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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
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