The Data Revolution and creating customer value - Digital Insurance in Africa
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Transcript of The Data Revolution and creating customer value - Digital Insurance in Africa
© 2015 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. 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. All rights reserved.
BIG DATA DATA & ANALYTICS
MOBILIZATIONSOCIAL CONNECTEDNESS
CLOUDCOMPUTING
CYBER SECURITY
URBANIZATION
REGULATORY CHANGE
CONSUMER EMPOWERMENT
SHIFTING DEMOGRAPHICS
INFRASTRUCTURE RE-INVESTMENT
GLOBALIZATION
LOW COST / HIGH FUNCTIONING DEVICES
Insurance Industry Trends
© 2015 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. 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. All rights reserved.
15y e a r s
DATA & ANALYTICS
MOBILIZATIONSOCIAL CONNECTEDNESS
69% of CxOs surveyed consider D&A important to Revenue Growth
100M users on Facebook – 80% via mobile phone
59%of world population l iving in cit ies, 2030 up 8.5%
1.8 billionglobal middle class
3.2 billionby 2020
Mobile penetrationin Africa
20002%
201478%
Android’s market share in Africais 59% 59%
Mars asked 2.5m Facebook fans to pick M&M colours
Air passenger traff ic could doublein 15 years
15y e a r s
of IT budgets were spent on cloud computing in 2013
33%
73% of world exports wi l l come from emerging markets by 2030
Estimated cost of compliance globally is set to pass $1 trillion mark this year
90% of the world’s data was created in the last 2 years
Insurance Industry Trends
Spend due to breaches reached $500b in 2014
© 2015 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. 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. All rights reserved.
What does it mean to be digital and technology led?
© 2015 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. 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. All rights reserved.
Manufacturing, 28.8
Energy & Utilities, 30.2
Health Care, 30.3
Insurance, 31.9
Retail, 32.3
Consumer Goods, 32.4
Banking, 33.4
Pharma and Biotech, 33.6
Automotive, 34.1
Telco, 39.2
2527293133353739414345
% Digital Maturity by Industry
….But not yet too worried about it
Manufacturing, 31Energy & Utilities, 39
Health Care, 49
Insurance, 45
Retail, 40
Consumer Goods, 35
Banking, 28Pharma and Biotech, 40
Automotive, 36
Telco, 59
25
30
35
40
45
50
55
60 % Satisfied with their organization’s reaction to digital trends
Source: MIT Sloan 2015 Digital Business Study
Insurance is lagging behind…
© 2015 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. 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. All rights reserved.
Plateau will be reached in:Less than 2 years 2 to 5 years 5 to 10 years more than 10 years
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 Robots
NeurobusinessPrescriptive 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
Digital innovation is still evolving and will mature in the next decade
© 2015 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. 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. All rights reserved.
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
Customers want to interact through the channel and device of their choice, with increasing demand in digital real time interactions
© 2015 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. 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. All rights reserved.
Digital Innovation Trends
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
© 2015 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. 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. All rights reserved.
Challenges:
■ Managing unstructured farming data
■ Micro insurance for small scale farmers
Solution:
■ Analyse climate and crop trend for the past 30 years
■ Combine with current year into to derive automated compensation plans
■ Use mobile devices as platform for customer interaction
Benefits achieved:
■ Data processing
■ Immediate compensation
Source: https://kilimosalama.wordpress.com/
Exploring the art of the possible: agricultural weather insurance
© 2015 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. 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. All rights reserved.
Challenges:
■ Very poor population in informal sector
Solution:
■ Health insurance on mobile platform, pay premiums via mobile payment options, access medical services using mobile device
Benefits achieved:
■ Reduced healthcare costs
■ Paperless, mobile platform ease access to medical services
Source: http://www.edgepointtz.com/bima.php
Exploring the art of the possible: micro health insurance
© 2015 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. 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. All rights reserved.
Challenges:
■ Improve underwriting at lower risk
■ Develop client centric products
Solution:
■ Combine internal and external data assets
■ Create technical platform for real time underwriting
■ Predictive analytics, biometrics and client experience analytics
Benefits achieved:
■ Real time e-solution to clients, across all electronic platforms
Exploring the art of the possible: electronic underwriting
© 2015 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. 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. All rights reserved.
Challenges:
■ Need for digital innovation
■ Improvement needed in customer experience
■ Develop client centric products
Solution:
■ Combine modular product technology and a digital customer experience
Benefits achieved:
■ Single lifetime policy that can be customized to offer relevant cover without the hassle of separate contracts
■ End to end customer journey on digital platform that enables customer centricity
Exploring the art of the possible: single lifetime policy
© 2015 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. 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. All rights reserved.
Challenges:
■ Costly pathological tests
■ Less efficient existing processes
Solution:
■ Analysis of customers’ online activities and social media profiles to determine coverage
■ Predictive Modelling
Benefits achieved:
■ Social media analytics considered more efficient and customer-friendly
■ Cost savings
Exploring the art of the possible: social media risk assessment
© 2015 KPMG International. KPMG International is a Swiss cooperative of which all KPMG firms are members. KPMG International provides no services to clients. Each member firm is a separate and independent legal entity and each describes itself as such. All rights reserved.
The KPMG name, logo and “cutting through complexity” are registered trademarks or trademarks of KPMG International.
Continue the discussion:
Karin Kruger
KPMG Data & Analytics
KPMG Wanooka Place
1 Albany Road, Parktown, South Africa
Tel: +27 79 512 [email protected]