powerpoint presentation...some of amazon’s foreign competitors, including flipkart and paytm, have...
TRANSCRIPT
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Earthquake - take up rates of 3% in Quebec and 60% in BC.
Flood – overland flood coverage still not understood, 69% of Quebec and Manitoba public incorrectly assumed covered.
• What do insurers need to do?• What does the government need to do?• What is the role of other private stakeholders (banks)?
Known but under-insured risks
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Have we effectively met the evolving needs of a changing economy?
• Emergence of the gig and sharing economies, growing number of insureds working remotely, while using their personal property for commercial purposes.
• Historically the most important assets were tangible bricks and mortar assets; however by 2015 this had reversed with intangibles making up 84% of a company’s book value.
Emerging risks with limited solutions
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Uber vs Taxis
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Total Rides
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• The All-In-One form of insurance is steadily turning itself in an emerging trend. Consumers have one relationship with their insurer and let them cover “everything” at once (cars, home, health, travel, pets, and possessions).1
• Are we interacting and listening to our customers? 44% of customers have had no interactions with their insurers during the prior 18 months 77% of customers are willing to provide data about their usage but 55% of customers don’t trust their insurance company to collect and use “alternative data”. Only 22% affirmatively trust their insurer.2
• Skill shortages holds back innovation and growth. 50% of 140 Insurance Company CEOs said this prevented their organizations from being able to innovative effectively.3
Identifying and innovating solutions for clients
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1(EY Global, 2019).2(J.D. Power)3(PwC’s 22nd Annual CEO Survey).
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Key Factors Effecting Insurers
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The Insurance Industry is at Risk
Source: Lyman Insurers9
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Amazon and Walmart have become more active in the insurance world. Amazon is reportedly preparing to enter the Indian market as a corporate agent for health, life and general insurance products this year.
Some of Amazon’s foreign competitors, including Flipkart and Paytm, have already begun selling life and health products with the support of big non-insurance retailer like Walmart and Alibaba.
Original equipment manufacturers (OEM) in the auto industry are also venturing into the space. Almost every OEM has started their own insurance arm now. Ford and GM, for example, are offering insurance for their driverless cars. Tesla’s “InsureMyTesla” program acts as an agency helping to procure discounted rates for customers on policies underwritten by traditional insurance partners.
Non-traditional players will enter the market in force
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….It was not until after 1666, as a result of the Great Fire of London, that insurance for households, aptly named “ Fire Insurance, ” emerged. To protect the houses and other buildings it was insuring, insurers formed actual firefighting teams. It issued badges known as fire marks for its insured properties; its fire-fighting teams extinguished fires exclusively in buildings bearing their fire marks. Obviously this concept of each insurance company having its own fire department proved to be disastrous. Eventually a deal was worked out, and all the insurance companies agreed to donate their equipment to the city to create municipal fire departments.
What Lesson can we take from the Great Fire of London going into 2020?
Source: SAS
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