Webinar: Partnering for success in a digital world

Partnering for Success in a Digital
World
3rd February 2021
Copyright © 2021 The Digital insurer. All rights reserved.

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Disclaimer
Presentations are intended for educational purposes only and do not replace independent
professional judgment. Statements of facts and opinions expressed are those of the
participants individually and, unless expressly stated otherwise, are neither the opinion nor
position of The Digital Insurer. The Digital Insurer do not endorse or approve, and assume
no responsibility for, the content, accuracy or completeness of the information presented.

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Discussion Agenda
75
Minutes
Opening remarks
Opportunities in the Industry with KPMG
Insurer perspectives with AIA
Panel discussion including Q&A
TDI updates and wrap up
Working together to accelerate the digital transformation of insurance

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Today’s Panellists

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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 their own questions and those from the
audience
How to participate

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Opening Remarks

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Partnerships - on the agenda, but not fully executed
Source: InsurTech World: Insurer InsurTech partnerships on the rise Original source: Capgemini’s 2019 World InsurTech Report.
68%
Insurers say
partnerships
critical
32%
Collaborating
with
ecosystem
partners
V’s

8
8
Ecosystems demand partnerships

9
9
Insurers Tech
(& Services)
Distributors
(inc Ecosystems &
banks)
Reinsurers
Partnership Landscape

10
10
Partnership Methods
• Increasing protection for IP
and longevity
• Increasing cost if
partnership fails
• Increasing control (which
has pros and cons)
Commercial Agreement
Strategic Alliance
Distribution agreement
Investment
Mergers & Acquisitions

11
11
Why acquisitions are so challenging
Source: McKinsey: where mergers go wrong ; Investopedia:why ma deals fail
“ Winner’s curse- 10-25%
premium goes to the seller”
Mis-valuation - synergies not estimated correctly
Where they go wrong
Limited owner involvement
Integration challenges – plans ,culture, resources
Revenue synergies fail to materialise
Cost synergies harder to find then expected
External Factors beyond control – “events”
Failure to look at alternatives
1
2
3
4
5
49%
Achieved less than 90% of expected cost savings
62%
achieved less than 80% of expected revenue
synergies

12
12
Effective Partnerships – personal Point of View
Always Look & understand the win-win (strategy)
Be fair
Plan for success - but anticipate failure
Incremental - create roadmaps for building partnerships over
time. Early quick win
Partnering is a skill - dedicate resources and train people
1
2
3
4
5

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The Changing Partnership Landscape

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© 2021 KPMG, a Hong Kong partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International
Limited (“KPMG International”), a private English company limited by guarantee. All rights reserved. Printed in Hong Kong, China.
The way Insurers sell through the
banks has to change
Key bancassurancedeals inAsia Pacific2
Year Location Insurer Bank Deal Value
(USD)
Span of
Agreement
2019 5markets in
Asia
Prudential UOB $900 million
paid over 3
years
15 years
extensionfrom
the 2010 deal
2013 11 markets in
Asia
AIA Citibank $800 million
upfrontfee
15 years
From2013 to2020, there has been over50 dealsin Asia.Ofthe 15 dealsthatdisclosedfigures,
$6 billionwas reportedly paid inup-frontfeesalone.1
Source: 1BancassuranceinAsia: Delivering astep-changein value, March 2020,
2BancassuranceIndustrySegments,InsuranceAsiaNews,January2021
Number ofcommercial & retail banksbranches per 100,000 adultsin
HongKong in2004 -20193
Source: 3Knoema World Development Indicators, December 2020
In Hong Kong, there has been a significantdecrease inthenumberofbank
branchessince 2013.

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Customers are shifting from banking in branches
to digital channels and expecting insurers to offer
omnichannel experiences - COVID is only
expediting this trend…
-6%
-2%
-2%
-5%
-2%
4%
3%
4%
6%
6%
3%
1%
1%
9%
7%
3%
-10% -5% 0% 5% 10%
Get aquote
Makeaclaim
Renewmy policy
Makean inquiry
-7%
-6%
3%
2%
-6%
2%
-2%
1%
6%
8%
3%
4%
8%
8%
9%
-8% -6% -4% -2% 0% 2% 4% 6% 8% 10%
Check balance
Manage account
Inquire about new products
Conduct a high-value
transaction
Open a new account
Banking consumersin Hong Kong are expected to continue using
digital channels for standard daily activities.
Lessuse More use
Open a new account
Conduct a high-value
transaction
Inquire about
new products
Manage account
Check balance
Insurance consumersin Hong Kong are also expectedto continue to
engage through digital channels.
Make an
inquiry
Renew
my policy
Make a claim
Get a quote
App
E-mail
Website
Broker F2F (offline)
Source:Consumersandthenewreality,COVID-19pulsesurvey,Wave5update,KPMGInternational,Sep 2020
Q:Consideringthefollowing methodsofcommunicationwithyourbank,whichmethoddidyoumainlyusebeforeand
duringCOVID-19?
Source:Consumersandthenewreality,COVID-19pulsesurvey,Wave5update,KPMGInternational,Sep 2020
Q:Consideringthefollowing methodsofcommunicationwithyourinsurerwhichmethoddidyoumainlyuse
beforeandduringCOVID-19?
Lessuse More use
App
Website
In-branch (offline)
Differenceinthepercentage ofrespondentsoptingtousethesecommunicationmethodsbeforeandaftertheCOVID-19
situation
Differenceinthepercentage ofrespondentsoptingtousethesecommunicationmethodsbeforeandduringtheCOVID-19
situation

17
Trust in insurance grew compared
to other sectors
Banking -8%
Insurance 5%
Percentageshowing nettrust,i.e. trustmore thanbefore minusless thanbefore to thequestion: To what
extentdo you trusteachtypeof company now, compared withbefore theCOVID-19situation?
Source: Consumer and thenew reality, KPMG International,June2020
Trust by sector inHongKong nowvs.pre-COVID-19
Customersexpect the impactsofCOVID-19 to lastand are moreconscious oftheir insurance
needs tosecure againstunforeseen events.
They value proactivecommunicationson how exactlytheir policieshave been affectedand what
they arecovered forand what theyare not.
Insurers’response to support & assure policyholdersgain trustsamongtheircustomers
by understandingtheirneeds
Example: Manulifeintroduced a range ofspecialmeasuresand coverage benefitsfor
customers based on theneeds of each market:
• Launching simplerclaimsprocesses
• Waivingofmedicaldeductible
• Removal ofcertainexclusionsand restrictions(e.g. 90-day exclusionforoverseas medical
treatment claimsforcustomersthatareunable to return toMalaysia due totravel
restrictions)
• Granting anextended grace periodforpremiumpayment
Trust scores in insuranceprovidersgrew when comparing during and before
the COVID-19 situation,asopposed to their banking counterparts.

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These trends present
opportunities
Tailoringproductstocustomers’needs
andbeingclearontheproduct value
andbenefits
Leveragingdigital-augmentedmodelsto
provideomni-channelexperiencesand
fulfillneedsof digital savvycustomers
Growthecustomerbase through
capitalizingonpartnershipagreements

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So some key things to consider in
the partnership space
Reaching out to customers through their channel choiceand integrating into their lifestyle
Collaborating much morecloselywith different partners with an efficientbusiness model
Understanding and designing around your target customers

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Poll
Q. Do you think your company is really clear on customer channel
preferences for different products and services?
Response options:
1. Yes – we proactively research this all the time
2. Partly – we know some of this instinctively but have no systemic means of measuring
our customers preferences
3. Not currently clear at all
Poll 1

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Poll
Q. Would you like to hear more from KPMG on how it is helping insurers
work more effectively with existing & new partners?
Response options:
1. Yes please
2. Not at the moment, thanks
Poll 2

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Insurer Perspective

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Develop digital and analytics led
bancassurance model
Face-to-face
advisory
with digital tools for
analysis and
submission
Digital completion
with assisted closure
as needed
 Data-driven marketing
 Analytics using partner, AIA and
external data
 Propensity models to design
targeted offers
Retail In-
branch
Customers
Credit Card
Customers
Online
Banking
Customers
Analytics-enabled Leads
Generation
Customer-preferred
closure methods

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Some key themes and early
learnings
Providetargetedoffersforeachpersonawith
personalisedmarketingmessagesentatthe
righttime,viatherightchanneltodrivecampaign
responseandconversionrates
Understandyourpartner’scustomerbaseto
identify
targetsegments
Defineaclearbusinessmodelwithyour
partnerstogaininsightsforsegmentationand
developjointpropositions
Considertheintegrationwithyourpartner’s
systemsandplatforms,includingaccessand
sharingofdata, capabilitiesand solutions
required
Simpleandseamlessdigitaljourneyforstraight-
through-processing,withprepopulateddata,
streamlinedunderwriting,integratedpayment
optionsandinstantpolicyissuance
Providereal-timesupportthroughdigital/ tele-
assistance,withdefinedSLAstoeffectively
managedrop-offs
Continuouslyengagewithcustomersviatheir
preferredchannelsinthe widerecosystem(e.g.
Vitalityapp,partnerplatforms)tobuildloyaltyand
advocacy,andnurture leadsforcross-sell/ up-sell
Empoweryour sellerswith
digitaltoolsand remotesalescapabilitiesto
provideaconsistent,frictionlessexperience
acrossallchannels

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Poll
Q. Which of Pankaj’s 8 top tips do you consider to be the single most
important for Partnership success?
Response options:
1. Understand partners customer base
2. Joint segmentation and proposition development
3. System integration
4. Digital / remote tools for sellers
5. Targeted offers / personalized marketing
6. Simple & seamless journeys for STP
7. Realtime tele-sales support
8. Continuously engage with customers through preferred channels
Poll 3

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Panel Discussion

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Poll
Q. As partnership models evolve, how important will it be for insurers to
hire in new skills and capabilities that best understand how new types of
partners work
Response options:
1. Critical - new partnership areas such as platforms and ecosystems need new skill
sets and different ways of thinking that are very different to existing capabilities
2. Important - insurers teams need to evolve fairly quickly in order to be able to attract
and retain new partnerships – and generate targeted partnership value
3. Nice to have – insurers already have strong partnership management capabilities and
these can evolve with needs over time
Poll 4

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TDI INSURTECH Directory
The world’s insurtech database

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TDI is on a mission to map the world of InsurTech
• Dynamic
• Linked to The InsurTech
Directory
• 5+ more maps in Q1
• Contact us if you would
like to volunteer & help

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Working Together to Accelerate the Digital Transformation of Insurance

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TDI Academy programmes offerings
TDI Academy – virtual L&D platform on digital insurance
Digital insurance L&D Platform
Virtual
On-Demand
Preferential
Membership Certificate Mini-MBA

34
TDI Academy – virtual L&D platform on digital insurance
Common Core Curriculum
of 56 hours
7 x 8 one-hour lessons On-demand 24x7 MCQs for each Range of Industry Experts
= Participant rating (out of 10)
1. OUR CHANGING
WORLD
2. TECH ENABLERS
3. DATA &
ANALYTICS
4. VALUE CHAIN
INNOVATIONS
5. NEW DIGITAL
BUSINESS
MODELS
1.1 4th Industrial
Revolution
1.2 Our Connected
World
1.3 Power
of Social
1.4 Changing
Consumer
Behavior
1.5 More Change
Coming
1.6 Why Data
is King
1.7 Cloud
Crushes Costs
1.8 Insurance
Re-booted
2.1 Tech Trends in
Insurance
2.2 AI, Machine
Learning & RPA
2.3 Blockchain
2.4 IoT
2.5 Chat &
Voice
2.6 Immersive
Technologies
2.7 APIs &
Microservices
2.8 Tech Architecture
Best Practices
3.1 The Power
of Data
3.2 Python
Basics
3.3 Python
Intermediate
3.4 Data Visualization
& Example Tools
3.5 Machine Learning
3.6 D&A Use Cases
- P&C
3.7 D&A Use Cases
- Life & Health
3.8 Predictive
Modelling
4.1 Sales Tools for
insurance Agents
4.2 Underwriting
- Life & Health
4.3 Underwriting
- P&C
4.4 Product
Development
4.5 Service &
Administration
4.6 Claims
- Life & Health
4.7 Claims - P&C
4.8 Implementing
Value Chain
Innovations
5.1 Platforms &
Ecosystems
5.2 Microinsurance
5.3 On-demand
Insurance
5.4 Comparison
Sites
5.5 Peer-to-peer
& Community
5.6 Health &
Wellness
5.7 Commercial
5.8 Building New
Digital Business
Models
6. MARKETING &
CUSTOMER
EXPERIENCE
7. STRATEGY &
TRANSFORMATION
6.1 Data-led
Marketing
6.2 Direct Digital
Marketing
6.3 Digital Marketing
for Advisors
(O2O)
6.4 Power of
Content
6.5 Omni Sales
& Servicing
6.6 Customer
Lifetime Value &
Customer Advocacy
6.7 Customer
Experience
6.8 Out-of-industry
Use Cases
7.1 Why Strategy
Beats Execution
7.2 Regulations &
Ethics in a Digital
World
7.3 Transforming
the Old vs
Building the New
7.4 Partnership in
a Digital World
7.5 Change
Management as a
Discipline
7.6 Agile & Lean
Basics
7.7 Cultural Change
for a Digital World
7.8 How to Succeed
When Most
Transformation Fail
8.3
8.5
8.3
8.7
8.5
8.7
8.2
8.6
8.3
8.8
8.6
8.6
8.7
8.4
8.3
8.3
8.5
8.7
8.5
8.7
8.4
8.3
8.6
8.5
8.7
8.6
8.3
8.7
8.5
8.7
8.5
8.9
8.7
8.6
8.8
8.7
8.5
8.5
8.3
8.7
8.6
8.6
8.5
8.6
8.4
8.9
8.7
8.7
8.9
8.4
8.6
8.5
8.7
8.5
8.7
9.0
8.6

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Poll
Q. How interested are you in virtual learning & development programs on
digital insurance?
Response options:
a) Yes - for me & my company
b) Yes - for me
c) Yes - for my company
d) No - I think we know enough in this space
Poll 5

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TDI 2021 Insurer & InsurTech Innovation awards
Applications are open until 31st March, 2021
https://www.the-digital-insurer.com/tdi-2021-awards/home/

37
Learning & Development in a digital age
https://www.the-digital-insurer.com/event/webinar-ld-in-a-digital-age/
Thursday 18th Feb
5.30 pm HK / SG

38
Digital insurance in Indonesia – launch of map
https://www.the-digital-insurer.com/event/webinar-ld-in-a-digital-age/
Wednesday 24th Feb
1 pm HK / SG
12 noon Jakarta

39
Digital Underwriting – 17th February
39
Time: 11am – 12.40pm ET
https://www.the-digital-insurer.com/insights-to-solutions/insights-to-solutions-series-digital-underwriting/

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On Demand: China InsurTech & Map Launch
TDI Academy – learning for the digital age

41
On Demand: CX and Cloud
TDI Academy – learning for the digital age

42
On Demand: Accelerating Digital Transformation

43
On Demand: Digital Distribution
Time: 11am – 12.40pm ET

44
On-Demand+ Whitepapper: The Future of Agency
“Blue Ocean”
Transform
“Red
Ocean”
Evolve
Model
Maturity
Channel
Performance
TRADITIONAL
SalesAgent
DIGITALLY-PRESENT
OMNI Advisor
DIGITALLY-ENABLED
Quality Agent
The OMNI Advisor

45
On-Demand + Whitepaper: TDI Tech Map 2021

46
Digital Culture
https://www.the-digital-insurer.com/tdi_pov_papers/tdi-pov-future-of-insurance-advisors-in-a-digital-world/
Pther Recent PoV Whitepaper

47
Feedback please!
Three ways
 At end of webinar using survey
 When you receive the recording link
 To TDI individually

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Contact Details
Hugh Terry hugh.terry@the-digital-insurer.com
Simon Phipps simon.phipps@the-digital-insurer.com
Darren Pigg darren.pigg@kpmg.com
Pankaj Banerjee pankaj.banerjee@aia.com

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Thanks for your time!
(feedback please) Partnering for Success in a Digital
World
3rd February 2021

Webinar: Partnering for success in a digital world

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