April 28, 2017

The board’s contribution to the digital journey

Mike RisleyVice President & General Manager

DXC Global Insurance

April 28, 2017 2© DXC 2017

The Economist Intelligence Unit

surveyed some 500 global executives from multiple industries

Exploring the link between digital transformation and business success

Determining how they plan to adopt digital technologies over the next 3 years

1

Of the 500, a group of digital

leaders were identified. Digital companies are more often:

Globally integrated; More effective at information sharing; More likely to view IT as crucial to meeting their companies’ strategic goals

2

This is the seventh in a series of annual, IT-focused surveys that DXC has conducted

This year we broadened the survey to include non-IT executives

This was the first time we engaged with the Economist Intelligence Unit

3

April 28, 2017 3© DXC 2017

April 28, 2017 4© DXC 2017

April 28, 2017 5© DXC 2017

Insurance executives are focused on becoming even more digital. Over the next three years,

insurance executives say they expect to be entirely digital in greater numbers than other

respondents.

Constrains to the digital journey

1

2

Insurers see budget constraints as the largest barrier to meeting their IT goals (41%).

The second most cited barrier is a lack of vision at the corporate level

about how IT can contribute to meeting strategic goals

Nearly twice the share of insurance respondents say this as those in other industries (24% v 13%).

DXC Proprietary and Confidential April 28, 2017

Global Insurance TrendsOur experience

April 28, 2017 7© DXC 2017

What does digital mean for your business?

Can our clients find us?

Do we need a new business model?

What truly differentiates us?

Are we utilizing all available information to assess risk?

Are we easy to do business with?

April 28, 2017 8© DXC 2017

Value Traditionally Created Inside the Firm

Community Content

SocialMedia

Mobile/Location

Big Data

Co-creation

Crowd-sourcing

Collaborative Commerce

Design ProductionSales and Marketing Support

Recognize that innovation is moving outside the firm

EdgeDevices

OpenInnovation

CloudComputing

Sensors Peer-to-Peer

April 28, 2017 9© DXC 2017

Insurance in an outside-in world

Sold by Agents

Carrier

Product-Centricity

Paper Based

Data Capture

Indemnification

Transaction

Bought by Customers

Ecosystem

Customer Experience

Digital/Real Time

Data Analytics

Continuous Value

Relationship

Inside-Out

Outside-In

April 28, 2017 10© DXC 2017

What does the digital disruption mean for theboard member?

Fixed IT

Market Intelligence

InternalKnow-how

IP

The classic firm

increasingly constrained

Challenges to transformation

Talent toexecute

Acceleratingtime pressures

Business modelchanges

Capital to transform to Next Gen

Value today comes from outside-in

Open

information

Real-time

analytics

Ecosystems

SaaSScalable

Public Cloud

Open

Source

April 28, 2017 11© DXC 2017

Growth of New Entrants

Data Revolution

Social and Economic Dynamics

The Digital Mandate

Insurance marketplace is changing

April 28, 2017 12© DXC 2017

Insurers are addressing the dual agenda

Build the New

Tackle the Legacy

Grow Digitally

Transform ITIncrease Efficiency & Speed to Market

April 28, 2017 13© DXC 2017 Source: Forrester Digital Disruption Hits Financial Services

“Do you think your

business will be

disrupted by digital

technologies in the

next 12 months?”

Insurance is at the forefront of digital

• The imminent impact of digital technologies are expected

to be felt in insurance as much as any other industry.

• 86% of insurance CIOs expect that their business

will be disrupted by digital technologies

within the next 12 months.

• In reality - this means now and infers

that this is happening already.

April 28, 2017 14© DXC 2017

Attractive value propositions:

• Simpler products and services that meet specific client segments’ needs

• Competitive pricing on utility basis

• Differentiation through digital engagement

Frictionless processes:

• Self-service 24x7

• Front-to-back digitalized processes

• Paperless

• Authentic, efficient and friendly omni-channel experience

Strategic Approach

A strategic approach is needed

Tactical ApproachDigital

Insurance Organization

Remote collaboration

and engagement

Distribution transformation & channel strategy

Customer experience excellence

Product and service

innovation, partner

ecosystemVirtual servicing,

automated provisioning

Advanced risk and decision-making tools

apps

onlinecall

centers

web

mobile

sms

api

April 28, 2017 15© DXC 2017

The impact of tighter regulations

Scrutiny of existing practicesDisclosure of financials

DOL Fiduciary Standard

Federal Insurance Office (FIO)

Dodd Frank

Risk management and Own Risk and Solvency Assessment (ORSA)

Systematically Important Financial Institution (SIFI)

Solvency II

International Reporting Standards (IFRS)

NAIC Solvency Modernization Initiative (SMI)

International Capital Standard (ICS)

April 28, 2017 16© DXC 2017

POST-TRANSFORMATIONTODAY

The imperative for transformation

FROM INCREMENTAL CHANGEIncremental cost reductions are not sustainable

APPLICATIONS

& INFRASTRUCTURE

<10% IMPROVEMENT 30%+ IMPROVEMENT

Run the

Business

60%+ of insurance IT

spend relates to supporting

existing technology and

infrastructure

Available to Focus on Modernization Projects

Run the

BusinessChange

the

Business

Change

the Business

TO STEP CHANGE

April 28, 2017 17© DXC 2017

Reducing costs: Been there, done that?

Source: PwC

April 28, 2017 18© DXC 2017

New digital world will change the focus of the entire business

Distribution

Operations

ApplicationsInfrastructure

Products & markets

April 28, 2017 19© DXC 2017

Insurance investment

April 28, 2017 20© DXC 2017

Diversification &

ease of doing business

Distribution

Digital Experience Direct/Alternate Distribution Customer Analytics

April 28, 2017 21© DXC 2017

• 60% of modernization projects are focused on “front-

office”

• Industry-wide, 8% of all premiums spent on commissions

– over $50B in Life and Annuity

• Value proposition of traditional agents is at risk

− Potential “Robo-advisors” coming with advancing cognitive

capabilities

− Refocus of traditional distribution on retirement/wealth

management

Distribution changes

1

2

3

4

Direct

Aggregators

Affinity

Risk pooling

Potentially replaced by

new distribution models

April 28, 2017 22© DXC 2017

1

2

3

4

Seamless customer experience across

distribution & engagement channels

Guided buying journeys tailored to

persona and lifecycle stage

Insight and understanding driven by

internal and externally available data

Right message, right channel, right time

Bank

Partner

Direct

Advisor

CSR

Agent

Policy Holder

CustomerJourney

3600

Understanding

Smart Engagement

Renew

Consider

Purchase

Enhance

Claim

Refer

Integrated

Predictive

Real-Time

Structured and Unstructured

Behavioral

Actionable

Relevant

Contextual

Compliant

Personalized

Proactive

Digital customer experience for insurance

April 28, 2017 23© DXC 2017

Business process

transformation

Operations

Refocus innovation on

consumer processesRobots & business processes BPO/BPS

Configurable Products

Standard Environment

Full Integration

Full Service

April 28, 2017 24© DXC 2017

BPO: Opportunities for cost efficiency

Source: PwC

April 28, 2017 25© DXC 2017

Focus areas for Artificial Intelligence

Source: PwC

April 28, 2017 26© DXC 2017

Rationalize, integrate and

extend portfolios

Retain and develop

skills & talent

Squeeze more value from

Apps Outsourcing

Rationalize, modernize,

integrate

Applications

April 28, 2017 27© DXC 2017

New levels of

transformation

Infrastructure

Enterprise move to

cloud

Create next-gen

workplace/BYOTGlobalize, secure, and

Virtualize

April 28, 2017 28© DXC 2017

Path forward

Build the New

Tackle the Legacy

Grow Digitally

Transform ITIncrease Efficiency & Speed to Market

© DXC 2017

Thank you.

About DXC TechnologyDXC Technology (DXC: NYSE) is the world’s leading independent, end-to-end IT services company, helping clients harness the power of innovation to thrive on

change. Created by the merger of CSC and the Enterprise Services business of Hewlett Packard Enterprise, DXC Technology serves nearly 6,000 private and

public sector clients across 70 countries. The company’s technology independence, global talent and extensive partner network combine to deliver powerful

next-generation IT services and solutions. DXC Technology is recognized among the best corporate citizens globally. For more information, visit www.dxc.com.

April 28, 2017

Appendix

April 28, 2017 31© DXC 2017

Thrive on change

CSC and HPE Enterprise

Services brought innovation

to clients for 60+ years

Together, we serve nearly

6,000 private and public

sector enterprises across

70 countries

Our clients benefit from our

technology independence,

global talent, expertise and

extensive partner network

We are uniquely positioned to

lead digital transformations,

creating greater value for our

people, clients and partners

DXC Technology is the world’s leading independent, end-to-end IT

services company. We guide clients on their digital transformation

journeys, multiply their capabilities, and help them harness the

power of innovation to thrive on change.

April 28, 2017 32© DXC 2017

DXC Technology at a glance

$25B GLOBAL IT

SERVICES LEADER

250+ PARTNER NETWORK WITH

BEST-OF-BREED PARTNERS

60+ YEARS OF INNOVATION EMPLOYEES

WORLDWIDE

170,000+ 91DATA CENTERS

COUNTRIES

70+CERTIFIED PROJECT

MANAGERS

3,600+37STRATEGIC

DELIVERY CENTERS

~6,000CLIENTS

200+ Fortune 500 companies14 STRATEGIC PARTNERS

April 28, 2017 33© DXC 2017

Digital disruption is the next big cycle for IT services

Technology access

Requiring

Excellence On

Multiple Dimensions Agility & cost efficiencyScale & skills Customer intimacy

Paradigm Shift

For IT ServicesDigitization of

workflow at scaleImpact on all

sectorsOutside-in innovation Digital platforms Consulting fatigue

Beyond

Just IT Product, service, business model

Enterprise transformation

Customer experience

CEO top of mind