REINVENTING INSURANCE

Transcription

1 REINVENTING INSURANCE 13th Chief Risk Officer Assembly SwissRe Institute Christina Kehl

2 THE FUTURE IS AT OUR DOORSTEP

3 INDUSTRY COMPARISON: KODAK AND PHOTOGRAPHY window to react Number of photos: 1.3 trillion Instagram: 80 million photos are uploaded per day Kodak share price: $ 80 Number of photos: 0.05 trillion Founding of Instagram Kodak share price: $

4 INDUSTRY COMPARISON: KUONI AND TRAVEL window to react Global international tourism revenue: 1.26tr USD Expedia and booking.com manage 80% of agency bookings Founding of Kuoni First travel bookings Founding of booking.com and Expedia Kuoni sells travel business

5 INDUSTRY COMPARISON: OTTO GROUP AND RETAIL window to react 10% of global retail sale is online, with a 23% growth rate per year. Otto retail fashion revenues 80% online Otto catalogue Beginnings of E- commerce, founding of Amazon Otto catalogue stopped

6 INDUSTRY COMPARISON: 3 LEARNINGS 2. Rise of new digital business models (core systems with platforms) 3. Digitization generates new business potential 1. Decline of traditional business models

7 INDUSTRY COMPARISON: PLATFORMS ON THE RISE Uber, the world s largest taxi company, owns no vehicles. Facebook, the world s most popular media owner, creates no content. Alibaba, the most valuable retailer, has no inventory. Airbnb, the world s largest accommodation provider, owns no real estate.

8 CUSTOMER DRIVEN DIGITIZATION PER SECTOR Not digitized Ongoing digital transformation Digital business Retail Media High tech Telecom Transport and travel Financial services Automotive and assembly Consumer goods %

9 INSURANCE INDUSTRY

10 DIGITAL TRANSFORMATION OF INSURANCE New normal: Advances incumbents, established startups Mainstream customers adopt Tipping point We are here! Innovative startups create disruptive business models Early adopters embrace new channels / models Advanced incumbents begin to pivot New trends emerge 1996 from

11 HOW TO REINVENT

12 GREENFIELD APPROACH Old legacy systems Keep running New digital Build newly from scratch

13 SPEED BOAT APPROACH Old legacy systems Digital units

14 INNOVATION QUALITIES

15 TECH & PEOPLE

16 CULTURE 1. CORE SYSTEM

17 TECH

18 CORE SYSTEM - DATA MACHINE Data requests Data storage Risk management Underwriting Contracting Open API data access Data transmission

19 DIGITAL CORE SYSTEM - DATA AND PROCESS FLOW Incoming data Predefined parameter set Parameter selection UI AI Smart Contract Underwriting Risk Management Blockchain Data storage Open API unique access keys Open platform Secure external data transmission Open API

20 OPEN PLATFORM

21 DIGITAL OPEN PLATFORM API DATA CORE SYSTEM API API API API API API Claims Compliance Distribution Security Reg Tech Asset Management

22 OPEN PLATFORM PARTNER POSSIBILITIES Growing global insurtech/fintech ecosystem Over 3000 global tech partners to choose from. You mix and match your providers, for example:

23 ARCHITECTURE Decoupled Micro Services Allows for future update without stopping the entire system. Resilient Automated backups, no single points of failure. Modular Ability for development of custom modules that integrate with the di.os platform. Secure Automatically handles data encryption both at transmission and at rest. Upgradable Every component upgradable to newer technologies without breaking the system. This way, insurance companies never end up in the same situation of legacy systems that currently exist. Cloud and Hosted Compatibility Works both as a self-hosted system or on a cloud environment. Scalable Automatic scaling of components.

24 PEOPLE

25 PEOPLE 1. CORE SYSTEM

26 The secret of change is to focus your energy not on fighting the old, but on building the new. -Socrates

27 THANK YOU Christina Kehl Linkedin:

28 Basic Copyright Notice & Disclaimer 2017 This presentation is copyright protected. All rights reserved. You may download or print out a hard copy for your private or internal use. You are not permitted to create any modifications or derivatives of this presentation without the prior written permission of the copyright owner. This presentation is for information purposes only and contains non-binding indications. Any opinions or views expressed are of the author and do not necessarily represent those of Swiss Re. Swiss Re makes no warranties or representations as to the accuracy, comprehensiveness, timeliness or suitability of this presentation for a particular purpose. Anyone shall at its own risk interpret and employ this presentation without relying on it in isolation. In no event will Swiss Re be liable for any loss or damages of any kind, including any direct, indirect or consequential damages, arising out of or in connection with the use of this presentation.