Strategies for leaders 2015 - THE DIGITAL INSURER · THREATS Opportunities and threats in a digitized world Traditional value propositions hinder change processes of traditional company

Prof. Dr. Peter Maas

[email protected]

Vienna, October 6, 2015

Strategies for leaders 2015 –Digital Transformation across the CEE

Insurance Industry

© I.VW-HSG / Peter Maas

Digital Transformation

across the CEE

Insurance Industry

InsuranceCom

October 6, 2015

Page 2

Insurance

2015

The world in transition – Insurance industry

exposed to a multitude of risks in 2015

Economic

Risks

Environmental

Risks

Geopolitical

Risks

Societal

Risks

Technological

Risks



across the CEE

Insurance Industry

InsuranceCom

October 6, 2015

Page 3

Global Risks Landscape 2015

Source: World Economic Forum, 2015

Economic

Risks

Societal

Risks

Technological

Risks

Geopolitical

Risks

Environmental

Risks



across the CEE

Insurance Industry

InsuranceCom

October 6, 2015

Page 4

The Risks-Trends 2015 Interconnections Map


Economic

Risks

Societal

Risks

Technological

Risks

Geopolitical

Risks

Environmental

Risks



across the CEE

Insurance Industry

InsuranceCom

October 6, 2015

Page 5

In the beginning of the year, especially geopolitical

risks seemed quite likely… What about Societal

Risks?


Economic

Risks

Societal

RisksTechnological

Risks

Geopolitical

Risks

Environmental

Risks



across the CEE

Insurance Industry

InsuranceCom

October 6, 2015

Page 6

Societal Risks seem to have the biggest impact in

2015 – Correct projection?


Economic

Risks

Societal

RisksTechnological

Risks

Geopolitical

Risks

Environmental

Risks



across the CEE

Insurance Industry

InsuranceCom

October 6, 2015

Page 7

The global refugee crisis…

Hope

War

Terror

Despair



across the CEE

Insurance Industry

InsuranceCom

October 6, 2015

Page 8

… fundamentally affects several risk dimensions

Economic

Risks

Societal

Risks

Geopolitical

Risks

Environmental

Risks



across the CEE

Insurance Industry

InsuranceCom

October 6, 2015

Page 9

Europe projects mainly economic and societal risks


Economic

Risks

Societal

RisksTechnological

Risks

Geopolitical

Risks

Environmental

Risks



across the CEE

Insurance Industry

InsuranceCom

October 6, 2015

Page 10

Gefahren

Slow recovery from the economic crisis:

sustainable or short-term rebound?

Chancen

Source: Statista, 2014; SVV 2014

Insurers face increased

revenues

ECB: Investment in the Euro

zone

Overall moderate economic

recovery

High youth unemployment

rate in several European

states

War for talents

Refugee crisis and

unemployment?

Unemployment and

underemployment Rising revenues

Economic

Risks

Youth unemployment rate in

some EU member states



across the CEE

Insurance Industry

InsuranceCom

October 6, 2015

Page 11

Social stability Lifestyle changes

Search for more trust

Bundling of life style and

insurance

Demographic change

The role of insurers in a changing society: one

dimensional vs. comprehensive social function

Insurance protection for the

low income segment

Income disparities, i.e.

wage gap

Desolidarization

Source: I.VW, 2014; Zeit, 2014

Societal

Risks



across the CEE

Insurance Industry

InsuranceCom

October 6, 2015

Page 12

Virtual world: vulnerable and informative

E-services

New access points

Personalization

Security control costs

Negative image effects and

loss of customers in case

of cyber attack

Redefinition of Privacy

Cyber attacks Security systems

Technological

Risks



across the CEE

Insurance Industry

InsuranceCom

October 6, 2015

Page 13

Crises in the EU – to be or not to be?

Growth oriented politics

Relaxation of austerity measures

Stability and bank union

War in front of Europe’s doors

Budget deficits foster

differences and disagreements

Source: dpa, 2014; Eurobarometer, 2013; IMF, 2013

Conflict between

statesAnti-crisis politics

Geopolitical

Risks



across the CEE

Insurance Industry

InsuranceCom

October 6, 2015

Page 14

Harmony between nature and human

Increasing demand for

property insurance and

NatCat-Bonds

Companys ask for

environmental liability

insurance

Occur at random, severity

and likelihood cannot be

adequately estimated

General increase of natural

catastrophes

Source: DVB, 2013; Swiss Re, 2013; Global Finance, 2013

Extreme weather

eventsUnsecure

environment

Environmental

Risks



across the CEE

Insurance Industry

InsuranceCom

October 6, 2015

Page 15

The battle is for the customer interface



across the CEE

Insurance Industry

InsuranceCom

October 6, 2015

Page 16

Study: Industrializing the insurance industry in a

digital world (soon in english)How the insurance industry should digitally transform, to cope with the big

challenges of a digital world?

Publication: February 2015 (english planned in October)

Future.Talk Switzerland: May 2015

Future.Talk Germany: December 2015

Design of the study: Survey of leaders and specialist in

the insurance industry in CH, GE and AT

Participants: 387, of which 54 on C-level

Participants by country:



across the CEE

Insurance Industry

InsuranceCom

October 6, 2015

Page 17

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Preisführerschaft anstreben

Outsourcing von Wertschöpfungsprozessen

Produkte standardisieren

Strategische Partnerschaften aufbauen

Fokussierung auf Kernkompetenzen

Individualisierte Angebote entwickeln

Neue Produkte entwickeln

Rekrutierung / Bindung hervorragender Berater

Interne Wertschöpfungsprozesse standardisieren

Innovationskraft stärken

Online- und mobilen Vertrieb aufbauen

Operative Kosten senken

Persönliche Beratungsqualität erhöhen

Automatisierung von Prozessschritten

IT-Infrastruktur / Schnittstellen verbessern

Kundenbedürfnisse besser verstehen

Servicequalität auf allen Kommunikationswegen

Stärkere Beziehung zum Kunden aufbauen

absolut entscheidend << < > >> wenig relevant

Better understand needs of customer

Service quality at all interaction points

Better relationship to customer

Customer

Optimizing IT-Infrastructure

Higher level of automation

Reduce operation costs

Standardize value creation processes

Develop new products

Increase innovation power

Force online and mobile sales

Processes

Innovation

Customer orientation becomes the key strategic

success factor

Strategic Challenges of the Insurance Industry

In % of «highly relevant» to «not at all relevant» (n=387)



across the CEE

Insurance Industry

InsuranceCom

October 6, 2015

Page 18

Three strategic patterns of insurance

companies to be successful in a digital world

Strategic goals

(incl. customer value):

• Price advantages

• Speed

• Accuracy

• Simple processes

Strategic goals


• Individual service

• Customized products

• Convenience by trust

• Reduced search costs

Strategic goals


• High Emotions,

«sex appeal»

• «Latent» needs are better

fulfilled

• Higher involvement

Prozesse

Kunde

Innovation

Vertrieb

Fokussierung

Kosten

Prozesse

Kunde

Innovation

Vertrieb

Fokussierung

Kosten

Prozesse

Kunde

Innovation

Vertrieb

Fokussierung

Kosten

C-level-perspective (n=54)

Operational Excellence Customer Intimacy Product leadership

Processes

Customer Customer Customer

Sales

Innovation



across the CEE

Insurance Industry

InsuranceCom

October 6, 2015

Page 19

Source: Haller, 1999Fulfil client needs

Decrypt / interpret client needs

Customer orientation – a process

Customers

have (hidden) needs

What would my client buy, if he

could express his true needs.

Providers

offer profitable

problem solutions



across the CEE

Insurance Industry

InsuranceCom

October 6, 2015

Page 20

OPPORTUNITIES

THREATS

Opportunities and threats in a digitized world

Traditional value

propositions hinder

change processes of

traditional company

DNA

For the first time

customers outplay

the companys

concerning usage of

technological

devices

Competences and

capabilities to be

successful in a

digitized world are

missing

Customers are

informed,

demanding and

interconnected

Market transparency

leads to more

transparent

customer benefits

New media enable

easier customer

access points

Technology enables

new business

models

Digital interfaces

with the customers

and partners enable

new solutionsThe customer 3.0 is very well informed. He

has unlimited information knows the market

and is willing to buy.

The customer 3.0 is omnipresent. He is

capable and willing to use new ways of

interaction. He chooses the channel

according to the situation and his personal

preference.

The customer 3.0 wants quality, seeks for

personal service and is sensitive to fairness

and transparency.

Informed

Networking

Demanding

Multi-Offering

approach:

Which customers use

which access points in

the search-, purchase-

and post purchase

phase? I.e. How does

the customer journey

look like?



across the CEE

Insurance Industry

InsuranceCom

October 6, 2015

Page 21

The Global Insurance

Protection Gap: Thoughts

on and for CEE

Anna Maria D’Hulster / The GenevaAssociation

Management Update: CEE

Economic and Insurance

Market Outlook

Daniel Staib / Swiss ReinsuranceCompany Ltd

Strategic Growth Patterns in

CEE

Dr. Wolfgang Kindl / UNIQA International AG

Bancassurance Model

within PKO Bank Polski

Group

Slawomir Lopalewski / PKO Ubezpieczenia

Strategic Business

Transformation

Dr. Luciano Cirinà / Generali CEE Holding

Digital Distribution in the

Insurance Industry

Hugh Terry / The Digital Insurer

Digital Transformation – an evolution

Monique Shivanandan / Aviva PLC

Agenda: Tuesday, October 6, 2015

Digitalisation: How current trends will

impact the insurance industry

Peter Münzenmayer / Swiss Reinsurance Company Ltd

How Multinationals can win in CEE:

Jef Van In, AXA SA and Dr. Gabor Kepecs, AEGON NV

Strategies for leaders 2015 –

Digital Transformation across

the CEE Insurance Industry

Vienna, October 6, 2015

[email protected]

We wish you an inspiring and interactive

conference and constructive network

activities!



across the CEE

Insurance Industry

InsuranceCom

October 6, 2015

Page 23

Unemployment and underemployment are the

biggest economic risks


Economic

Risks



across the CEE

Insurance Industry

InsuranceCom

October 6, 2015

Page 24

Societal risks: Social instability in the short and water

crisis in the long run


Societal

Risks



across the CEE

Insurance Industry

InsuranceCom

October 6, 2015

Page 25

Cyber attacks are the biggest technological risk


Technological

Risks



across the CEE

Insurance Industry

InsuranceCom

October 6, 2015

Page 26

Geopolitical risks: interstate conflicts in the short and

state collapse in the long run


Geopolitical

Risks



across the CEE

Insurance Industry

InsuranceCom

October 6, 2015

Page 27

Environmental risks: extreme weather events in the

short and failure of climate-change adaption in the

long run


Environmental

Risks

Strategies for leaders 2015 - THE DIGITAL INSURER · THREATS Opportunities and threats in a digitized world Traditional value propositions hinder change processes of traditional company

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