The US insurance market is transforming rapidly and this is driven by changing buyer needs, ability to use analytics and technology to provide seamless customer experience and more so, the ability to manage costs across the insurance value chain

1. The US Insurance Market
(Its all about efficiency and customer experience)

2. Proprietary & Confidential 2
With over $600B of Personal and Commercial GWP in the US the
market though dominated by large carriers is still highly fragmented
• Personal lines: Auto and Home account for over $300B in GWP
• All Lines: Top 25 carriers write approximately 65% of the GWP while the
Top 5 have 30% market share
• Commercial Lines: Top 5 carriers write over $60B in GWP
• Brokers are a major distribution channel especially in the mid, large and
global client placements (Aon, Marsh, WTW, AJG, etc)
• Brokers work with 100’s of carriers though concentration of premium is
with 20-30 carriers
• Industry needs vary but over the last few years Professional Liability for
Lawyers and D&O across the market has seen strong growth

3. Proprietary & Confidential 3
Carriers and distribution partners are seeking differentiation strategies
to provide value to insureds while maintaining profitable growth
INSURED BROKER / DISTRIBUTION INSURER
• Use analytics and insights to ensure “right”
amount of coverage and not paying for excess
coverage
• Look at captives and self insurance to drive
down premiums
• Invest in analytics to better target insureds
• Commercialize historical data by selling insights
to carriers
• Reduce operational costs by adopting
automation and AI
• Centralize via GBS non client facing functions
• Look to reduce broker commissions (pursuing
direct to customer strategies)
• Reduce cost to service claims
• Better claim fraud identification and
• subrogation processes
• Use automation / AI to streamline workflow
solutions
• Investment diversification to lower market
volatility
STRATEGY
• Seek appropriate coverage and competitive
price
• Require brokers to provide advice and
negotiate best terms and conditions
• Select carriers based on ratings and ability to
provide varied coverage needs
• Need carriers to pay claims quickly
• Tend to be sticky unless carrier messes up
• Get compensated for value (justify the 15%-
20% cost )
• Educate insureds on coverage needs and
emerging risks (-e.g., cyber)
• Utilize analytics to provide insights to both
insureds and insurers
• Simplify the transactional nature of the
business
• Reduce the number of carriers it works with to
get quotes
• Collaborate with carriers to grow new areas of
coverage
• Provide coverages that meet market need
• Have a focused appetite but willing to modify
based on market need
• Create a transparent experience for both
brokers and insureds
• Convert more profitable business
• Retain more of the business it wants to renew
• Use captives and reinsurers to smoothen
balance sheet exposure
• Reduce cost of servicing across distribution and
claims
• Work with brokers on expanding market (niche
products)
OBJECTIVE

4. Proprietary & Confidential 4
Successful brokers provide insights and drive effectiveness for both insurers and insureds
Distribution Functions - Today
• Producers / AE’s / Brokers
- Grow client base
- Retain and renew current clients
- Obtain coverage and price from carriers
- Select best terms and conditions for
client
• Middle Office
- Onboard new clients
- Issue policy documents
- Manage claims with carriers
• Back Office
- Billing
- Endorsement updates
- Data entry into policy management and
transaction systems
Distribution Functions - Future
• Client Focus
- Client segmentation
- Insight driven approach
- Ease of Use
• Data and Analytics
- Benchmark coverages and price
- Portfolio driven approach
- Targeted carrier selection
• Seamless Operations
- Improved efficiency utilizing digital
technologies (RPA, AI)
- Self service capabilities internally and
externally
Brokers seek to retain most of their current book of business and reduce the cost of
servicing while improving the customer experience

5. Proprietary & Confidential 5
Successful carriers will drive towards high customer experience as insurance products become
more commoditized
Carrier Functions - Today
• Broker Relations / UW’s / Claims
- Increase submission flow
- Write profitable business
- Pay Claims
• Middle Office
- Policy issuance
- Renewals
- Coverage/Pricing
- Claims management
• Back Office
- Billing
- Data entry
Carrier Functions - Future
• Client Focus
- Clearly defined appetite
- Customized coverage
- Faster response to quotes
• Data and Analytics
- Identify and respond to best opportunity
- Increase straight through processing
- Faster claims resolution
• Customer Experience
- Continuous improved information loop
- Transparent resolution to claims
- Self service capabilities
Carriers provide customized coverage and transparent claims experience to differentiate
their value proposition

6. Proprietary & Confidential 6
Embedding efficiencies across the business will drive higher growth, reduced expenses and
superior customer experience
Brokers and carriers are transforming themselves to stay competitive as well as
compete with Insuretechs that are disrupting the marketplace
• Map and modify inefficient processes
• Lean center of excellence to drive standardization
• Uncover insights to drive growth on top line
• Better understanding of customer needs
• Reduce claims expense and fraud
• Automate standardized manual processes
• RPA COE to ensure consistency and management of robots
(hub and spoke design)
• Decision making automation
• Enhanced customer experience
• Reimagine customer experience
• Improvements driven by what matters to customer
• Centralizing functions such as HR/Marketing/Call Center
• Leverage scale to drive down cost and improve effectiveness
• Outsource non critical functions
• Shift and fix processes with no disruption on current business
operations
Process
Redesign
Insights – Data
& Analytics
RPA
AI
Design Thinking
Global Business
Services
Outsourcing
ENABLER Action
• Improved effective processes
• Simplified workflow
• Underwrite best opportunity
• Targeted customer approach
• Transparent claims process
• Reduced cost of operations
• Controlled use of RPA
• Improved structured data quality
• Self servicing tools for customers
• High customer engagement
• Innovative solutions driven by market need
• Reduced cost of operations
• Standardization
• Lower operating costs
• Ability to automate in low risk environment
Outcome

7. Proprietary & Confidential 6
Embedding efficiencies across the business will drive higher growth, reduced expenses and
superior customer experience
Brokers and carriers are transforming themselves to stay competitive as well as
compete with Insuretechs that are disrupting the marketplace
• Map and modify inefficient processes
• Lean center of excellence to drive standardization
• Uncover insights to drive growth on top line
• Better understanding of customer needs
• Reduce claims expense and fraud
• Automate standardized manual processes
• RPA COE to ensure consistency and management of robots
(hub and spoke design)
• Decision making automation
• Enhanced customer experience
• Reimagine customer experience
• Improvements driven by what matters to customer
• Centralizing functions such as HR/Marketing/Call Center
• Leverage scale to drive down cost and improve effectiveness
• Outsource non critical functions
• Shift and fix processes with no disruption on current business
operations
Process
Redesign
Insights – Data
& Analytics
RPA
AI
Design Thinking
Global Business
Services
Outsourcing
ENABLER Action
• Improved effective processes
• Simplified workflow
• Underwrite best opportunity
• Targeted customer approach
• Transparent claims process
• Reduced cost of operations
• Controlled use of RPA
• Improved structured data quality
• Self servicing tools for customers
• High customer engagement
• Innovative solutions driven by market need
• Reduced cost of operations
• Standardization
• Lower operating costs
• Ability to automate in low risk environment
Outcome