Using Master Data to Transform Insurance for Competitive Advantage

Transcription

1 Using Master Data to Transform Insurance for Competitive Advantage Gordon Sanders Copyright 2017 HCL Technologies Limited

2 Industry Trends (Increasingly Focused) Pricing Pressure Growth Technology Investment Expectation Disruptive Threats Increased competition in the Direct channel and better analytics capabilities will have long-term price impact Flat Top Line Growth Significant increases in technology investments s demanding much more from their agents and carriers Relentless pace of Change fueled by powerful new technologies threaten to disrupt the industry Leading insurers are investing in new pricing technologies with more granular data, and increasing use of predictive modeling and early warning technology for CAT. Lack of top-line growth is leading to increasing consolidation among carriers, independent agents and brokers 2016 that premium growth slowed to 2% - ISO The industry is investing heavily in modernizing their legacy platforms. s are becoming: Better informed More comfortable with comparison shopping Less loyal Increasingly internet savvy More demanding of selfservice and internet based channels InsurTech and digitally native startups Big data Advanced Analytics Autonomous vehicles Uncertain Regulatory environment 2 Copyright 2017 HCL Technologies Limited

3 Accelerating Pace of Change Rapid technological advancement is redefining the marketplace and consumer expectations and the pace of change is accelerating! The insurance industry has been slow to react 3 Copyright 2017 HCL Technologies Limited

4 Consumer Behavior & Preferences Consumer Segments 80 Million Millennials 76.4 Million Baby Boomers One quarter of millennials will leave a company after one bad experience. By the third bad experience, an astounding 82 percent of millennials will stop using a company. 34 percent of millennials would rather have their teeth cleaned and 26 percent would rather go to the DMV, than speak with a customer service agent. 4 Copyright 2017 HCL Technologies Limited

5 Millennials are driving the Omni-channel Transformation How Connected Are Millennials?? 90% Conduct Online Research 67% Receive News Online 64% Send Instant Messages 2017: 46% Workforce Millennials Spending Power 2025: 75% Workforce Lifetime Value: $10 Trillion 2017: $200 Billion B2C 43%% Play Online Games 52% Read Blogs 56% Download Music CRM Persona & Preference Center Predictive, Proactive, Personalized Buy Everything Online If They Could! Account/Contact Type: Age: 28 Sex: Male Income: 50k Segment: Millennial Type: A Channel Preference: Self-Service : Chat : Phone 40% of Male Millennials 82% Will Leave a Company after 3 rd Bad Experience B2B Preference: Generators B2C Preference: IPhone B2B 33% of Female Millennials 70% EXPECT a Website To Include Self-Service 25% Will Leave A Company After 1 Bad Experience 5 Copyright 2017 HCL Technologies Limited

6 Disrupt or be disrupted: The rise and threat of InsurTech and Digitally native Insurers New entrants are not as hindered by legacy customer data architectures and are digitally enabled from the start! Metromile and PolicyGenius are using super-fast quotation and gamification to deliver the type of digital customer experience younger consumers are so used to. Metromile has partnered with Uber to provide insurance coverage to drivers when they re between fares. Switzerland s Knip uses advanced analytics to proactively suggest and adjust policies IPSoft s Amelia artificial intelligence platform can figure out problems, ask clarifying questions, and follow steps to answer questions like, What s he best auto insurance for me? Roost s Home Telematics program uses smart sensors in the home to identify and communicate real-time perils to both, the consumer and insurer, for immediate mitigation. MotionsCloud is a one stop mobile and AI claims adjustment solution for customers, loss adjusters and insurers. It can analyse the customer s claim information and estimate claim value in almost real-time. The aim is to reduce the average claims processing cycle from 3-4 weeks to 3 hours 6 Source: Burnmark InsurTech Report, Nov 2016 Copyright 2017 HCL Technologies Limited

7 The four pillars of Experience Identify your Know your MDM technology and modern core systems are making it easier to uniquely identify a customer and create an accurate 360 profile including all of their past interactions with the company as well as externally Lifetime value, communication preferences, intentions, buying habits, life events, propensity to purchase, socio-economic status, sentiment Increase customer engagement Provide the data they need to make a decision, make it easy for them to do business with you. Enable your Serve your Examples: Aflac announced its One Day Pay express claims service, promising a single day turnaround for claims payments Security First offers Florida dwelling insurance with a sub-3 minute website quote promise USAA asks claimants to use simple thumbs up and down icons to tell the company how they re feeling about the claim process, with a thumb down getting a fast response Last year, USAA launched Onsite Connect, a mobile collaboration application that lets desk adjusters capture video details of a damaged property through a clients smartphone, without leaving the office To meet rising customer expectations, digital experiences will be tailored for each customer, adapted to their particular situation, and predictive of their behavior, a concept that Forrester terms contextualization. 7 Copyright 2017 HCL Technologies Limited

8 The Typical Transformation Journey getting to customer and digital centricity Data Enablement Core System Transformation A modern core integrated platform for policy, claims and billing administration 360 View Master Data (Product, Claims, etc) Omni-channel Distribution Portals and Self-service Business Transformation Analytics Advanced analytics Know your Product Centric Centric Digital Centric 8 Copyright 2017 HCL Technologies Limited

9 Legacy insurers need to enable a single view of the customer across all business functions Single View of across Segments, Channels, Products Perform risk analysis and business performance reporting Analyze Demographics, Channel Usage, Profitability, and Buying Patterns Single Source of Analytics across Processes, Functions, Organizations Deliver multi-channel, real time client information to self service channels Leverage real time view of customer relationship and channel integration to provide exceptional service Data Integrated into one place with ease of access and improved productivity Financial Management Business Portfolio Manage-ment Call center & IVR ATM & kiosks Operational Services Use enterprise view of the customer and BPM to optimize sales Management Mobile Media Distribution Services Print Internet Manage multistage, multichannel campaigns Sales & Serving Product Delivery Create Personalized Products and Services with Dynamic Pricing Perform Segmentation, Personalization, Channel Effectiveness and Propensity to Buy Analysis Common data definitions shared across Business Analytics Applications 9 Copyright 2017 HCL Technologies Limited

10 Master Data Enabling a 360 View Multiple Data Sources Structured & Unstructured Data Core Systems 3 rd Party Data Streaming Machine Data Social Media 360 Master Data 360 Advanced Analytics Big Data Lake Omni Channel Distribution Agency portal portal Call Center Web Live Chat SMS, etc Mobile Video Social Facebook Twitter HCL Data Framework 10 Copyright 2017 HCL Technologies Limited

11 Case Studies ACTIONABLE INSIGHTS Client wanted to understand customer affinity towards it s products & services, customer experience across touchpoints and level of customer satisfaction & loyalty No holistic view of social media content or analysis; no real points of integration with corporate data Integration of data across social media, surveys, salesforce, s, enterprise applications Created an analytics factory approach, whereby the creation and deployment of models is standardized and proceduralized Developed an omnichannel customer analytics capability for a finanacial services client. Developed a single customer view MDM solution for one of india s largest insurers with over 10M active policies Utilized SAS MDM tools and Oracle OBIEE Created a single Master Data Reference Hub for the entire organization Enabled real-time master data synchronization across core systems. ce, s, enterprise applications Created an analytics factory approach, whereby the creation and deployment of models is standardized and proceduralized Implement Single view across Banking, Investment mgmt and Insurance Lines of Business Developed a unified customer view for a leading US Multiline carrier Implemented Chordiant-CRM solution Developed a golden source master database with integration across all multiple systems 11 Copyright 2017 HCL Technologies Limited

12 About HCL 12 Copyright 2017 HCL Technologies Limited