This document discusses an AI-powered insurer of the future. Key points: - Advances in data, AI, and cloud computing are changing insurer functions like underwriting, claims, and customer service by bridging gaps between value chain components. - Insurers of the future will require new skills like using AI to personalize customer experiences, augmenting internal data with external sources, and leveraging AI and data for superior claims handling. - Insurers can take either a defensive or offensive strategy to AI - defensive focuses on compliance while offensive uses data and AI to solve business problems and improve competitiveness. - Insurers are using a range of AI techniques like natural language processing, predictive

1. 1
AI POWERED
INSURER

2. Today’s Panelists
Host: Hugh Terry
Founder,
TDI
Moderator: Elisha Deol
Global InsurTech Manager,
KPMG
Parmjeet Kaur
Founder & Head of Research
ITR Connect
Gillian McCann
Co-founder
Workgrid Software
Gero Gunkel
Group Head of AI,
Zurich
Kaushik Raghunandan
Digital Director + Innovation,
KPMG Singapore

3. Discussion Agenda

4. Questions & Answers
How to participate:
If you have a question please type into the Q&A area
If you have a comment please type into the chat area
Session format:
The moderator will use a combination of his own questions
and those from the audience

5. Kaushik Raghunandan
Digital Director + Innovation,
KPMG Singapore

6. The AI Enabled
Insurer of the Future

7. © 2019 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity.
All rightsreserved.
RISEOF
EMERGING
MARKETS
7
THEIOT
REVOLUTION
SECTOR
CONVERGENC
E
INSURTECH
NEXT GENERATION
CUSTOMERS
NEW SOCIO-ECONOMIC
DYNAMICS
ROBOTICS &
AUTOMATION
AGGREGATORS
AI Enabled Insurer of the Future
Key Drivers of Change
BORN ON THE
WEB INSURERS
UNINSURED and
UNDERINSURED
WORKFORCE
ISSUES
DATA &
CLOUD

8. 8
Document Classification: KPMG Confidential
© 2019 KPMG Services Pte. Ltd. (Registration No: 200003956G), a Singapore incorporated company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative
("KPMG International"), a Swiss entity. All rights reserved.
The Convergence of Advances in Data & AI are Changing the Functional
Dynamics of the Future Insurers by Bridging Gaps Between Different Value
Chain Components
AI Enabled Insurer of the Future
New set of technology skills and functional competencies will emerge with adoption of AI
Sales/Marketing Underwriting Serving and Claims
— Ability to use enhanced,
individualized customer data to and
AI to personalize the customer
experience
— Ability to use real time Next Best
Action recommendations to the
channels
— Ability to augment internal data
with external data to build a more
complete 360 degree view
— Ability to service more complex events
and resolve customer issues
— Ability to detect and
investigate complex Fraud
— Ability to triage between Claims,
Persistency and Sales
— Use Computer Vision to identify
Fraud
— Leverage external data and AI for
superior claim service and avoidance
— Fast, easy seamless experience
— Ability to interpret new data and
sources including the Internet of
Things
— Business intelligence
— Refined customer analytics to focus
on complexity
— Shift away from routine underwriting
— Leverage D&AI to better manage
risk: focus on speed & quality

9. © 2019 KPMG Services Pte. Ltd. (Registration No: 200003956G), a Singapore incorporated company and a member firm of the KPMG network of independent member firms affiliated with KPMG
International Cooperative ("KPMG International"),a Swiss entity. All rights reserved.
Defensive vs Offensive AI Strategy Approach
13
Governance
 Pre-determined answers;
looking for problems or
questions that
can be answered bythem
 IT–Led; lack of business
sponsorship
and engagement
 Fulfilling regulatory
reporting requirements and
compliance
 Legacy approach
 Global, non-specific
 Using data to answer
questions and solve business
problems
 To create a decision support
system to aid delivery of
actionable insight
 New approach of choice;
successful approach used by
the industry’s leaders
 Improve competitive position
and profitability
 Targeted, select, discreet
Defensive Offensive
Strategy
 Business-Led; Desired
business outcomes drive the
strategy and approach
Better Outcome
Driven byAction
Decisions
Insights
Data
Document Classification: KPMG Confidential

10. 10© 2019 KPMG Services Pte. Ltd. (Registration No: 200003956G), a Singapore incorporated company and a member firm of the KPMG network of independent member firms
affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved.
We use a range of artificial intelligence “building blocks” proprietary to KPMG, which enable us to deliver
KPMG’s AI Enabled Building Blocks

11. Snap Poll
11
Q. Which of these functional area can benefit most from the application of
AI NOW?
1. Underwriting
2. Sales
3. Claims
4. Customer service
How to participate:
Just respond to the question when it appears on your screen

12. Gillian McCann
Co-Founder and Head of Cloud Engineering & AI
Workgrid Software

13. LIBERTY MUTUAL13
Workgrid at a Glance
 Born from an internal employee experience initiative
supporting 50,000 global employees.
 Building intelligent software solutions to simplifying the
work day and improve the employee experience.
 Backed by Liberty Mutual, Workgrid Software is not your
typical technology startup company.
Trusted by theWholly-Owned by
Enterprise
Scale & Standards
Enterprise
Experience
Enterprise
Expectations
Built for the Enterprise, by an Enterprise

14. LIBERTY MUTUAL14
Text Generation
Question Answering
Context Extraction
Classification
Machine Translation
Sentiment Analysis
Natural Language Understanding
Text to Speech
Transcription
Automatic Speech Recognition
Emotion Recognition
Entity Recognition

15. LIBERTY MUTUAL15
Layered Approach
Understand common questions and tasks that occur
across enterprise. Take a layered approach to building
integrations.
Persona Mapping
Understand personas and how employees use
applications, what questions and tasks exist
Involve Employees in the Process
Bottom Up Approach, design thinking, sometimes it’s
the simple things

16. LIBERTY MUTUAL16
Feedback Loops
Build in feedback loop that can be used to drive new
features
Understand Questions Being Asked
Track common questions and monitor quality of bot,
track usage of bot, understand what employees ask
Performance Tracking
Understand performance of bot

17. LIBERTY MUTUAL17
Is Conversation the Right Interface?
Is conversation easier than a visual interface?
Use multi-model designs – visual and voice
features.
Context is King
Conversations without context is
meaningless, include personalized and
contextual responses
Simplify Answers
Employees expect answers, not PDFs, not links,
not strings of long text
Built-in Help & Opt-Out
Do you have a way allow users to leave a
conversation or start again at any point or
include built-in help?
Script it Out
Conversations can take different paths.
Design for different flows and error handling
Don’t Pretend to be Human
Understand that a user may say things in
different ways then when they type something

18. LIBERTY MUTUAL18
Needs Code
If you keep asking a bot what the weather is, it won’t
learn on its own. Has to connect to weather system.
Doesn’t Learn on it’s own!
Machine learning doesn’t mean a chatbot can learn
on its own
Multiple components of AI
Machine learning, Robotics, NLP, Speech, Vision,
Planning, Expert Systems

19. Snap Poll
19
Q. Which of these AI technologies has most potential for insurance?
1. Natural language processing
2. image recognition
3. Predictive modelling
How to participate:
Just respond to the question when it appears on your screen

20. Gero Gunkel
Group Head of Artificial Intelligence
Zurich Insurance

21. Snap Poll
21
Q. Which one of the following is in your view most important in a
successful AI project?
1. Selecting of solution provider
2. management of solution provider
3. Quality of people deployed internally to project
4. Project scoping and planning
5. Data management
6. Data availability
How to participate:
Just respond to the question when it appears on your screen

22. Parmjeet Kaur
Founder & Head of Research
ITR Connect

24. ‘Investment industry to spend $2.8bn on AI by 2021,
expected to cut quarter of a million jobs
(Opimas Consultancy, 2019)
Artificial Intelligence ITR AI – Reality or Hype
Version 4.0
‘Nearly half of all ‘AI Start-ups'
are Cashing in on the Hype’
(Forbes, 2019)
‘Out of 2,830 start-ups in Europe that were classified as being
AI companies only 1,580 accurately fit that description’
(MMC Ventures : The State of AI 2019)
‘Amazon Scraps ‘Sexist AI’ recruiting tool - Amazon Recruitment
Tool favours male candidates over female candidates based on
historical data’
(Telegraph 2018)
‘The tools and technologies we’ve developed are really the first few
Drops of water in the vast ocean of what AI will do’
(Fei-Fei Li - Stanford)
AI will probably most likely lead to the end of the world but
in the meantime, there’ll be great companies
(Sam Altman – Y Combinator)
• We are just at the start of our Journey with AI but
already its affecting our business today.
• Just saying your company uses AI increases
enterprise value significantly.
• Lots of missteps, but huge potential to benefit
society and the Insurance sector.
Recent Acqui-Hire deals value talent at between
$5m and $10m per AI Expert
(Pitchbook, 2018)

25. Artificial Intelligence
ITR Analytics 1500 Insurtechs,
425 AI Driven Models
Version 4.0
Bias of AI Players to TechCos...
AI Insurtechs are Early Stage… …small in size… …focused on efficiency.
… AI is a dominant force of change.…focus on ML and DP and RPA…

26. Artificial Intelligence ITR AI Claims Fraud
Solution: Fraud Detection
Shift - Big data and AI-based solution for insurers to
identify fraudulent claims.
SHIFT - In A Nutshell
Shift Technology is a leading SaaS platform that
leverages artificial intelligence and big data to
detect fraudulent claims and automate the claims
process for insurers.
Problem Statement:
Claims processing represents a significant portion
of total expenses for insurers with fraud specialist
teams a high cost centre.
SHIFT TECHNOLOGY - 2014
Overview
Shift Technology provides solutions for insurance
companies to manage and identify fraudulent claims by
using artificial intelligence and machine learning. The
company provides FORCE, an insurance fraud detection
solution and Luke, a claim automation solution for claim
handlers and insurance managers. Shift Technology works
with P&C as well as healthcare insurers.
Key Facts ITR View
Shift Technology has circa 50 insurance clients and
operates in 19 countries. In 2017, their revenue had
grown by more than 800 percent.
Shift claims to have already examined over a 100 million
property and casualty claims and has been designated
one of the top 100 AI firms and top 20 Insurtechs globally.
In 2017, Shift Technology raised a Series B funding round
of $28 million from Accel and General Catalyst.
In March 2019 Shift secured another $60m of funding.
Client Partnerships continue to grow –
The application of AI using historical
data to find and predict fraud patterns
delivers a strong use case.

27. Artificial Intelligence ITR AI Health
Solution: Health AI
Lumiata - Applying big data-driven medical science to
patient data in order to make healthcare smarter.
Lumiata - In A Nutshell
Lumiata is using AI to produce intelligent health
analytics for improved risk awareness and cost
management in healthcare.
Problem Statement:
Health industry plagued by complexity, lack of
transparency and high costs.
LUMIATA 2013
Overview
Key Facts ITR View
Cost Prediction AI - An excellent example of how AI can be
used to develop predictive cost models estimating average
health costs over time, down to the patient level.
Several applications – group schemes, individuals, self
funded employers.
Founded in 2013 and based out of California, USA, Lumiata,
which was formerly known as MEDgle Inc, hopes to provide
“risk and cost predictions for patients and populations to help
optimize major health plans.” The company’s models help
predict the risk of disease and the onset of several chronic
conditions.
Lumiata is certified on industry compliance
standards and is backed by Khosla Ventures,
BlueCross BlueShield Venture Fund, Intel Capital
and Sandbox.
In July 2018, the company closed $11 million in new
funding co-led by Khosla Ventures and BlueCross
BlueShield Venture Partners, bringing the
company’s total funding to $31million.

28. SPIXII – In a Nutshell
Artificial Intelligence ITR AI Chatbots
Solution: Chatbots/RPA
Spixii - An intuitive chatbot framework that can be
adapted to automate sales, customer care and claims.
Problem Statement:
Manual process in insurance today limit the ability
to improve customer experience models.
Spixii - 2016
Overview
Key Facts ITR View
Spixii provides white labelled AI-based chatbot
solutions that automate insurance services from
distribution to claims.
Spixii was founded in 2016 in London, UK, the operation
has expanded using a number of accelerators e.g. SBC,
TechStars. The company offers three solutions—Spixii
Discovery, Spixii go-to-market and Spixii partnership.
Spixii offers a white-label chatbot that allows
insurers to engage with their customers.
The company’s chatbot uses AI and machine
learning technology to provide a rich user
experience to an insurer’s customer base.
One to Watch – Their chatbot framework will only improve
over time and already being leveraged by the likes of
Zurich and Bupa.
The fundamentals are sound, wait to see if they get market
traction and growth.

29. Snap Poll
29
Q. “ Technological Singularity” is the hypothesis that the invention of
artificial superintelligence will abruptly trigger runaway technological
growth, resulting in unfathomable changes to human civilization. When do
you think this singularity will happen?
1. Next 10 years
2. Within 30-50 years
3. don’t know
4. Will not happen
How to participate:
Just respond to the question when it appears on your screen

30. Q&A
Moderator: Hugh Terry
Founder,
TDI
Moderator: Elisha Deol
Global InsurTech Manager,
KPMG
Parmjeet Kaur
Founder & Head of Research
ITR Connect
Gillian McCann
Co-founder
Workgrid Software
Gero Gunkel
Group Head of AI,
Zurich
Kaushik Raghunandan
Digital Director + Innovation,
KPMG Singapore

31. Further reading
31
https://www.the-digital-insurer.com/insurtech-insights/ai-powered-insurer/

32. LIVEFEST 2019
32
What to do now – apply for
an award!
• Prepare award entries for –
Insurance Innovation and Startup
InsurTech’s. Applications Open!
• Insurers – apply for the LIVEFEST
Knowledge programme (it’s free !)
• Save the Dates and Login with TDI
credentials to participate live or view
on-demand
• LIVEFEST 2018 session recordings
and summary also available in the
LIVEFEST Zone

33. Post webinar activities
Recording will be emailed to registered participants
Please give us your feedback and participant suggestions
If you would like to follow-up with any of the panelists
hugh.terry@the-digital-insurer.com
Elisha.Deol@kpmg.co.uk
kraghunandan@kpmg.com.sg
gillian.mccann@workgrid.com
gero.gunkel@zurich.com
parmjeet.kaur@itrconnect.com
 Join or next webinar on 11th June- Digital Bancasurrance: https://www.the-digital-
insurer.com/event/digital-bancassurance/