Post on 07-Aug-2020
Insurer of the FutureThe Future of Commercial Underwriting
Society is shifting and Commercial Underwriting is at the heart of disruption
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Data Availability & Processing
Power
Internet of Things
Episodic Insurance
Digital & Omni Channel Appetite
Sharing Economy
Blockchain and smart contracts
Regulatory ChangeTalent Constraints
Third Party Capital
Rise of Unpredictable
Events
Self Driving Cars & ADAS
New Market Entrants
New & Emerging Risks
Social Data
Peer-to-Peer
Insurance
Machine Learning
Rise of Disruptor
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Disruptors – New and ‘Old’Traditional Players
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Focuses only on core activities
Risk Averse
Operate on a stop-and-start
project cycle
Target core and closely related
markets (only)
Talk of “innovation”
Disruptors – New and ‘Old’Traditional Players
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Focuses only on core activities
Risk Averse
Operate on a stop-and-start
project cycle
Target core and closely related
markets (only)
Talk of “innovation”
Move to working legacy free
Challenge established norms
Focus on continuous
improvement
Create new markets
More responsive to customer
behaviour
Disruptors – New and ‘Old’Traditional Players
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𝑪𝒐𝒎𝒃𝒊𝒏𝒆𝒅 𝑹𝒂𝒕𝒊𝒐 =𝑳𝒐𝒔𝒔𝒆𝒔 + 𝑬𝒙𝒑𝒆𝒏𝒔𝒆𝒔
𝑬𝒂𝒓𝒏𝒆𝒅 𝑷𝒓𝒆𝒎𝒊𝒖𝒎𝒔
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𝑪𝒐𝒎𝒃𝒊𝒏𝒆𝒅 𝑹𝒂𝒕𝒊𝒐 =𝑳𝒐𝒔𝒔𝒆𝒔 + 𝑬𝒙𝒑𝒆𝒏𝒔𝒆𝒔
𝑬𝒂𝒓𝒏𝒆𝒅 𝑷𝒓𝒆𝒎𝒊𝒖𝒎𝒔
10 | Copyright © 2019 Deloitte Development LLC. All rights reserved. Source: Deloitte Analysis on Loss Ratio based on 2017/2018 Published Reports
50.0%
55.0%
60.0%
65.0%
70.0%
75.0%
80.0%
85.0%
Lo
ss R
ati
o
There is a 30 point gap across comparable commercial lines underwriting in the UK
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Six capabilities for the Future of Underwriting
Customer Led Adaptable Empowered Organisation
Data Driven Machine Powered
Insight Driven Pricing On Demand Flexible Products
12 | Copyright © 2019 Deloitte Development LLC. All rights reserved.
Six capabilities for the Future of Underwriting
Customer Led Adaptable Empowered Organisation
Data Driven Machine Powered
Insight Driven Pricing On Demand Flexible Products
13 | Copyright © 2019 Deloitte Development LLC. All rights reserved.
Six capabilities for the Future of Underwriting
Customer Led Adaptable Empowered Organisation
Data Driven Machine Powered
Insight Driven Pricing On Demand Flexible Products
14 | Copyright © 2019 Deloitte Development LLC. All rights reserved.
Six capabilities for the Future of Underwriting
Customer Led Adaptable Empowered Organisation
Data Driven Machine Powered
Insight Driven Pricing On Demand Flexible Products
15 | Copyright © 2019 Deloitte Development LLC. All rights reserved.
Six capabilities for the Future of Underwriting
Customer Led Adaptable Empowered Organisation
Data Driven Machine Powered
Insight Driven Pricing On Demand Flexible Products
16 | Copyright © 2019 Deloitte Development LLC. All rights reserved.
Six capabilities for the Future of Underwriting
Customer Led Adaptable Empowered Organisation
Data Driven Machine Powered
Insight Driven Pricing On Demand Flexible Products
17 | Copyright © 2019 Deloitte Development LLC. All rights reserved.
Adaptable Empowered Organisation
Machine PoweredCustomer Led
Enabled by
Data DrivenOn Demand Flexible
Products
Insight Driven Pricing
Key O
utc
om
es
Straight-through quote-to-bind
Policy Management
Underwriting & AnalyticsTriage and Assignment
Customer Management
Policy management efficiency
Pricing optimisation
Customer
insight
Strategic new business intake and
selection
Data and automation-enabled underwriting
Nimble and accelerated execution and adoption of change
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Underwriting and
Distribution
Example Problem
Statements
• How do we meet our customer expectations around a seamless personal lines-esque experience in the SME Space?
• How do we enhance our capabilities in the e-traded space?
• How can new technologies fit in with the like of software houses (e.g. real time pricing / decisions)
SME Mid MarketLarge
Commercial
Volume
Delegated
Complexity
• How do we optimise our broker relationships?
• How do we identify profitable segments cost effectively?
• How do we face off to the low quality data often seen in the mid market such as UK Regions?
• How do we best adapt our new underwriting model around LM TOM / similar initiatives such as PPL?
• How do we best leverage “underwriting intelligence” at pace on complex cases?
• How do we gain more insight and control, whilst empowering our coverholders?
• What tools and capabilities do I need to equip my affinities and coverholders with in order for us both to be successful?
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New Markets / New Co
Cost Efficiency
Protecting the existing book
Meet Regulation
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Copyright © 2019 Deloitte Development LLC. All rights reserved. Member of Deloitte Touche Tohmatsu Limited
Thank you.Jack WhalleyContact: jackwhalley@deloitte.co.uk
Nigel WalshContact: ndwalsh@deloitte.co.uk
Mahima AgarwalContact: mahimaagarwal@deloitte.co.uk