Real-Time Data-Driven Services in Insurance Expert Opinion and - PowerPoint PPT Presentation

Real-Time Data-Driven Services in Insurance Expert Opinion and Customer Needs Dr. Carlo Pugnetti – ZHAW Mischa Seitz – Cognizant 03. June 2020

Principal Investigators Carlo Pugnetti Mischa Seitz Ph.D. Risk Analysis, Stanford University MSc in International Business Research Focus: Account Executive Insurance CH Customer Behavior in Insurance Allianz Group Cognizant   CEO, Allianz Global Assistance Switzerland Previously: Consultant in Digital Strategy   Head of Allianz Services, Mondial Assistance Paris Research & Publication: Data in Insurance in Schweizer  VP Group Development, Allianz SE Munich Versicherung Magazin   VP Claims, FFIC San Francisco Jury Member FinTech & SmartCity at Kickstart 2019 The ZHAW School of Management and Law (SML) is one of Switzerland’s Cognizant (Nasdaq-100: CTSH) is one of the world’s leading professional leading business schools. Our main principle “Building Competence. clients’ services companies, transforming business, operating and Crossing Borders. ” reflects our commitment to quality degree programs technology models for the digital era. Our unique industry-based, and continuing education, as well as a global mindset. The SML has formal consultative approach helps clients envision, build and run more partnerships with over 180 universities worldwide. innovative and efficient businesses. 2

Study on Data-Driven Services Overview 12 Core Experts Interviews Customer Survey Results & Deliverables What are the critical questions? 1,451 Respondents Male Age: >50 23% 43% Expert Panel Survey Age: 36 - 50 25% 35 Experts Female Age: 26 - 35 27% 57% Age: 18 - 25 25% What do experts think? 20% 25% 30%  Public presentations What do customers think?  Company-Specific  Adoption Workshops  Impact  Professional  19 Services Development  4 LoBs  Academic and Industry Publications  5 Types of Service  13 Insurance Companies 3

Industry Experts Explorative Interview Panel Ulrich Moser Tiziano Lenoci Kai Kunze Anne-Katrin Maser Die Mobiliar GVB Services LINGS Generali Head of Software CEO CEO Lead Partnerships and Engineering NonLife Ecosystems Christoph Geering Sebastian Pfister Julian Stylianou Miriam Hürster Baloise AXA mitipi Zurich Stream Manager – Product Owner Customer CEO Sr Manager Private Business Intelligence & Intelligence Customer Innovation & Sales Transformation Raphael Troitzsch Mathew Chittazhathu Benno Keller Angela Zeier- SwissRe Geneva Association Röschmann Helvetia Head of Automotive Special Advisor, Digital ZHAW Sr Manager Innovation Solutions & Smart and Innovation Deputy Head, Institute for Homes Risk & Insurance 8 4

Exp Cust Research Questions & Setup (1/2) Dev Imp RADAR Experts Customers Survey of 1’451 Panel of 35 Swiss insurance experts customers Adoption of Desirability of service What is likely ? services in vs. «cost» of to happen? 3-5 years information required Impact on Interest in Should we ? industry in purchasing service worry about it? 5-10 years from other providers 5 9

Executive Summary  Customers have very high trust in insurance and are open to data-driven services in insurance  We therefore have a window of opportunity to develop services – however the gap can be closed quickly, especially by new entrants  The insurance industry is focusing on cost control and operation , but customers are interested in assistance and prevention services  Customer portfolios of different insurance companies give very similar responses, indicating low market maturity and an opportunity for first movers 6

Exp Cust Impact of Services Dev Experts and customers are aligned on the potential impact of different services Imp KEY MESSAGES Line of Business Type of Service 0.6 0.6  Experts and customers LIFE SERVICES are aligned on the long- 0.4 0.4 term impact by type of What is important service, with Life AUTO / MOBILITY PREVENTION / ASSISTANCE / 0.2 0.2 Services and Prevention HOME / LIVING RISK MGMT EMERGENCY showing the highest 0.0 0.0 potential 0.6 0.4 0.2 0.0 -0.2 -0.4 -0.6 0.6 0.4 0.2 0.0 -0.2 -0.4 -0.6  COST CONTROL / However, the insurance HEALTH / WELLNESS -0.2 -0.2 CLAIMS MGMT industry could be OTHER underestimating the PROTECTION / -0.4 -0.4 potential for disruption in ADMINISTRATION Health / Wellness -0.6 -0.6 Where customers may switch provider 7

Exp Cust Adoption vs. Impact Dev We are implementing services with lower impact Imp KEY MESSAGES Line of Business Type of Services 0.60 0.60  Insurance companies are LIFE SERVICES focusing too much on 0.40 0.40 services with low strategic What is important impact AUTO / MOBILITY ASSISTANCE / PREVENTION / 0.20 0.20 HOME / LIVING EMERGENCY RISK MGMT  Cost Control & Administration instead of Prevention, Risk 0.00 0.00 -0.60 -0.40 -0.20 0.00 0.20 0.40 0.60 -0.60 -0.40 -0.20 0.00 0.20 0.40 0.60 Management and non- insurance services HEALTH / -0.20 -0.20 COST CONTROL / WELLNESS OTHER CLAIMS MGMT  Differences are more visible PROTECTION / -0.40 -0.40 by Type of Service than by ADMINISTRATION Line of Business -0.60 -0.60 What we are implementing 8

Exp Cust Preference for Provider (by Industry) Dev Customers have a high opinion of insurance – but not in all areas a high loyalty Imp Auto / Mobility KEY MESSAGES  Home /Living Swiss customers show a great affinity for insurance Health / Wellness companies Other / Cross-LoB  Other incumbents do not seem to threaten insurance , Protection / Administration except for automotive in mobility Prevention / Risk Mgmt  Technology companies score Assistance / Emergency low on customer preferences Cost Control / Claims Mgmt  Dedicated startups provide Life Services the most significant threat 2.0 2.5 3.0 3.5 4.0 4.5 to insurance Customer Preference (Scale 1-6)  This is true especially for Health / Wellness and Life Insurance Telcos Automotive Services Technology State Owned Startups 9