Strategies for leaders 2015 - THE DIGITAL INSURER · THREATS Opportunities and threats in a...
Transcript of Strategies for leaders 2015 - THE DIGITAL INSURER · THREATS Opportunities and threats in a...
Prof. Dr. Peter Maas
Vienna, October 6, 2015
Strategies for leaders 2015 –Digital Transformation across the CEE
Insurance Industry
© I.VW-HSG / Peter Maas
Digital Transformation
across the CEE
Insurance Industry
InsuranceCom
October 6, 2015
Page 2
Insurance
2015
The world in transition – Insurance industry
exposed to a multitude of risks in 2015
Economic
Risks
Environmental
Risks
Geopolitical
Risks
Societal
Risks
Technological
Risks
© I.VW-HSG / Peter Maas
Digital Transformation
across the CEE
Insurance Industry
InsuranceCom
October 6, 2015
Page 3
Global Risks Landscape 2015
Source: World Economic Forum, 2015
Economic
Risks
Societal
Risks
Technological
Risks
Geopolitical
Risks
Environmental
Risks
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Digital Transformation
across the CEE
Insurance Industry
InsuranceCom
October 6, 2015
Page 4
The Risks-Trends 2015 Interconnections Map
Source: World Economic Forum, 2015
Economic
Risks
Societal
Risks
Technological
Risks
Geopolitical
Risks
Environmental
Risks
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Digital Transformation
across the CEE
Insurance Industry
InsuranceCom
October 6, 2015
Page 5
In the beginning of the year, especially geopolitical
risks seemed quite likely… What about Societal
Risks?
Source: World Economic Forum, 2015
Economic
Risks
Societal
RisksTechnological
Risks
Geopolitical
Risks
Environmental
Risks
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Digital Transformation
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Insurance Industry
InsuranceCom
October 6, 2015
Page 6
Societal Risks seem to have the biggest impact in
2015 – Correct projection?
Source: World Economic Forum, 2015
Economic
Risks
Societal
RisksTechnological
Risks
Geopolitical
Risks
Environmental
Risks
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Digital Transformation
across the CEE
Insurance Industry
InsuranceCom
October 6, 2015
Page 7
The global refugee crisis…
Hope
War
Terror
Despair
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Digital Transformation
across the CEE
Insurance Industry
InsuranceCom
October 6, 2015
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… fundamentally affects several risk dimensions
Economic
Risks
Societal
Risks
Geopolitical
Risks
Environmental
Risks
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Digital Transformation
across the CEE
Insurance Industry
InsuranceCom
October 6, 2015
Page 9
Europe projects mainly economic and societal risks
Source: World Economic Forum, 2015
Economic
Risks
Societal
RisksTechnological
Risks
Geopolitical
Risks
Environmental
Risks
© I.VW-HSG / Peter Maas
Digital Transformation
across the CEE
Insurance Industry
InsuranceCom
October 6, 2015
Page 10
Gefahren
Slow recovery from the economic crisis:
sustainable or short-term rebound?
Chancen
Source: Statista, 2014; SVV 2014
Insurers face increased
revenues
ECB: Investment in the Euro
zone
Overall moderate economic
recovery
High youth unemployment
rate in several European
states
War for talents
Refugee crisis and
unemployment?
Unemployment and
underemployment Rising revenues
Economic
Risks
Youth unemployment rate in
some EU member states
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Digital Transformation
across the CEE
Insurance Industry
InsuranceCom
October 6, 2015
Page 11
Social stability Lifestyle changes
Search for more trust
Bundling of life style and
insurance
Demographic change
The role of insurers in a changing society: one
dimensional vs. comprehensive social function
Insurance protection for the
low income segment
Income disparities, i.e.
wage gap
Desolidarization
Source: I.VW, 2014; Zeit, 2014
Societal
Risks
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Digital Transformation
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Insurance Industry
InsuranceCom
October 6, 2015
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Virtual world: vulnerable and informative
E-services
New access points
Personalization
Security control costs
Negative image effects and
loss of customers in case
of cyber attack
Redefinition of Privacy
Cyber attacks Security systems
Technological
Risks
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Digital Transformation
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Insurance Industry
InsuranceCom
October 6, 2015
Page 13
Crises in the EU – to be or not to be?
Growth oriented politics
Relaxation of austerity measures
Stability and bank union
War in front of Europe’s doors
Budget deficits foster
differences and disagreements
Source: dpa, 2014; Eurobarometer, 2013; IMF, 2013
Conflict between
statesAnti-crisis politics
Geopolitical
Risks
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Digital Transformation
across the CEE
Insurance Industry
InsuranceCom
October 6, 2015
Page 14
Harmony between nature and human
Increasing demand for
property insurance and
NatCat-Bonds
Companys ask for
environmental liability
insurance
Occur at random, severity
and likelihood cannot be
adequately estimated
General increase of natural
catastrophes
Source: DVB, 2013; Swiss Re, 2013; Global Finance, 2013
Extreme weather
eventsUnsecure
environment
Environmental
Risks
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Digital Transformation
across the CEE
Insurance Industry
InsuranceCom
October 6, 2015
Page 15
The battle is for the customer interface
© I.VW-HSG / Peter Maas
Digital Transformation
across the CEE
Insurance Industry
InsuranceCom
October 6, 2015
Page 16
Study: Industrializing the insurance industry in a
digital world (soon in english)How the insurance industry should digitally transform, to cope with the big
challenges of a digital world?
Publication: February 2015 (english planned in October)
Future.Talk Switzerland: May 2015
Future.Talk Germany: December 2015
Design of the study: Survey of leaders and specialist in
the insurance industry in CH, GE and AT
Participants: 387, of which 54 on C-level
Participants by country:
© I.VW-HSG / Peter Maas
Digital Transformation
across the CEE
Insurance Industry
InsuranceCom
October 6, 2015
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Preisführerschaft anstreben
Outsourcing von Wertschöpfungsprozessen
Produkte standardisieren
Strategische Partnerschaften aufbauen
Fokussierung auf Kernkompetenzen
Individualisierte Angebote entwickeln
Neue Produkte entwickeln
Rekrutierung / Bindung hervorragender Berater
Interne Wertschöpfungsprozesse standardisieren
Innovationskraft stärken
Online- und mobilen Vertrieb aufbauen
Operative Kosten senken
Persönliche Beratungsqualität erhöhen
Automatisierung von Prozessschritten
IT-Infrastruktur / Schnittstellen verbessern
Kundenbedürfnisse besser verstehen
Servicequalität auf allen Kommunikationswegen
Stärkere Beziehung zum Kunden aufbauen
absolut entscheidend << < > >> wenig relevant
Better understand needs of customer
Service quality at all interaction points
Better relationship to customer
Customer
Optimizing IT-Infrastructure
Higher level of automation
Reduce operation costs
Standardize value creation processes
Develop new products
Increase innovation power
Force online and mobile sales
Processes
Innovation
Customer orientation becomes the key strategic
success factor
Strategic Challenges of the Insurance Industry
In % of «highly relevant» to «not at all relevant» (n=387)
© I.VW-HSG / Peter Maas
Digital Transformation
across the CEE
Insurance Industry
InsuranceCom
October 6, 2015
Page 18
Three strategic patterns of insurance
companies to be successful in a digital world
Strategic goals
(incl. customer value):
• Price advantages
• Speed
• Accuracy
• Simple processes
Strategic goals
(incl. customer value):
• Individual service
• Customized products
• Convenience by trust
• Reduced search costs
Strategic goals
(incl. customer value):
• High Emotions,
«sex appeal»
• «Latent» needs are better
fulfilled
• Higher involvement
Prozesse
Kunde
Innovation
Vertrieb
Fokussierung
Kosten
Prozesse
Kunde
Innovation
Vertrieb
Fokussierung
Kosten
Prozesse
Kunde
Innovation
Vertrieb
Fokussierung
Kosten
C-level-perspective (n=54)
Operational Excellence Customer Intimacy Product leadership
Processes
Customer Customer Customer
Sales
Innovation
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Digital Transformation
across the CEE
Insurance Industry
InsuranceCom
October 6, 2015
Page 19
Source: Haller, 1999Fulfil client needs
Decrypt / interpret client needs
Customer orientation – a process
Customers
have (hidden) needs
What would my client buy, if he
could express his true needs.
Providers
offer profitable
problem solutions
© I.VW-HSG / Peter Maas
Digital Transformation
across the CEE
Insurance Industry
InsuranceCom
October 6, 2015
Page 20
OPPORTUNITIES
THREATS
Opportunities and threats in a digitized world
Traditional value
propositions hinder
change processes of
traditional company
DNA
For the first time
customers outplay
the companys
concerning usage of
technological
devices
Competences and
capabilities to be
successful in a
digitized world are
missing
Customers are
informed,
demanding and
interconnected
Market transparency
leads to more
transparent
customer benefits
New media enable
easier customer
access points
Technology enables
new business
models
Digital interfaces
with the customers
and partners enable
new solutionsThe customer 3.0 is very well informed. He
has unlimited information knows the market
and is willing to buy.
The customer 3.0 is omnipresent. He is
capable and willing to use new ways of
interaction. He chooses the channel
according to the situation and his personal
preference.
The customer 3.0 wants quality, seeks for
personal service and is sensitive to fairness
and transparency.
Informed
Networking
Demanding
Multi-Offering
approach:
Which customers use
which access points in
the search-, purchase-
and post purchase
phase? I.e. How does
the customer journey
look like?
© I.VW-HSG / Peter Maas
Digital Transformation
across the CEE
Insurance Industry
InsuranceCom
October 6, 2015
Page 21
The Global Insurance
Protection Gap: Thoughts
on and for CEE
Anna Maria D’Hulster / The GenevaAssociation
Management Update: CEE
Economic and Insurance
Market Outlook
Daniel Staib / Swiss ReinsuranceCompany Ltd
Strategic Growth Patterns in
CEE
Dr. Wolfgang Kindl / UNIQA International AG
Bancassurance Model
within PKO Bank Polski
Group
Slawomir Lopalewski / PKO Ubezpieczenia
Strategic Business
Transformation
Dr. Luciano Cirinà / Generali CEE Holding
Digital Distribution in the
Insurance Industry
Hugh Terry / The Digital Insurer
Digital Transformation – an evolution
Monique Shivanandan / Aviva PLC
Agenda: Tuesday, October 6, 2015
Digitalisation: How current trends will
impact the insurance industry
Peter Münzenmayer / Swiss Reinsurance Company Ltd
How Multinationals can win in CEE:
Jef Van In, AXA SA and Dr. Gabor Kepecs, AEGON NV
Strategies for leaders 2015 –
Digital Transformation across
the CEE Insurance Industry
Vienna, October 6, 2015
We wish you an inspiring and interactive
conference and constructive network
activities!
© I.VW-HSG / Peter Maas
Digital Transformation
across the CEE
Insurance Industry
InsuranceCom
October 6, 2015
Page 23
Unemployment and underemployment are the
biggest economic risks
Source: World Economic Forum, 2015
Economic
Risks
© I.VW-HSG / Peter Maas
Digital Transformation
across the CEE
Insurance Industry
InsuranceCom
October 6, 2015
Page 24
Societal risks: Social instability in the short and water
crisis in the long run
Source: World Economic Forum, 2015
Societal
Risks
© I.VW-HSG / Peter Maas
Digital Transformation
across the CEE
Insurance Industry
InsuranceCom
October 6, 2015
Page 25
Cyber attacks are the biggest technological risk
Source: World Economic Forum, 2015
Technological
Risks
© I.VW-HSG / Peter Maas
Digital Transformation
across the CEE
Insurance Industry
InsuranceCom
October 6, 2015
Page 26
Geopolitical risks: interstate conflicts in the short and
state collapse in the long run
Source: World Economic Forum, 2015
Geopolitical
Risks
© I.VW-HSG / Peter Maas
Digital Transformation
across the CEE
Insurance Industry
InsuranceCom
October 6, 2015
Page 27
Environmental risks: extreme weather events in the
short and failure of climate-change adaption in the
long run
Source: World Economic Forum, 2015
Environmental
Risks