DIGITAL DISRUPTION. Embracing Change and Harnessing the Opportunity. January 18, Copyright 2016 Deloitte Development LLC. All rights reserved.

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DIGITAL DISRUPTION Embracing Change and Harnessing the Opportunity

2 OBJECTIVES Disruption is Upon Us Embracing Change: Disruption, Start-ups and New Services Digital Survey Results Actions Insurers May Take 2 Copyright 2016 Deloitte Development LLC. All rights reserved.

It is not the strongest of the species that survive, nor the most intelligent, but the one

4 Our intuition about the future is linear. But the reality of information technology is exponential, and that makes a profound difference. Ray Kurzweil Innovation distinguishes between a leader and a follower Steve Jobs Never before in history has innovation offered promise of so much to so many in such short time Bill Gates With Digital Transformation the consumer, rather than technology, is in the driver s seat, and this matters Karl Moore We cannot solve our problems with the same thinking we used when we created them - Albert Einstein 4 Copyright 2016 Deloitte Development LLC. All rights reserved.

5 DIGITAL TRANSFORMATION IS UPON US Start-ups attack the insurance value chain. New products and services expand and change the need for insurance Disruptors and Start-ups 5 Copyright 2016 Deloitte Development LLC. All rights reserved. New Services

6 NEW TECHNOLOGIES AND SERVICES The rise of new technologies and the sharing economy will impact the need for multiple types of insurance Technologies 6 Copyright 2016 Deloitte Development LLC. All rights reserved. Sharing Economy Services

8 DIGITAL SURVEY RESULTS 90% 93% 46% 90% of respondents agree that digital technologies are disrupting the industry to a great extent AND 93% agree that the objective of their digital strategy is to enhance customer experience and engagement YET Only 46% agree that they are adequately preparing for digital disruption 8 Copyright 2016 Deloitte Development LLC. All rights reserved.

9 KEY ORGANIZATIONAL ATTRIBUTES Deloitte s Digital DNA framework outlines the traits and characteristics of being digital, and what it takes for businesses to thrive in a digital world Cultural Attributes Adaptability to Change Work Style Organizational Structure Risk Appetite Customer Experience Legacy DNA Slow, but innovating Siloes Hierarchical Cautious Customer focus Digital DNA Agility Collaboration Distributed Exploratory Customer Centricity 9 Copyright 2016 Deloitte Development LLC. All rights reserved.

10 CALL TO ACTION Our insurance industry is not immune to the impact of Digital Disruption on carriers, policyholders and agents. Carriers can harness this energy and position themselves to benefit from the pace of change. Steps 1 Learn From the Past 2 Manage Expectations 3 Learn From Outside 4 Execute with Confidence How is this similar and different from past technology waves? 10 Copyright 2016 Deloitte Development LLC. All rights reserved. How will expectations of agents and brokers change? What can we learn from other industries? How will carriers respond to this wave of change?

11 FOCUS ON THE DIGITAL EXPERIENCE FOR AGENTS Agents will reward carriers that provide them tools to enable them to find new customers, close new business and provide customer service to the policyholder. It is not about having more tools but more effective ones. 1 Customer & Agents expect Omni channel experience Design all tools with a Digital Lens 2 Increased channel switching throughout lifecycle Identify and Plan for critical channel handoffs 3 Diverse use of technology across demographics Use Digital and Mobile to enhance agent interaction 4 Agents are using multiple channels at once Data is the new currency 11 Copyright 2016 Deloitte Development LLC. All rights reserved.

12 TECHNOLOGY IS NOT A SILVER BULLET Embrace technology, but it is not a magical fix. The company culture must change as well INVEST IN HUMAN CAPITAL EMBRACE TECHNOLOGY TRENDS ADVANCE EMPLOYEE ENGAGEMENT 12 Copyright 2016 Deloitte Development LLC. All rights reserved.

13 LOOK OUTSIDE AND CREATE AN ECOSYSTEM Established players in every industry develop an ecosystem for their customers. Carriers should strive to serve more of their customers needs 1 2 Grow 3 Use Expand along the value chain new products and services new distribution channels 4 Enter new geographies 5 Identify new customer segments 6 Move into the white space 13 Copyright 2016 Deloitte Development LLC. All rights reserved.

14 CALL TO ACTION Our insurance industry is not immune to the impact of Digital disruption on consumers and their expectations. Ignore this trend and miss an opportunity. Steps Learn From the Past Manage Expectations Learn From Outside Execute with Confidence How is this similar and different from past technology waves? 14 Copyright 2016 Deloitte Development LLC. All rights reserved. How will expectations of agents and brokers change? What can we learn from other industries? How will carriers respond to this wave of change?

THANK YOU. Arun Prasad Principal aprasad@deloitte.

16 THANK YOU. Arun Prasad Principal This publication contains general information only, and none of the member firms of Deloitte Touche Tohmatsu Limited, its member firms, or their related entities (collective, the Deloitte Network ) is, by means of this publication, rendering professional advice or services. Before making any decision or taking any action that may affect your business, you should consult a qualified professional adviser. No entity in the Deloitte Network shall be responsible for any loss whatsoever sustained by any person who relies on this publication. As used in this document, Deloitte means Deloitte Consulting LLP, a subsidiary of Deloitte LLP. Please see for a detailed description of the legal structure of Deloitte LLP and its subsidiaries. Certain services may not be available to attest clients under the rules and regulations of public accounting. Copyright 2016 Deloitte Development LLC. All rights reserved. Member of Deloitte Touche Tohmatsu Limited 16 Copyright 2016 Deloitte Development LLC. All rights reserved.