14th Annual Gulf Insurance Forum The Use of Technology in Servicing the Insurance Companies Hany Baher SVP-Information Technology Abu Dhabi National Insurance Company (ADNIC) 18th Oct, 2017

70% Digital Economy Imagine an economy where… The Success Rate Of New Product Introductions Is Improved From Today By 70% Statistics source: Microsoft 75% of instant delivery purchases are fulfilled by Socially-linked Networks Driverless Vehicles. Decreasing Congestion By 10% In Served Cities 25% of Retail Shopping Is Conducted In Omni-channel Marketplaces

Digital Transformation is Inevitable Those who thrive in the digital economy will need to… In return, they will… Develop And Execute A Vision For Digital Transformation Return Greatest Shareholder Value Take An Ecosystem-first Approach To Delivering Products And Services Gain The Greatest Market Share Manage Information Effectively Create New Revenue Streams Create Flexible And Reliable Human Resource Model Win The Talent Wars Optimize Business Processes For Speed, Efficiency, Quality, And Agility Increase Profitability

Technology, why? Organizations leverage on Digital Technologies to create Digitally Enhanced, Customer Centric Business Models Improve Operational Efficiencies Generate New Revenue Streams Create New Customer Experiences Rapidly Respond To Changing Conditions

What's going on out there….. Artificial Intelligence Big Data & Analytics Drones and Satellites What is it for Insurers? Blockchain Omni-channel Internet of things Artificial Intelligence Telematics

Omni-channel What is it for Insurers? Omni-channel

Omni-channel Consumers’ search for insurance has become “omni-channel” they research products online… recommend them to friends… ask contacts in their circle… buy them via mobile apps… buy them through web portals… live chat about them (chat-bots)… listen to what others tweet… Interact via emails and sms… Source: IBM

Artificial Intelligence Artificial Intelligence What is it for Insurers? Artificial Intelligence

Artificial Intelligence “80% of insurance executives agree that Artificial Intelligence (AI) will significantly change the way they gain information from and interact with customers” Quote Source: Accenture Underwriting Claims Processing Marketing & Customer Acquisition Account Management Product Development Policy Renewal

Artificial Intelligence Insurance industry used be seen far behind others in financial sector… What about now?

Big Data Analytics Big Data & Analytics What is it for Insurers?

Big Data Analytics Predictive Analytics can identify suitable products for customers Trend detecting and Forecasting Cross-selling and Upselling Creating personalized user experiences.

Big Data Analytics Explore massive historical data.. Search for certain user behavior..

What's going on out there….. What is it for Insurers? Internet of things

Internet of Things (IoT) Preventive Maintenance Intelligent sensors are everywhere… Turning everything SMART Preventive Maintenance Usage Based Insurance Fleet Management Change Risk Profiles… Safer  lower premiums Change in Products / Organizational Profiles fewer underwriters & more data scientists Change in Business Models investing in technology as an investment in customers Smart Appliances Smart Healthcare Smart Houses

Internet of Things (IoT) Source: PwC’s 18th Annual Global CEO Survey

Telematics What is it for Insurers? Telematics

Telematics “pay-as-you-drive” or “pay-as-you-live” Premium based on actual usage and driving habits registers an accident triggers first notice of loss claimants could be offered the opportunity to close claims in 60 minutes or less. Telematic devices and equipment may not be connected all the time, and they are often grouped with IoT

Telematics

Blockchain What is it for Insurers? Blockchain

Blockchain A blockchain in simple terms is an entirely new business model And more importantly… it uses Digital Currency When applied correctly, it can also reduce the risks of Fraud

Blockchain Large insurers in Europe and the US are investing heavily in developing models and platforms that are built for Blockchain. It’s often used for automation of underwriting and claims handling. And to execute their financial – and yet digital – transactions. It is expected that in a matter of very few years, large corporations will heavily depend on blockchain for their day-to-day transactions.

Blockchain Used in the insurance for automation of underwriting and claims. “smart contracts” are recorded in “a” blockchain It can select the contracts that should be accepted and decide the applicable terms, including pricing. It can receive premiums and pay claims in digital currency It reduces the likelihood of fraudulent activities

Drones & Satellites Drones and Satellites What is it for Insurers?

Drones & Satellites Several Insurers are already using drones and satellites to handle certain tasks in underwriting and claims. Within homeowners lines, satellites can capture data to analyze roofs, chimneys and surrounding terrain so that insurers can determine which homeowner they want to add to underwrite In commercial insurance for instance, drones can conduct site inspections, capturing thermal imagery of facilities or hazardous work sites. Their reviews can be as specific as looking for roof cracks, old or damaged boilers, and other physical plan defects that can pose claims risks.

Artificial Intelligence Big Data & Analytics Drones and Satellites Are you ready for the change? Blockchain Omni-channel Internet of things Artificial Intelligence Telematics

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