Insurance Technology As A Catalyst For Change - Emerging Market Segments


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Emerging market segments in the GCC region and how insurance technology can be a catalyst for change.

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Insurance Technology As A Catalyst For Change - Emerging Market Segments

  1. 1. Emerging Market Segments :How Insurance Technology Can Act As A Catalyst For ChangeA GCC perspectiveInsurex, 9th October 2012, DubaiKalpesh DesaiCEO, Agile Financial Technologies YOUR Confidential Page § 1
  2. 2. Agenda 1 Where are we today? 2 Emergence of new market segmentsInsuranceTechnology 3 Technology as a catalyst for change 4 About Agile Financial TechnologiesConfidential Page § 2
  3. 3. Agenda 1 Where are we today? 2 Emergence of new market segmentsInsuranceTechnology 3 Technology as a catalyst for change 4 About Agile Financial TechnologiesConfidential Page § 3
  4. 4. Where we are today? Stricter financial viability and Low GDP, low capital interest rates, adequacy moderate equity norms Less Social media performance money for invasion business operations, customers Pervasive mobile & channels Lower technology WPS interest rates Toll on enforcement clients’ and pension restrict businesses plans to savings replace gratuity Regulatory reforms Post crisis business Technology at an trigger structural sustainability pressures inflection point changesConfidential Page § 4
  5. 5. The System Under Pressure Increased Regulation & OversightClients Chann el Dem•  Demand new ands products & services•  Client Acquisition & “In”Side Retention •  Asset Quality•  Risk-averse/ •  Dated, disparate, unforgiving inflexible systems •  Infrastructure •  Margin & Cost Econo pressures my Environment •  Liquidity crunch •  Regulatory & compliance uncertainties •  Industry consolidation & convergenceConfidential Page § 5
  6. 6. Regulation drives deeper penetration§  UAE mulls the introduction of pension funds to replace end of service gratuity -  Will give rise to the emergence of pension fund managers, administrators and custodians -  New possibilities for insurers to launch group pension products§  Mandatory health insurance gives rise to deeper penetration for health insurers§  Introduction of Wage Protection System gives rise to payroll processors, many of whom are contemplating micro-credit products, typically backed against end-of-service benefits, credit life plans, unemployment protection insurance or pension plans -  Most blue-collar workers do not have bank accounts and receive smart cards from payroll processors which gives them access to their money -  Because they aren’t part of the traditional banking system, insurers will have to innovate to reach their doorstepConfidential Page § 6
  7. 7. Agenda 1 Where are we today? 2 Emergence of new market segmentsInsuranceTechnology 3 Technology as a catalyst for change 4 About Agile Financial TechnologiesConfidential Page § 7
  8. 8. The demographic landscape Expat population in the GCC is 29% of the expected to population is reach 50mn by under 15 years of 2013 age • Approximately 18mn • Educated, exposed to of these are int’l media & new “unbanked” technology • Social attitudes and norms are changing rapidly Population is largely urbanised • Pressure on urban infrastructure • Expats with a long term sting in mind in the region, tend to acquire properties rather than pay rent Emergence of new market segmentsConfidential Page § 8
  9. 9. Accessibility challenges New age customers The “unbanked” •  Prefer technology over face-to-face interactions •  Limited access to banking channels •  Choose what they use •  Payments processed through WPS agents/ •  Always “on” exchange houses •  Expect instant access •  Predominantly remit moneys back home •  Oblivious to policies •  Remittances in 2011 were 270 Bn$ with approximately 50Bn$ remitted by this sector •  Largely uninsured, even for funeral products Door-step insurance : Different strokes for different folksConfidential Page § 9
  10. 10. Traditional Distribution/ Service Channels§  Traditional distribution and service channels do not provide extensive reach to the potential customers, due to restrictions in their location/ customer reach/ control over the operations -  Branches/ Offices -  Call centers -  Website/ Web portals -  AgentsConfidential Page § 10
  11. 11. Traditional Vs. New Channels Complex Mobility is the future New for old Vs. Simple products •  Complex products •  Even though internet •  New sales and need personal touch and new technology service channels are (agent) and advisory are accessible and designed to attract services to sell, convenient for the potential customers, however there are new age customer, however it is many products that there exists huge important to preserve can be sold and potential with the the old ones and serviced directly “unbanked” make sure they online and “over the population that does smoothly transition counter” not have access to from the “traditional •  Gives rise to the technology and needs ways to the future” importance of product service truly at their design and doorsteps positioning with respect to their sales and distribution channelsConfidential Page § 11
  12. 12. Social Media in Insurance§  A recent Boston Consulting Group study revealed: -  47% of consumers who use social media do so in order to obtain the opinion of friends and peers before making a buying decision. -  64% of consumers who pick an insurer based on friends’ advice are satisfied with their choice, compared with 56% of those who do not rely on feedback. -  14% of consumers are connected to their insurance agents via Facebook, Twitter, or LinkedIn, and 25% of these are connected to their agents on two or more social networks.§  Social media can be used as a very power referral method to increase sales§  Teach your agents/ brokers to utilize social media to increase their market presence§  Insurers can use social media to SELL and SERVICE efficientlyConfidential Page § 12
  13. 13. Social media portals can be a virtual branchConfidential Page § 13
  14. 14. Social media as a means of identifying fraudConfidential Page § 14
  15. 15. Agenda 1 Where are we today? 2 Emergence of new market segmentsInsuranceTechnology 3 Technology as a catalyst for change 4 About Agile Financial TechnologiesConfidential Page § 15
  16. 16. Your customer wants a choice Insurance Co SMS/ Door-step Mobile Services Insurance Customer Internet/ Bank/ Online Financial Services Advisor Social Agents/ Media BrokersConfidential Page § 16
  17. 17. The (r)evolutionAs needs evolve§  Demand for a flexible technology deployment model evolves§  Flexibility in processes becomes a must§  Your infrastructure should be conducive to enable innovation§  You should be able to evolve new user experiences§  You should be able to implement new pricing models§  Effect change in organization structures and management through effective decision makingConfidential Page § 17
  19. 19. The barrier •  Inflexible Applications •  Islands of information •  Tedious Product Development •  Multiple interface points •  Business Continuity imperatives •  Lack of research •  Manage new regulatory & compliance norms •  Manage business essential activities •  Increase competitiveness I.T. BusinessConfidential Page § 19
  20. 20. Where will your priorities lie? Growth • Client relationships • New product launches Survival • Grow market share •  Comply with new regulations • Improve operational efficiency •  Improve risk profile • Achieve customer profitability •  Reputation management • Achieve margins •  Reduce losses • Achieve investor expectations •  Protect customers‘ assetsConfidential Page § 20
  21. 21. Can we strike a balance? Survival Growth •  Comply with new regulations • Client relationships •  Improve risk profile • New product launches •  Reputation management • Grow market share •  Reduce losses • Improve operational efficiency •  Protect customers‘ assets • Achieve customer profitability • Achieve margins • Achieve investor expectationsConfidential Page § 21
  22. 22. Technology Trends impacting your landscape Internet computing Analytics Mobile Computing Collaborative Security and Communication SustainabilityConfidential Page § 22
  23. 23. Collaborative Communication§  The way we communicate has changed -  Social media -  Community forums -  Collaborative tools -  Content disseminationConfidential Page § 23
  24. 24. Collaborative Communication§  Insurers to provide innovative programs and social networking tools as part of their communication and collaborative process§  A collaborative communication framework can enable the movement of highly skilled adjusters and agents to a centralized model allowing lower-cost field resources to tap into their knowledge base§  Collaboration enables accuracy in underwriting decisions, loss decisions, and more interactive customer servicing models§  The distribution channel extends beyond traditional media channels and social networks are used to promote and capture new businessConfidential Page § 24
  25. 25. Do Not Ignore Social Computing Core Insurance Software Employee/ Employee / Customer Customer Social Mobile Networking Devices Accounts PortalsConfidential Page § 25
  26. 26. “Socially” Active Insurance 2-way messaging Advisory, origination, Mobile Apps/ Portals service management for Customers and Agents Core Insurance Technology Platform FB Quotations/ Claim Full Service and Interaction Link to Agents/ Sales/ Claims Capabilities Intimations/ live Interaction and officers AdviceConfidential Page § 26
  27. 27. Mobile Computing§  Mobile channels can become a highly differentiated channel for core business§  Immediate impact as common transactions such as payments, alerts, loss submission, emerge as competitive differentiators§  Carriers can rapidly reach emerging markets where mobile devices and coverage exceed traditional connectivity§  Mobility applications for agents and brokers enable insurers to differentiate and capture/retain distribution channel mindshare§  Empowering agents and brokers with just-in-time account and product information will enable a tailored experience when they interact with their customers in the field§  The mobile device feature set will enable new applications to lower loss-costs and improve underwriting dataConfidential Page § 27
  28. 28. Sample Apps The Mobile Branch Field Activities Client / Insurance Premium Endorsement Premium Claim Intimation Cover Note Policy Enrollment Calculation Requests Collections Request Generation Core Insurance SystemConfidential Page § 28
  29. 29. Doorstep Insurance Instant Instant Capture Payments Instant ServiceConfidential Page § 29
  30. 30. Security Imperatives In The New Era Compliance Portable and Devices Regulation Cyber Outsourcing Threats The rise of Cloud Security social Computing Imperatives networksConfidential Page § 30
  31. 31. Technology as an enabler of business agility Increased o  Create value for your customers Response Levels o  Improve experience for distributors, partners and Increased employees Revenues o  Reduce the sales cycle Cost o  Enhance interoperability Efficiency between systems o  Shift to holistic integrated systems from islands of Scalability disparate information o  Provide integrated view of Integrated/ customer information Aligned across various products Processes o  Improve information-sharing practicesConfidential Page § 31
  32. 32. BUSINESS AGILITY !! NOT A LUXURY !! The ability of a business to adapt rapidly and cost efficiently in response to changes in the business environment.…Confidential Page § 32
  33. 33. Agenda 1 Where are we today? 2 Emergence of new market segmentsInsuranceTechnology 3 Technology as a catalyst of change 4 About Agile Financial TechnologiesConfidential Page § 33
  34. 34. Corporate Overview Products Technology Solutions The Company We Keep Our InfrastructureConfidential Page § 34
  35. 35. Corporate Overview Products Technology Solutions The Company We Keep Our InfrastructureConfidential Page § 35
  36. 36. The Evolution Agile Financial Technologies is an Indian IT company focused on providing products and services to the Banking, Asset Management, Insurance, Financial Services and Capital Market sectors Investors include IDG Ventures India (US$ 6.8Bn Fund) and Quvat, Singapore (US$ 1.2 Bn$ Fund) M&A, Product Development and Services Delivery led by a strong management team Strong management team withAcquisition of intellectual property OEM relationships with strategic experience in managing large Vertically integrated servicesand IT/ITES companies focused components to fill the value chain enterprises and executing large delivery process on the BFSI sector projects Recognized as an emerging market leader in the provisioning of software products to the BFSI sector by leading analyst firms and publicationsConfidential Page § 36
  37. 37. Milestones Named in Gartner’s 2010 report as one of 25 leading BFS software providers Named in IBS Intelligence Sales League, 2010. Ranked # 6 in lending solutions Ranked 107 in the global Fintech 100 report for 2011 (American Banker/IDC Connect) Awarded the “Best Asset Management Software Provider” in the Middle East in 2011 by World Finance (UK) Awarded the “Best Support Partner for Finance Companies for 2011” and was a finalist for the “Star of Business Award” by SME Advisors & ADCB Red Herring Asia 2012 finalistConfidential Page § 37
  38. 38. Our Presence Central & Eastern Europe Middle East §  Russia §  UAE §  Poland §  Oman §  Kazakhstan §  Bahrain §  Kingdom of Saudi Arabia §  Kuwait §  Qatar Asia Pacific Africa §  India (Global Delivery Center) §  Mauritius §  Sri Lanka §  Kenya (Comesa Support Hub) §  Indonesia §  Tanzania §  Malaysia §  Uganda §  Phillipines §  Malawi §  Singapore §  Ethiopia §  Nigeria (Ecowas Support Hub) Americas §  Ghana §  North America §  Zambia §  U.S.A. §  Zimbabwe §  Latin America §  Libya §  MexicoConfidential Page § 38
  39. 39. Corporate Overview Products Technology Solutions The Company We Keep Our InfrastructureConfidential Page § 39
  40. 40. Our application footprint Financial Services Group Bank Asset Micro Mgmt Pension Life General Finance Fund Insurance Insurance Co Personal Private Banking & Banking Corporate Banking Wealth Management Trade Cash Wealth Family BancLoans Deposits Finance Loans Treasury PMS Mgmt Mgmt Offices Assurance Business functions within a financial services group that Agile FT’s software automates Confidential Page § 40
  41. 41. Banking Suite Agilis Investment Management • Wealth Management • Funds Management • Transfer Agency • Financial Planning • BancAssurance • Stock Broking Back Office • DMat • Registrar (RTA) Agilis Treasury Management • Forex (interbank, merchant and loans & deposits) • Fixed Income • Money Market • Equity • Mutual Funds • Derivatives (interest rate & currency), • Commodities (bullion, silver, etc), among others • Liabilties Management Agilis BancAssurance • Multi-carrier support • Life and Non-Life underwriting workflow • Reconciliation of policies, commissions, fee income • Inward/outward commission reporting structure • Customer relationship management • Integration with Core Banking and Core Insurance enginesConfidential Page § 41
  42. 42. Banking Suite Agilis Lending •  Loan Origination •  Loan Management •  Loan Collections Agilis Credit MonitoringConfidential Page § 42
  43. 43. Financial Inclusion Agilis Universal Microfinance •  Core banking for MFIs •  CGAP Compliant Agilis DoorStep Banking •  Last mile connectivity •  Hand-held based POS devices •  ISO8583 messaging based switch and controller Agilis MicroInsuranceConfidential Page § 43
  44. 44. Investment Management Suite Exchange   Prop Book Fixed  Incomes     Money  Mkt   Real  Estate   Islamic     Forex     CRM Traded   Deriva?ves   /Debt  Family   Instruments   Investments   Instruments   Family   Products   Corporate Treasury Bonds/ Bonds/ Vanilla Integrated GL Equity Treasury Buy Spot Shares Debentures Sukuks Swaps Bills Real Estate Trades Conv.NonC NAV Wealth Managers Bonds Shariah Preference Commercial Selling Forward Exotic Computation Shares Floating/ Compliant Papers Real Estate Trades Swaps Fixed Equity Mutual Funds Treasury Position Warrants Bonds Certificate of Lease Discounted Deposits Murabaha FX Swaps Real Estate Hedge Funds Market Risk ETFs Bonds Call Buy/ Build/ Money Sell Private Equity ALM Asset Repos & Options Backed Reverse Portfolio Managers Securities Repos Exposure & Limits Futures Floating Insurance Funds Rate Agr Options on Futures Pension Funds Pricing Engine Settlement Manager Market Data Interface Integration APIs Straight-Through Processing : Integrated Front/Mid/Back-office workflowConfidential Page § 44
  45. 45. Universal Lending Suite Web Enabled Correspondence Dashboards Email Alerts Mobile Alerts User Interface & Tracking Handheld POS Presentation Layer Individual/Group Shares/Savings Loan Origination, Loan Contract Credit Monitoring, Agilis Smart Switch Customer Account Appraisal & Execution & Recovery & Creation Operations Approval Disbursement Closure Branch Management ATM Networks Individuals Loan Processing Loans Savings/ Groups Shares Workflow Deposits Customer Information Products Operations Management Mobile Banking Credit Risk Management Reporting Engine Core Financial Accounting General Ledger Engine System Web Services Agilis Lending Suite Last Mile ConnectivityConfidential Page § 45
  46. 46. Insurance Core Insurance • Agilis Non-Life • Agilis Individual Life • Agilis Group Life • Agilis Health • Agilis Pensions & Annuities • Agilis Takaful • Agilis MicroInsurance • Agilite (Lite Non-Life Insurance – Live in 90 days) Agilis Insurance Broking • Rate comparison-Policy Administration-Claims follow up-Accounting • All life and non-life businesses covered • Powerful commission tracking Agilis Channels • BancAssurance • Customer Self Service • Agents • Third Party Administrators • Brokers • Web Services • Mobile InsuranceConfidential Page § 46
  47. 47. Core Non-Life InsuranceConfidential Page § 47
  48. 48. Life InsuranceConfidential Page § 48
  49. 49. Corporate Overview Products Technology Solutions The Company We Keep Our InfrastructureConfidential Page § 49
  50. 50. Technology Services OfferingsDedicated ODC setups Technology Solutions• Project Management / Service Delivery • Business analysis and design• Experienced Skill-sets with domain knowledge • On-premise support• Process driven approach base on international • Offshore development servicesbest practices and standards Dedicated OffshoreDomain Knowledge Development Technology Skills• Investment Management Center • Oracle• Capital Markets • SQL Server• Lending • .Net• Islamic Finance • J2EE• Trade finance & factoring • Jdeveloper11/ADF• Microfinance & microinsurance Technology • Oracle Forms & Reports• Life Insurance Solutions• Non-Life (P&C) Insurance• Takaful• BancAssurance• Insurance Broking Oracle Applications Practice • Oracle Applications • Oracle BI • Oracle CRM Confidential Page § 50
  51. 51. Corporate Overview Products Technology Solutions The Company We Keep Our InfrastructureConfidential Page § 51
  52. 52. The Company We KeepBankingAssetManagementFinancialServicesInsurance Insurance Brokers Confidential Page § 52
  53. 53. Corporate Overview Products Technology Solutions The Company We Keep Our InfrastructureConfidential Page § 53
  54. 54. Infrastructure§  India – Global Delivery Centre -  150+ associates in product development, support and delivery across Mumbai and Pune -  Mumbai : Investment Management & Insurance Groups -  Pune : Lending & Microfinance Group§  Middle East & Africa -  Dubai Internet City -  Regional Support -  Sales§  Rest of the world -  Level 1 & 2 support to regional clients through our extensive reseller channel consisting of 30+ channel partners in 20 countries Confidential Page § 54
  55. 55. Thank you Kalpesh DesaiConfidential Page § 55