Technology Vision 2017: Amplifyou: Technology for people: The era of the intelligent enterprise...

TECHNOLOGY VISION FOR INSURANCE 2017

TECHNOLOGYFOR PEOPLETHE ERA OF THE INTELLIGENT ENTERPRISE

TECHNOLOGY VISION 2017

THE NEW INSURANCE ERA 3

CONCLUSION 19

TREND 1

AI IS THE NEW UI 6Experience Above All

TREND 2

ECOSYSTEM POWER PLAYS 9 Beyond Platforms

TREND 3

WORKFORCE MARKETPLACE 11 Invent Your Future

TREND 4

DESIGN FOR HUMANS 14Inspire New Behaviors

TREND 5 THE UNCHARTED 17 Invent New Industries, Set New Standards

CONTENTS

#INSTECHVISIONTECHNOLOGY VISION FOR INSURANCE 20172

https://twitter.com/tech_vision2017

Digital technology continues to reshape the insurance industry at an unprecedented and quickening pace. In our Technology Vision 2017 research, 87 percent of insurance respondents agreed that we have entered an era of technology advancement that is no longer marked by linear progression, but by an exponential rate of change.

What sets this new wave of disruption apart from those that preceded it is that humans are firmly in control of how technology reshapes our experiences, the insurance industry and the wider world. It’s no longer people who are adapting to technology—rather, the technology is adapting to us. We’re putting technology to work to disrupt ourselves, our organizations and entire industries.

As P&C insurers embark on this journey, they need a comprehensive customer- and employee-centric solution that supports user experiences that exceed the expectations of agents, employees and customers. And they need a partner to help them maximize their success with the IT solutions they put in place.

That’s where Accenture and Duck Creek can help. Our advantage: a single partnership, for the entire journey. With Accenture and Duck Creek, you get the best of both worlds: market-leading P&C software and services and an implementation partner committed to bringing digital innovation and delivery certainty to achieve outstanding results.

“The biggest innovations in insurance over the next three years will not be in the technology tools themselves, but in how we design them with customers, agents, employees and other human partners in mind.”

THE NEW INSURANCE ERA

INTRODUCTION



THE TECHNOLOGY WE USE TODAY – COMPARED TO THAT OF JUST A FEW YEARS AGO – IS INCREASINGLY INTERACTIVE, AS TOUCH DISPLAYS, MIXED REALITY, AND NATURAL LANGUAGE PROCESSING MAKE IT FEEL MORE HUMAN. ADVANCED TECHNOLOGY IS NOW CAPABLE OF LEARNING, WITH CONTEXTUAL ANALYSIS, IMAGE RECOGNITION AND DEEP LEARNING ALGORITHMS THAT MAKE IT SEEM TO THINK MORE LIKE US.

4 #INSTECHVISIONTECHNOLOGY VISION FOR INSURANCE 2017

The Accenture Technology Vision for Insurance 2017 identified five trends that will shape the insurance marketplace in the years ahead. Below you will discover how Accenture is working with Duck Creek to ensure that our capabilities remain at the forefront of these trends.

FIVE TRENDS

SHAPING INSURANCE

INTRODUCTION



UIAI

Experience Above All

Artificial intelligence (AI) is about to become an insurer’s digital ambassador to its customers, agents, employees and business partners. Moving beyond merely serving as a back-end tool for the digital insurer, AI is taking on more sophisticated roles within technology interfaces. AI is making every interface both simple and smart —and setting a high bar for how future interactions will work.

TREND 1



of insurers are prioritizing ease of use and simplicity in the user interface to ensure a more human-like experience

80%

Humans and machines—each on their own—won’t be enough to drive insurance carriers in the coming decades. Starting with the growing adoption of robotic process automation (RPA), AI and machine learning are rapidly transforming the way that insurance carriers operate. A growing list of insurance companies are leveraging RPA to reinvent how they deliver and manage their business processes.

This form of automation streamlines mundane tasks so that business advisors, knowledge workers and external users can spend more time on the parts of the business process that are customer-centric, and less on those that are rules-driven. From using these technologies to automate rules-based business processes, the next step will see carriers create AI interfaces that make complicated technologies and processes more approachable for customers, agents and employees.

These interfaces will leverage natural language text and voice interfaces to interact with people in ways that feel increasingly human. Agents, employees and customers alike will be able to talk to chatbots or virtual assistants that draw on internal data assets, data licensed from external sources, and the public web to give meaningful advice or answers.

TREND 1 AI IS THE NEW UI

TECHNOLOGY VISION FOR INSURANCE 20177 #INSTECHVISION

These advances mean that insurers shouldn’t choose a core system based only on the user interface, but should also consider how it can enable other interactions via open APIs that will engage the customer. After all, the user interface of tomorrow will look very different from today’s, as AI permeates the industry.

In addition to a flexible software solution that can ‘learn’ from data and deliver information to people, insurers need a partner that understands the user experience, and has domain expertise and digital capabilities to be able to bring these new channels to life. Combining Duck Creek with Accenture’s experience and digital capabilities can help carriers get ready for the future of AI.

Accenture’s Digital Insurance Solution Center (DISC) has used RPA to automate a number of business processes across the insurance value chain, and has developed insurebot

capabilities that bring the power of RPA to the Duck Creek platform. The DISC has also integrated Duck Creek with chatbots—created by Accenture Digital as well as third parties— which highlights the ease of integration.

Several insurers are conducting proofs of concept, with the expectation of making them customer-facing in due course. Seeking insurance advice and buying a policy, checking instalment dates and amounts, submitting a claim and making basic changes can now all be done utilizing this technology in Duck Creek.

The next iteration of skills and apps from voice assistants (e.g. Amazon Echo and Google Home) will also be able to directly integrate with Duck Creek, so customers can “Ask Alexa” when their next premium is due, and even buy insurance through a voice interface.

of consumers say they’d be happy to get computer-generated insurance advice. Accenture Global Distribution & Marketing Consumer Survey 2017.

74%

TREND 1 AI IS THE NEW UI



Unleash the Power of UsPLAYSPOWERInsurers are starting to integrate their core business functions with third parties and their platforms. But rather than treating them like partnerships of old, forward-thinking leaders are leveraging these relationships to build their role in new digital ecosystems—instrumental to unlocking their next waves of strategic growth.

TREND 2



As the world moves to digital ecosystems, core insurance business functions—from customer service to distribution and underwriting—will rely heavily on a complex network of digital partners, reaching far beyond the walls of a single organization. Platforms are the central hubs for these rich and complex emerging ecosystems.

Whether it’s accessing new customer touchpoints or building new markets with industry partnerships, the external platforms that insurance organizations rely on throughout their enterprise are becoming the gateways to new digital ecosystems—and the pillars of an evolution in their value chain.

Accenture’s digital capabilities plus Duck Creek’s open application programming interfaces (APIs) provide a robust foundation for new, ecosystem- and platform-driven business models. Duck Creek Anywhere is an extensive web API that provides programmatic access to all the core capabilities of the Duck Creek suite. It can easily be used to build customized user interfaces, mobile applications, or to plug into the carrier’s existing integration framework.

Duck Creek Anywhere also offers a single point of configuration that opens the solution up to integration with agents and other parties, helping insurers to plug-and-play into the systems of their ecosystem partners. Additionally, the Duck Creek AgencyPortal multi-channel distribution platform handles all key front-end transactions between carriers and their producers, over the web.

It delivers the simple, intuitive usability that agents, brokers, managing general agents and policyholders now expect from all their technologies. AgencyPortal’s growing number of Integration Kits includes sets of pre-built software components and documentation that simplify and de-risk integration of AgencyPortal with a powerful ecosystem of industry solutions.

This offers the carrier and agency partners easy, low-risk integration to agency management systems and comparative raters, LexisNexis Commercial Auto Prefill, C.L.U.E. claims reporting service, and with other insurtechs and startups. Duck Creek prebuilt mappings and connectors minimize the need for custom integration, giving carriers a significant jump on implementation, and significantly accelerating time to market.

Accenture’s DISC is also partnering with traditional third-party vendors and insurtechs to build an ecosystem enabled by Duck Creek. We provide the perfect conduit between insurtech and carrier, allowing implementation at scale and continuing to foster agility.

As competition from digital disruptors and other non-traditional rivals grows, Accenture can help insurance carriers to integrate with powerful ecosystem partners in areas such as connected cars and smart homes, as well as to understand the opportunities digital platforms offer them to grow their businesses beyond traditional insurance.

of insurers say adopting a platform-based business model and engaging in ecosystems with digital partners is critical to their success.

94%

TREND 2 ECOSYSTEM POWER PLAYS



Invent Your FuturePLACEMARKET

Digital insurance leaders are beginning to reinvent their workforces. Driven by a surge of on-demand labor platforms and online work management solutions, legacy models and hierarchies are being dissolved and replaced with open talent marketplaces. The resulting on-demand enterprise will be key to the rapid innovation and organizational changes that insurers need to transform themselves into truly digital businesses.

TREND 3



Against a backdrop of digital disruption, insurance carriers need to rethink their approach to talent. Of the insurance executives we surveyed, nearly 79 percent said their organizations are under competitive pressure to extend innovation into their workforce and corporate structure. Squaring up to this growing skills challenge will demand creativity and commitment.

Insurance organizations must reimagine their workplace practices for a generation that expects to find pervasive collaboration technologies at work and that is open to freelance and portfolio careers. New labor platforms and collaboration tools offer insurance carriers a means to do just that.

These offerings enable insurers to quickly look internally or to the external labor market to meet the demand for skills. They offer efficient ways for insurers to plug gaps in their own capabilities—for example, accessing top UX or data science skills on-demand—and to efficiently speed new products or initiatives to market. Some insurers are already leveraging technology solutions that efficiently match the supply and demand for people and skills.

On-demand labor platforms like Freelancer and Gigster enable insurers to virtualize part of the workforce. WeGoLook is an ‘Uber of inspections’ that can dispatch 30,000 ‘lookers’ to collect real-time data, photos or video on behalf of insurers for automotive and property inspections or insurance claims.

By embracing cloud-based services such as Duck Creek on Demand, carriers can transform their operations and fully leverage current and future innovations to meet the expectations of their extended workforce. The mobile and cloud functionality embedded in Duck Creek can extend access to core insurance systems to workers who need it, whether they are employed by an agent, the carrier itself, or through a third-party labor platform.

Duck Creek Mobile Field Adjustor, for example, allows field adjustors to capture loss information, take photos and video, and track notes while standing at the loss location. This powerful tool could be extended to freelancers and contractors in a secure manner, enabling an insurer to quickly mobilize the resources it needs.

As Duck Creek’s largest and most experienced implementation partner, Accenture understands exactly what each client wants to achieve and works with it as a guide throughout the journey. Accenture complements Duck Creek implementations with fully integrated consulting and change management services to secure a successful, seamless transition to the new. With its services and skilled change professionals, Accenture focuses on helping insurers to enable change through Duck Creek—resulting in the adoption of new behaviors and mindsets by individuals and teams.

Accenture can help carriers determine what their organization should look like after a Duck Creek implementation, including how to structure their business groups to take advantage of configurability for speed to market. We can also help with innovative ways to complete end-user training, including gamification and virtual-training environments that are fully controlled by end users.

TREND 3 WORKFORCE MARKETPLACE



75% of insurance executives believe leading organizations will seamlessly blend their

internal and external workforces into a borderless enterprise within five years

TREND 3 WORKFORCE MARKETPLACE

TECHNOLOGY VISION FOR INSURANCE 201713 #INSTECHVISION

Inspire New BehaviorsHUMANSDESIGN

The new frontier of digital insurance experiences is technology designed specifically for individual human behavior. As technology shrinks the gap between effective human and machine cooperation, accounting for unique human behavior expands not only the quality of the experience, but also the effectiveness of technology solutions. This shift is transforming traditional personalized relationships into something more valuable: partnerships.

TREND 4



Today, carriers can move beyond simple personalization techniques in functions such as marketing to offering their customers tailored ‘living services’ that are aligned to their personal and workplace behaviors and goals. As they tap into masses of data about how customers live and work, they can turn traditional relationships into true partnerships.

Suddenly, they have insight into how people think, what they want, and how they react. They will be able to shift from pooling and pricing risk based only on historical data to automatically assessing and pricing risk directly, individually and in real-time. There is an opportunity for insurers to move beyond simply providing customers with insurance cover.

They can also provide them with real-time services and risk management solutions that address their real goals such as prevention and recovery services—all driven by adaptive

technologies and interfaces that interact with customers and employees in a more natural, human way. Carriers can notify policyholders of impending events, offer tips to prevent damage, and even pre-fill claims before the first notice of loss.

This transforms the role and value of carriers—from the organization customers call when something bad happens, to an active partner in keeping people and their possessions safe. As carriers deepen their relationships with policyholders through digital interaction, they gather more information to hone their value proposition through personalized products (usage-based vs. fixed-price), a higher level of service, and a better way of working for employees and sales partners.

Getting this right depends on having a technology architecture that bridges the traditional disconnect between the digital front end and internal processes. The Duck Creek suite is a fully-integrated set of products/modules that deliver an intuitive, people-focused user experience that meets the needs of this new world.

The suite helps insurance firms create faster, simpler and better-informed customer experiences for all their partners—consumers, policyholders, agents and other intermediaries—at every stage of the policy lifecycle. It equips them with the tools, access and information to answer questions, resolve claims and close sales better and faster.

of insurers agree that organizations that tap into what motivates human behavior, and design the customer experience accordingly, will be the next industry leaders

80%

TREND 4 DESIGN FOR HUMANS



As Duck Creek’s premier platinum partner, Accenture understands how to help insurers to unearth, connect and understand Duck Creek data, and then use it to craft a user experience that exceeds customer expectations. This includes the Intelligent Insurance Solution powered by the Accenture Insights Platform, which delivers impressive analytics capabilities.

Through the Intelligent Insurance Solution, we enable insurers to take advantage of the latest advanced analytics technology to better understand customers and provide product suggestions; generate insights for product managers; help underwriters better manage risk; and expedite claims through the use of third-party data.

Accenture’s digital capabilities include designing the customer journey maps that are critical to understanding and improving user experiences, and to getting and keeping customers. Through Fjord—part of Accenture Interactive—Accenture offers leading design thinking and skills to create compelling digital user experiences to complement the power of the Duck Creek suite.

Fjord brings breakthrough digital services to life by redesigning people’s relationships with the world around them. This helps carriers answer critical questions about what their customers need, so that they can create experiences that delight them. We have used these services on multiple Duck Creek implementations to deliver relevant, elegant and simple experiences for agents, customers and other end-users—through designing the look and feel of Duck Creek skins as well as by utilizing Accenture’s custom front-end on Duck Creek.

TREND 4 DESIGN FOR HUMANS

16 TECHNOLOGY VISION FOR INSURANCE 2017 #INSTECHVISION

Insurers are not just creating new products and services; they’re shaping new digital industries. From technology standards to ethical norms, to government mandates, in an ecosystem-driven digital economy one thing is clear: a wide scope of rules still needs to be defined. To fulfil their digital ambitions, insurers must help shape the new rules of the game. Those who take the lead will find a place at or near the center of their new ecosystem, while those who don’t risk being left behind.

UNInvent New Industries, Set New Standards

CHARTED

TREND 5



For these trends to take root, the risks they introduce need to be understood so that they can be managed. These new technologies will challenge many of the assumptions of the insurance industry, including the nature of the risk to be covered, the parties at risk, the assets to be insured, and the information carriers have about each. Duck Creek refers to it as “the new insurance”—a potential crisis and opportunity for the industry.

A range of disruptive trends—from precision agriculture to factory robotics, the sharing and gig economies and self-driving vehicles—are changing the world around us. Regulation and safety standards have yet to be carved in stone, offering opportunities for insurers to engage in the transfer of new risks and to help spur adoption of technologies that will profoundly change how we live, work and play in the years to come.

73%

of insurers agree that their organization is entering new digital industries that have yet to be defined

Just consider how shared autonomous vehicle fleets might change the face of auto insurance within the next decade—where will auto insurers make money when personally owned and driven vehicles start to become less common? There will be safer roads; fewer customers, claims, accidents, injuries, and fatalities; and lower premiums.

Preparing for the new world that robotics, AI, 3D printing, the Internet of Things, and other technologies are creating means that insurers must retool themselves for a world of “new insurance”. They need to become masters at incorporating digital technology into their organization and using it to build innovative products, services and business models.

The right technology will enable them to make the shift. Duck Creek’s suite of software provides the modern features and functionality as well as the agility needed to support business transformation. Duck Creek’s ability to rapidly configure new products and quickly bring them to market allows insurers to innovate and take advantage of these emerging opportunities. As insurers seek to up their digital game, Accenture integrates its proven digital innovation into the heart of Duck Creek—providing the platform for change and disruptive thinking.

This includes offerings such as Accenture’s Connected Platform as a Service, that enables insurers to harness the wealth of data generated by telematics and the Internet of Things. Accenture’s DISC is partnering with Duck Creek to pioneer new business models for insurance that integrate digital ecosystems, connected cars, connected homes, and other innovations such as pay-per-use micro-products, claims pre-filled with Internet of Things data, and the first blockchain proof of concept with Duck Creek and Ethereum to simplify medical payments and eliminate fraud.

TREND 5 THE UNCHARTED



CO

NC

LUSI

ON

REINVENTING INSURANCE FOR A DIGITAL FUTURE By enabling people via technology, P&C insurers can create new opportunities that are both grand and granular. They can leverage the power of AI, the Internet of Things, big data and other technologies to deliver hyper-personalization to their customers—creating new products and services that not only compensate customers for loss but also help reduce the chance of incurring a loss in the first place.

At an industry level, these new technologies could help insurers reinvent themselves for an age where new technologies such as autonomous and connected vehicles or precision agriculture significantly will reduce the number of claims, in turn lowering risks and premiums. This is about creating new revenue streams, transforming the cost curve and finding a new role for insurance in a changing world.

In this new world order, speed is a competitive advantage and IT is an enabler of innovation. But getting there requires the right technology partner to move designs for the future from possibility to reality. The role of the Accenture and Duck Creek partnership in this extraordinary time is to help carriers bridge the gap between ambition and achievement.


Copyright © 2017 Accenture All rights reserved.

Accenture, its logo, and High Performance Delivered are trademarks of Accenture.

This document makes descriptive reference to trademarks that may be owned by others. The use of such trademarks herein is not an assertion of ownership of such trademarks by Accenture and is not intended to represent or imply the existence of an association between Accenture and the lawful owners of such trademarks. Information regarding third-party products, services and organizations was obtained from publicly available sources, and Accenture cannot confirm the accuracy or reliability of such sources or information. Its inclusion does not imply an endorsement by or of any third party.

The views and opinions in this article should not be viewed as professional advice with respect to your business.

ABOUT ACCENTUREAccenture is a leading global professional services company, providing a broad range of services and solutions in strategy, consulting, digital, technology and operations. Combining unmatched experience and specialized skills across more than 40 industries and all business functions – underpinned by the world’s largest delivery network – Accenture works at the intersection of business and technology to help clients improve their performance and create sustainable value for their stakeholders. With more than 425,000 people serving clients in more than 120 countries, Accenture drives innovation to improve the way the world works and lives. Visit us at www.accenture.com

ABOUT DUCK CREEK TECHNOLOGIESDuck Creek Technologies paves a genuine path to the future for P&C insurance companies. Decades of insurance experience underpin advanced technologies specifically designed to accommodate change—allowing carriers to navigate uncertainty and capture market opportunities faster than their competitors. Duck Creek solutions are available standalone or as a full suite. All are cloud-ready. For more information, visit www.duckcreek.com.

ABOUT THE TECHNOLOGY VISIONEvery year, the Technology Vision team collaborates with Accenture Research to identify the emerging IT developments that will have the greatest impact on organizations in the next three to five years. The process starts by gathering inputs from the Technology Vision External Advisory Board, a group comprising more than two dozen executives and entrepreneurs from the public and private sectors, academia, venture capital, and startup companies.

The Tech Vision team also conducts interviews with technology luminaries, industry experts, and Accenture business leaders. To supplement the cross-industry findings with industry-relevant insights, we tap into the expertise of Accenture’s dedicated insurance research team and insurance subject matter experts.

For the third year running, we conducted a global survey of more than 5,400 business and IT executives across 31 countries to understand their perspectives on the key technology challenges they face, and identify their priority investments over the next few years. The insurance sample this year included 563 respondents from across the world

ABOUT THE DUCK CREEK AND ACCENTURE PARTNERSHIPDuck Creek Technologies is a leading provider of P&C insurance software and services to global insurers of all sizes. As Duck Creek’s only Premier Platinum Partner, Accenture utilizes the best people, processes and industrialized tools. These provide clients with two essential benefits: predictable delivery results and reduced implementation risk.

With Accenture and Duck Creek, we believe you get the best of both worlds: market-leading P&C software and services and an implementation partner committed to bringing digital innovation and delivery certainty to achieve outstanding results. With nearly 1,000 Duck Creek practitioners, and a longstanding implementation track record, Accenture is the acknowledged Duck Creek expert.

CONTACTSCindy DeArmond Accenture Managing Director, North America P&C Core Platforms [email protected]

Jeff Wargin Duck Creek Technologies Vice President Product Management [email protected]

Corey Barker Accenture North America DISC Lead [email protected].


http://www.accenture.com

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