to change their entire company to · Key innovations in Insure Tech Smart home ecosystem products...
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“At least 40% of all business will die in the next 10 years…if they don’t figure out how to change their entire company to accommodate new technologies” – John Chambers, Executive Chairmen, Cisco System
Transcript of to change their entire company to · Key innovations in Insure Tech Smart home ecosystem products...
“At least 40% of all business will die in the
next 10 years…if they don’t figure out how
to change their entire company to
accommodate new technologies”
– John Chambers, Executive Chairmen, Cisco System
Digitalization in
Inclusive InsuranceQueenie Chow
Digitalization:
inclusive insurance
Key trends
AGENDA
The case of
digital insurance disruption
Fast growing trend of mobile insurance
in emerging markets
as at 2015
Estimated Market Potential
APPROXIMATELY 1.5-3.0 BILLION PEOPLE
Source: Inclusivity Solutions “Digital insurance opportunity in emerging markets”
ESIMATED TIME TO INSURE 1M LIVES:
1 YEAR on mobile operations and
40 YEARS on typical insurance market
Source: Inclusivity Solutions “Digital insurance opportunity in emerging markets”
Penetration in Emerging Markets
Insurance Coverage
2-15%
Mobile Subscribers
>45%
Mature insurance markets
2-4%
Emerging insurance markets
10-12%
Mobile insurance
100%
Annual Growth Rates
Around the world, over 61 million policies issued via mobile insurance,
Majority of people have never experienced insurance before.
Source: Inclusivity Solutions “Digital insurance opportunity in emerging markets”
Source: GSMA ”Spotlight on mobile enabled microinsurance industry 2017”
― Try before you buy
Free to Paid Model
20+ services launched
50 million customers reached
Telecom companies pay for free insurance for customers
in order to gain loyalty and increase revenue from
customers’ phone spending.
Pros
▪ Scale and marketing
▪ Alignment of interest
▪ User value proposition
Cons
▪ Limited product lifespan
▪ Telecom culture
Ghana Mobile Insurance
― Bundling Value Added Services with insurance
VAS Bundle Model
10+ services launched
8 million customers reached
Typical bundling of products could include hospital cash
insurance, telemedicine, discounts on drugs and health
tips.
Pros
▪ Customer value
▪ Payment method
Cons
▪ Product complexity
Telenor's first comprehensive mobile-based health insurance
Tonic, m-health in Bangladesh
Weather-index microinsurance partnering with seed company
Kilimo Salama in Kenya
Why will MNO (Mobile Network Operators) get on board with mobile insurance?
WHAT’S IN IT FOR TELECOM?
ARPU uplift
(6-15%)
Churn reduction
(10-25%)
Direct revenue from
paid products
New customer
acquisition
Competitive
differentiation
Customer
stickiness
Why does customers welcome it?
Cost Trust Access Understanding
DEVELOPMENT OF
MEANINGFUL PRODUCT
TARGETING
AUDIENCECREATING DEMAND
SELLING INSURANCE
IN A NEW WAY
Challenges with implementing mobile
insurance initiatives
What is the context for inclusive insurance?
Reality is no one wakes
up thinking about buying
insurance…
Challenges of Inclusive Insurance
Minimal trust “What if nothing
happens?”
Low
awareness
Limited spare
cash-flow
Complex and
intangible product
DEMAND FOR MASS-MARKET INSURANCE VIA
DIGITAL CHANNELS?
HOW DO WE UNLOCK THE
Lessons learnt
Providing client value is good business
Client value is key
Simplicity
Start simple with partial, single, mandatory
cover.
Accessibility
Boost access and understanding.
Client value
Ensure great client experience through
claims and servicing.
Complementary
Offer complementary solutions along with
other risk management services, as it rarely
covers the full costs of a loss event.
If a picture is worth a thousand words, a prototype is worth a thousand pictures.
Rapid Prototyping
“Don’t be a know-it-all;
be a LEARN-IT-ALL.”
What’s next?
01. QUICK SPEED
Speed of digital ability and its operating model which
caters for customer demand is critical. A self-service
through the internet is now cited as one of the most
important channels.
02. VALUE-ADDED SERVICES
The value-added services that new digital
technologies enable not only increase customer touch
points but also benefit the insurers financial metrics.
Key trends in digital agility
Reflecting on digital agility
Key innovations in Insure Tech
Smart home
ecosystem products
Speech
recognition
Telematics
Peer to peer
platforms
Blockchain technologies
Robotic process
automation
Smart watches
or wearables.
Lifestyle apps,
Queenie Chow
Thank you!
