© 2011 OLIVER WYMAN FINANCIAL SERVICES 26 January 2012 PLACING STRATEGIC BETS What might the future hold for the insurance CIO?

© 2011 OLIVER WYMAN

FINANCIAL SERVICES

26 January 2012

PLACING STRATEGIC BETSWhat might the future hold for the insurance CIO?

2© 2012 OLIVER WYMAN 19 April 2023

Our panellists

Bill Ball AVP-Inforce Operations and Financial Control, John Hancock Life Insurance

Dan Greteman, Senior Vice President and CIO, Nationwide Insurance

Tsukasa Makino, Manager, IT Planning Dept and Corporate Planning Dept.,Tokio Marine & Nichido Fire Insurance Co., Ltd.

Craig Weber, CEO, Celent

Moderator - Catherine Stagg-Macey


Section 1

THE INTERNET OF THINGSHOW WILL THIS IMPACT THE INSURANCE MARKET?


The number of things connected to the Internet is greater than the Earth’s populationThat’s not just phones and tablets…

20032010

2015

2020

Connected things

People

Source: Cisco, 2011


20 houses today generate more traffic than the entire Internet did in 2008“Every year people share twice as much online.” Zuck’s Law

2012 2008

Source: Cisco, 2011

6© 2012 OLIVER WYMAN 19 April 202319 April 2023

If data is increasing so rapidly in volume and velocity…

…how prepared are you to manage your business real-time and on a micro level?

…what would it mean if a competitor got more data, quicker than you?

…what could this mean for customers, agents and the propositions on offer?

…what should IT be doing now to help the insurance business to evolve?


Section 2

FUTURE PARTNERS AND SOURCING STRATEGIES


Your partners share the same vision

Note: Word Cloud created using data for the 2011 PAS RFI responses in 2011 from both GI and Life..


If your partner is unable to offer you anything unique today…

…is the choice of core solution now just a commodity purchase?

…if so, where will you invest to differentiate your propositions?

…what’s more important in the long-term: the solution or the partner?

…if the partner, is that partner working with you today?


Section 3

THE FUTURE OF THE CIO

11© 2012 OLIVER WYMAN

The Future of the CIO

Operational Strategic Disruptive

IT Environment Description

• In-house data center and network

• Maintenance activities > 60%

• Limited contracted application maintenance

• Legacy modernization underway or complete

• Outsourced network, operations, app development

• Expanding channel options

• Application of technologies that change business models

Skills • Operations management

• Build and manage IT organization

• Technical IT expertise

• Contract management

• Peer relationship management

• Vendor relationship management

• Change management

• Integrate business and IT strategy

• Manage large scale transformation

• Negotiation

• Coaching

• Communication

• Develop business and IT strategy

• Partner risk sharing management

Behaviors • Steady hand

• Detail – oriented

• Values extensive planning

• Adaptability

• Collaboration

• Politically astute

• Influence without authority

• Externally focused

• Take and manage professional risks

Personality • Technician

• Production Manager

• Change agent

• Air Traffic Controller

• Visionary

• Entrepreneur


CIO role questions…

…do CIOs have a role in developing business strategy?

…how can partners assist CIOs with meeting the disruptive needs of the insurance organization?

…how balance operational and leadership skills and behaviors appropriately?

…how are CIOs building tomorrow’s skills in your successor(s)?


Documents

© 2011 OLIVER WYMAN FINANCIAL SERVICES 26 January 2012 PLACING STRATEGIC BETS What might the future hold for the insurance CIO?