Knowing your customer is crucial in any sector, but in insurance, due to the reduced number of interactions and product complexity, it is even more critical. See how an insurance carrier should embrace technology to address the different channels and “actors.” Is the end-customer of an insurance company its only and truly customer? Find out more with Eduardo Romano, Insurance Director at Everis and former CIO of Liberty Seguros.

1. | INSURANCE – Knowing Your Insurance Customer
INSURANCE
Knowing Your Insurance Customer

2. | INSURANCE – Knowing Your Insurance Customer| INSURANCE – Knowing Your Insurance Customer
Eduardo
Romano
Director| everis
@
in
Eduardo.manuel.romano@everis.com
/eduardoromano/
https://www.outsystems.com/blog/posts/low-code-digital-
transformation-insurance/
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Blog

3. | INSURANCE – Knowing Your Insurance Customer| INSURANCE – Knowing Your Insurance Customer
From B2B & B2C to B2B2C
Changes to the nature of the business
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4. | INSURANCE – Knowing Your Insurance Customer
B2B
The agent is the customer to
the insurance company
B2C
Expensive distribution costs on
attracting customers to online
platforms
Policy holder
Insurance
agent / broker
Insurance
company
Insurance
company
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5. | INSURANCE – Knowing Your Insurance Customer
Bank
Policy holder
Non-insurance
company
(Car manufacturers, car
dealers, utility providers,
telecom companies,
retailers, digital players,…)
Bancassurance has been a successful
model for many years, and other non-
insurance players already distribute
insurance in several markets
Alternative distribution channels are
focused on selling annex insurance
products as supplements to core
products
Insurance
company
Insurance
company
B2B2C
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6. | INSURANCE – Knowing Your Insurance Customer
Affinity / Peer-to-peer
organization
(Employers, franchises,
professional organizations,
trade groups, associations,…)
B2B2C
Aggregator
Affinity and peer-to-peer groups
have access to a pool of potential
customers of a less risky
demographics
Aggregators allow consumers to
easily compare product features,
carriers, coverage and price
Insurance
company
Insurance
company
Insurance
company
Insurance
company
Policy holder
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Distribution
Physical to Digital
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8. | INSURANCE – Knowing Your Insurance Customer
Distribution channel evolution by region (in %)
Source: 2019 Mckinsey Global Insurance Pools trends and forecasts: Distribution
Physical channels still dominate
despite the shift to a digitally-
enabled omnichannel distribution
model (insurance company
branches and agent/broker
branches)
As the distribution landscape
becomes more technology-
enabled, InsurTech players,
digitally enabled insurance
channels and aggregators will
assume a larger role.
10 12
8 11
50
49
32 28
2012 2016
USA
5 5
53 58
20 16
23 21
2012 2016
EMEA
7 9
58 59
35 32
2012 2016
USA
10 11
8 9
25 25
56 55
2012 2016
EMEA
Tied agents and branches Brokers Bancassurance Direct and other
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LIFELIFEP&C

9. | INSURANCE – Knowing Your Insurance Customer
Finding the right role in a new ecosystemCapitalize on Human and Digital
Blockchain, IoT and
AI are expected to
revolutionize the
industry
The majority of the
customers still values
meeting with an agent
before buying life
insurance
Modernize Non-life
insurance for
commercial lines,
which is a challenging
to digitalize line
Work in partnership
with car manufacturers,
technology providers
and other affinity groups
Insurers need to rethink the roles they expect their physical channels to play.
Affinity and peer-to-peer groups may play an important role in the insurance
market, particularly in niche segments.
Customers
InsurTechs Partners
Personal
Lines
Commercial
Lines
Affinity Groups
Bancassurance
P2P
platforms
Aggregators
Digital First
Insurers
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10. | INSURANCE – Knowing Your Insurance Customer
Physical channels are being refocused to the stages of
the sales process where they can add the greatest value.
By making use of digital and
remote contact channels, to
provide customers the best
interaction possible
Improve Customer
Experience
Of insurance products to expand
their portfolio, extend their sales
year and improve client
relationships
Increase Cross-Selling
Making use of data analytics,
enabling prospects to be
steered to the channel that
best suits their needs
Target New Customer
Segments
By training agents to
provide complex advice
and sell products that are
more difficult to sell
through direct channels
Sell more Profitable
Products
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11. | INSURANCE – Knowing Your Insurance Customer
Statistics show that brokers and agents
remain important, but direct and other
online channels are gaining relevance
in the insurance market.
Source:
1. Best’s Special Report: Insurers Warming to Direct-To-Consumer Investments to Improve
Distribution, Customer Experiences (A.M. Best)
2. Mckinsey (December 2018): “Friends or foes: The rise of European aggregators and their
impact on traditional insurers”
3. NTTData/everis Insurtech Global Outlook 2019
Of the surveyed insurers is considering to implement a
direct-to-customer distribution channel. (1)
Billion of global insurance tech investment reached in
2018. (3)
Share of total revenue for Dutch aggregators comes
from insurance products, in line with other European
countries. (2)
40%
80%
$4,2
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12. | INSURANCE – Knowing Your Insurance Customer
InsurTech
Tech giants showing interest in entering the
insurance industry.
45 investments made by top 25 Non-Life
insurance companies (2016-2017). (3)
There are contrasts between the European landscape and the US market
regarding the emergence of disruptive distribution channels.
Source:
1. Mordor Intelligence - Europe online insurance market - growth, trends and forecast (2019-2024)
2. Mckinsey (December 2018): “Friends or foes: The rise of European aggregators and their impact on
traditional insurers”
3. CB Insights
4. FinTech Futures: European insurtech trends: shift from disruptive to enabling insurtech
Sector dominated by direct players.
Different regulations, agents, and brands per
state.
Insurers invested heavily in their own brands.
Aggregators
12
267% growth in investments (2016-2017). (3)
$5,5 billion and $15,3 billion – two major
acquisitions in 2018. (4)
75% of the total revenue respects insurance
products. (1)
1/3 of market share. (2)
~50% of online insurance sales (2018). (2)
EUROPEUSAUSA

13. | INSURANCE – Knowing Your Insurance Customer| INSURANCE – Knowing Your Insurance Customer
The Future
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BUSINESS AND DISTRIBUTION MODELS
Set flexible business and distribution models,
moving beyond a succession of pilots and
making use of the technology available
PARTNERSHIPS
Clearly define the desired position in the
ecosystem, cooperation models and choose
the right partners
CUSTOMER CENTRICTY
Customer centricity and innovation must be
the cornerstones of the distribution strategy
REFOCUS AGENTS AND BROKERS
Refocus agents and brokers so they can add-value
performing tasks like deepening customer
relationship or sell more complex products
SIMPLE ACCESS AND TRANSACTIONS
Turning each interaction with the client a
frictionless experience is key for the future
success of insurance carriers
The Transformation is imperative and relies in five key issues
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Low-code let’s teams produce more value… quicker
TIME-TO-MARKET
Make the software development many times faster
than traditional methods
AGILITY
Increase of agility in the functionalities and codes
IMPROVEMENTS
Improvements in the richness of the users interface
and the customer experience
MOBILITY
Connect the disparate groups so that everyone can
work together on a single platform and towards
similar goals
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Benchmark
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B2C
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B2B

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MoneySuperMarket offers a fast comparison between a wide range of
insurance products. Additionally, they offer promotions and tailored
advices for saving money when purchasing an insurance product
Besides comparing a variety of insurance products from different insurers,
independer offers the customer the option to buy the insurance directly
from the website or to be redirected to the insurer’s website
Compare.com aims to transform the insurance purchase process into a
regular shopping tour. Partnering with over 60 American car insurance
companies, it allows customers to choose the insurer by state
CoverHound offers accurate rates and a curated list of best options for
both personal and commercial insurance lines. Furthermore, it offers
businesses a lead-generating partnership deal, with benefits for both sides
Aggregators
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19. | INSURANCE – Knowing Your Insurance Customer
Gallagher Affinity offers a full array of distinctive benefits including
financial, insurance, travel and discounted services and products to
affinity associations’ members or customers
The American Legion works in partnership with GEICO to offer
insurance discounts for Military (Active, Reserves, Guard Members),
Retirees, Veterans and Dependents
IEEE members can take advantage of exclusive and discounted pricing
on insurance and a variety of products and services. As an example, IEEE
members in India may enroll in a Medical insurance plan supported by
IEEE.
CAUT’s partnership with Johnson Insurance offers competitive rates for
home and auto insurance and plan benefits to CAUT’s members and
employees.
Affinity
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Thank You!
/eduardoromano/
@
in
Eduardo.romano@everis.com