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Breathe New Life into Life Insurance


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See how wearables data can fuel profitable revenue streams for insurers.

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Breathe New Life into Life Insurance

  1. 1. BREATHE NEW LIFE INTO LIFE INSURANCE HOW WEARABLES DATA FUELS PROFITABLE REVENUE STREAMS FOR INSURERS Kym Gully Product Strategy and Development Lead – Accenture Life and Annuity Software October 30, 2019
  2. 2. Copyright © 2019 Accenture. All rights reserved. 2 The world’s largest global strategy, consulting, digital, technology and operations company. DELIVERING HIGH PERFORMANCE With 492,000 employees in more than 200 offices in 55 countries, Accenture brings a unique perspective to the client’swe serve.
  3. 3. Copyright © 2019 Accenture. All rights reserved. 3 BRINGING THE POWER OF ACCENTURE TO THE LIFE & ANNUITY MARKET Accenture is a leader in the market, helping carriers innovate and grow by applying today’s most modern new business and policy administration capabilities. DIGITAL FRONT END CORE ALIP ALIP CLOUD ANALYTICS BACK END INTEGRATION AS A SERVICE ORCHESTRATION New Business Underwriting Policy Administration Claims & Payout IaaS PaaS SaaS (in development) DevSecOps L&A Analytics AI Virtual Assistants Video Mobility & Portals Quotes & Illustrations
  4. 4. Copyright © 2019 Accenture. All rights reserved. 4 WEARABLES ARE CHANGING LIFE INSURANCE Around 76 percent of the more than 32,000 insurance customers we recently surveyed around the world were interested in health monitoring services.* WEARABLES MARKET: $84 BILLION BY 2022** * The Voice of the Customer: identifying disruptive opportunities in insurance distribution, Accenture Research, 2017 ** Wearable Electronic Devices, Worldwide, Gartner Forecast, 2018
  5. 5. Copyright © 2019 Accenture. All rights reserved. 5 IMPROVING HEALTH PROTECTING WEALTH People want to live well at all stages of life. “Everyday insurers”: • Connect • Engage • Encourage
  7. 7. Copyright © 2019 Accenture. All rights reserved. 7 WEARABLES AND WELLNESS DEVICES PROLIFERATE “Blood pressure watches, sleep tech and more: CES 2019 was all about health” – CNET CES saw a 15% increase in floorspace dedicated to health tech* *Source:
  8. 8. Copyright © 2019 Accenture. All rights reserved. 8 PREDICTING RISK ENCOURAGING WELLNESS Massive databases; 300+ million records Health risk engines No need to create new data No APS required Ongoing updates; sentient 628
  9. 9. Copyright © 2019 Accenture. All rights reserved. 9 REDUCING RISK REDUCING TIME Traditional evidence Progressive evidence STATIC – DELAYED TIME DYNAMIC – REAL TIME M O N T H S APS, Exam1, MIB, MVR, Rx GATHER INFORMATION MANUAL ANALYSIS RISK SNAPSHOT END FROZEN IN TIME Electronic medical records (hospital) Electronic health records (doctor) Fitness devices Wellness app risk engines APS Exam1, MIB, MVR, Rx ALL THE TIME “ PAY A S YO U L I V E ”
  10. 10. Copyright © 2019 Accenture. All rights reserved. 10 INTELLIGENT DIGITAL EVIDENCE DATA PLATFORM VALUE PROPOSITION Increase and expand customer engagement Enable underwriting immediacy Expand provider ecosystem to achieve a critical mass From static to recurring always on to enable personalized intelligence AI based data analysis to enrich risk assessment
  11. 11. Copyright © 2019 Accenture. All rights reserved. 11 UNLOCKING VALUE DIGITAL INSURANCE PLATFORM Connected people, health and wellness PLATFORMS LIFE INSURANCE HEALTH WELLNESS PERSONALIZED PRODUCTS, RATING PAY AS YOU LIVE HEALTHCARE PROVIDERS’ DATA e.g. Hospital, Medicine HIV test, nutrition advice FITNESS CLUBS AND WELLNESS PROGRAMS (e.g. quit smoking) CASHBACK (e.g. on purchases of healthy food) LOYALTY PROGRAM Points awarded for healthy behavior WEARABLE FITNESS MONITORING DEVICES Premium based on healthy activities and changing over time NEW UW DECISIONING
  12. 12. Copyright © 2019 Accenture. All rights reserved. 12 APPLYING WEARABLES DATA TO DRIVE BUSINESS OUTCOMES PAY AS YOU LIVE • Periodic calls to wellness risk engine • Continuous underwriting • Paired with product pricing adjustments for changes to premium/charges, coverage availability and cash refunds PERSONALIZED PRODUCTS • Risk factors received and passed to product engine • Risk factors incorporated into product mechanics • Adjusted product quoting (e.g. premium, charges) UNDERWRITING • Injects wellness risk data • Risk at the margins • Impact to rating (debits/credits, risk class, table ratings) • Fraud detection • Inform underwriting requirements • Dynamic application
  13. 13. Analytics WEARABLE TECHNOLOGY VENDORS Devices Data Access Controls Copyright © 2019 Accenture. All rights reserved. 13 WEARABLES INTEGRATION CONCEPTUAL ARCHITECTURE NEW BUSINESS & PAS Rules Engine Review Data Device Users authorize admin system to subscribe SecureData Storage Underwriting ADMIN SYSTEM IPAAS API Gateway Device Connectors Device Users stream data Get Subscribed Data
  14. 14. John Hancock Vitality® Program • Based on point system • Customers engage 600 times per year* • 30% lower hospitalization costs* Irish Life My Life Program • Based on scoring system using clinical trials data • #1 downloaded app in Ireland Copyright © 2019 Accenture. All rights reserved. 14 USE CASES *Source: AccentureTechnologyVision for Insurance 2019 + =
  15. 15. Copyright © 2019 Accenture. All rights reserved. 15 CHALLENGES ETHICAL Ethical • Negative impact on risk pools • Cost prohibitive insurance • Low perceived need
  16. 16. • GDPR, HIPAA, HITECH, GINA • Evolving legislation regarding external social data (New York state) – Social data in risk evaluation: insurer must prove the third-party data source is not biased in any way – Transparency in how data is collected • Algorithm transparency - Challenging – Challenge: most are proprietary and difficult to prove unbiased CHALLENGES REGULATORY Copyright © 2019 Accenture. All rights reserved. 16 Regulatory
  17. 17. Copyright © 2019 Accenture. All rights reserved. 17 WHERE ARE WEARABLES GOING? 46 percent of consumers would pay more for personalized, real-time services ... …and they’re willing to share more personal data to get them. Source: Accenture 2017 Global Distribution & Marketing Consumer Study.
  18. 18. Copyright © 2019 Accenture. All rights reserved. 18 QUESTIONS