TransInsure - Digital Insurance Transformation

©TransInsure. Digital Insurance - V1 1

©TransInsure.

Digital Insurance© TransInsure.

©TransInsure.

The world is rapidly changing© TransInsure.


Digital technology is disrupting the Insurance business.

New business- and operating models have to be defined to

transform the traditional insurer into a Digital Insurer.

© TransInsure.


Our customers are mobile, using

mobile devices to communicate

and share; We need to be DIGITAL

to continue our business, offering

Insurance and related services.

© TransInsure.


Digital Insurance is offering Insurance products

and services to customers and partners using

digital technology.

Digital technology allows fast and easy

Insurance business and is inevitable to grow

profitable business in the future.

© TransInsure.


Customer centricity

Products and services available on any device, anywhere, anytime

Full self service functionality available in online and mobile apps

All data real time available

Full automation of all Insurance processes

Straight Through Processing

Paperless processes

No manual workarounds

Social media integration

Fast time to market

Digital Insurance principles

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©TransInsure.

Mobile/Online Devices/AppsPhone – Tablet – Laptop – Desktop – ATM

Mobile/Online Devices/AppsPhone – Tablet – Laptop – Desktop – ATM

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Digital Insurance

Company

Distribution

Partners

Service

Partners

Customers

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©TransInsure.

Individuals &

family

Employers &

employees

SME

Corporate

(Potential) Customers are all individuals, families, groups of people, SME and corporate businesses that will purchase or have purchased products.

The Digital Insurance Company (DIC) will provide online portals and mobile apps for customers to purchase products, self-service their policies and communicate with DIC regarding products and services.

If necessary, for corporate businesses, straight through processing integration will be established between the corporate systems and the systems of the DIC. The DIC customer portals will be integrated with the corporate business employee portals.

The functionality available for customers: Buy products Renew and change/endorse policies Claim notification & status updates Service requests Enquiries Communication with DIC experts

Customers

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©TransInsure.

Distributors

Agents

Aggregators

Brokers

Banks

Car dealers

Affinity

Groups

Distributors are all partners, involved in selling insurance products. Distributors vary from a 1 person agency to car dealers, to global banks and broker organizations. Depending on the distributor, different digital services will be delivered by the Digital Insurance Company (DIC).

The DIC will deliver online and mobile applications for the smaller distributors with extra services such as social media integration.

For large distributors straight through processing integration will be established between the distributor systems and the systems of the DIC. The DIC customer portals will be integrated with the distributor portals.

Distributors will have full self-service functionality available in online portals and mobiles apps:

Sales & customer management

New business and renewals

Portfolio management

Case management

Reports & dashboards

Team management

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©TransInsure.

Service Partners

Workshops

TPA’s

Claims

adjusters

Payments

Road Tax

Others

Service Partners are all partners providing Insurance related services to the DIC. The partners provide data, assessments, payments services, printing services, call centers and processing services.

The Digital Insurance Company (DIC) will provide online portals and mobile apps for Service Partners to communicate with customers and DIC staff and submit reports and assessments.

In case of data exchange and customers service delivered by Service Partners, straight through processing integration will be established between the systems of service partners and the systems of the DIC.

The functionality available for Service Partners: Underwriting and claim assessment Renew and change/endorse policies Portfolio management Claim notification, status updates & payments Communication with DIC experts

Functionality & data provided by Service Partners: Road tax information & claims history Customer verification Payment through credit cards/Paypal/etc.

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©TransInsure.

Digital Insurer

Management and staff of the DIC will have the same access to online portals and mobile applications as customers and partners. However these portals and apps will have more functionality for the approval processes, product-, customer-, distributor-, portfolio and financial management, monitoring, reports & dashboards. Some functionality will remain in the Back Office for security

and compliance reasons.

Management and staff will have all information needed available anywhere, anytime and on any device and will be able to bring or choose their own device (BYOD/CYOD).

Marketing and IT will be responsible for the continuous development, improvement and management of online portals, social media integration, providing big data analytics and mobile apps.

The functionality available for DIC users: Full self service portal/apps, Call center portals Underwriting and claim portals/apps Portals/Apps for Finance, HR, Product

management Management monitoring and approval

portals/apps© TransInsure.

©TransInsure.

Digital Insurance Back – End systemsThe Back-End Digital Insurance System environment is based on a loosely coupled component based IT architecture. The architecture comprises of the following components: Enterprise Service Bus (ESB) for component integration,

external data exchange and partner system integration Transactional database for data exchange with online and

mobile apps and partner systems Policy management systems for all product lines Claims management system Customer Relationship management system Product Management Systems and Product Rules Engine Business Process Management System Case management system Business Rules Engine Correspondence template and rules management engine Document (content) management system Finance Management System Data warehouse for Big Data analytics Management Information System/Engine Access & entitlement management system

Social media integration manager to push relevant data to

the transactional database for use in portals and apps.© TransInsure.

©TransInsure.

Digital Insurance Portals & Mobile apps

Digital InsurerService PartnersDistributorsCustomers

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©TransInsure.Digital Insurance

Transformation - V115

Digital Insurance Transformation - V1

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Digital Insurance transformation is changing the Insurance company from a back-office administrative oriented organization with an internal focus to a client centric service oriented organization communicating through internet and social media.

IT IS THE END OF BUSINESS AS USUALBrian Solis

© TransInsure.

©TransInsure.

Hope is not a strategy

©TransInsure.

©TransInsure.

© TransInsure.

©TransInsure.

The transformation to a Digital Insurance Company will substantially change the business model and operating model. The size of the change depends on the speed of the market changes in the coming years, the digital strategy and current readiness and capabilities of the organization.

©TransInsure.

© TransInsure.

©TransInsure.

Previous Strategy

Distributor centricity Product focused growth Single channel Rigid organization Process driven Efficiency & cost reduction Refine UW & claims guidelines Continuous improvement

Digital Strategy

Customer centricity Customer focused growth Multi channel Adaptive organization Technology driven Digital & social marketing Create life time loyalty Tailor made offers to customer Fast digital innovation

StrategyTransformation

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©TransInsure.

Previous principles

Distribution by agents Customer has minimum

insurance knowledge One product fits all All applications to be

approved by underwriters Reactive after sales support Long time to market 1 - 3 new products per year

Digital Principles

Digital sales, distribution and service

Mobile apps and Online portals available for everyone

Distribution B2B, B2C, B2B2C Customer better informed Products aligned with

individual customer needs Focus on social influencing Pre-underwritten products Trust building Cross & up selling Data analytics and mining 1 - 2 weeks time to market Social media integration

Business ModelTransformation

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©TransInsure.

Previous principles

Inaccuracy of information Insufficient service levels Paper processing Processing centers/sourcing Backlog management 3-12 months time to market Manual workarounds due

to IT incapability Large organization with

complex processes Bureaucratic governance

Digital Principles

Availability of real time information

Full digitized self service capabilities

Excellent service Straight Through Processing Paperless Streamlined and simple processes Fast time to market State of the art IT architecture and

solutions Lean organization & governance

Operating ModelTransformation

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©TransInsure.

Organization transformation Marketing will have a leading role in the Digital Insurance Company. Data of all

sorts of social and other media will be analyzed to improve the understanding of customers and risks and push the right offer and the right time to the customer.

Product Management will be in charge of technical product specifications, product management tool and underwriting. The role will change as the time to market will be short and based on Marketing data more new products and product features will be pushed to the market.

Sales & Distribution will reduce a little as more new business (simple products) will be purchased online and on mobile devices directly by the customer.

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Organization transformation – cont’n Operations will be reduced largely as processing and claims departments will have

less processing work due to straight through processing and automated business rules replacing manual work. Furthermore the operational business will be more efficient and effective due to the use of BPM, BRE, Case management, MIS and Data management tools.

Finance will be reduced as financial processing will be STP automated, monitoring and reporting will fully automated and reduce the manual work in Finance.

HR and General support will be reduced as less personnel is required in the Digital Insurance Company.

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©TransInsure.

Organization transformation – cont’n IT will face a major transformation from a reactive organization managing

inflexible back end systems to pro-active organization closely working with Marketing to push the right technology innovation to the market.

IT will be reduced as part of today's work will move top the business, for example product development will be done by Product Management with Product Management Tools. Process improvement will be done directly by Operations in the BPM/BRE/MIS/Case and data management tools.

IT technology budget will increase as more systems/tools are necessary to run the Digital Insurance Business but this should not result in more IT staff. Staff profile sill change from Back End system maintenance to technology innovation.

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Transformation options assessment

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Transformation approach The market will not wait until an internal transformation is finalized, a long lasting

internal transformation with high risk of not delivering is not advisable. A Greenfield approach where is a fast method to deliver Digital Insurance without

jeopardizing the current business and resistance of the current organization Outsourcing is a good option providing the quality of the provider(s). Outsourcing

however needs a lot of management attention as it creates internal resistance. A combination of a Greenfield, outsourcing and internal transformation is a good

compromise however it will take more time to finalize the transformation

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©TransInsure. 28

Digital Insurance Implementation

Methodology

Challenges & Constraints

Digital Transformation

Digital Strategy

Manual & Paper

Full Digital

Today

Manual & Paper

Full DigitalWorld Class Digital

Enterprise ModelFor Insurance

Organization

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©TransInsure.

Who will take the lead?

For more information:

TransInsure.Digital Insurance Transformation

Email: [email protected]

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