By 2018, insurers anticipate nearly one-fifth (19.7%) of their business to be generated through internet-connected PCs, up from 12.7% in 2013. Another 10.9% is expected to come via mobile channels, up from a mere 1.5% in 2013. In effect, within five years, nearly one-third of the insurance industry’s business is expected to occur digitally.  Supporting such a large volume of digital business will require profound changes in the traditional back-office supports insurers have in place to run their businesses, as well as in the ways insurers interact on the front-end with their distributors, suppliers, and end-customers. Insurers will need to address all the digital demands of their customers, while also pursuing investments in key operational areas that will drive bottom-line growth. This will require a high level of leadership support and a dedicated implementation roadmap that includes an overhaul of the legacy IT systems and platforms currently employed by most insurers
  • This slide talks about the key insurance life cycle stages and the important functionalities in each stage:We identified four essential elements of the insurance customer experience – Researching and Getting a Quote, Acquiring a Policy, Servicing a Policy, and Servicing a Claim – as well as specific touch points within each one of those categories.  These touch points -- 15 in total -- encapsulate specific moments when customers engage with their insurance providers, leading to satisfaction and delight at best, or frustration at worst. They are the critical customer experience moments that insurers must strive to perfect as they move along the process of digital transformation. We defined the maturity level of each touch point for each firm using a four-point scale that incorporates primary research based on executive interviews, as well as secondary research based on online mystery shopping. Assessments also included evaluations of mobile and social media usage.  In the category of Researching and Getting a Quote, the specific customer experience moments we examined are those when customers inquire about products and agents, receive explanations about products and risk management activities, and obtain price quotes. In the category of Policy Acquisition, we examined when policies are issued, payments are executed, and these transactions are documented and reported to the customer. Under Policy Servicing, we evaluated those moments when customers view existing policies and take actions, such as renewing, upgrading or cancelling them, seek assistance with issues and receive bills. Finally, under Claims Servicing, we examined when customers get notified about claims and payout options, and track their claims
  • Tools and calculators that let users explore different scenarios as they research premiums are essential to providing a rich experience. India’s HDFC Life has developed a really intuitive interface that lets users easily modify terms to receive instant quotes.U.S.-based Progressive offers multiple payment options, including paying the amount in full or installments in order to complete the transaction of policy acquisition.iTriage’s mobile app provides a self service option to the customers to search for any of their ailment symptoms and then directs to the appropriate doctor or treatment based on those symptoms. AVIVA app allows to initiate a claims process by reporting an accident by providing accident details, scene details, witnesses, location details, and scene pictures through mobile phone.
  • Glow App launched by founder Paypal Max Levchin – Taking the concept of insurance to a new level, Glow First, a fertility fund acts like an insurance fund. When one signs up for this, they pay a premium of $50 for 10 months or till they conceive. If after 10 months, they haven’t conceived, Glow will pay for the fertility treatment. As Glow begins to get significant signings, they feel that they would be analyze data and price the premiums more appropriately. Marmalade in UK – Targeting the first time car buyers, marmalade uses telematics and advanced black box technology to develop safe driving skills among younger customers. It monitors the driving patterns of these customers and offers discounts for safe drivers. Bupa Health Apps and Tools – The fitness app developed by Bupa helps customers design and follow personalized training and fitness program depending on their strengths, weaknesses and their fitness needs. Additionally they have designed several health apps such as the “Diabetes Risk Assessment”, “BMI Calculator”, “Heart Health Assessment”, “Count your calories” and several such other apps to increase health awareness and drive customers towards healthy life style – ultimately helping the firm save on paying out high health claims expenses.Allstate’s Mobile App for Claims – All state have been constantly innovating their claims related mobile apps. These apps allow customers to obtain roadside assistance and accident support, send first notification of loss, initiating claims process, and also helps in claims settlement. In Sep 2013, they introduced a new feature – QuickFoto Claim has helped enhance customer experience by providing a much faster and easier option to settle claims. Based on the photos sent by the customer, an estimate is prepared and sent back electronically. The app allows customers to view their claim status, payment history or even send messages to their claims representative.Verti – Mapfre in Spain launched a completely online insurance firm – Verti with the concept of insurance in a box in 2011. The main concepts being accessibility and presence. In the first year of launch, the number of customers were almost twice the expected number and currently have close to 200,000 customers. The growth rate has been one of the fastest in the history of Spain.
  • This slide talks about the way forward for insurers:With nearly one-third of the insurance industry’s business expected to occur digitally within five years no insurer is immune to the need to make major improvements to the digital interfaces that connect to customers. Building digital links that create convenience and bring satisfaction to customers will be essential to spurring top-line growth going forward. But these improvements cannot occur in isolation. Insurers will also need to impose a plan for achieving operational excellence on the back end. Without taking steps to invest in operational supports, bottom-line growth will remain elusive
  • WIR 2014 key findings_australia

    1. 1. All materials under non-disclosure till February 26, 2014 Australia — Key Findings Deck February, 2014
    2. 2. Agenda World Insurance Report 2014 (WIR14) Introduction WIR 2014 High Level Key Messages WIR 2014 Key Findings Overview The information contained in this presentation is proprietary. Copyright ©2014 Capgemini. All rights reserved. 1
    3. 3. Each Year, Capgemini Publishes Insights on the Insurance Sector Through its World Insurance Report World Insurance Report Featured Topics Featured Topics Customer Experience Index (CEI) and Digital Capabilities of Insurers Note: Customer Experience Index (CEI) and Evolving Distribution Strategies Policy Claims MultiAdministration Transformation Distribution Transformation Model Customer and Distribution Analysis Optimizing the Insurer, Distributor and Customer relationship WIR was not published in 2010 The information contained in this presentation is proprietary. Copyright ©2014 Capgemini. All rights reserved. 2
    4. 4. WIR 2014 Addresses Operational Efficiency and Assesses Digital Capabilities of Insurers while Continuing the CEI from Last Year Efficiency Ratio Model 14 countries Five ratios analyzed: • Claims Ratio • Acquisition Ratio • Operational Ratio • Investment Ratio • Underwriting Ratio World Insurance Report 2014 Customer Experience Index (CEI) 15,500 customers 30 markets Exploring three dimensions: • products • networks/channels • customer lifecycle Spotlight Digital Capabilities of Insurers • Current state of insurer digital capabilities • Need for insurers to go digital given the growth of internet and mobile channels • Digital transformation to achieve top and bottom-line growth The information contained in this presentation is proprietary. Copyright ©2014 Capgemini. All rights reserved. 3
    5. 5. The Report’s Findings Draw on Data from 30 Markets and are based on Extensive Executive Interviews Countries Covered  Argentina  France  Norway  Sweden  Australia  Germany  Poland  Switzerland  Austria  Hong Kong  Portugal  Taiwan  Belgium  India  Russia  The Netherlands  Brazil  Ireland  Singapore  UK  Canada  Italy  South Africa  US  China  Japan  South Korea  Denmark  Mexico  Spain The information contained in this presentation is proprietary. Copyright ©2014 Capgemini. All rights reserved. 4
    6. 6. Interviews were Conducted with More Than 100 Leading Insurance Companies Across The Globe … Executive Interviews The following insurers agreed to be named in the report       AG Insurance Ageas UK Limited Allianz Italia Allianz Polska AMF Asistencia Sanitaria Collegial S.A.       Ethias NV / SA Folksam Gruppo Generali Espana Helvetia Italy Insurance Australia Group Jupiter MGA  Santalucía Insurance Company SA  Seguros Catalana Occidente  Skandia Old Mutual Wealth  Sparebank1 Forsikring AS  SulAmerica Seguros        AXA Polska AXA Seguros Generales Espana Belfius Insurance Cardif Caser Seguros CNA Compensa TU SA Vienna        Kemper Property & Casualty Länsförsäkringar AB Llyods Banking Group Mapfre Mutua Madrileña NFU Mutual Insurance Society Ltd Nordea Liv & Pension  Previdencia e Investimentos  TAL  Towarzystwo Ubezpieczeń Europa  Warta SA  Wesfarmers Insurance  Willis Insurance Group  Delta Lloyd (Belgium)  Porto Seguro Seguros  PZU SA  Zurich Financial Services Australia Ltd  Direct Line Group  DNB Skadeforsikring AS  Ergo Insurance N.V. (Belgium)  Quixa  Royal London Group  RSA – Sun Insurance Office  Zurich Seguros The information contained in this presentation is proprietary. Copyright ©2014 Capgemini. All rights reserved. 5
    7. 7. Agenda World Insurance Report 2014 (WIR14) Introduction WIR 2014 High Level Key Messages WIR 2014 Key Findings Overview The information contained in this presentation is proprietary. Copyright ©2014 Capgemini. All rights reserved. 6
    8. 8. 2014 World Insurance Report, Key Messages  Insurers had generally higher profits in 2012 mainly due to lower catastrophe related claims and increased use of newer technologies and channels to improve operating and acquisition ratios  There is a clear link between positive customer experiences and firm profitability and with close to 70% of customers who do not have positive experience with their insurers, insurers have significant scope and opportunity to enhance customer experience and improve their profit margins, leveraging digital channels  Insurers report that within 5 years they expect nearly one-third of their business to occur over digital channels – Digital transformation is an effective approach to meet the increasing demands of customers, create positive experiences, and secure customer loyalty. This along with operational excellence is the way forward for insurers aiming to boost their bottom line growth The information contained in this presentation is proprietary. Copyright ©2014 Capgemini. All rights reserved. 7
    9. 9. Agenda World Insurance Report 2014 (WIR14) Introduction WIR 2014 High Level Key Messages WIR 2014 Key Findings Overview The information contained in this presentation is proprietary. Copyright ©2014 Capgemini. All rights reserved. 8
    10. 10. Efficiency Model — Key Findings  Absence of major catastrophic events helped insurers post improved claims ratios in 2012: • Claims expenses that touched record levels of $126 billion in 2011 fell to $77 billion in 2012 due to lower number of catastrophe related claims. • In Australia, compared to the $4.4 billion in claims paid out in 2011, non-life insurers paid only about $1.0 billion in 2012. • Insurers also benefited from better aligning premiums to payouts in response to the record claim volume of 2011.  Insurer efforts in utilizing direct channels and newer technologies to acquire and serve customers helped achieve operational efficiencies: • Reduction in head count and increased use of direct channels such as internet and mobile were some of the steps taken by insurers to reduce costs. • Insurers who have begun making these investments might witness increased cost ratios in the short term as these efforts would take time to fructify.  Customers are gradually shifting to new alternative channels such as internet and mobile, creating opportunities for insures to improve their top and bottom-lines. • While internet-PC is already an important channel across all age groups in Australia, the importance of the mobile channel is fast rising, especially among the younger age customers in the country.  2012 turned out to be a good year for insurers, as profit margins of most insurers improved steadily: • Aided by favorable weather conditions, increased premium volumes, better management of operating and acquisition expenses, and stable macro-economic environment, insurers in most regions were able to post higher profit margins. The information contained in this presentation is proprietary. Copyright ©2014 Capgemini. All rights reserved. 9
    11. 11. Australia witnessed the biggest improvement in underwriting ratio aided by lower claims costs due to absence of any major disasters Non-Life Insurance Expenses as a Percentage of GWP (%), 2009–2012 PP Change 2011-12 (4.2) (3.8) (3.7) (3.7) (2.1) (0.6) (0.3) (0.1) 2.6 6.5 10.4 NA 19.2 6.3 (3.4) 7.8 6.4 4.8 (12.8) (0.6) (3.1) (6.8) (1.5) (9.3) (4.4) (1.1) 12.5 14.0 91.9 13.1 16.6 94.3 14.4 14.2 87.5 16.9 20.4 97.9 8.2 15.1 100.9 7.2 15.9 100.1 7.7 16.4 91.6 6.7 15.4 98.1 95.9 94.7 94.4 97.0 9.7 16.6 9.4 16.3 9.7 16.3 10.2 16.0 8.6 16.1 103.7 8.4 16.1 99.2 8.2 15.9 96.9 8.5 15.5 96.8 102.0 99.2 101.4 100.8 9.4 6.2 6.16.1 6.05.8 5.56.1 18.9 18.6 110.5 15.5 18.8 104.7 15.7 18.8 97.7 13.7 18.2 95.6 19.7 18.2 105.6 18.9 17.9 105.8 19.0 17.3 110.5 20.9 16.3 106.8 13.3 11.5 91.9 13.2 12.2 95.9 15.4 11.2 98.3 15.8 10.3 94.6 8.2 14.0 90.5 8.2 15.0 88.9 8.8 15.2 87.4 12.5 16.1 87.1 60 9.0 15.7 87.2 9.7 15.1 89.8 14.3 20.4 95.0 14.2 20.4 91.2 80 10.6 16.7 101.3 10.9 17.3 102.0 10.9 18.1 97.9 11.6 18.1 93.7 Underwriting Ratio (%) 100 19.4 16.6 99.1 18.5 16.7 96.2 17.6 16.4 105.4 16.7 16.4 95.6 120 10.6 14.0 102.0 11.3 13.1 94.9 10.6 13.0 9.0 12.6 104.4 121.2 140 6.3 123.3 31.8 5.7132.9 26.2 6.3 122.2 (9.8) 30.3 2009-11 (16.8) 40 73.0 70.4 63.2 63.7 86.4 87.0 89.6 89.2 68.3 65.7 63.4 58.5 79.0 74.7 72.8 72.8 69.5 69.0 68.4 70.8 77.6 77.0 67.5 76.0 65.5 64.5 58.9 60.6 86.8 95.3 89.7 NA 2009 2010 2011 2012 2009 2010 2011 2012 2009 2010 2011 2012 2009 2010 2011 2012 2009 2010 2011 2012 2009 2010 2011 2012 2009 2010 2011 2012 2009 2010 2011 2012 2009 2010 2011 2012 62.5 65.0 60.3 56.6 2009 2010 2011 2012 Germany 67.7 69.1 74.2 69.6 74.0 73.8 68.9 64.0 2009 2010 2011 2012 Belgium 2009 2010 2011 2012 63.0 61.0 71.4 62.5 2009 2010 2011 2012 67.1 70.5 71.7 68.5 77.4 70.5 97.6 82.8 2009 2010 2011 2012 20 UK Netherlands Spain Italy Switzerland France Brazil 0 Australia Japan Canada US Underwriting Ratio Acquisition ratio India Operational Ratio Despite substantial reduction in claims paid out in 2012 compared to 2011, higher reinsurance costs, as well as lower interest rates, had an adverse effect on profit margins in Australia Note: The ratios are valid only for non-life insurance; The ratios reflect non-life data as reported by the countries themselves, and hence include health insurance for Belgium, India, Italy, Spain, Switzerland, and the Netherlands; At the time of analysis, 2012 data was not available for India, where the financial year ends March 31st; The previous year ratios may have changed based on the refresh of results for some of the companies; PP refers to percentage points. Source: Capgemini Analysis, 2013 The information contained in this presentation is proprietary. Copyright ©2014 Capgemini. All rights reserved. 10
    12. 12. While Australia witnessed a significant improvement in claims ratio, the acquisition and operating ratios remained stable Improvement in Australia’s acquisition ratio was likely due to the rise in 2012 premium rates, given the spate of disasters to befall the country in 2011, as well as the possibility of lower commissions Countries / PP Change in Ratios, (2011-12) A significant improvement in claims ratio in Spain was offset by deterioration of operational and acquisition ratios leading to a very minor improvement in underwriting ratio Australia Japan Canada Belgium Germany U.S. U.K. Netherland Spain Italy Switzerland France Brazil India Claims Ratio -14.8 -8.9 -4.9 -3.7 -3.2 -4.6 0.5 -0.4 -4.9 0.0 2.4 8.5 1.7 NA Operational Ratio -1.6 -0.9 0.7 -0.1 0.4 1.9 -2.0 -0.5 3.7 0.3 0.5 -1.0 2.5 NA Acquisition Ratio -0.5 0.0 0.0 0.0 -0.9 -1.0 -0.6 0.3 0.9 -0.4 -0.3 -1.0 6.2 NA Underwriting Ratio -16.8 -9.8 -4.2 -3.8 -3.7 -3.7 -2.1 -0.6 -0.3 -0.1 2.6 6.5 10.4 NA The large improvement in underwriting ratios across Australia, Japan, and Canada was primarily driven by improvements in their claims ratios Underwriting ratio of non-life insurers in France was badly impacted by the increase in claims ratio which was driven by many low and medium-intensity damages caused by the cold wave in 2012 Note: PP refers to percentage points; Refers to change; 2012 Data for India is unavailable. Source: Capgemini Analysis, 2013; Company Annual Reports, 2009-12; Industry Reports from Insurance Associations and Regulators High Deterioration Medium Deterioration Low Change No change Medium Improvement High Improvement The information contained in this presentation is proprietary. Copyright ©2014 Capgemini. All rights reserved. 11
    13. 13. CEI — Key Findings  Several insurance markets witnessed marginal improvements in their CEI scores, however the overall percentage of customers having positive insurance experiences remains low: • Except US, where 51% customers reported positive experiences, all other markets had more than half of their customers with either neutral or negative experiences, presenting a potential flight risk challenge. • Australia witnessed a significant deterioration of positive experience levels causing it to slip four places from second last year to sixth this year.  There is a strong link between the level of positive experiences and factors that drive profitability: • Customers with positive experiences are nearly twice as likely to refer their friends or buy additional products from their insurers. • This behavior gets predominant in emerging markets such as Latin America and Developing APAC, clearly indicating a huge opportunity for insurers trying to tap into these markets that have huge growth potential.  Agent is still the dominant channel, however convenience and ease of use is driving customers, especially the younger ones towards digital channels: • Excluding the agency channel, new age digital channels such as internet has overtaken other traditional channels such as the bank and broker to emerge the next most popular one. • In emerging markets such as Latin America and Developing APAC, internet and mobile were cited as highly important by younger customers • Even in Australia, the importance of the mobile channels among the younger customers is increasing, making it imperative for insurers to focus on enhancing their mobile capabilities. The information contained in this presentation is proprietary. Copyright ©2014 Capgemini. All rights reserved. 12
    14. 14. World Insurance Report Voice of the Customer (VoC) Survey Covers 30 Countries Across Five Regions Countries Covered in WIR 2014 for the VoC Survey North America  Canada  US Latin America  Argentina  Brazil  Mexico Western Europe                 Belgium France Germany Denmark Ireland Italy Netherlands Portugal Spain Norway Sweden Switzerland UK Austria Poland Russia Developed Asia-Pacific  China  India        Developed Asia-Pacific Australia Hong Kong Japan Singapore South Korea Taiwan South Africa The information contained in this presentation is proprietary. Copyright ©2014 Capgemini. All rights reserved. 13
    15. 15. The 2014 WIR Customer Experience Index (CEI) Measures Customer Experience Across Three Dimensions Dimensions of Capgemini’s Insurance Customer Experience Index (CEI)         Life and Savings Pensions and Annuities Automobile Insurance Property Insurance Research and Getting a Quote Policy Acquisition Policy Servicing Claims Servicing CEI Channels / Networks  Insurance Agents  Insurance Brokers  Bank Branches  Phone / Call Centre  Internet  Mobile The 2014 WIR Voice of the Customer (VoC) will provide insights into customer satisfaction levels with personal-line insurance products and distribution channels. Source: Capgemini Analysis, 2013 The information contained in this presentation is proprietary. Copyright ©2014 Capgemini. All rights reserved. 14
    16. 16. Australia witnessed a significant deterioration in the percentage of customers with positive experience levels Insurance Customers with a Positive/Negative Experience by Country (%), 2013 3% 4% 5% 3% 4% 6% 6% 5% 7% 9% 6% 6% 8% 9% 4% 5% 10% 5% 8% 7% 11% 10% 8% 7% 8% 8% 8% 13% 7% 9% 46% 52% 52% 54% 55% 54% 54% 56% 54% 52% 57% 60% 60% 59% 64% 63% 59% 64% 62% 63% 62% 62% 66% 71% 71% 72% 73% 69% 77% 76% Negative Experience US Netherlands Austria South Africa Canada Australia Belgium Germany Argentina Switzerland France Ireland India Mexico UK Portugal Brazil Spain Italy Poland Denmark Norway Sweden Japan Taiwan Russia Singapore Hong Kong China South Korea Neutral Experience 51% 44% 44% 43% 41% 41% 40% 40% 39% 39% 37% 34% 32% 32% 32% 31% 31% 31% 30% 30% 28% 27% 26% 22% 21% 20% 20% 18% 16% 15% 4.5% 18.2% 0.0% 1.0% (3.4%) (4.7%) 1.0% (0.5%) 1.2% 5.6% 3.2% 6.5% (7.1%) (8.4%) (11.2%) 12.3% (0.9%) 2.9% 7.0% 4.1% 1.8% 4.7% 9.0% 8.8% 2.2% (0.3%) (3.5%) (1.0%) (2.9%) 1.7% % Point Change for Positive Experience 2012–13 Positive Experience As a result of this deterioration, Australia slipped four positions to 6th in 2013 from 2nd in 2012 Source: 2013 Insurance Voice of the Customer Survey, Capgemini, 2013 The information contained in this presentation is proprietary. Copyright ©2014 Capgemini. All rights reserved. 15
    17. 17. Australian non-life insurance customers with positive experience are nearly twice as likely to refer a friend to their insurer Percentage of Customers with Positive and Neutral or Negative Experiences Likely to Refer a Friend to their Insurer, (%) Life 100% 33% 67% 26% 74% 40% 60% Non-Life 25% 75% 30% 70% 28% 72% 80% 100% 40% 60% 31% 69% 52% 48% 54% 33% 67% 40% 60% 35% 37% 48% 52% Overall % of 52% customers with positive and neutral or negative experiences 80% 71% 68% 58% 60% 60% 46% 41% 40% 44% 37% 34% 36% 36% 40% 28% 19% 20% 19% 21% 18% 25% 24% 17% 20% 41% 19% 0% 0% Latin America Developing APAC North America Developed APAC Europe Australia Customers likely to refer a friend as a percentage of customers with Positive Experience Latin America Developing APAC North America Developed APAC Europe Australia Customers likely to refer a friend as a percentage of customers with Neutral or Negative Experience For life insurance, it is likely that, in addition to positive experience, several other factors such as brand, quality of advice, and financial performance play a major role in obtaining customer referrals Source: 2013 Insurance Voice of the Customer Survey, Capgemini, 2013 The information contained in this presentation is proprietary. Copyright ©2014 Capgemini. All rights reserved. 16
    18. 18. Overtaking traditional channels, internet-PC has emerged more important, as perceived by customers across all age groups Channel Importance by Region (%), Younger vs Older Customers Traditional Channels Agent Australia Developing APAC Latin America Developed APAC North America Europe Difference 43% 43% (0%) Digital Channels Phone Difference 43% 67% 49% 57% 59% 65% 40% 44% (8%) (6%) (4%) 63% (12%) 75% 50% 55% (5%) 48% 44% 56% 56% 37% 41% 4% 45% 45% 35+ years Difference 22% 0% 38% 38% 52% 50% 0% 38% 38% 43% 41% 2% 2% 43% 43% 0% 0% 59% 3% 56% (2%) 48% 52% 0% Internet-Mobile Difference 43% 52% (13%) 65% (24%) (4%) 59% 61% Internet-PC (4%) 21% 28% 22% 42% 23% 31% 25% 6% 19% 6% 18 – 34 years While mobile is not quite popular among the older age groups, its importance is fast rising among the younger customers, making it imperative for insurers to focus on enhancing their mobile capabilities Source: 2013 Insurance Voice of the Customer Survey, Capgemini, 2013 The information contained in this presentation is proprietary. Copyright ©2014 Capgemini. All rights reserved. 17
    19. 19. Spotlight — Key Findings  Within the next five years, nearly one-third of insurance business is expected to be generated via digital channels: • While the contribution of internet-PC is expected to nearly double, it is the growth of mobile channel- 510 times its current contribution, that is creating several opportunities for insurers.  Globally, there is a significant scope for improvement in the level of digital features offered by insurers: • Majority insurers are offering higher levels of digital capabilities by assisting customers in research and providing quotes, however when it comes to the truly important stage of claims servicing, insurer offerings often fall short of customer expectations. • North-American insurers are digitally more advanced than insurers in other regions and similarly nonlife insurers are much more digitized than their life counterparts.  Digital maturity, which is strongly related to profitability and efficiency, is relatively low for the insurance industry: • Firms with a strong digital presence and customer focus are 26% more profitable than other firms. • Few leading insurers are using advanced and innovative digital features to service customers and enhance client-centricity.  Digital intensity in combination with investments in channel integration, multiple touch points, and predictive analytics is likely to drive bottom line growth. The information contained in this presentation is proprietary. Copyright ©2014 Capgemini. All rights reserved. 18
    20. 20. Digital transformation entails a profound shift in the insurance firm and its relationship with distributors, suppliers, and end-customers Operational and Business Model for Successful Digital Transformation End Customers Customer Experience Research and Get a Quote Services Policy Acquisition Policy Servicing Insurance product Claims Servicing Focus Area for WIR 2014 Services Customer Interactions Customer Interactions Insurer Front Office Distributors and Partners Business Information and Data Management INSURER BACK OFFICE Sales/Service Staff, Intermediaries, an d Suppliers Insurance Company Insurers who can successfully execute the move toward digital transformation will be best positioned to capture the upcoming growth opportunities Maturity of Development The information contained in this presentation is proprietary. Copyright ©2014 Capgemini. All rights reserved. 19
    21. 21. Insurers would need to implement key functionalities for various stages across the insurance life cycle to enhance customer experience Key Areas of Functionality Across insurance Life Cycle Research and Get a Quote Policy Acquisition Policy Servicing Claims Servicing Static/Dynamic Organizational Information Online Application and converting quote to policy Policy Details/View Online Claims Notification Real-Time Information Capture/Gathering Document Management Policy Changes Online Claims Processing Proactive Prospecting Payment and Policy Issuance Reminders, Billing, and confirmation Claims Reports Including Tracking Proactive Query and Complaint Resolution Proactive Claims Identification, Assistance and Processing Customizable Quote Generation Seamless Multi Channel Integration Ability to Transact through Various Touch Points Effective Data Management and Use of Predictive Analytics Important area for customers The information contained in this presentation is proprietary. Copyright ©2014 Capgemini. All rights reserved. 20
    22. 22. While insurers are providing advanced quote gathering features, there is a significant scope for improving policy and claims servicing features Digital Online Capability Levels by Value Chain for Different Regions, 2013 Insurance Research and Get a Quote Policy Acquisition Policy Servicing Claims Servicing North America Europe Life Asia-Pacific North America Europe Non-Life Asia-Pacific Basic Note: Basic: Intermediate: Advanced: Leading Practice: Intermediate Advanced Leading Practice A primitive online feature providing simple information; Customers can interact via online channel; Insurers are able to respond back to customer requests and simple transactions can be completed online; The entire transaction life-cycle can be completed online without the need to be present in person The information contained in this presentation is proprietary. Copyright ©2014 Capgemini. All rights reserved. 21
    23. 23. Across different insurance life cycle stages, insurers have adopted few leading digital practices to enhance customer experience Leading Digital Practices Across the Insurance Value Chain Policy Acquisition Research and Get a Quote Claims Servicing Policy Servicing High Importance Area for Customers The information contained in this presentation is proprietary. Copyright ©2014 Capgemini. All rights reserved. 22
    24. 24. Additionally, some other leading practices adopted by insurers globally have been truly innovative Additional Leading Digital Practices Adopted by Insurers Marmalade – Targeting Young Drivers Glow App – Fertility App Bupa’s Apps – Encouraging Healthy Lifestyle Allstate’s All Inclusive Mobile App for Claims Verti – A Complete Online Insurance Experience The information contained in this presentation is proprietary. Copyright ©2014 Capgemini. All rights reserved. 23
    25. 25. Customer centric approach to digital is important for top-line but insurers need to streamline their operations for bottom-line growth Way Forward for Effective Digital Transformation Customer Centric Approach Top-Line Growth Effective Digital Transformation Operational Excellence Seamlessly Integrated Multiple Channels Ability to Transact through Various Touch Points Effective Data Management and Use of Predictive Analytics Bottom-Line Growth Significant technology investment is essential to ensure operational excellence and effective digital transformation The information contained in this presentation is proprietary. Copyright ©2014 Capgemini. All rights reserved. 24
    26. 26. www.capgemini.com The information contained in this presentation is proprietary. © 2014 Capgemini. All rights reserved.

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