Data and analytics, IoT and Machine Learning · PDF fileData and analytics, IoT and ......

Driving innovation –Data and analytics, IoT and

Machine LearningKarin KrugerKPMG Data & Analytics

2©© 2016 KPMG Services Proprietary Limited, a South African 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. Printed in South Africa. KPMG and the KPMG logo are registered trademarks of KPMG International Cooperative (“KPMG International”), a Swiss entity.

Insurance is in uncertain times…


… insurers are getting increasingly worried


Innovation is still maturing and will evolve even more

Innovation Trigger

Time

Peak of Inflated

Expectations

Trough of Disillusionment

Slope of Enlightenment Plateau of Productivity

Expectations

Enterprise 3D Printing3D Scanners

Consumer Telematics

Speech Recognition

Bioacoustics SensingDigital Security

Connected HomeHuman Augmentation

3D Bioprinting SystemsSmart RobotsNeurobusiness

Prescriptive Analytics

Data ScienceSmart Advisors

Autonomous Vehicles Internet of ThingsWearable User InterfacesConsumer 3D Printing

Big Data

GamificationMachine to Machine Communication

Mobile Health Monitoring

In-Memory AnalyticsActivity Streams

Source: Gartner, 2014

Plateau will be reached in:Less than 2 years 2 to 5 years 5 to 10 years more than 10 years


Insurance customers are becoming increasingly demanding

Customers want to interact through the channel and device of their choice, with increasing demand for real time interactions

Source: Marketer, 2014; Customer Experience Barometer, KPMG International, 2014;

Insurance recorded lower customer satisfaction…

50

45

40

35

30

25

45%

40%37%

33%31%

E-retailers

Banking

Life InsuranceUtilities

General Insurance

…customer experience ratings along insurance lifecycle decreased in recent years

Customers interaction with insurers is constantly evolving

Online is the preferred channel

#1

Customers are increasingly willing to switch their loyalty to providers that allow them to interact the way they want

to learn and access insurance products information, however face to face interactions are still important for contracting and servicing.

88% of insurance consumers surveyed use

more than one online channel


Improving technology offers opportunity


Converging technology trends

DATA & ANALTICS MACHINE LEARNING INTERNET OF THING


Driving innovation: Data & Analytics

Every year, companies and individuals generate billions of gigabytes of data. Data, which properly analysed and used in time, can emerge as an unbeatable competitive advantage. Enterprises need to recognise the prospect big data represents and should adapt in their IT strategy to capture such opportunities. Big data can help predict buying decisions; it can help weed out fraudulent transactions; delivering real time on point insurance solutions to customer.


Driving innovation: Internet of ThingsThe decreasing cost of embedded systems has made their presence ubiquitous across the business landscape increasing the usage of IoT. Telematics are most commonly used in the insurance industry to change customer behaviour and improve driving. Embedded systems are also having an impact in the healthcare industry, where hospitals attach smart chips to patients to keep track of their entire medical regime.

Apple Watch App to help drivers analyze, understand and improve their driving behavior and style

Connected car

Smart home hub partnering with award-winning connected device manufacturers for better home protection.

Connected home

Innovative health service to • keep track of all activities

• check trends

• set challenges

• get useful content on health

• access a 24/7 medical helpline

• buy medical and well-being services at discounted rates

Connected health


Driving innovation: Machine learning

Essentially, machine learning refers to a set of algorithms that use historical data to predict current or future outcomes. Most of us use machine learning processes every day. Spam filters, for example, use historical data to decide whether or not emails should be delivered or quarantined. Banks use machine learning algorithms to monitor for fraud or irregular activity on credit cards. Netflix uses machine learning to serve up recommendations to users based on their viewing history and recommendations.


Driving insurance innovation

Social comparisonAllow customers to compare their habits with people in the same demographics group

Crowd-sourcingUsing customers to shape

and collaborate on ideas for new products and services,

and test new offerings

UX differentiationSimple interaction and seamless experience is expected –progressive players are focusing on

providing visually exciting customisable interfaces

Open innovationUse API’s to open data to external developers and

support rapid app development (i.e. Credit Agricole had 40+ besoke

apps within 1 month)

GamificationChanges consumer behavior

by integrating gaming mechanics that create fun

competition in order to drive engagement

Partnerships for data and distribution

Sydney airport partnered with Real life insurance to offer travel insurance to users connection to free Wi-Fi

Source: KPMG International, 2015


Driving insurance innovation

Rich personalizationCustomers want experiences tailored to their unique needs and wants, with content that

delivers value

Behavioural securityIdentify distinguishing

behaviour to provide effortless security i.e. how hard or fast we type in order to spot and

prevent identity fraud

Minimum Viable OfferTaking a small, very simple

feature set, as an experiment that captures your customer’s value. Think Big, Start Small

– test, learn, refine.

Advisor/Agent mobilityCustomers seek increased

interactions with their advisors and want more value from

these interactions

Mobile first designMobile centric design leveraging the unique

capabilities of mobile devices location aware , cameras and

other sensors.

Voice of the CustomerConsumers are engaging with brands on their terms - taking a VOC approach gives rise to insurance innovations such as

Quick quote design etc

Source: KPMG International, 2015

KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm.

© 2016 KPMG Services Proprietary Limited, a South African 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. Printed in South Africa. KPMG and the KPMG logo are registered trademarks of KPMG International Cooperative (“KPMG International”), a Swiss entity.

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