Driving innovation. Data and analytics, IoT and Machine Learning. Karin Kruger KPMG Data & Analytics

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Horatio Copeland
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1 Driving innovation Data and analytics, IoT and Machine Learning Karin Kruger KPMG Data & Analytics

Insurance is in uncertain times ( KPMG All

insurers are getting increasingly worried (

4 Innovation is still maturing and will evolve even more Expectations Autonomous Vehicles Smart Advisors Data Science Internet of Things Wearable User Interfaces Consumer 3D Printing Prescriptive Analytics Neurobusiness Smart Robots 3D Bioprinting Systems Human Augmentation Connected Home Digital Security Bioacoustics Sensing Mobile Health Monitoring Innovation Trigger Peak of Inflated Expectations Big Data Gamification Machine to Machine Communication Activity Streams In-Memory Analytics Trough of Disillusionment Time Consumer Telematics 3D Scanners Enterprise 3D Printing Slope of Enlightenment Speech Recognition Plateau of Productivity Source: Gartner, 2014 Plateau will be reached in: Less than 2 years 2 to 5 years 5 to 10 years more than 10 years ( KPMG All rights reserved. Printed in South Africa. KPMG and the KPMG logo are registered trademarks of KPMG International Cooperative ( KPMG 4

Insurance customers are becoming increasingly demanding Customers want to interact through the channel and device of their choice, with increasing demand for real time interactions Customers

5 Insurance customers are becoming increasingly demanding Customers want to interact through the channel and device of their choice, with increasing demand for real time interactions Customers interaction with insurers is constantly evolving #1 Online is the preferred channel to learn and access insurance products information, however face to face interactions are still important for contracting and servicing. 88% of insurance consumers surveyed use more than one online channel Customers are increasingly willing to switch their loyalty to providers that allow them to interact the way they want Insurance recorded lower customer satisfaction % 40% 37% 33% 31% E-retailers Banking General Insurance Life Insurance Utilities customer experience ratings along insurance lifecycle decreased in recent years Source: Marketer, 2014; Customer Experience Barometer, KPMG International, 2014; ( KPMG All rights reserved. Printed in South Africa. KPMG and the KPMG logo are registered trademarks of KPMG International Cooperative ( KPMG 5

Improving technology offers opportunity ( KPMG All rights reserved. Printed in South Africa.

7 Converging technology trends DATA & ANALTICS MACHINE LEARNING INTERNET OF THING ( KPMG All rights reserved. Printed in South Africa. KPMG and the KPMG logo are registered trademarks of KPMG International Cooperative ( KPMG 7

Driving innovation: Data & Analytics Every year, companies and individuals generate billions of gigabytes

Enterprises need to recognise the prospect big data represents and should adapt in their IT strategy to

Big data can help predict buying decisions; it can help weed out fraudulent transactions; delivering real

8 Driving innovation: Data & Analytics Every year, companies and individuals generate billions of gigabytes of data. Data, which properly analysed and used in time, can emerge as an unbeatable competitive advantage. Enterprises need to recognise the prospect big data represents and should adapt in their IT strategy to capture such opportunities. Big data can help predict buying decisions; it can help weed out fraudulent transactions; delivering real time on point insurance solutions to customer. ( KPMG All rights reserved. Printed in South Africa. KPMG and the KPMG logo are registered trademarks of KPMG International Cooperative ( KPMG 8

Driving innovation: Internet of Things The decreasing cost of embedded systems has made their presence ubiquitous across the

Telematics are most commonly used in the insurance industry to change customer behaviour and improve driving.

Smart home hub partnering with award-winning connected device manufacturers for better home protection.

9 Driving innovation: Internet of Things The decreasing cost of embedded systems has made their presence ubiquitous across the business landscape increasing the usage of IoT. Telematics are most commonly used in the insurance industry to change customer behaviour and improve driving. Embedded systems are also having an impact in the healthcare industry, where hospitals attach smart chips to patients to keep track of their entire medical regime. Connected car Apple Watch App to help drivers analyze, understand and improve their driving behavior and style Connected home Smart home hub partnering with award-winning connected device manufacturers for better home protection. Connected health Innovative health service to keep track of all activities check trends set challenges get useful content on health access a 24/7 medical helpline buy medical and wellbeing services at discounted rates ( KPMG All rights reserved. Printed in South Africa. KPMG and the KPMG logo are registered trademarks of KPMG International Cooperative ( KPMG 9

Driving innovation: Machine learning Essentially, machine learning refers to a set of algorithms that use historical data to predict current or future outcomes.

Banks use machine learning algorithms to monitor for fraud or irregular activity on credit cards.

10 Driving innovation: Machine learning Essentially, machine learning refers to a set of algorithms that use historical data to predict current or future outcomes. Most of us use machine learning processes every day. Spam filters, for example, use historical data to decide whether or not s should be delivered or quarantined. Banks use machine learning algorithms to monitor for fraud or irregular activity on credit cards. Netflix uses machine learning to serve up recommendations to users based on their viewing history and recommendations. ( KPMG All rights reserved. Printed in South Africa. KPMG and the KPMG logo are registered trademarks of KPMG International Cooperative ( KPMG 10

Driving insurance innovation Social comparison

integrating gaming mechanics that create fun

Crowd-sourcing Using customers to shape and

services, and test new offerings Partnerships

partnered with Real life insurance to offer

Wi-Fi Open innovation Use API s to open data

development (i.e. Credit Agricole had 40+

Simple interaction and seamless experience is

providing visually exciting customisable

11 Driving insurance innovation Social comparison Allow customers to compare their habits with people in the same demographics group Gamification Changes consumer behavior by integrating gaming mechanics that create fun competition in order to drive engagement Crowd-sourcing Using customers to shape and collaborate on ideas for new products and services, and test new offerings Partnerships for data and distribution Sydney airport partnered with Real life insurance to offer travel insurance to users connection to free Wi-Fi Open innovation Use API s to open data to external developers and support rapid app development (i.e. Credit Agricole had 40+ besoke apps within 1 month) UX differentiation Simple interaction and seamless experience is expected progressive players are focusing on providing visually exciting customisable interfaces Source: KPMG International, 2015 ( KPMG All rights reserved. Printed in South Africa. KPMG and the KPMG logo are registered trademarks of KPMG International Cooperative ( KPMG 11

Driving insurance innovation Rich personalization Customers want experiences

Behavioural security Identify distinguishing behaviour to provide effortless

fraud Minimum Viable Offer Taking a small, very simple feature set, as an

Think Big, Start Small test, learn, refine.

taking a VOC approach gives rise to insurance innovations such as Quick

interactions with their advisors and want more value from these interactions

of mobile devices location aware, cameras and other sensors.

12 Driving insurance innovation Rich personalization Customers want experiences tailored to their unique needs and wants, with content that delivers value Behavioural security Identify distinguishing behaviour to provide effortless security i.e. how hard or fast we type in order to spot and prevent identity fraud Minimum Viable Offer Taking a small, very simple feature set, as an experiment that captures your customer s value. Think Big, Start Small test, learn, refine. Voice of the Customer Consumers are engaging with brands on their terms - taking a VOC approach gives rise to insurance innovations such as Quick quote design etc Advisor/Agent mobility Customers seek increased interactions with their advisors and want more value from these interactions Mobile first design Mobile centric design leveraging the unique capabilities of mobile devices location aware, cameras and other sensors. Source: KPMG International, 2015 ( KPMG All rights reserved. Printed in South Africa. KPMG and the KPMG logo are registered trademarks of KPMG International Cooperative ( KPMG 12

13 Thank you Continue the conversation: KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm visà-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm KPMG Services Proprietary Limited, a South African company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ( KPMG All rights reserved. Printed in South Africa. KPMG and the KPMG logo are registered trademarks of KPMG International Cooperative ( KPMG