1. Workshop B Technology: Get on Board or Get Out of the Way

2. Seven
Fundamentals
Lets step thru them….

3. Digital
Insurer
And last – digital is our reality. it is the new norm. It’s all around us, inside and outside the industry, advancing and accelerating – and there’s no turning back. It’s a way of life. Digital transformation HAS to be an element in every project, every initiative, and central to your business strategies.

4. Three Phases of the Digital Maturity Model
Source: Strategy Meets Action 2018

5. Customer Experience
The second is that the agent will remain vital, and they will continue to play critical roles – they’re not going away. But let’s be clear: the policyholder IS our customer. This is still a very difficult conversation for many insurers. But it’s not one or the other. It’s both. In a digital, connected world, with changing customer expectations, we HAVE to be connected to the policyholder – and We HAVE to leverage the capabilities and relationships of your agents.

6. How Are Customer Interactions Changing?
Source: Strategy Meets Action 2018

7. Core Capabilities will Remain Foundational
Core
Transformation
Core capabilities are great examples of the strengths of our traditions. Let’s face it - in the next three to five years, underwriting is not going away, and we’re still going to be settling claims – all supported by our core systems. The What of insurance is not changing. It’s the How. We need future-focused core business processes and systems that will allow us to layer some of those new strengths from the video – InsurTech, emerging technologies, and new data sources.

8. Fundamental Shift That Impacts Insurers’ Application Architecture
Interactions becoming more data-driven
Core turning to microservices
Data moving beyond BI to machine learning, predictive analytics, and AI – all interacting with transactions
Sensor data and device data
Internal/External integrations – API driven
Cloud based – capitalizing on computing capacity of cloud environments
Source: Strategy Meets Action 2018

9. Advanced Analytics and AI is part of our DNA
Advanced Analytics and AI is part of our DNA. We used to say that data was our DNA and a critical asset. Today, the fundamental has shifted from data to advanced analytics with not only our structured and unstructured data but from new sources from the digital connected worked and Big Data and advancing our analytic capabilities beyond discover and predict to prescribe with Artificial Intelligence – cognitive, machine learning, natural language etc Those insures that excel in these two key areas will be the future market leaders.
Data and Analytics

10. SMA Advanced Analytics Spectrum
Structured Data
Unstructured Data
Source: Strategy Meets Action 2018

11. Emerging Technologies

12. Mapping Emerging Tech Activity Levels and Potential Impact
Percent of Insurers Citing
Emerging technologies are those that are in the early stages of implementation by insurers, are rapidly advancing, and are posed to have a significant impact on the industry in the near term and beyond.
Technologies such as mobile, cloud, social media, big data/analytics, and telematics were the prior wave of emerging technologies, but are now considered to be maturing.
Source: Strategy Meets Action 2018

13. The first is that INNOVATION is MANDATORY
The first is that INNOVATION is MANDATORY. With the magnitude of change that is upon us, we absolutely have to rethink, retool, and reimagine the business of insurance. Innovation is not optional. It’s a requirement.
InsurTech

14. SMA Is Tracking Over 1,200 InsurTechs Over $18B invested in 400 Start-ups
Insurtech refers to innovative start-up companies enabled by both emerging technologies, digital mindset and new thinking designed to disrupt & change the current insurance industry model – from customer experience, channels, products/services, and business models, to even business operations and technologies...
Insurtech is a combination of two words “insurance” and “technology” that followed the term Fintech.
Many insurers consider all “Recent” tech-based startups or new entries sparking innovation in insurance
Source: Strategy Meets Action 2018

15. what is next …..
Innovation

16. SMA’s 10 Lessons Learned Best Practices
Innovation is the continual rethinking, reinventing, reimaging, and/or retooling of roles, products, services, business models and/or processes for the purpose of transforming customer, agent/broker and employee experiences and achieving game-changing results.
Game changing results may be revolutionary like the iphone or evolutionary like wheels on a suitcase.
Innovation comes from the desire and a commitment to constantly improve, to think differently, and to envision and enact change.
Source: Strategy Meets Action 2018

17. SMA Copyright
The material and observations contained in this presentation have been developed from sources believed to be reliable. SMA shall have no liability for omissions or errors and no obligation to revise or update any data or conclusions should new information become available or future events occur.
© 2018 Strategy Meets Action, Inc. USA. All rights reserved.