All in the Wrist action Final

1 September 24, 2015 1 September 24, 2015

It’s all in the wrist action: Wearables for Life

Insurance Andrew Dart

Insurance Industry Strategist

2 September 24, 2015

An interesting lesson

On the road to success, there are some pitfalls too!


Key insights from today’s talk

• Customer life cycle is the foundation to understanding the new engagement model.

• Wearables can have a positive impact on life insurance.

• Our rewards programs must change.

• There are some cool new ways to do what we have always done.

• The Personal Coach will be the next way to engage.

• People living longer and sharing data will give us new opportunities.


The customer life-cycle and the new engagement model

Foundation of relevance


Engagement Spectrum

Attract Capture Service Retain

Customer Lifecycle: Foundational Concept

Aware Consider

New Customer

Contract

Customer

Incident

Situation Change

Separate

Consider Leave

Promise Fulfilment Disillusionment


Customer Lifecycle: Many journeys within it

Melvin Brand Flu: Livework Intelligence



Traditional Insurance Engagement

Buy

Separate

Claim

1) Nothing going on in between

2) Purely reactive

3) One time risk evaluation / Proxy factors

4) Paper based



Digital Insurance #1 – Data Driven Products

Buy

Separate

Claim

Examples: UBI / Wearables

1) Mobile in nature

2) Two-way communication all the time

3) Digital Data / Accurate factors for risk modelling

A) Identify new segments

B) Reduce claims

Data



Digital Insurance #2 – Engaged Customer

Buy

Separate

Claim

1) Risk actively managed

2) Claims actively avoided

3) Personal value generated for customer from data

Value to customer

Nearest gym with your equipment

Fastest driving route home

Running trail weather conditions

Data

Services

Value to Insurer & customer

Flood proximity alert

Sitting too long alert

Healthy food selection



Digital Insurance #3 – Engaged Prospect

Separate

Services also useful to prospects and ex-customers

Data

Services

Buy Claim

a) Platform of engagement

b) Omni Channel – deliver services how you like to consume them

c) Experience Layer / Engagement Layer / System of Record Layer

Value to everyone

Fitness evaluation

Exercise advice

Nutrition advice

Value to everyone

Information on latest trends

Invitation to events

Cohort competitions


Customer Focus 2.0

Customer life-time value “How much can we make from this

person?”

Life-time value for Customer

“How can we create more personal

value for this individual?”

OR


Wearables for Life

They can have a positive impact


Why wearables: The rise of obesity (1985 – 2010)

Obesity is just one part of the 70% of the annual $2.6 trillion bill for health

care in the U.S. that is the consequence of potentially changeable human

behavior. – PwC June 19, 2014 via Forbes


Wearables for Health & Fitness: Connected People

American Heart Association found up to $3.75 claims savings for Insurance companies in the

first year for every $1 spent on home heart monitoring

Microsoft Watch

Apple Watch

Oscar Fitness device Hexoskin Shirt

FitBit Wearables

Google Contact Lens

Azoi’s Kito


Wearables: The benefits of connected people

• Providing a free device significantly increases opt-in rate and

sharing of data by participants

• Feed back from the device reduces program drop out

• Improvement in overall health with connected wearables greater

than simple manual entry App based program

• Reduction in health claims by up to 23% and hospital costs by

16%

• Continued health conscious after program increased from 20% to

60%

• Greater ability to “gamify” due easy collection of range of

standardized metrics

• Clinical grade data if shared is a treasure trove for actuary and

marketing

• 50% of wearable technology owners are between the ages of 18-

34 with almost a third having annual incomes of over $100,000.

Interestingly another 30% are aged 55+ and are overweight.


Vitality’s stunning effectiveness

Source: BCG Blog 2014


John Hancock – Insurance products based on fitness data

84% of those surveyed said they would be

more likely to purchase a product that

rewarded healthy choices.

Universal Life & Term Life • Nonsmokers – 1,000 points

• in-range cholesterol – 1,000 points

• In range glucose – 1,000 points

• In range blood pressure – 1,000 points

• Regular workouts – 3,120 points annually

• Flu shots – 400 points

Up to $36,000 in

premium savings


Rewards must change

Don’t you know me by now?


Today we have impersonal e-coupons – you find the value!

Ho hum!

I don’t do “Spas”!

I hate check-ups!

My eyes are good!

My feet are good!

I don’t go to the gym or

buy vitamin supplements!


In Store promotion creating personalized customer value

Credit: idownloadblog.com

Engagement across the Affinity ecosystem


New and improved rewards for Vitality

Credit: Discovery.com


The cool new ways to do what we always have done

Start ups and Unicorns


FitSense: Simple score, multi-device, flexible rewards

Source: Fitsense Pte Ltd


MyFiziq: A new way to look at BMI over time

Credit: MyFiziq.com


Oscar Health

Credit: Forbes Blogs

Free device and App with insurance

Hit your daily activity target and get $1 on an

Amazon gift voucher capped at $20 monthly


Kito – A Clinic in an iPhone case

www.azoi.com


Virtual Doctor visits

Insurers can get

savings upward of

75% by purchasing in

bulk for their

members.

Customers save time

as they can get

immediate answers

for family medical

issues 24x7

UnitedHealthcare is planning to cover all or part of the cost of

these e-visits for up to 20 million of its customers by 2016


The Personal Coach will be the next way to engage

AI and scalable advice


CIGNA Health App


Scalable advice – How Next Gen AI differs from Siri

Natural Language Processing

with Voice Recognition

“Sit boy!”

“OK!”

Cognitive Computing

“A chair is to sitting, as a bed is to ______”

“Huh? – Woof?”


Using interactive AI to eliminate forms & boost engagement

Improve healthy habits by 23%. 200 million texts with

users in the first 3 months after launch. “Damn; if it

doesn’t feel like I’m talking to a real person!”


Super longevity and sharing data

New business opportunities


The Dawn of Super Longevity

“One hundred and fifty, and still young, dude. Rock on.”

Credit: Disney Pixar


Super Longevity: Extend & improve quality of life

Parkinson’s Disease

Alzheimer’s Disease

Diabetes

Obesity

Genetic Mapping

Google’s Baseline Study


Super Longevity: Cycle-time on human organs?

Just like planes, we will

monitor key

components of the

human body and

replace them before

they become a

problem


Super Longevity: Early detection and intervention

Google is developing nanoparticles and wearables for early detection of cancer


Using data to manage chronic diseases

“Our customers get better, just by being our customers.”

Ross Beerman, CEO AllLife Insurance, SA.


In Summary


Key insights from today’s talk

• Customer life cycle is the foundation to understanding the new engagement model.

• Wearables can have a positive impact on life insurance.

• Our rewards programs must change.

• There are some cool new ways to do what we have always done.

• The Personal Coach will be the next way to engage.

• People living longer and sharing data will give us new opportunities.


Product Innovation

Data Driven

Ecosystems

Buying Journey

Insight Enabled

Enhanced Customer Experience

As a Service

Internet of Things / Wearables

Mobility

Embracing Market Dynamics

Addressing New Needs and Wants

Leveraging Technology

Consumption

Understanding

Engagement

Where to start? Master any of these 3 major themes

On the road to success, there are no short cuts.


Thank you

Andrew Dart

Insurance Industry Strategist

CSC Asia, Middle East and Africa

Twitter: @ITInsuranceGuy

Email: [email protected]

All in the Wrist action Final

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