Responding to the next challenges and opportunities in Life

Assurance

Rutendo Magorimbo

August 2018

SOMETIMES THE WORLD NEEDS A CRISIS:

HISTORY OF LIFE INSURANCE

450 A.D.

Roman Burial Clubs

1600s

Edward Lloyd’s Coffee House

mid 1800s

Moral Duty for Husbands

to Provide for Families

After Death

1912

The Titanic & WWI

2000s

Falling life sales

Source: insuranceblogbychris.com

INSURANCE PENETRATION: CHALLENGE OR OPPORTUNITY?

Source: GPW as % of GDP, Swiss Re

5%

7% 8% 9% 9%

10%

12%

0%

3%

6%

9%

12%

15%

INSURANCE PENETRATION: CHALLENGE OR OPPORTUNITY?

Source: GPW as % of GDP, Willis Towers Watson

1% 1%

3% 3% 5%

15%

0%

3%

6%

9%

12%

15%

18%

CH

ALL

EN

GES

01 Erosion of

Trust

02 Low disposable

income

03 General

misperception

04 Low financial

literacy and

customer education

MAKING THE CULTURAL SHIFT

Innovation Disruption

Doing the same thing a

bit better

Making things that make the old

things obsolete

Doing new things

CH

ALL

EN

GES

Source: www.purereinvention.com

CH

ALL

EN

GES

Source: www.innovativedisruption.com

MOVING FROM CHALLENGE

TO OPPORTUNITY

NEW CUSTOMER EXPERIENCES

NEW TECH

DEVELOPMENT

NEW

EXPECTATIONS BEHAVIOUARL

CHANGE

SOCIAL

CHANGE MARKET

CHANGES

NEW NEEDS TECH

ADVANCEMENTS

OP

PO

RTU

NITIE

S

NEW

EXPERIENCES

SURVEY OF CUSTOMER EXPECTATIONS

68%

81%

76%

OP

PO

RTU

NITIE

S

Understand my individual needs

Harmonize my experience

Improve response time

Source: IBM Report, Institute for Business Value

EVOLVING BUSINESS MODEL OP

PO

RTU

NITIE

S

Organize it for me

I’ll organize it myself

with a little help

I’ll organie it myself

Source: PwC

I’LL ORGANIZE IT MYSELF: RISE OF PEER – PEER INSURANCE OP

PO

RTU

NITIE

S

Leverages Artificial Intelligence

Lemonade Example

Source: www.lemonade.com

10X

the innovators

1/10th

the cost

100X

the power

DIGITAL DISRUPTION OP

PO

RTU

NITIE

S

Source: Forrester Research Inc

INVESTMENT IN INSURTECHS OP

PO

RTU

NITIE

S

0%

10%

20%

30%

40%

50%

1-10 11-50 51-100 101-200 201-250 251+

Pe

rce

nta

ge

of

co

mp

an

ies

Number of employees

44% 4% 1% 8% 33% 10%

Source: Venture Scanner

INVESTMENT IN INSURTECHS OP

PO

RTU

NITIE

S

0

50

100

150

200

250

-

500

1,000

1,500

2,000

2,500

2014 2015 2016 2017

USD

Number of deals

Source: Fintech Global

ACTIVE GROWTH OF GLOBAL DATA OP

PO

RTU

NITIE

S 2011 2015 2020

1.2

ZB

7.9

ZB

44

ZB

1 Zettabyte = 1 Trillion GB

Source: CSC, IDC

INFORMATION ADVANTAGE THROUGH BIG DATA OP

PO

RTU

NITIE

S

ECG

Hearing

EEG

Vision

Blood

pressure

Toxins

Implants

DNA

Implants

Glucose

Positioning Telephone

Cellphone

Wireless

Immediate

emergency attention

File for future reference

Doctor’s consideration

NETW

OR

K

Source: PwC

THE NEXT WAVE: ARTIFICIAL INTELLIGENCE OP

PO

RTU

NITIE

S

Source: Deloitte Digital

THE NEXT WAVE: AI CAN DOUBLE GROWTH RATES OP

PO

RTU

NITIE

S

3.2

2.6 2.1

2.5

1.7 1.6 1.4 0.8

5.4

4.6 4.1 3.9

3.6 3.2 3

2.7

Baseline AI Steady State

Source: Accenture. A comparison of baseline annual growth value added growth in 2035 where Ai has been absorbed

THE NEXT WAVE: BLOCKCHAIN OP

PO

RTU

NITIE

S

THE NEXT WAVE: BLOCK CHAIN OP

PO

RTU

NITIE

S

NEX

T C

HA

LLEN

GES

04 Evolving

regulatory

landscape

03 Technological

capacity

01 Designing right

mix of distribution

02 Attracting &

retaining talent

Are you

CHANGE?

REIMAGINE THE FUTURE

81% of CEOs believe

they are actively

disrupting

48% plan to increase

investment in

innovation over

next 3 years

yet

only

Source: KPMG

Product Sales &

Marketing Distribution Underwriting Claims

Customer Service

Market & Business

environment

Customer Leverage existing

data and analytics

to generate risk insights

Utilize new approaches to

underwrite risk and predict loss

Enable business with sophisticated operational

capabilities

Meet changing customer needs with

new offerings

Enhance interactions

and build trusted relationships

Augment existing capabilities and

reach with strategic relationships

Business Opportunities Internal view Source: PWC

Business Opportunities: External view

REIMAGINE THE FUTURE

“In business what’s

dangerous is not to evolve,

what we need to do is

always look into the future”

Thank YOU