designing the future of insurance with open collaboration...

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Designing the Future of Insurance With Open Collaboration & Innovation2017 RAPA Fall ConferenceSven Roehl

Head of Innovation, EVP msg global solutions Canada & Co-founder Cookhouse Lab

© msg global solutions | 2017

Who we are – msg group11 %

Automotive

55 %

Insurance

21 %

Banking

1.4 %

Life Science

& Healthcare

1.2 %

Food

0.9 % Utilities

4.8 %

Public

Sector

2.1 %

Other

Industries

1.5 % Telco & Media

1.1 %

Travel & Logistics

Independent

25countries

1 bn $ revenue

Founded in

1980

6.500employees

© msg global solutions | 2017 3

We are committed to intelligent IT and

industry solutions — from consulting and

development to implementation. Our services

enable companies to maximize the

opportunities of digitalization and be more

profitable over the long-term.

VISION

Transform digital insurance .

Design and build the future .

Bring innovation to life .

MISSION

• Consulting

• Solutions

• Partnership

I N S P I R E D T O I N N O VAT E


•

•

•

•

•

•

…let’s talk about disruption!


Conclave, Via Della Conciliazione, Rome 4.4.2005

…8 years later: Conclave, Via Della Conciliazione, Rome 13.3.2013

The Challenge – From Digital Insurance to Digital Excellence

Digital Insurance Digital Experience Digital Excellence



Everything is Changing

2/3 of the companies on The

Fortune 500 list for 1970 have

disappeared from it

Market Changes

Forces of creative disruption:

• IT (especially the Internet)

• Financial Markets

• Globalization

Mobile phones went from being

toys to tools for 3/4 of the earth's

population in 2 decades.

Speed Changes

The Internet has already

evolved from an asocial

into a social medium.

Successful companies are the

inverse of the behemoths of old:

people-short and asset light.

Business Changes

Today's winners have to be

willing to disrupt themselves

in order to avoid becoming

tomorrow's losers.

Innovation is at the Heart of a Company’s Success

Digital Innovation transforms every company into a

Software + Service Company!

Digital Innovation…

• Changes process workflows and transactions

• Enables process automation

• Leads to an easy worldwide access and distribution

• Enables the use of almost unlimited DATA and the

NETWORKING of various ACTORS

• Requires new business models and organizational

structure

Digital Innovation = Data + Community + User Experience


Cloud

Blockchain

Artificial Intelligence

Open Architecture (API)

Hyper Connectivity (IOT)

Natural Language Processing (NLP)

What are the Key Technologies?


AlphaGO vs. Lee SedolMarch 2016

…Computer wins

2:0

The Internet of Things

Internet of

ThingsBrain Voice 5 Senses

SensorsCodingComputer

+ +=


Why The Connected World Matters to Insurers

Internet of Things or transformative technologies can

impact insurance in many ways:

• Creates a new niche

• Provides transformative opportunities

• Shifts how certain risks are underwritten

• Transforms one’s business fundamentally

Insurable risks will shift to low-frequency, high-severity

events that are harder to price and predict.


The future is here, it’s just not evenly distributed yet.

William Gibson

What Can Insurers Do?

According to McKinsey 9 of 10 insurers

acknowledge that they are struggling to

develop the technology infrastructure they

need to support digitization

1

2

3

Anticipators

can create their own

future

Fast Followers

need to be agile enough to

recognize leaders and adapt

Survivors

can only focus on short-term

performance

The 3 types of insurers

Develop IT capabilities that run on 2 speeds:

1. A foundational IT architecture centered on

transaction systems (Systems of Record)

2. High-speed agile IT model that focuses on

customer engagement systems (Systems of

Engagement)

The Biggest Hurdle

The Solution


It’s All

About the

Customer



“It‘s not the customers job

to know what they want“

Steve Jobs

If I had asked people what

they wanted they would

have said faster horses.

- Henry Ford

Customers are shaped by their

digital experience with sophisticated

digital companies such as Amazon

or Uber. The digital expectations of

insurance customers are high.

Those insurers that understand and

meet the customers’ expectation will

build greater customer loyalty, cut

costs and improve profitability.


Key questions when developing innovation


Is it clear to the consumers that they have the

problem we are trying to solve?

If there was a solution available, would they

actually buy it now?

How does the solution need to look so that

they buy it from you?

Can we build a solution for that problem?


SOLUTION: IOT & LOYALTY

• Connect insurance to daily

used appliance

• Provide and collect information

• Reward the customer for using

and sharing

• Create online environment and

communities for users

C R E AT E A H O L I S T I C

B E H AV I O R - B A S E D

E X P E R I E N C E

PROBLEM

• Lack of interest of people in

financial products

• Understanding and

awareness is limited

• Few opportunities to interact

with policy holders

• Calculation based on fixed

attributes not behavior

Get interaction on regular basis, learn more

about your customers and include behavior

information in your calculat ion models.

I N S U R A N C E

D I L E M M A


A N A LY Z E E N G A G EC O L L E C T C A L C U L AT E

Policy Holder

Medical

Apps

Drones

Vehicles

Wearables

Home

sensors

• Device agnostic

• Transparency

IoT Analyzer

My…

HEALTH

HOME

SELFCOMPANY

MOBILITY• Across multiple

Lines of Business

• Multi-level analytics

and scoring

O p e r a t i o n a l i z i n g o f I n t e r n e t o f T h i n g s


I O T- B A S E D C U S T O M E R E N G A G E M E N T P R O C E S S

M e a s u r e – M o n i t o r – L e a r n - S t i m u l a t e

Input

• Visualize behavior and

progress

• Reward good behavior

• Age, Gender etc.

• Behavior, Interests etc.

• Fitbit, GPS trackers, Drones etc.

• Check where the scores are low

• Chose individual interaction method

• Define personal challenges

• Track individual improvements

• Has interaction improved behavior?

3

4

5

67

User Profile

Track Behavior

Define Challenges

RewardLearn

Monitor Progress

DIRECT VARIABLES

• Behavior

• Health user

INDIRECT VARIABLES

• Age/Gender

• Location/Education

• Score model

• Point collection rules

2

Rules

1

A moonshot, in a technology context, is

an ambitious, exploratory and ground-

breaking project undertaken without any

expectation of near-term profitability or

benefit and also, perhaps, without a full

investigation of potential risks and

benefits.

A project or proposal that:

1. Addresses a huge problem

2. Proposes a radical solution

3. Uses breakthrough technology

GOOGLE’s Moonshot

Design Thinking


Design Thinking – a Holistic Innovation Mindset



Co-Creation:

The process where

companies and

consumers work

together to create

better ideas,

products, and

services.

Open Collaboration:

Like co-creation, open collaboration is

also a means of collectively building

better ideas and solutions. However,

instead of limiting the input and

sharing of ideas, it considers mass

contributors, industry peers, and the

willingness to openly share the

contents that are eventually derived.

vs.

Collect topics, ideas, suggestions from customers,

employees and key stakeholders for future

development of products and services

Narrow down the attributes, features, and

characteristics of an identified product or service

Co-develop a prototype and eventually, an

investable new product or service

Why Open Collaboration?

31

Example of True Open

Collaboration & Innovation

32

Inspired by a test kitchen, Cookhouse

Lab is a collaborative space for

innovative thinkers. We welcome

insurance and reinsurance experts,

financial services professionals,

entrepreneurs and academics from

around the globe to join in on

developing solutions for the current

and future trends of InsurTech.

Make insurance better

Foster and encourages open

collaboration

Generate new business

models

Share & Collaborate

Design & Create

Accelerate Innovation &

Prototyping

33

Innovation Lab

Companies and Individuals looking

to work on insurance innovation

topics and projects through

open/collaborative approach with

the aim to produce Minimum Viable

Product (prototype) via a paid

membership.

34

Members

UNIQUE

RECIPE FOR

INNOVATION

OPEN

COLLABORATION

MODELS

GLOBAL

INSURANCE

EXPERT CROWD

FLEXIBLE

MEMBERSHIP

OPTIONS

+++

T O R O N T O , C a n a d a

U T R E C H T , N e t h e r l a n d s

M U N I C H , G e r m a n y Owned by

Lean Start Up Mentality

We enable teams to operate like start-ups by

empowering participants to make decisions and get

directly involved in completing project work.

Iterative Design Thinking Journey

We follow the design-thinking innovation

methodology to achieve timely results that are

customer-centric .

Innovation Through Co-Creation

We work with cross-functional teams of SMEs from

multiple organisations to ensure existing knowledge

and perspectives are captured in project outputs.

Understand the

customer need

Identify the

opportunity or

problem

Design a solution Build an Minimum

Viable Concept/

Product/ Service

Test solution and

gain customer

feedback

• Workshops

• Surveys

• Interviews

• Observations

• Secondary

Research

• Assumptions

• Personas

• Problem

statement

development

• Design Thinking

Exercises e.g.

Power of 10,

How Might We,

Journey

Mapping,

Random

Association,

Story-Boarding.

• Wireframes

• Applications

• Processes

• Products

• Strategies

• Use Cases

• Business Cases

• Workshops

• Surveys

• Interviews

• Demonstrations

• Observations

37

Challenge Idea New Product

Internal

Peer to Peer

Open MVP

Internal

Peer to Peer

Open

Ideation Lab Work AccelerationThe ideation process can

be initiated and executed

by single or multiple

partners in the Insurance

Expert Crowd Platform.

The development of an

MVP is performed in open

team structure (default)

but can also be done in a

closed team.

• Built your own

• Potential Startup

• Have a new product/

service developed

by Logiq3 & msg

Cookhouse Lab

38

Is The Insurance Industry

Willing to Openly

Co-Create? – some examples!

#Cookhouselab

1. Identified a $80MM+ opportunity in the

Canadian market and reduced processing time

from 60+ to 5 days

• APS centric Machine Learning modeling

• Underwriter focused medical information API

• New standardized guided digital APS form

2. Collaborating with InsurTech partners

3. Project MVP was a web application that

facilitates the APS process to be used by

medical clinics and underwriters.

Participating Members

Delivered: July 28, 2017

Delays in APS

40

Project # Organizations # Participants Organizations

Insurance Loyalty & Rewards 5 17 IRB RE, Foresters, Munich

Re/Temple, KPMG, Hannover Re

APS Life insurance reports and

consolidation

7 17 Hannover Re, IRB RE, KPMG,

Manulife, RGA, Cooperators,

Foresters

Blockchain Use Cases for Insurance 7 17 Munich Re, RSA, AIG, Marsh,

Cooperators, Manulife, Insurance-

Canada

Risk Exposure Data Warehouse 8 10 SAP, RSA, Cooperators, AIG,

Cowan, Munich Re, TMD

Drone Insurance 4 8 Cooperators, MunichRe,

Besurance, Jauntin

Millennials are not interested in Life

Insurance

4 10 Wawanesa, IRB RE, Manulife,

Cooperators/Cumis,

Sum 36 79

Average 6 13

Collaboration Model to Accelerate Innovation


LEARN IDEATE PROTOTYPEDEVELOPMENT &

IMPLEMENTATION

Ideation

Approach:

Designed as a catalyst that

transforms ideas into products

that radically improve

customer experience

Methodology:

• Implementation of concepts

for products, process and

organization

• Two-Speed IT and Startup

integration

• Strong partnerships with

legal, accounting,

community supporters,

incubators

Approach:

Open Collaboration of

transformative & customer-

centric innovations

Methodology:

• Crowdsourcing

• Co-creation

• Design Thinking / Lean

Startup

• Business Case and MVP

Development

Impementation

Conceptual Readiness

© msg 2016

Collaboration Model to Accelerate Innovation

Integration of Experts and

Customers with the Ideation

Platform

Development of the Business Idea

and a Minimum Viable Product

Product Development

and Implementation

Innovation LabCrowdsourcing Digital Development Lab

2-4Weeks

1-12 Weeks

3-6 Months

Questions?


Sven Roehl

EVP msg global & co-Founder Cookhouse Lab

Tel: +1 416 668 4286

[email protected]

msg global solutions Canada Inc.

60 Adelaide Street East, Suite 1200

Toronto, Ontario, M5C 3E4, Canada

www.msg-global.com

SILVER

GOLD

PLATINUM

BASIC


1

E A R N P O I N T S

A C H I E V E A S P E C I A L S TAT U S

C L A I M Y O U R

R E W A R D S

CHALLENGES

Earn points by completing challenges

tailored for insurance domain such as

healthy living challenges and safe

driving challenges.

SOCIALIZING

Earn points by sharing information

and inviting friends on social media

AACTIVITIES

Earn points for daily activities

showing good risk-behavior

C O L L E C T B A D G E S

Use the collected points to claim rewards

from partner companies.

Such as:

Free weekly movie ticket

Gift vouchers for gas stations

B

C

TIERS

L O YA LT Y & R E WA R D

C u s t o m e r J o u r n e y

2

3


C O L L E C T B A D G E S

D A S H B O A R D S

C H A L L E N G E S

C L A I M

R E W A R D S

G A M I F I C A T I O N

S H O P T E M P L A T E

E A R N

P O I N T S

M E M B E R S H I P

M A N A G E M E N T

C U S TO M E R E N G A G E M E N T F E AT U R E S

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