digital disruption genre presentation

1 | Copyright © 2016 Deloitte Development LLC. All rights reserved.

DIGITAL DISRUPTIONEmbracing Change and Harnessing the Opportunity

January 18, 2017


OBJECTIVES• Disruption is Upon Us

• Embracing Change: Disruption, Start-ups and New Services

• Digital Survey Results

• Actions Insurers May Take


”It is not the strongest of the species that survive, nor the most intelligent, but the one most responsive to change” - Darwin


“Our intuition about the future is linear. But the reality of information technology is exponential, and that makes a profound difference.” –Ray Kurzweil

“With Digital Transformation the consumer, rather than technology, is in the driver’s seat, and this matters” – Karl Moore

“Innovation distinguishes between a leader and a follower” – Steve Jobs

“We cannot solve our problems with the same thinking we used when we created them” - Albert Einstein

“Never before in history has innovation offered promise of so much to so many in such short time” – Bill Gates


DIGITAL TRANSFORMATION IS UPON USStart-ups attack the insurance value chain. New products and services expand and change the need for insurance

New ServicesDisruptors and Start-ups


NEW TECHNOLOGIES AND SERVICESThe rise of new technologies and the sharing economy will impact the need for multiple types of insurance

Technologies Sharing Economy Services


”The Year Ahead: Digital Transformation Tops CIO Agenda for 2017” – Steven Norton


DIGITAL SURVEY RESULTS

90%

90% of respondents agree that digital technologies are disrupting the industry to a great extent

46%

Only 46% agree that they are adequately preparing for digital disruption

93%

93% agree that the objective of their digital strategy is to enhance customer experience and engagement

AND YET


KEY ORGANIZATIONAL ATTRIBUTESDeloitte’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 AttributesAdaptability to Change

Work Style

Organizational Structure

Risk Appetite

Customer Experience

Legacy DNASlow, but innovating

Siloes

Hierarchical

Cautious

Customer focus

Digital DNAAgility

Collaboration

Distributed

Exploratory

Customer Centricity


CALL TO ACTIONOur 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.

Execute with Confidence

4

How will carriers respond to this wave of change?

Manage Expectations

2

How will expectations of agents and brokers change?

Learn From Outside

3

What can we learn from other industries?

Learn From the Past

1Steps

How is this similar and different from past technology waves?


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.

Customer & Agents expect Omni channel

experience

Design all tools with a Digital Lens

1

Agents are using multiple channels

at once

Data is the new currency

4

Diverse use of technology across

demographics

Use Digital and Mobile to enhance agent interaction

3

Increased channel switching

throughout lifecycle

Identify and Plan for critical channel handoffs

2


TECHNOLOGY IS NOT A SILVER BULLETEmbrace technology, but it is not a magical fix. The company culture must change as well

EMBRACE TECHNOLOGY TRENDS ADVANCE EMPLOYEE ENGAGEMENTINVEST IN HUMAN CAPITAL


LOOK OUTSIDE AND CREATE AN ECOSYSTEMEstablished players in every industry develop an ecosystem for their customers. Carriers should strive to serve more of their customers’ needs

Expand along the value chain1 Enter new

geographies42 Grow new

products and services 5 Identify new

customer segments

3 Use new distribution channels 6 Move into the

“white space”


CALL TO ACTIONOur insurance industry is not immune to the impact of Digital disruption on consumers and their expectations. Ignore this trend and miss an opportunity.

Learn From the Past Manage Expectations Learn From Outside Execute with Confidence

How will carriers respond to this wave of change?

How will expectations of agents and brokers change?

What can we learn from other industries?

How is this similar and different from past technology waves?

1 2 3 4

Steps


”It is not the largest or strongest of companies that survive, nor the most intelligent, but the ones most responsive to change”


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 www.deloitte.com/us/about 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

THANK YOU.

Arun [email protected]

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