CIO Summit 2013 - IDG€¦ · CIO Summit 2013 The changing role of IT Nagib Kassis Head of IT &...

CIO Summit 2013

The changing role of IT

Nagib Kassis

Head of IT & Business Alignment

© Copyright Allianz 15/05/2013

2

Overview of Allianz


Fast facts …

World’s largest P & C Insurer

$3.74 billion in GWP in Australia

$490 million net operating profit after tax

Over two million policy holders in Australia and NZ

Leading Workers Compensation insurer

Voted Large General Insurance Company of the Year (2009, 2011-2012)

Brands include …

3

Hypothesis


IT has never been more important in insurance

IT will be even more important in the future

What are some of the future challenges?

Do we know how fast?

Are we prepared?

4

IT has never been more important to insurance


Social Mobile

Big Data Cloud

5


IT in insurance

Business/IT alignment

Architecture

Digital innovation

Data and processes

Complexity

Robustness and

scalability

Security

People

6



IT in insurance


Architecture

Digital innovation

Data and processes

Complexity

Robustness and

scalability

Security

People

7

Business IT Alignment


Business IT

� High demand for IT

� Do IT my way

� Parochial View

� Higher appetite for risk

� Limited capacity

� Do IT right way

� Enterprise view

� Lower appetite for risk

8



Business IT


� Do IT my way

� Parochial View



� Do IT right way

� Enterprise view


Agile

9



Business IT


� Do IT my way

� Parochial View



� Do IT right way

� Enterprise view


Combined Governance Framework

Agile

� Collaborative

� Pace Layering

Tools & frameworks to empower business & give more control

10


IT in insurance


Architecture

Digital innovation

Data and processes

Complexity

Robustness and

scalability

Security

People


11

Allianz Digital Architecture in Action

Consumer Layer

Claims PortalCall Centre Portal

Integration Layer

ACMS

Policy

Search

QuotePolicy

SearchFNOL

Business Process Layer

Service Provider Layer

FNOL Business RulesMotor Quote / NB

Component

Business Rules

Policy

Search

Service

Customer

Search

Service

FNOL

Motor

Service

Motor

Quote

Service

Motor

Bind

Service

Validate Policy

Fraud Detection

Duplicate ClaimCalculate Excess

FNOL Motor

Component

Invoke Business

Rules

Save

Unpaid Premium

Motor Quote Business

Rules

Validate

Underwrite

RateInvoke Business

Rules

Save

POLISY

Policy Search

Customer

Search

Customer

Update

Add Policy

Lodge Claim

Co. 1 Co. 6 Co. 7 Co. 9

Create IRF

Customer

Update

Service

Reminder

Service

Customer

Search

Lodge

ClaimNotify Follow Up

TW Inbox TW Inbox

12

Consumer Layer


Integration Layer

ACMS

Policy

Search

QuotePolicy

SearchFNOL




Component

Business Rules

Policy

Search

Service

Customer

Search

Service

FNOL

Motor

Service

Motor

Quote

Service

Motor

Bind

Service

Validate Policy

Fraud Detection


FNOL Motor

Component

Invoke Business

Rules

Save

Unpaid Premium


Rules

Validate

Underwrite

RateInvoke Business

Rules

Save

POLISY

Policy Search

Customer

Search

Customer

Update

Add Policy

Lodge Claim

Co. 1 Co. 6 Co. 7 Co. 9

Create IRF

Customer

Update

Service

Reminder

Service

Customer

Search

Lodge


TW Inbox TW Inbox


13

Consumer Layer


Integration Layer

ACMS

Policy

Search

QuotePolicy

SearchFNOL




Component

Business Rules

Policy

Search

Service

Customer

Search

Service

FNOL

Motor

Service

Motor

Quote

Service

Motor

Bind

Service

Validate Policy

Fraud Detection


FNOL Motor

Component

Invoke Business

Rules

Save

Unpaid Premium


Rules

Validate

Underwrite

RateInvoke Business

Rules

Save

POLISY

Policy Search

Customer

Search

Customer

Update

Add Policy

Lodge Claim

Co. 1 Co. 6 Co. 7 Co. 9

Create IRF

Customer

Update

Service

Reminder

Service

Customer

Search

Lodge


TW Inbox TW Inbox


14


IT in insurance


Architecture

Digital innovation

Data and processes

Complexity

Robustness and

scalability

Security

People


15

Digitalisation affects the insurance industry

1 Forrester Technographics European Benchmark study, 2011

2 BPM data, 2012, P&C only

3 Forrester Technographics (European Average)

4 BrightLocal.com, 2011 (US + UK)

5 Forrester, Q4 2009, Q4 2011 (US)

55+ age group catching up online usage

Utilisation of Mobile also in insurance

Social media multiplies impact of customer

experience

Offers are getting more transparent

Customers getting self-directed and active

Customer centricity calls for a multi-access offer

100% increase of online purchase of home & car insurance overt the last 5 years in Europe¹

Strong utilization of internet before purchase in Europe2 +42%

64% of customers shopped online within the last 3 months³

3/4 of 55+ customers rely on Social Media for purchase decisions in US/UK4

15% insurance search via mobile today6

30-35% of hybrid customers in Germany / France9

Digitalisation

Impacts on

insurance

business

model

80% increase of unsatisfactory service comments via Social Media in the last 2 years5

6 http://mobithinking.com/mobile-marketing-tools/latest-mobile-stats

7 Industry experts

8 Forrester

9 Multi-access business model

Source:


50% of people who did leisure travelling within the last 12 months booked at least 1 leisure trip on line8

10% theoretical permutations for online configuration of BMW 7 series 7

16

Trends in Digital/Mobile

� Business Capability Bundling

� Mobile Payments

� Location-Based Services

� Usage-Based Insurance (Telematics)

� Mobile Advertising

� Straight Through Processing

� Paperless process

� Rich Media (HTML5, Image Capture, etc.)

� MDM/BYOD – Mobile Device Management

� Mobile User Interface Design

� Cross-Platform Enablement

� Tablet Proliferation

17



IT in insurance


Architecture

Digital innovation

Data and processes

Complexity

Robustness and

scalability

Security

People

18



IT in insurance


Architecture

Digital innovation

Data and processes

Complexity

Robustness and

scalability

Security

People

19

Complexity is a fact of life - how we manage it is the challenge

0

1

2

3

4

5

1 Time

Bad complexity

Good complexity

Complexity within a company

� Special / multiple discount systems� Segment-specific solutions without

modularisation� Special rating � Niche products breaking platform logic with low

volume/scale effects� Customer/channel specific print/wordings

� Multi-channel provider� Multi-labeling/branding� Process automation� Comprehensive product range

Drives differentiation and competitive advantage

Motor examples

Drives cost


2020

Managing complexity – A journey…

Customer perception

Market pricing

Sales approach/format

Service offering

Processes

IT

Products/tariffs

Degree of differentiation

Zero baseToday Target


“Complexity is your enemy. Any fool can make something complicated. It is hard to make something simple.”

- Richard Branson

21



IT in insurance


Architecture

Digital innovation

Data and processes

Complexity

Robustness and

scalability

Security

People

New Good Complexity

Service Growth

Business GrowthIncreasing demand through:

� STP

� Paperless office

� Shift online

� New products/services

Increasing demand through:

� STP

� Paperless office

� Shift online

� New products/services

Digitalisation, innovation and consumerisation and big data

Digitalisation, innovation and consumerisation and big data

Robustness and Scalability…

Vo

lum

e o

f e

lect

ron

ic t

ran

sact

ion

s

20102005 2015

Today

23


IT in insurance


Architecture

Digital innovation

Data and processes

Complexity

Robustness and

scalability

Security

People


24

Malware

(SaaS)

Infrastructure

(Cloud)Attacks

Data


25

Computer ‘Infection’ (as-a-Service)

Cyber-attacks-as-a-Service


26


IT in insurance


Architecture

Digital innovation

Data and processes

Complexity

Robustness and

scalability

Security

People


27

Hypothesis




What are some of the future challenges? HUGE

28

Hypothesis






Faster than we probably think

29

Hypothesis




Are we prepared?



Faster than we probably think

…………………..

CIO Summit 2013 - IDG€¦ · CIO Summit 2013 The changing role of IT Nagib Kassis Head of IT &...

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