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Digital Business
Catching the Consumer Data
Wave: A New Opportunity in the
Insurance Ecosystem
With the profusion of insurance consumer data coming online, the role
of data intermediaries is emerging as a key player in the insurance
ecosystem. Insurance distributors are especially well-suited to take the
lead in analyzing user data and sharing insights to drive innovative
product offerings and growth.
Executive Summary
The eruption of customer wellness and activity data
captured by wearables, lifestyle apps and other digital
platforms presents a tipping point for the insurance
industry. Today’s digital generation expects brands to
use consensual data to enhance their experience by
offering more personalized services and offerings. The
insurance industry is at the cusp of disruption, driven
by a combination of nimble start-ups using emerging
technologies and new data sources to serve evolving
customer preferences. This is pressuring insurers to
change how they approach product design, pricing and
distribution in ways that leverage all available data.
February 2019
Cognizant 20-20 Insights
2  /  Catching the Consumer Data Wave: A New Opportunity in the Insurance Ecosystem
Cognizant 20-20 Insights
Yet, most insurers are unprepared to access and
use this data to offer personalization, based on
individual risk assessments or anonymized profiles,
and support customers through their various
insurance needs and policy lifecycle. Moreover,
insurers are not equipped to receive and analyze
incoming data flows from myriad digital platforms.
Likewise, device manufacturers are ill-equipped to
share user data directly with the myriad of insurers
across geographies.
This predicament presents an opportunity for
a new player in the insurance ecosystem: the
data intermediary. With a focus on the Asia-
Pacific region, in this white paper we examine the
underlying forces causing this data dilemma and
the need for an investment in creating a common
data-warehousing platform ideally positioned
between the data receiver, such as a wearables
manufacturer, and the insurer. We posit that a
distributer-driven platform should analyze the data
and share insights to help all stakeholders across
the ecosystem enhance their services and offers,
thus providing new growth opportunities.
Insurers would benefit in many ways as they
improve the risk profiles of customers, delight them
in new ways, enhance product innovation and reap
economic advantages through more targeted
spending and claims efficiency. This new ecosystem
would create growth opportunities industry-wide
as it accelerates the insurer’s journey toward real-
time underwriting and loyal customer renewals.
Such a distributor-driven ecosystem would require
effective collaboration among insurers, policy
makers, regulators and cybersecurity experts to
ensure a robust framework — one that benefits
customers and protects data privacy rights. We
also explore the possible challenges, focusing on
the evolving regulatory landscape in particular, and
envision a way forward for the industry.
Cognizant 20-20 Insights
3  /  Catching the Consumer Data Wave: A New Opportunity in the Insurance Ecosystem
Four forces driving the data dilemma
Throughout the Asia-Pacific region, the insurance
industry faces data headwinds — all brought on by
changes in consumer behavior and technology
adoption. The four forces most significant to
insurers are:
❙❙ Explosion of digital data: Data monetization
will become a major source of revenue for
insurers, as the world creates 175 trillion
gigabytes (175 zettabytes) by 2025, up from 33
zettabytes in 2018, according to IDC.1
❙❙ Increased wearables adoption: Consumers are
increasingly adopting gadgets and connected
devices to monitor activity and behaviors. In
emerging markets, inclusive of Asia-Pacific
(excluding Japan), the wearables market grew
14% in 2018,2
as basic wristbands remain in high
demand and smartwatches gain traction across
the region.
❙❙ Expected personalization: Today’s consumers
receive personalized offers and customized
solutions across many product categories, and
insurance shouldn’t be an exception. Insurance
customers lack a variety of policy options that
account for their lifestyle choices, general health,
and social and financial behaviors. This is where
technology can play a leading role. Southeast
Asia is fast embracing digital innovation spurred
by the Internet of Things (IoT) and smartphone
adoption. China is home to many dynamic digital
innovators and a leading investor in emerging
technologies.3
Singapore has its Smart Nation
initiative.4
Malaysia launched the world’s first
digital free-trade zone.5
Thailand has outlined
its Thailand 4.0 vision that aims for greater
economic prosperity through innovation,
technology and creativity.6
All combined, this
region presents fertile ground to create a new
insurance ecosystem to capture, mine and act
on this massive data trove to offer a deeper
view of consumers as they gravitate to online
insurance and request more personalization.
Figure 1
Drivers for data monetization
CUSTOMER
PERSONALIZATION
Customers expect
a personalized
insurance product that
reflects health, social
and usage behaviors.
WEARABLES
UPTAKE
In APAC, the wearables
market grew 14% in
2018, and global
shipments are
expected to exceed
450 million in 2020.
INSURERS
GO DIGITAL
Insurers leverage
massive data for
advanced analytics
and machine learning.
DIGITAL DATA
EXPLOSION
Data monetization
becomes a key revenue
driver, as the world
creates 175 trillion
gigabytes by 2025.
Cognizant 20-20 Insights
4  /  Catching the Consumer Data Wave: A New Opportunity in the Insurance Ecosystem
❙❙ Insurers go digital: In China, online insurance
sales of life and non-life products are expected
to hit $145 billion by 20217
— up from $45 billion
in 2016. Online insurers and conglomerates,
such as Baidu, Alibaba and Tencent, are
investing in technology, joint ventures and
acquisitions to strategically expand their
insurance industry footprint. Insurers recognize
the need to take advantage of this wealth of data
to support personalized services based on real-
time customer profile/behavior/habits to launch
new and innovative product segments, such
as on-demand insurance that targets next-gen
customers, and to satisfy customer desires
for faster, more proactive communication
and service.
The predicament created by these forces presents
a timely opportunity for a new breed of data
intermediaries that can help insurers by collecting
and analyzing data spread across the insurance
ecosystem and ferreting out intelligent insights to
offer as a service. By leveraging technology across
the value chain and partnering with organizations
such as automobile companies, smart home
appliance manufacturers and gadget/wearable
manufacturers, insurers can create a more
data-driven industry ecosystem that enables real-
time underwriting, customized policies, smarter
distribution, better service and faster claims
resolution while also optimizing costs. Similar to
the way the cab-hailing industry has transformed
through intelligent use of customer data, a data
intermediary with actionable insights based on
various data sources has the potential to redefine
the insurance landscape.
Figure 2
Customer journey map: current state
Liu Wang is a 30
year old fitness
enthusiast. He is
looking for a
fitness band
(including the
associated app
features) to
track his vital
health stats.
He checks out
reviews and
features of
different health
apps/wearables
and purchases
one.
He starts
tracking fitness
parameters
using the
wearable device.
Liu’s colleague
suggests he
purchase a
health insurance
policy to
manage
unplanned
health and
medical
expenses.
Liu searches
for a health
insurance plan
through various
aggregator sites.
Liu does not
understand
most of the
insurance
comparison
parameters
listed on the
aggregator sites,
but selects one
of them anyway.
Liu schedules
a health
check-up at the
designated
hospital and
completes the
policy admin
process to
become
insured.
After one year,
Liu is ready to
renew the policy
and despite
maintaining an
active lifestyle,
the renewal
quote doesn’t
account for it.
The quotes do
not reflect my
actual health
parameters.
It would have
been good if the
health data
tracked could be
used to minimize
the tests needed
in the health
check-up.
I have been exercising
and improving my
health, but I don’t
see any quantifiable
financial wellness
benefits.
POLICY
AGGREGATOR
SITE INSURER
Cognizant 20-20 Insights
5  /  Catching the Consumer Data Wave: A New Opportunity in the Insurance Ecosystem
Who should act as data intermediary?
The insurance industry ecosystem includes many
types of players, but only the most qualified candi-
dates should assume the role of data intermediary.
Many insurers are keen to use insights from the
data provided by external digital platforms but
would rather not invest in the skills and resources
to create an in-house system that would process all
the consumer data residing in various systems and
data marts outside their business.8
In addition, some
large insurers, due to their inherent size and legacy
systems, might find it difficult to adopt emerging
technologies and new processes.9
Nonetheless,
insurers aspire to innovate around wearables data,
as a few companies are running tests by providing a
subset of customers with wearables. However, they
recognize that the sample data is not representative
of all customers and a broader rollout would likely be
cost-prohibitive.
While any entity that has wide access to data can
provide a data intermediary service, we believe that
a distribution system that intermediates between
the customer and insurer, such as a large brokerage
firm or a national distribution channels, and has
access to various data sources can more readily
step into the data intermediary role.
Distributors interested in assuming this role
should exploit the opportunity by enhancing their
digital capabilities to meet the evolving needs of
customers. This sentiment is shared by customers
and insurers alike, who want brokers to invest in
digital platforms, more clearly demonstrate the
many ways they add value, and offer more analytics,
marketing and sales services.10
Distributors can
leverage the available treasure trove of data to foray
into new areas such as market research, playing the
role of a data and intelligence provider to insurers
and other consulting firms.
Figure 3
The distributor’s edge
Insurer Distributor IoT/Wearable Manufacturer
Investment in people with niche skill
sets to manage this platform (e.g.,
data scientist) will not be optimal
from a financial standpoint.
Distributors have a broader view
of the market and the right kind of
relationship with multiple insurers
that can be leveraged to create a
strong workforce.
Wearable/IoT device manufac-
turers will suffer from lack of
alignment with their strategic
objective of providing the wellness
benefit viz. playing the role of a
data provider.
Insurer will have access to a
smaller group of customers who
are prospective insureds or online
visitors.
Distributors are well connected
with the insurers and have the
confidence of customers as their
trusted partner, which will enable
economies of scale.
Wearable/IoT device manufacturers
are not a part of the insurance value
chain, and collecting data from
other wearable manufacturers
would be a challenge.
Insurers’ systems are driven
by legacy technologies, and
moving from legacy to next-gen
technologies requires a sizeable
investment.
Distributors have the potential
to invest in a new platform that
manages the data inflow from
various customers and provides
meaningful insights to insurers.
Not applicable. (Lack of alignment
with their strategic goals.)
PeopleAlignmentProspectReachTechnology
Rating
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6  /  Catching the Consumer Data Wave: A New Opportunity in the Insurance Ecosystem
Emerging examples of progress
Access to data, however, isn’t enough. Distributors
will need to apply analytics and artificial intelligence
to provide insurers and customers with more
timely and relevant information and insights.
Digital insurer ZhongAn in China is addressing
this need though its Intelligent Open Platform
for insurers. ZhongAn, a digital venture of insurer
PingAn and online giants Tencent and Alibaba,
identified an opportunity to aggregate and analyze
data on medical insurance directories, drug
databases and hospital networks. The resulting
SaaS platform11
offers access to medical records,
an insurance repository and risk management
services. Developed initially for Chinese property
and casualty insurer Axa Tianping, the ZhongAn
platform is now being used by more than 10
insurers, demonstrating strong market demand
for such services. This platform, while beneficial,
doesn’t yet cover personalized consumer data,
such as health and social, and traditional large
insurers generally don’t have the digital capability
or agility to aggregate such data at large scale.
Another example of progress is Wukongbao,12
a
provider of online business products and services,
which provides a data-mining API that connects to
more than 5,000 third-party platforms, including
travel, auto and health apps. It identifies user-
behavior patterns insurers can use to tailor and
market insurance policies.
The proposed ecosystem should be owned
by a consumer-data intermediary that directly
and indirectly benefits from the currency of this
ecosystem (see Figure 4).
Access to data, however, isn’t enough. Distributors will need to
apply analytics and artificial intelligence to provide insurers and
customers with more timely and relevant information and insights.
Figure 4
The insurance data ecosystem
OWNERS OF THE ECOSYSTEM
Insurers, wearable manufacturers,
providers of wellness as a service
Prospective insureds Risk/credit history and rating
Data
Intermediaries
Data
Providers
Data
Producers
Data
Consumers
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7  /  Catching the Consumer Data Wave: A New Opportunity in the Insurance Ecosystem
The data intermediary would securely handle data
as it acts as a repository and distributor of on-
demand services to insurers. This new ecosystem
would enable insurers to offer customers device-
agnostic, customized products, rather than link
offers to specific fitness band brands or telematics
devices that might hinder interest and usage.
Customers should be free to use their preferred
device no matter what insurance policy they
choose. Global data service providers, such as
LexisNexis, Acxiom, and ISO Verisk Analytics, and
insurers, such as Aviva,13
are starting to leverage this
data to determine risk profiles rather than review
medical tests. In China, insurer Allianz has launched
Xinkaishi,14
a fetal listening and maternity app, to
cross-sell health and life insurance to expectant
mothers. AXA, Alibaba and Ant Financial Services
have partnered to co-innovate and develop tailored
insurance products for specific segments of
Alibaba’s customer base.15
This new ecosystem would enable insurers to offer customers
device-agnostic, customized products, rather than link offers to
specific fitness band brands or telematics devices that might hinder
interest and usage. Customers should be free to use their preferred
device no matter what insurance policy they choose.
Figure 5
Role of distributor in proposed ecosystem
Role of distributor-intermediary
in proposed ecosystem
Continuous Customer
Engagement
• Improve customer
engagement throughout
the policy lifecycle
by monitoring stats to
ensure customers
become eligible to get the
appropriate benefits.
• Effectively play the role of
a trusted partner to the
customer throughout the
policy lifecycle.
Improve Customer
Risk Profiling
• Enable insurers to
engage with the customer
at an early stage of policy
lifecycle to ensure
increased customer focus
and effective risk profiling.
• Offer service through a
membership subscription.
Leverage Industry
Knowledge
• Insurers customize
offerings by using critical
insights about the
customer.
• Customers make more
informed decisions at the
time of policy selection.
Foster Innovation in
Product Design
• Insurers fine-tune
product catalog based on
evolving customer needs
and changing market
trends.
Provide Data as a
Service (DaaS)
• Distributors leverage data
from various sources to
extract meaningful
insights on purchase
patterns, demographic
profiles.
• Insights used by insurers
and device manufacturers
to customize product
strategy aimed to achieve
topline growth.
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8  /  Catching the Consumer Data Wave: A New Opportunity in the Insurance Ecosystem
Future view
We believe the industry needs a further-consolidated
view of broader data — such as customer behavior,
social, financial and risk data — from various
providers, a gap well suited for the data intermediary.
This connected, digital, data-driven insurance
ecosystem would then enable a seamless flow of a
wider range of insight among the various parties. As
a data gatekeeper, the intermediary would maintain
this data-warehousing platform through which all
user data would be shared with the various insurers.
We envision a mutually beneficial distributor-driven
network that unites customers, distributors and
insurers. Figure 6 illustrates a future scenario where
distributors play a central role to create and manage
the platform using healthtech data as an example.
Resetting a digital customer journey
With a data intermediary at the center of the
ecosystem, a new customer journey will unfold,
enabling insurers to offer the more personalized
Figure 6
Creating a distributor app ecosystem
PORTAL FUNCTIONALITY
DISTRIBUTOR APP —
Data Insights & Features for Customers and Insurers
Integration with
Distributor App to
Provide Insights
STAKEHOLDERS Customers Distributors Insurers
Health Tracking
• Monitor vital stats from wearables
• Track health-related expenses
• Gamification incentive
Customized Insurance
• Wearable data shared to customize policy
• Quotes from various insurers
• Servicing, advice and periodic support
Distributor Value Add
• Digital connect to customer
• Upgrade underwriting by leveraging the wearables data
• Provide insights to insurers
DATA SOURCES
& PARTNERS
Health Data
Risk Data
Credit Score
Social Data
INTEGRATION AND SECURITY
DATA
WAREHOUSE
& ANALYTICAL
ENGINE
Wearables
Data
Insurers Underwriting
(Risk Management
and Rating)
Service Provider
Data
Gamification
Partners
Risk Score —
TP Analytics
Cognizant 20-20 Insights
9  /  Catching the Consumer Data Wave: A New Opportunity in the Insurance Ecosystem
products customers desire. When shopping for a
new insurance policy, today’s customer navigates
through an array of distribution channels, including
agents, brokers, aggregator sites and direct sales.
Because product searches cannot be tailored
to distinctly personal needs, customers receive
a myopic view of the vast array of products and
features available. Further, insurers have limited
access to customer data, rendering them unable to
classify risk at a granular level to offer customized
products and differential pricing. For example,
insurers are unable to incentivize preferred-risk
(healthy) customers over standard-risk customers.
In the future state, through a distributor app,
insurers could access vital information to help them
profile prospects based on current health status.
Policy providers would improve risk management
as they gain a better understanding of general
health-profile trends. This access and knowledge
could accelerate the coming of real-time
underwriting. Throughout the customer journey,
the distributor app would serve as a trusted advisor
as it supports the insured as they traverse the
policy lifecycle. Figure 7 shares a view of this
future journey.
Figure 7
Customer journey map: future state
Liu Wang is a 30
year old fitness
enthusiast. He is
looking for a
fitness band
(including the
associated app
features) to
track his vital
health stats.
He checks out
reviews and
features of
different health
apps/wearables
and purchases
one.
He starts
tracking fitness
parameters
using the
wearable device.
Liu’s colleague
suggests he
purchase a
health insurance
policy to
manage
unplanned
health and
medical
expenses.
Liu searches
for a provider
that offers a
customized
policy using
wearable data.
Liu finds the
distributor’s
app, installs
it and grants
permission to
access his
wearable data.
Liu enters
the desired
coverage,
premium range
and basic details
on the app.
Customized
quotes from
various insurers
meeting his
requirements
are shown.
Liu now
completes the
policy admin
process in the
app, becomes
an insured and
shares health
stats from the
app directly.
After one year,
Liu is ready to
renew the
policy. He gets
wellness
benefits based
on improve-
ment of health
stats due to the
active lifestyle
he maintains.
The distributor app
recommends the
best insurer while I
focus on my health.
I just have to share
my wearable data
with the distributor
rather than with
each insurer. It’s very
convenient.
I have a
customized quote
that reflects my
actual health.
I have been
exercising and
maintaining my health.
I am getting desired
wellness benefits from
my insurer.
DISTRIBUTOR INSURER &
DISTRIBUTOR
INSURER &
DISTRIBUTOR
INSURER &
DISTRIBUTOR
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10  /  Catching the Consumer Data Wave: A New Opportunity in the Insurance Ecosystem
Benefits to insurers
Insurers have much to gain through this new
ecosystem, as they create more targeted product
offerings that accurately reflect coverage needs. As
data insights increase, so advances the evolution of
underwriting capabilities. Low performing products
can be dropped and more targeted advertising
and marketing campaigns applied, which can
increase profitability and improve the overall claims
ratio. Here’s how we envision insurers benefitting
through the new ecosystem:
❙❙ Customer experience
➢➢ Offer customized services based on wearables data.
➢➢ Allow for continuous monitoring.
➢➢ Provide wellness as a value-added service.
➢➢ Earn greater customer trust though higher transparency.
❙❙ Risk profile
➢➢ Receive real-time data for greater consistency.
➢➢ Improve risk-assessment quality when profiling
prospects.
❙❙ Product design
➢➢ More effectively calibrate the underwriting system
and accelerate the move to real-time underwriting.
➢➢ Customize the insurer roadmap based on
evolving needs.
❙❙ Bottom line
➢➢ Improve combined ratio and reduce claims losses
through policies based on real-time data.
➢➢ Increase revenue through higher conversions due to
targeting and customization.
➢➢ Improve claims efficiency with more preferred-class
policyholders.
➢➢ Improve underwriting efficiency.
➢➢ Optimize advertising and market research spend.
Regulatory challenges
As the insurance industry embraces insurtech,
the scenario presented in Figure 8 (page 11)
shares a view of the many potential data security
issues. Insurers, policy makers, regulators and
cybersecurity experts must collaborate to build a
robust governing framework — one that protects
customers’ data privacy rights.
Across the Asia-Pacific region, lawmakers are
creating comprehensive data privacy laws similar to
the EU’s Global Data Privacy Regulations (GDPR),
adopted in 2018. The Chinese Personal Information
Security Specification law dictates basic rules
of consent, cross-border data transmission and
secondary uses of personal data. It also provides an
overarching framework for data collection, storage
and transfer. Other regions have similar data
protection laws, such as the Singapore Personal
Data Protection Act of 2012 (PDPA) and the Taiwan
Personal Data Protection Law.
Greater collaboration and transparency among
government bodies, regulators, insurers, data
processors and customers will ensure a mutually
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11  /  Catching the Consumer Data Wave: A New Opportunity in the Insurance Ecosystem
beneficial ecosystem. Through anonymized data,
processors can still gain valuable insights into
customer traits and behaviors without violating
regional data privacy laws.
As they abide by strict customer privacy laws,
gadget manufacturers, data intermediaries
and insurers will secure higher customer trust.
VitalityHealth, which includes partners such as Ping
in China and AIA in Singapore and Australia, has
demonstrated that, with transparent policies and
pricing, customers will consent to providing their
health data. With this data access, VitalityHealth
reduced lapsed policies by 52% among their most
active program participants.16
A call for industry action
The proposed ecosystem must account for how
data would be managed and the integrity with
which it is handled. With a distributor at the center
properly playing its data management role, insurers
should be willing to share their consent-granted
customer data to enhance the richness of the
insights. To ensure ecosystem success, insurers
should enable the distributor to leverage the power
of this aggregated customer data and bring greater
value to all participants, especially customers.
Distributors should explore the potential changes
required to their business models, operations and
technologies to serve in this new capacity.
The insurance industry is facing a major shift in
market dynamics due to advancing customer
expectations, the rise of connected devices and
the emergence of insurtechs. These developments
are forcing insurers to revamp their product
propositions to stay relevant and compete with
greater intelligence. The data eruption from digital
platforms presents an ideal opportunity for the
industry players to unite around a data intermediary
approach to explore new ways to capture, act on
and monetize this information, all for the sake of
providing a better customer experience.
Figure 8
Challenges to the ecosystem
REGULATORY CONSTRAINTS
• Insurers restricted from providing premium discounts based
on aggregated data (e.g., healthtech) in some countries.
• Insurers must have customer consent to use data for analysis.
DATA PRIVACY
• Ensure anonymity of customer data for any research,
such as trend analysis, and data mining activities.
• Ensure compliance to global data privacy regulations,
such as GDPR and PDPA.
• Obtain customer consent to share personal data.
DATA MATURITY
• Consistently receive data from all customers and stakeholders.
• Accommodate insurers’ need for massive data for maturity
tables as a part of underwriting-engine calibration.
• Ensure data authenticity from connected devices.
• Progressive movement toward real-time underwriting.
DATA SECURITY
• Mask data of prospective insureds as it’s shared with the
insurers for quote generation.
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About the authors
Srinivasan Somasundaram
Senior Director, Insurance Practice, Cognizant Consulting
Srinivasan Somasundaram is a Senior Director within Cognizant Consulting’s Insurance Practice. He has
more than 20 years of experience in the life, annuity and pension sectors. Srini’s experience includes
program delivery, developing business propositions, go-to-market and large-deal support. He has worked
on projects in the UK, U.S., South Africa and the Asia-Pacific region, with a focus on sales and distribution.
Srini holds a post-graduate degree in management from Bharathithasan University. He can be reached at
Srinivasan.Somasundaram@cognizant.com | http://in.linkedin.com/pub/srinivasan-somasundaram/0/
a5a/156.
Prem Srinivas Sriram
Guidewire Product Consultant, Insurance Practice, Cognizant Consulting
Prem Srinivas Sriram is a Guidewire Product Consultant within Cognizant’s Insurance Practice. He has
nine years of experience in product, functional, solution and technical consulting for major property and
casualty insurance clients across the U.S. and Europe. Prem has completed his PGPM from Great Lakes
Institute of Management, Chennai, with certifications in AINS, AIC and CSPO. He can be reached at Prem.
Srinivas@cognizant.com | www.linkedin.com/in/prem-srinivas-sriram-aic-ains-ais-cspo-32b5b218.
Santhosh Kumar S
Manager, Business Development Team, Insurance Practice, Cognizant Consulting
Santhosh Kumar S is a Manager with the Business Development Team within the Cognizant Insurance
Practice. He has more than nine years of IT experience working on multiple opportunities for life and
property and casualty insurers in the Asia-Pacific region, in the areas of business analysis, business process
consulting and digital transformation. Santhosh has completed his PGPM from Great Lakes Institute
of Management in Chennai, with certifications in FLMI and CSPO. He can be reached at Santhosh.
Kumars3@cognizant.com | www.linkedin.com/in/santhosh-kumar-swayam-prakash-13ba5056/.
Cognizant 20-20 Insights
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Vinay Alexander
Senior Consultant, Insurance Practice, Cognizant Consulting
Vinay Alexander is a Senior Consultant within Cognizant Consulting’s Insurance Practice. A certified AINS
professional, he has nine years of experience working with multiple property and casualty insurers and
brokers across Europe and North America in IT product development, functional implementation, business
analysis, business process consulting and digital transformation. Vinay received a PGPM in marketing
and sales from Great Lakes Institute of Management, Chennai. He can be reached at Vinay.Alexander@
cognizant.com | www.linkedin.com/in/vinay-alexander-830301bb/.
Manikandan Sankaran
Consultant, Insurance Practice, Cognizant Consulting
Manikandan Sankaran is a Consultant within Cognizant Consulting’s Insurance Practice. He has more
than four years of consulting experience across the insurance value chain working with insurers and
brokers across the U.S., UK, Middle East and Asia-Pacific regions, with expertise in business analysis and
digital transformation, and a passion for emerging technology. Manikandan holds a post-graduate degree
in management from the Indian Institute of Management, Indore. He can be reached at Manikandan.
Sankaran2@cognizant.com | www.linkedin.com/in/manikandan243.
Cognizant 20-20 Insights
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Endnotes
1	 David Reinsel, John Gantz, John Rydning, “The Digitization of the World – From Edge to Core,” IDC and Seagate,
November 2018, www.seagate.com/files/www-content/our-story/trends/files/idc-seagate-dataage-whitepaper.pdf.
2	 “Worldwide Wearables Market Ticks Up 5.5% Due to Gains in Emerging Markets, Says IDC,” Sept. 4, 2018, IDC press
release, www.idc.com/getdoc.jsp?containerId=prUS44247418.
3	 Kevin Wei Wang, Jonathan Woetzel, Jeongmin Seong, James Manyika, Michael Chui, Wendy Wong, “Digital China:
Powering the economy to global competitiveness,” McKinsey Global Institute, December 2017, www.mckinsey.com/
featured-insights/china/digital-china-powering-the-economy-to-global-competitiveness.
4	 “What Is Smart Nation – Initiatives,” Smart Nation Singapore, www.smartnation.sg/what-is-smart-nation/initiatives.
5	 Digital Free Trade Zone (DFTZ), Malaysia External Trade Development Corporation, www.matrade.gov.my/en/digital-
free-trade-zone-dftz.
6	 What Is Thailand 4.0?, https://thaiembdc.org/thailand-4-0-2/.
7	 “How Tencent and Ant Financial Are Rushing Into China’s Insurance Industry,” CBInsights, Oct. 23, 2017, www.cbinsights.
com/research/baidu-alibaba-tencent-insurance/.
8	 Elinor Friedman, Andrew Harley, Klayton Southwood, “Insurance big data — float like a butterfly, sting like a bee,” Willis
Towers Watson, August 2016, www.towerswatson.com/en/Insights/Newsletters/Global/Emphasis/2016/emphasis-2016-
2-insurance-big-data-can-improve-business.
9	 Karl Flinders, “Insurers face same legacy system battle as retail banks,” Computer Weekly, Nov. 1, 2016,
www.computerweekly.com/news/450402096/Insurers-face-same-legacy-system-battle-as-retail-banks.
10	 Trevor Lloyd-Jones, “With Digital Disruption Will Insurance Brokers Adapt or Die?” LexisNexis Insurance Insights,
http://blogs.lexisnexis.com/insurance-insights/2016/12/with-digital-disruption-will-insurance-brokers-adapt-or-die/.
11	 “ZhongAn Technology Launches AI-Powered Data Platform for China’s Insurance Industry,” Fintech News Hong Kong,
Aug. 14, 2018, http://fintechnews.hk/6308/insurtech/zhongan-technology-saas-insurance-data/.
12	 Ibid.
13	 Finbarr Toesland, “Insurance moves from reactive to predictive,” Raconteur, April 26, 2018, www.raconteur.net/risk-
management/insurance-moves-reactive-predictive.
14	 China In-Depth: China Insurtech Review – May 2017, The Digital Insurer, www.the-digital-insurer.com/china-in-depth-
china-insurtech-review-may-2017/.
15	 Hugh Terry, “AXA, Alibaba and Ant Financial – New ecosystem,” The Digital Insurer, www.the-digital-insurer.com/dia/axa-
alibaba-and-ant-financial-new-ecosystem-under-development/.
16	 Matthew Nitkoski, “Defending China’s Data,” China Business Review, October 2, 2018, www.chinabusinessreview.com/
defending-chinas-data/.
© Copyright 2019, Cognizant. All rights reserved. No part of this document may be reproduced, stored in a retrieval system, transmitted in any form or by any means,electronic, mechanical,
photocopying, recording, or otherwise, without the express written permission from Cognizant. The information contained herein is subject to change without notice. All other trademarks
mentioned herein are the property of their respective owners.
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Catching the Consumer Data Wave: A New Opportunity in the Insurance Ecosystem

  • 1. Digital Business Catching the Consumer Data Wave: A New Opportunity in the Insurance Ecosystem With the profusion of insurance consumer data coming online, the role of data intermediaries is emerging as a key player in the insurance ecosystem. Insurance distributors are especially well-suited to take the lead in analyzing user data and sharing insights to drive innovative product offerings and growth. Executive Summary The eruption of customer wellness and activity data captured by wearables, lifestyle apps and other digital platforms presents a tipping point for the insurance industry. Today’s digital generation expects brands to use consensual data to enhance their experience by offering more personalized services and offerings. The insurance industry is at the cusp of disruption, driven by a combination of nimble start-ups using emerging technologies and new data sources to serve evolving customer preferences. This is pressuring insurers to change how they approach product design, pricing and distribution in ways that leverage all available data. February 2019 Cognizant 20-20 Insights
  • 2. 2  /  Catching the Consumer Data Wave: A New Opportunity in the Insurance Ecosystem Cognizant 20-20 Insights Yet, most insurers are unprepared to access and use this data to offer personalization, based on individual risk assessments or anonymized profiles, and support customers through their various insurance needs and policy lifecycle. Moreover, insurers are not equipped to receive and analyze incoming data flows from myriad digital platforms. Likewise, device manufacturers are ill-equipped to share user data directly with the myriad of insurers across geographies. This predicament presents an opportunity for a new player in the insurance ecosystem: the data intermediary. With a focus on the Asia- Pacific region, in this white paper we examine the underlying forces causing this data dilemma and the need for an investment in creating a common data-warehousing platform ideally positioned between the data receiver, such as a wearables manufacturer, and the insurer. We posit that a distributer-driven platform should analyze the data and share insights to help all stakeholders across the ecosystem enhance their services and offers, thus providing new growth opportunities. Insurers would benefit in many ways as they improve the risk profiles of customers, delight them in new ways, enhance product innovation and reap economic advantages through more targeted spending and claims efficiency. This new ecosystem would create growth opportunities industry-wide as it accelerates the insurer’s journey toward real- time underwriting and loyal customer renewals. Such a distributor-driven ecosystem would require effective collaboration among insurers, policy makers, regulators and cybersecurity experts to ensure a robust framework — one that benefits customers and protects data privacy rights. We also explore the possible challenges, focusing on the evolving regulatory landscape in particular, and envision a way forward for the industry.
  • 3. Cognizant 20-20 Insights 3  /  Catching the Consumer Data Wave: A New Opportunity in the Insurance Ecosystem Four forces driving the data dilemma Throughout the Asia-Pacific region, the insurance industry faces data headwinds — all brought on by changes in consumer behavior and technology adoption. The four forces most significant to insurers are: ❙❙ Explosion of digital data: Data monetization will become a major source of revenue for insurers, as the world creates 175 trillion gigabytes (175 zettabytes) by 2025, up from 33 zettabytes in 2018, according to IDC.1 ❙❙ Increased wearables adoption: Consumers are increasingly adopting gadgets and connected devices to monitor activity and behaviors. In emerging markets, inclusive of Asia-Pacific (excluding Japan), the wearables market grew 14% in 2018,2 as basic wristbands remain in high demand and smartwatches gain traction across the region. ❙❙ Expected personalization: Today’s consumers receive personalized offers and customized solutions across many product categories, and insurance shouldn’t be an exception. Insurance customers lack a variety of policy options that account for their lifestyle choices, general health, and social and financial behaviors. This is where technology can play a leading role. Southeast Asia is fast embracing digital innovation spurred by the Internet of Things (IoT) and smartphone adoption. China is home to many dynamic digital innovators and a leading investor in emerging technologies.3 Singapore has its Smart Nation initiative.4 Malaysia launched the world’s first digital free-trade zone.5 Thailand has outlined its Thailand 4.0 vision that aims for greater economic prosperity through innovation, technology and creativity.6 All combined, this region presents fertile ground to create a new insurance ecosystem to capture, mine and act on this massive data trove to offer a deeper view of consumers as they gravitate to online insurance and request more personalization. Figure 1 Drivers for data monetization CUSTOMER PERSONALIZATION Customers expect a personalized insurance product that reflects health, social and usage behaviors. WEARABLES UPTAKE In APAC, the wearables market grew 14% in 2018, and global shipments are expected to exceed 450 million in 2020. INSURERS GO DIGITAL Insurers leverage massive data for advanced analytics and machine learning. DIGITAL DATA EXPLOSION Data monetization becomes a key revenue driver, as the world creates 175 trillion gigabytes by 2025.
  • 4. Cognizant 20-20 Insights 4  /  Catching the Consumer Data Wave: A New Opportunity in the Insurance Ecosystem ❙❙ Insurers go digital: In China, online insurance sales of life and non-life products are expected to hit $145 billion by 20217 — up from $45 billion in 2016. Online insurers and conglomerates, such as Baidu, Alibaba and Tencent, are investing in technology, joint ventures and acquisitions to strategically expand their insurance industry footprint. Insurers recognize the need to take advantage of this wealth of data to support personalized services based on real- time customer profile/behavior/habits to launch new and innovative product segments, such as on-demand insurance that targets next-gen customers, and to satisfy customer desires for faster, more proactive communication and service. The predicament created by these forces presents a timely opportunity for a new breed of data intermediaries that can help insurers by collecting and analyzing data spread across the insurance ecosystem and ferreting out intelligent insights to offer as a service. By leveraging technology across the value chain and partnering with organizations such as automobile companies, smart home appliance manufacturers and gadget/wearable manufacturers, insurers can create a more data-driven industry ecosystem that enables real- time underwriting, customized policies, smarter distribution, better service and faster claims resolution while also optimizing costs. Similar to the way the cab-hailing industry has transformed through intelligent use of customer data, a data intermediary with actionable insights based on various data sources has the potential to redefine the insurance landscape. Figure 2 Customer journey map: current state Liu Wang is a 30 year old fitness enthusiast. He is looking for a fitness band (including the associated app features) to track his vital health stats. He checks out reviews and features of different health apps/wearables and purchases one. He starts tracking fitness parameters using the wearable device. Liu’s colleague suggests he purchase a health insurance policy to manage unplanned health and medical expenses. Liu searches for a health insurance plan through various aggregator sites. Liu does not understand most of the insurance comparison parameters listed on the aggregator sites, but selects one of them anyway. Liu schedules a health check-up at the designated hospital and completes the policy admin process to become insured. After one year, Liu is ready to renew the policy and despite maintaining an active lifestyle, the renewal quote doesn’t account for it. The quotes do not reflect my actual health parameters. It would have been good if the health data tracked could be used to minimize the tests needed in the health check-up. I have been exercising and improving my health, but I don’t see any quantifiable financial wellness benefits. POLICY AGGREGATOR SITE INSURER
  • 5. Cognizant 20-20 Insights 5  /  Catching the Consumer Data Wave: A New Opportunity in the Insurance Ecosystem Who should act as data intermediary? The insurance industry ecosystem includes many types of players, but only the most qualified candi- dates should assume the role of data intermediary. Many insurers are keen to use insights from the data provided by external digital platforms but would rather not invest in the skills and resources to create an in-house system that would process all the consumer data residing in various systems and data marts outside their business.8 In addition, some large insurers, due to their inherent size and legacy systems, might find it difficult to adopt emerging technologies and new processes.9 Nonetheless, insurers aspire to innovate around wearables data, as a few companies are running tests by providing a subset of customers with wearables. However, they recognize that the sample data is not representative of all customers and a broader rollout would likely be cost-prohibitive. While any entity that has wide access to data can provide a data intermediary service, we believe that a distribution system that intermediates between the customer and insurer, such as a large brokerage firm or a national distribution channels, and has access to various data sources can more readily step into the data intermediary role. Distributors interested in assuming this role should exploit the opportunity by enhancing their digital capabilities to meet the evolving needs of customers. This sentiment is shared by customers and insurers alike, who want brokers to invest in digital platforms, more clearly demonstrate the many ways they add value, and offer more analytics, marketing and sales services.10 Distributors can leverage the available treasure trove of data to foray into new areas such as market research, playing the role of a data and intelligence provider to insurers and other consulting firms. Figure 3 The distributor’s edge Insurer Distributor IoT/Wearable Manufacturer Investment in people with niche skill sets to manage this platform (e.g., data scientist) will not be optimal from a financial standpoint. Distributors have a broader view of the market and the right kind of relationship with multiple insurers that can be leveraged to create a strong workforce. Wearable/IoT device manufac- turers will suffer from lack of alignment with their strategic objective of providing the wellness benefit viz. playing the role of a data provider. Insurer will have access to a smaller group of customers who are prospective insureds or online visitors. Distributors are well connected with the insurers and have the confidence of customers as their trusted partner, which will enable economies of scale. Wearable/IoT device manufacturers are not a part of the insurance value chain, and collecting data from other wearable manufacturers would be a challenge. Insurers’ systems are driven by legacy technologies, and moving from legacy to next-gen technologies requires a sizeable investment. Distributors have the potential to invest in a new platform that manages the data inflow from various customers and provides meaningful insights to insurers. Not applicable. (Lack of alignment with their strategic goals.) PeopleAlignmentProspectReachTechnology Rating
  • 6. Cognizant 20-20 Insights 6  /  Catching the Consumer Data Wave: A New Opportunity in the Insurance Ecosystem Emerging examples of progress Access to data, however, isn’t enough. Distributors will need to apply analytics and artificial intelligence to provide insurers and customers with more timely and relevant information and insights. Digital insurer ZhongAn in China is addressing this need though its Intelligent Open Platform for insurers. ZhongAn, a digital venture of insurer PingAn and online giants Tencent and Alibaba, identified an opportunity to aggregate and analyze data on medical insurance directories, drug databases and hospital networks. The resulting SaaS platform11 offers access to medical records, an insurance repository and risk management services. Developed initially for Chinese property and casualty insurer Axa Tianping, the ZhongAn platform is now being used by more than 10 insurers, demonstrating strong market demand for such services. This platform, while beneficial, doesn’t yet cover personalized consumer data, such as health and social, and traditional large insurers generally don’t have the digital capability or agility to aggregate such data at large scale. Another example of progress is Wukongbao,12 a provider of online business products and services, which provides a data-mining API that connects to more than 5,000 third-party platforms, including travel, auto and health apps. It identifies user- behavior patterns insurers can use to tailor and market insurance policies. The proposed ecosystem should be owned by a consumer-data intermediary that directly and indirectly benefits from the currency of this ecosystem (see Figure 4). Access to data, however, isn’t enough. Distributors will need to apply analytics and artificial intelligence to provide insurers and customers with more timely and relevant information and insights. Figure 4 The insurance data ecosystem OWNERS OF THE ECOSYSTEM Insurers, wearable manufacturers, providers of wellness as a service Prospective insureds Risk/credit history and rating Data Intermediaries Data Providers Data Producers Data Consumers
  • 7. Cognizant 20-20 Insights 7  /  Catching the Consumer Data Wave: A New Opportunity in the Insurance Ecosystem The data intermediary would securely handle data as it acts as a repository and distributor of on- demand services to insurers. This new ecosystem would enable insurers to offer customers device- agnostic, customized products, rather than link offers to specific fitness band brands or telematics devices that might hinder interest and usage. Customers should be free to use their preferred device no matter what insurance policy they choose. Global data service providers, such as LexisNexis, Acxiom, and ISO Verisk Analytics, and insurers, such as Aviva,13 are starting to leverage this data to determine risk profiles rather than review medical tests. In China, insurer Allianz has launched Xinkaishi,14 a fetal listening and maternity app, to cross-sell health and life insurance to expectant mothers. AXA, Alibaba and Ant Financial Services have partnered to co-innovate and develop tailored insurance products for specific segments of Alibaba’s customer base.15 This new ecosystem would enable insurers to offer customers device-agnostic, customized products, rather than link offers to specific fitness band brands or telematics devices that might hinder interest and usage. Customers should be free to use their preferred device no matter what insurance policy they choose. Figure 5 Role of distributor in proposed ecosystem Role of distributor-intermediary in proposed ecosystem Continuous Customer Engagement • Improve customer engagement throughout the policy lifecycle by monitoring stats to ensure customers become eligible to get the appropriate benefits. • Effectively play the role of a trusted partner to the customer throughout the policy lifecycle. Improve Customer Risk Profiling • Enable insurers to engage with the customer at an early stage of policy lifecycle to ensure increased customer focus and effective risk profiling. • Offer service through a membership subscription. Leverage Industry Knowledge • Insurers customize offerings by using critical insights about the customer. • Customers make more informed decisions at the time of policy selection. Foster Innovation in Product Design • Insurers fine-tune product catalog based on evolving customer needs and changing market trends. Provide Data as a Service (DaaS) • Distributors leverage data from various sources to extract meaningful insights on purchase patterns, demographic profiles. • Insights used by insurers and device manufacturers to customize product strategy aimed to achieve topline growth.
  • 8. Cognizant 20-20 Insights 8  /  Catching the Consumer Data Wave: A New Opportunity in the Insurance Ecosystem Future view We believe the industry needs a further-consolidated view of broader data — such as customer behavior, social, financial and risk data — from various providers, a gap well suited for the data intermediary. This connected, digital, data-driven insurance ecosystem would then enable a seamless flow of a wider range of insight among the various parties. As a data gatekeeper, the intermediary would maintain this data-warehousing platform through which all user data would be shared with the various insurers. We envision a mutually beneficial distributor-driven network that unites customers, distributors and insurers. Figure 6 illustrates a future scenario where distributors play a central role to create and manage the platform using healthtech data as an example. Resetting a digital customer journey With a data intermediary at the center of the ecosystem, a new customer journey will unfold, enabling insurers to offer the more personalized Figure 6 Creating a distributor app ecosystem PORTAL FUNCTIONALITY DISTRIBUTOR APP — Data Insights & Features for Customers and Insurers Integration with Distributor App to Provide Insights STAKEHOLDERS Customers Distributors Insurers Health Tracking • Monitor vital stats from wearables • Track health-related expenses • Gamification incentive Customized Insurance • Wearable data shared to customize policy • Quotes from various insurers • Servicing, advice and periodic support Distributor Value Add • Digital connect to customer • Upgrade underwriting by leveraging the wearables data • Provide insights to insurers DATA SOURCES & PARTNERS Health Data Risk Data Credit Score Social Data INTEGRATION AND SECURITY DATA WAREHOUSE & ANALYTICAL ENGINE Wearables Data Insurers Underwriting (Risk Management and Rating) Service Provider Data Gamification Partners Risk Score — TP Analytics
  • 9. Cognizant 20-20 Insights 9  /  Catching the Consumer Data Wave: A New Opportunity in the Insurance Ecosystem products customers desire. When shopping for a new insurance policy, today’s customer navigates through an array of distribution channels, including agents, brokers, aggregator sites and direct sales. Because product searches cannot be tailored to distinctly personal needs, customers receive a myopic view of the vast array of products and features available. Further, insurers have limited access to customer data, rendering them unable to classify risk at a granular level to offer customized products and differential pricing. For example, insurers are unable to incentivize preferred-risk (healthy) customers over standard-risk customers. In the future state, through a distributor app, insurers could access vital information to help them profile prospects based on current health status. Policy providers would improve risk management as they gain a better understanding of general health-profile trends. This access and knowledge could accelerate the coming of real-time underwriting. Throughout the customer journey, the distributor app would serve as a trusted advisor as it supports the insured as they traverse the policy lifecycle. Figure 7 shares a view of this future journey. Figure 7 Customer journey map: future state Liu Wang is a 30 year old fitness enthusiast. He is looking for a fitness band (including the associated app features) to track his vital health stats. He checks out reviews and features of different health apps/wearables and purchases one. He starts tracking fitness parameters using the wearable device. Liu’s colleague suggests he purchase a health insurance policy to manage unplanned health and medical expenses. Liu searches for a provider that offers a customized policy using wearable data. Liu finds the distributor’s app, installs it and grants permission to access his wearable data. Liu enters the desired coverage, premium range and basic details on the app. Customized quotes from various insurers meeting his requirements are shown. Liu now completes the policy admin process in the app, becomes an insured and shares health stats from the app directly. After one year, Liu is ready to renew the policy. He gets wellness benefits based on improve- ment of health stats due to the active lifestyle he maintains. The distributor app recommends the best insurer while I focus on my health. I just have to share my wearable data with the distributor rather than with each insurer. It’s very convenient. I have a customized quote that reflects my actual health. I have been exercising and maintaining my health. I am getting desired wellness benefits from my insurer. DISTRIBUTOR INSURER & DISTRIBUTOR INSURER & DISTRIBUTOR INSURER & DISTRIBUTOR
  • 10. Cognizant 20-20 Insights 10  /  Catching the Consumer Data Wave: A New Opportunity in the Insurance Ecosystem Benefits to insurers Insurers have much to gain through this new ecosystem, as they create more targeted product offerings that accurately reflect coverage needs. As data insights increase, so advances the evolution of underwriting capabilities. Low performing products can be dropped and more targeted advertising and marketing campaigns applied, which can increase profitability and improve the overall claims ratio. Here’s how we envision insurers benefitting through the new ecosystem: ❙❙ Customer experience ➢➢ Offer customized services based on wearables data. ➢➢ Allow for continuous monitoring. ➢➢ Provide wellness as a value-added service. ➢➢ Earn greater customer trust though higher transparency. ❙❙ Risk profile ➢➢ Receive real-time data for greater consistency. ➢➢ Improve risk-assessment quality when profiling prospects. ❙❙ Product design ➢➢ More effectively calibrate the underwriting system and accelerate the move to real-time underwriting. ➢➢ Customize the insurer roadmap based on evolving needs. ❙❙ Bottom line ➢➢ Improve combined ratio and reduce claims losses through policies based on real-time data. ➢➢ Increase revenue through higher conversions due to targeting and customization. ➢➢ Improve claims efficiency with more preferred-class policyholders. ➢➢ Improve underwriting efficiency. ➢➢ Optimize advertising and market research spend. Regulatory challenges As the insurance industry embraces insurtech, the scenario presented in Figure 8 (page 11) shares a view of the many potential data security issues. Insurers, policy makers, regulators and cybersecurity experts must collaborate to build a robust governing framework — one that protects customers’ data privacy rights. Across the Asia-Pacific region, lawmakers are creating comprehensive data privacy laws similar to the EU’s Global Data Privacy Regulations (GDPR), adopted in 2018. The Chinese Personal Information Security Specification law dictates basic rules of consent, cross-border data transmission and secondary uses of personal data. It also provides an overarching framework for data collection, storage and transfer. Other regions have similar data protection laws, such as the Singapore Personal Data Protection Act of 2012 (PDPA) and the Taiwan Personal Data Protection Law. Greater collaboration and transparency among government bodies, regulators, insurers, data processors and customers will ensure a mutually
  • 11. Cognizant 20-20 Insights 11  /  Catching the Consumer Data Wave: A New Opportunity in the Insurance Ecosystem beneficial ecosystem. Through anonymized data, processors can still gain valuable insights into customer traits and behaviors without violating regional data privacy laws. As they abide by strict customer privacy laws, gadget manufacturers, data intermediaries and insurers will secure higher customer trust. VitalityHealth, which includes partners such as Ping in China and AIA in Singapore and Australia, has demonstrated that, with transparent policies and pricing, customers will consent to providing their health data. With this data access, VitalityHealth reduced lapsed policies by 52% among their most active program participants.16 A call for industry action The proposed ecosystem must account for how data would be managed and the integrity with which it is handled. With a distributor at the center properly playing its data management role, insurers should be willing to share their consent-granted customer data to enhance the richness of the insights. To ensure ecosystem success, insurers should enable the distributor to leverage the power of this aggregated customer data and bring greater value to all participants, especially customers. Distributors should explore the potential changes required to their business models, operations and technologies to serve in this new capacity. The insurance industry is facing a major shift in market dynamics due to advancing customer expectations, the rise of connected devices and the emergence of insurtechs. These developments are forcing insurers to revamp their product propositions to stay relevant and compete with greater intelligence. The data eruption from digital platforms presents an ideal opportunity for the industry players to unite around a data intermediary approach to explore new ways to capture, act on and monetize this information, all for the sake of providing a better customer experience. Figure 8 Challenges to the ecosystem REGULATORY CONSTRAINTS • Insurers restricted from providing premium discounts based on aggregated data (e.g., healthtech) in some countries. • Insurers must have customer consent to use data for analysis. DATA PRIVACY • Ensure anonymity of customer data for any research, such as trend analysis, and data mining activities. • Ensure compliance to global data privacy regulations, such as GDPR and PDPA. • Obtain customer consent to share personal data. DATA MATURITY • Consistently receive data from all customers and stakeholders. • Accommodate insurers’ need for massive data for maturity tables as a part of underwriting-engine calibration. • Ensure data authenticity from connected devices. • Progressive movement toward real-time underwriting. DATA SECURITY • Mask data of prospective insureds as it’s shared with the insurers for quote generation.
  • 12. Cognizant 20-20 Insights 12  /  Catching the Consumer Data Wave: A New Opportunity in the Insurance Ecosystem About the authors Srinivasan Somasundaram Senior Director, Insurance Practice, Cognizant Consulting Srinivasan Somasundaram is a Senior Director within Cognizant Consulting’s Insurance Practice. He has more than 20 years of experience in the life, annuity and pension sectors. Srini’s experience includes program delivery, developing business propositions, go-to-market and large-deal support. He has worked on projects in the UK, U.S., South Africa and the Asia-Pacific region, with a focus on sales and distribution. Srini holds a post-graduate degree in management from Bharathithasan University. He can be reached at Srinivasan.Somasundaram@cognizant.com | http://in.linkedin.com/pub/srinivasan-somasundaram/0/ a5a/156. Prem Srinivas Sriram Guidewire Product Consultant, Insurance Practice, Cognizant Consulting Prem Srinivas Sriram is a Guidewire Product Consultant within Cognizant’s Insurance Practice. He has nine years of experience in product, functional, solution and technical consulting for major property and casualty insurance clients across the U.S. and Europe. Prem has completed his PGPM from Great Lakes Institute of Management, Chennai, with certifications in AINS, AIC and CSPO. He can be reached at Prem. Srinivas@cognizant.com | www.linkedin.com/in/prem-srinivas-sriram-aic-ains-ais-cspo-32b5b218. Santhosh Kumar S Manager, Business Development Team, Insurance Practice, Cognizant Consulting Santhosh Kumar S is a Manager with the Business Development Team within the Cognizant Insurance Practice. He has more than nine years of IT experience working on multiple opportunities for life and property and casualty insurers in the Asia-Pacific region, in the areas of business analysis, business process consulting and digital transformation. Santhosh has completed his PGPM from Great Lakes Institute of Management in Chennai, with certifications in FLMI and CSPO. He can be reached at Santhosh. Kumars3@cognizant.com | www.linkedin.com/in/santhosh-kumar-swayam-prakash-13ba5056/.
  • 13. Cognizant 20-20 Insights 13  /  Catching the Consumer Data Wave: A New Opportunity in the Insurance Ecosystem Vinay Alexander Senior Consultant, Insurance Practice, Cognizant Consulting Vinay Alexander is a Senior Consultant within Cognizant Consulting’s Insurance Practice. A certified AINS professional, he has nine years of experience working with multiple property and casualty insurers and brokers across Europe and North America in IT product development, functional implementation, business analysis, business process consulting and digital transformation. Vinay received a PGPM in marketing and sales from Great Lakes Institute of Management, Chennai. He can be reached at Vinay.Alexander@ cognizant.com | www.linkedin.com/in/vinay-alexander-830301bb/. Manikandan Sankaran Consultant, Insurance Practice, Cognizant Consulting Manikandan Sankaran is a Consultant within Cognizant Consulting’s Insurance Practice. He has more than four years of consulting experience across the insurance value chain working with insurers and brokers across the U.S., UK, Middle East and Asia-Pacific regions, with expertise in business analysis and digital transformation, and a passion for emerging technology. Manikandan holds a post-graduate degree in management from the Indian Institute of Management, Indore. He can be reached at Manikandan. Sankaran2@cognizant.com | www.linkedin.com/in/manikandan243.
  • 14. Cognizant 20-20 Insights 14  /  Catching the Consumer Data Wave: A New Opportunity in the Insurance Ecosystem Endnotes 1 David Reinsel, John Gantz, John Rydning, “The Digitization of the World – From Edge to Core,” IDC and Seagate, November 2018, www.seagate.com/files/www-content/our-story/trends/files/idc-seagate-dataage-whitepaper.pdf. 2 “Worldwide Wearables Market Ticks Up 5.5% Due to Gains in Emerging Markets, Says IDC,” Sept. 4, 2018, IDC press release, www.idc.com/getdoc.jsp?containerId=prUS44247418. 3 Kevin Wei Wang, Jonathan Woetzel, Jeongmin Seong, James Manyika, Michael Chui, Wendy Wong, “Digital China: Powering the economy to global competitiveness,” McKinsey Global Institute, December 2017, www.mckinsey.com/ featured-insights/china/digital-china-powering-the-economy-to-global-competitiveness. 4 “What Is Smart Nation – Initiatives,” Smart Nation Singapore, www.smartnation.sg/what-is-smart-nation/initiatives. 5 Digital Free Trade Zone (DFTZ), Malaysia External Trade Development Corporation, www.matrade.gov.my/en/digital- free-trade-zone-dftz. 6 What Is Thailand 4.0?, https://thaiembdc.org/thailand-4-0-2/. 7 “How Tencent and Ant Financial Are Rushing Into China’s Insurance Industry,” CBInsights, Oct. 23, 2017, www.cbinsights. com/research/baidu-alibaba-tencent-insurance/. 8 Elinor Friedman, Andrew Harley, Klayton Southwood, “Insurance big data — float like a butterfly, sting like a bee,” Willis Towers Watson, August 2016, www.towerswatson.com/en/Insights/Newsletters/Global/Emphasis/2016/emphasis-2016- 2-insurance-big-data-can-improve-business. 9 Karl Flinders, “Insurers face same legacy system battle as retail banks,” Computer Weekly, Nov. 1, 2016, www.computerweekly.com/news/450402096/Insurers-face-same-legacy-system-battle-as-retail-banks. 10 Trevor Lloyd-Jones, “With Digital Disruption Will Insurance Brokers Adapt or Die?” LexisNexis Insurance Insights, http://blogs.lexisnexis.com/insurance-insights/2016/12/with-digital-disruption-will-insurance-brokers-adapt-or-die/. 11 “ZhongAn Technology Launches AI-Powered Data Platform for China’s Insurance Industry,” Fintech News Hong Kong, Aug. 14, 2018, http://fintechnews.hk/6308/insurtech/zhongan-technology-saas-insurance-data/. 12 Ibid. 13 Finbarr Toesland, “Insurance moves from reactive to predictive,” Raconteur, April 26, 2018, www.raconteur.net/risk- management/insurance-moves-reactive-predictive. 14 China In-Depth: China Insurtech Review – May 2017, The Digital Insurer, www.the-digital-insurer.com/china-in-depth- china-insurtech-review-may-2017/. 15 Hugh Terry, “AXA, Alibaba and Ant Financial – New ecosystem,” The Digital Insurer, www.the-digital-insurer.com/dia/axa- alibaba-and-ant-financial-new-ecosystem-under-development/. 16 Matthew Nitkoski, “Defending China’s Data,” China Business Review, October 2, 2018, www.chinabusinessreview.com/ defending-chinas-data/.
  • 15. © Copyright 2019, Cognizant. All rights reserved. No part of this document may be reproduced, stored in a retrieval system, transmitted in any form or by any means,electronic, mechanical, photocopying, recording, or otherwise, without the express written permission from Cognizant. The information contained herein is subject to change without notice. All other trademarks mentioned herein are the property of their respective owners. Codex 4250 World Headquarters 500 Frank W. Burr Blvd. Teaneck, NJ 07666 USA Phone: +1 201 801 0233 Fax: +1 201 801 0243 Toll Free: +1 888 937 3277 European Headquarters 1 Kingdom Street Paddington Central London W2 6BD England Phone: +44 (0) 20 7297 7600 Fax: +44 (0) 20 7121 0102 India Operations Headquarters #5/535 Old Mahabalipuram Road Okkiyam Pettai, Thoraipakkam Chennai, 600 096 India Phone: +91 (0) 44 4209 6000 Fax: +91 (0) 44 4209 6060 About Cognizant’s Insurance Business Unit Cognizant is a leading global services partner for the insurance industry. In fact, seven of the top 10 global insurers and 33 of the top 50 U.S. insurers benefit from our integrated services portfolio. We help our clients run better by driving greater efficiency and effectiveness, while simultaneously helping them run differently by innovating and transforming their businesses for the future. Cognizant redefines the way its clients operate — from increasing sales and marketing effectiveness, to driving process improvements and modernizing legacy systems, to sourcing business operations. About Cognizant Cognizant (Nasdaq-100: CTSH) is one of the world’s leading professional services companies, transforming clients’ business, operating and technology models for the digital era. Our unique industry-based, consultative approach helps clients envision, build and run more innovative and efficient business- es. Headquartered in the U.S., Cognizant is ranked 195 on the Fortune 500 and is consistently listed among the most admired companies in the world. Learn how Cognizant helps clients lead with digital at www.cognizant.com or follow us @Cognizant.