Digital technologies are enabling and driving a massive change in consumer behaviors and expectations across every industry. Insurance is no exception: business models are rapidly changing in response, and insurers now need a different set of skills, cultures and measurements to prosper in this marketplace. To understand how insurance companies are grasping and exploiting the shift to digital, EY undertook a global industry survey during the second quarter of 2013. Participants in more than 100 companies in the Americas, Europe and Asia-Pacific told us how insurance companies are responding to the digital challenge. During this webcast, our Global Insurance Customer Leader, Graham Handy and a panel of insurance professionals discussed: - How digital is reshaping the global insurance industry landscape - How insurers should respond to the digital challenges To watch the webcast, visit: http://bit.ly/177XhZv To access the survey and additional information, please visit: http://www.ey.com/GL/en/Industries/Financial-Services/Insurance/Insurance-in-a-digital-world--The-time-is-now

1. Insurance in a digital world:
the time is now
Global insurance digital survey 2013
6 November 2013

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Insurance in a digital world: The time is now

3. Today’s moderator
Graham Handy
Ernst & Young LLP (UK)
Global insurance customer leader
Join today’s Twitter discussion:
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Webcast title
#EY_Insurance

4. Today’s agenda
►
Welcome, introductions & objectives
►
Overview of our research
►
Panel discussion: key findings
►
Q&A opportunity
Join today’s Twitter discussion:
Page 4
Webcast title
#EY_INSURANCE

5. Today’s speakers
Edward Moncreiffe
HSBC Insurance Holdings
Global Head of Strategic Partnerships
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Insurance in a digital world: The time is now
Shaun Crawford
Ernst & Young LLP (UK)
Global Insurance Leader

6. Today’s speakers
Gary Angel
Ernst & Young LLP (US)
US Enterprise Intelligence practice
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Insurance in a digital world: The time is now
Laurence Buchanan
Ernst & Young LLP (UK)
EMEIA Customer practice

7. Shifting to digital: job 1 for insurers
Digital is a catalyst for dramatic change and rapid transformation of the
competitive landscape. And insurers are not yet where they need to be.
It’s not just a distribution channel – it’s a strategic enabler.
It’s not just a technology – it’s a way of life.
Just how digital have we become?
6.8 BILLION:
# of mobile subscriptions
worldwide
7.1 BILLION:
total world population
40%:
proportion of world
population that is online
6 YEARS:
time it took Google to reach 50m users
88 DA
YS:
time it took Google+ to reach 50m users
Our survey shows us that insurers are lagging behind digital today but
have a compelling opportunity and clear course forward for tomorrow
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Insurance in a digital world: The time is now

8. Today’s agenda
►
Welcome, introductions & objectives
►
Overview of our research
►
Panel discussion: key findings
►
Q&A opportunity
Join today’s Twitter discussion:
Page 8
Insurance in a digital world: The time is now
#EY_INSURANCE

9. Opinion check – Polling question 1
Where is digital currently positioned on your
organization’s strategic agenda?
A. Absolute top priority
B. It’s up there – one of our key strategic focus areas
C. It is definitely on our agenda but other things sometimes
get in the way or have greater importance/urgency
D. Relatively low priority in short term
E. Don’t know / does not apply (advisor, analyst, other)
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Insurance in a digital world: The time is now

10. Insurance in a digital world: The time is now
Existing findings from GCIS and other
EY Thought Leadership/research
1. Current state analysis from EY desk
based research of market, in each region
2. EY industry survey (over 100
companies, both life and non life)
3. Example Case Studies (Insurance and
non-insurance)
EY point of view and recommendations
on how insurers should respond
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Global conclusions and
themes, with regional
nuances:
 Current levels of digital
capabilities
 Industry readiness to
grasp this opportunity
 Insights from other
sectors’ digital
initiatives and
experiences
 Key actions that
insurers should take –
now and in the near
term
Insurance in a digital world: The time is now

11. Today’s agenda
►
Welcome, introductions & objectives
►
Overview of our research
►
Panel discussion: key findings
►
Q&A opportunity
…with interactive polling questions as we go
Join today’s Twitter discussion:
Page 11
Insurance in a digital world: The time is now
#EY_INSURANCE

12. Time to move: possibility vs achievability?
Finding 1: Insurers acknowledge
current low levels of digital maturity and
the need to take action
79% say they “only play the digital game”
or are “still learning to use digital for
competitive advantage”
57% of
current operating models do not
facilitate digital
47% have no cohesive business case for
their digital strategy
Finding 2: Companies have high digital
ambitions – but are they grounded in
reality?
70%
10%
Nearly
spend less than
of
business and IT development budgets on digital
5%-10% plan for budget increases of
25+% in the next one to three years
66% implement digital via “business as usual”
Only
or via “test and learn” pilots, far fewer use more
innovative techniques
Only 10% have made transformational
changes to their business’ digital capabilities
Insurers risk being exposed to the loss of existing customers – and to a scarcity
of new ones. They also stand to miss out on the chance to improve the customer
experience in a relatively low cost way
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Insurance in a digital world: The time is now

13. Time to move: the digital maturity gap
Current vs target future levels of digital maturity
Digital Strategy & Leadership
1
2
3
Customer Experience
4
1
5
Digital leadership
Attract prospects
Implementation
plan
Brand loyalty
Operating model
Customer Value
Management
Support from
senior
management
3
Segmentation
Business case
2
Reduce cost to
serve
= Global
= Current State
= Europe
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= Asia Pacific
= Americas
= Target Future State
Insurance in a digital world: The time is now
4
5

14. Opinion check – Polling question 2
Do you believe your organization is investing
sufficiently in digital?
A. Yes, absolutely (strongly agree)
B. Yes, I think so (agree)
C. No, I don’t think we are (disagree)
D. No, definitely not (strongly disagree)
E. Do not know / does not apply (advisor, analyst, other)
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Insurance in a digital world: The time is now

15. Cultural and organizational obstacles
Finding 3: Insurers are holding themselves back
Top inhibitors of digital growth in the insurance market:
Key challenges in delivering digital strategies:
Global life
#1 Legacy technology constraints 80%
#2 Slow pace of delivery by insurers 64%
#3 Intermediary/agent channel strength or
resistance 40%
#4 Lack of a compelling business case 33%
Last Insufficient consumer demand 19%
Global non-life
68%
Creating a culture of rapid
innovation and development
System issues in
implementation
Gaining internal management
buy-in and investment
64%
63%
68%
63%
Internal company structure
or culture constraints
65%
52%
47%
Finding 5: Distributors are digital customers too
#1 most important agent use of digital in next 3
years: “Improving efficiency and quality of interactions
with customers”
61%
50%
For
life and
of non-life participants:
“Integrating digital with other channels” is the key challenge
Insurers who communicate a clear mutual value proposition for digital, and equip their distributors
with the digital tools to improve their own customer relationships, can help minimise channel conflict
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Insurance in a digital world: The time is now

16. The business case: growth through loyalty
Finding 4: It is all about retention through improved customer experience
Top drivers of digital strategies:
32%:
Enriching the customer
experience
20%:
Regaining more direct control of
the customer relationship
14%:
Only 46% of life companies
Attracting prospective
customers and increasing sales
9%:
Risk of complacency?
Reducing cost to serve
customers and intermediaries
believe that “customers will ultimately
leave us” if they fail to embrace digital
With rising acquisition costs, retaining existing customers is an imperative.
Insurers must look to the digital landscape to retain and grow customer value.
If they don’t, others will!
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Insurance in a digital world: The time is now

17. Opinion check – Polling question 3
Where do you think your organization is on its
digital journey?
A. We can see the opportunity but struggling to know where to start
B. Not making enough genuine progress on the ground for customers
C. We have delivered some easy “quick wins” but not made
transformational progress
D. We are making good progress but still have some way to go
E. We have made transformational changes to our digital capabilities
F. Do not know / does not apply (advisor, analyst, other)
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Insurance in a digital world: The time is now

18. Insight before action; go where the
customers are
Finding 6: Analytics are critical to digital
success
Finding 7: Insurers need to embrace the
mobile and social media wave
Capabilities most in need in order to deliver
stated digital strategy:
Disparity between online and mobile
functionality:
Online
Analytics
75%
Technology
72%
Mobile
Provide information about
company/ products
92%
47%
58%
Marketing/promotion
Financial management
Relationship management
74%
21%
20%
Other
17%
Provide quote
Without the appropriate analytics skills
and tools in place, the digital business
case may never be realized
43%
66%
Transact/purchase
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40%
72%
17%
Distribution
Provide customer selfservice functionality
35%
With mobile and tablet use growing
exponentially, neglecting mobile & social
media is turning one’s back on the future
Insurance in a digital world: The time is now

19. Today’s agenda
►
Welcome, introductions & objectives
►
Overview of our research
►
Panel discussion: key findings
►
Q&A opportunity
Join today’s Twitter discussion:
Page 19
Insurance in a digital world: The time is now
#EY_INSURANCE

20. Questions from the audience
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Insurance in a digital world: The time is now

21. Contact us
Global & EMEIA
Graham Handy
+ 44 (0)20 7951 8173
g.handy@uk.ey.com
Ernst & Young LLP (UK)
America
Kaenan Hertz
+ 1 212 773 5988
kaenan.hertz@ey.com
Ernst & Young LLP (US)
Asia
May Knight
+ 852 28499518
may.knight@hk.ey.com
Ernst & Young Advisory Services Ltd
Australia
Walter Poetscher
+ 61 2 9248 5145
walter.poetscher@au.ey.com
Ernst & Young
Follow us on Twitter:
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@EY_Webcasts
Insurance in a digital world: The time is now

22. Resources
►
Voice of the Customer: Time for
insurers to rethink their relationships
(Global Insurance Consumer Survey 2012)
►
The journey towards greater
customer centricity
►
Connect with us
►
ey.com/insurance
►
ey.com/GL/en/Industries/Financial-Services/Insurance/insurancein-a-digital-world--The-time-is-now
►
ey.com/GL/en/Industries/Financial-Services/Insurance/GlobalConsumer-Insurance-Survey-2012
►
#EY_INSURANCE
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Insurance in a digital world: The time is now

23. Thanks for participating.
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Insurance in a digital world: The time is now

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Insurance in a digital world: The time is now

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Insurance in a digital world: The time is now

26. Today’s webcast is about to begin
►
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►
Launching our new global digital survey
Insurance in a digital world: The time is now
Wednesday, 06 November 2013
10:00-11:00 a.m. EST
Join today’s Twitter discussion:
Follow us on Twitter:
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Webcast title
#EY_INSURANCE
@EY_Webcasts

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Insurance in a digital world: The time is now

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Insurance in a digital world: The time is now

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