Von der Motivation zur Umsetzung – ONE Erfahrungsbericht ...€¦ · Giveback Bonus system to reward e.g. claims behavior SLA driven 24/7 immediate availability Claims handling

Das Bildelement mit der Beziehungs-ID rId4 wurde in der Datei nicht gefunden.

ONELowell Insurance Day Köln, 22.11.2018Stephan Ommerborn

Von der Motivation zur Umsetzung –Erfahrungsbericht eines InsurTechs

Introduction

Motivation

Why greenfield ?

Definition Digital

ONE – Fix the basics

ONE – Vision

Operating Model

Sense of urgency: It’s big, fast growing and changes consumers habitsWe are living in a digital world that is here to stay

1.5BNACTIVEUSERSFacebookbiggest«country»intheworld ahead of China(1.3)and India (1.2)

4.2TNING-20ONLYInterneteconomy by 2016.Were it anationaleconomy itwould rankinthe world’s topfive ahead of Germany

90%IN2YEARS90%of the globaldata availabletoday have been created inthelast2years alone

97%Sayanonlineexperienceinfluenced their purchasedecision

57%Talkmore onlinethanthey doinreallife

10.4Averagenumber of sourcesconsulted pre-purchase

Source: Credit Suisse

Customer expectations are changing fast

Shopping Education Travel Food

Entertainment Information Communication Dating

Other industries have been using technology advancements to shift and shape consumer needs & services towards a truly digital experience

Newspaper advertising revenues

Source: Newspaper Association of America (adjusted for inflation) Digital specialists as newcomers have taken over from market leaders

with traditional competencies and have developed productivity from “1 release per day / per week” to 24/7 real-time availability

- Real estate- Labour market- Used cars- Social contacts- Related Commercials

Motivation

Why greenfield ?

Definition Digital

ONE – Fix the basics

ONE – Vision

Operating Model

Matured Markets, Loyalty, Customer Value, Bundling

Lowest Investment Returns ever

High Legacy Burdens & Costs

Traditional insurers under serious pressure to fulfill customer needs

Window of opportunity for players thatü are digital expertsü are customer focusedü have customer accessü are agile and efficientü prioritize future orientated approaches

Customer centricity, Innovation, Digitalization

Traditional insurance company New player

Classic insurers are not able to overcome a setof crucial issues rapidly, but a greenfield approach is !

profitability

ONE licence scope

BrokerageMGA

(ManagedGeneralAgency)

WhiteLabelling ReinsuranceFrontingVehicle Own Carrier

ExplanationBrokersitsindependentlybetweenclientandrisk

provider.

Oneorseveralprimaryinsurersaredelegatingcorefunctionssuchas

marketing&underwritingtoMGA.

Sellingandadministrationof3rdpartyproducts,

whicharelabelledundertheownbrand.

Reinsurancedeliverstheprotectioncomponents.

CurrentlyonlyLifeavailable.

Insuranceentity,whichisfullyapprovedandsupervisedbytheregulator.Ownriskbalancesheet.

Examples wefox,Clark MarineInsurers,Domcura,Apella BMWwithAllianz elipselife

ergodirekt.de,allianz1.it,Oscar,

Lemonade

Agility&Flexibility low limited Highupfronteffort,slow Highupfronteffort,newmodel unlimited

End2end-Approach critical limited tobemanaged tobemanaged seamless

ImplementationRisks low medium low medium Strongriskframeworkrequired

SourceofIncome Commissions Commissions&riskkickback

Commissions&kickbacks

Costresults,capitalresults,riskkickbacks

Riskresult,costresults,capitalresults

Reinsurance&SolvencyNeeds none none tobeconsidered none full /high

Motivation

Why greenfield ?

Definition Digital

ONE – Fix the basics

ONE – Vision

Operating Model

Digital - A jungle of challenges & opportunities …

… has to be prioritized via the “Levels of Digitalization”

time

technology

Digital Interaction

Digital Analytics

Digital Action

• www / online• Portals• Mobility• Automation II

«Industrialization»

• Big Data II*• Predictive

Analytics• Digital products

i.e. wearables

• Big Data III*• Cognitive

Computing• Automation III

«Smart Machines, Robotics»

Digital Efficiency

• Data IT storage• Process support• Automation I

«analog to digital»

1960s 1995+

Basic sources: CSS, Synpulse * Big Data I – Insurers work with Big Dataas core competence since day 1

… has to be prioritized via the “Levels of Digitalization”

time

technology

Digital Interaction

Digital Analytics

Digital Action

• www / online• Portals• Mobility• Automation II

«Industrialization»

• Big Data II*• Predictive

Analytics• Digital products

i.e. wearables

• Big Data III*• Cognitive

Computing• Automation III

«Smart Machines, Robotics»

Digital Efficiency

• Data IT storage• Process support• Automation I

«analog to digital»

1960s 1995+

Basic sources: CSS, Synpulse * Big Data I – Insurers work with Big Dataas core competence since day 1

„Fix the Basics“

… has to be prioritized via the “Levels of Digitalization”

time

technology

Digital Interaction

Digital Analytics

Digital Action

• www / online• Portals• Mobility• Automation II

«Industrialization»

• Big Data II*• Predictive

Analytics• Digital products

i.e. wearables

• Big Data III*• Cognitive

Computing• Automation III

«Smart Machines, Robotics»

Digital Efficiency

• Data IT storage• Process support• Automation I

«analog to digital»

1960s 1995+

Basic sources: CSS, Synpulse * Big Data I – Insurers work with Big Dataas core competence since day 1

„Fix the Basics“ „Mission & Vision“

Motivation

Why greenfield ?

Definition Digital

ONE – Fix the basics

ONE – Vision

Operating Model

Onboarding Market Comparision

Aggregators

ONE – Client Target Groups Germany

C2Adaptiv-pragmatischesMilieu(ca.6,76Mio.)

DiemodernejungeMittemitausgeprägtemLebenspragmatismusundNützlichkeitsdenken

Zielstrebigundkompromissbereit,hedonistischundkonventionell,flexibelundsicherheitsorientiert;starkesBedürfnisnachVerankerungundZugehörigkeit

C1MilieuderPerformer(ca.5,54Mio.)

Diemulti-optionale,effizienz-orientierteLeistungselite

GlobalökonomischesDenken;SelbstbildalsKonsum-undStil-Avantgarde;hoheTechnikundIT-Affinität;Etablierungstendenz,ErosiondesvisionärenElans

C12ExpeditivesMilieu(ca.5,55Mio.)

DieambitioniertekreativeAvantgarde

DieambitioniertekreativeAvantgarde:mentalundgeografischmobil,onlineundofflinevernetztundaufderSuchenachneuenGrenzenundneuenLösungen

Overwhelming issue: PULL versus PUSH … life”cycle” events ... ... eco-systems ... ... api-economy

ONE product features – insurance made user convenient

IndividualHighly customizable transparent products

Fully digital100% online,

purely real-time

Chatbot & Document CenterState-of the art comms,

no paperwork, readiness for robotics

GivebackBonus system to reward e.g. claims behavior

SLA driven24/7 immediate

availability

Claims handlingImmediate payments

Firstly fix the basics !

ONE - Technical Building Blocks

Premiumbreakdown

Household

Liability

1. Basic data input▪ m² + postal code (geo analysis, 5 classes)▪ Single/couple and children/family member

(insured person)▪ Bundle or single coverage

Terms &Conditions

(T&C)

Customerinput

„Other“parameter

2. Customization household coverage▪ 3 packages: Compact – Comfort – Comfort+▪ Optional coverage (slider)

- Bike / e-Bike- Jewelery and valuables- Increased insured sum

3. Customization liability coverage ▪ 3 packages: Compact – Comfort – Comfort+▪ Insured sum: 10 – 25 – 50 m €▪ (Later) Upselling options:

- Dog- Horse- Professional liability- Real estate property- Renting- Legal protection

4. Deductible, Payment, “Vorversicherung”▪ Deductible: 1,000 €, 500 €, 250 €, 0 €▪ Payment frequency monthly▪ Payment method Credit Card or SEPA direct debit▪ Cancellation service for old insurance contract

5. T&C generation▪ Not static, but context sensitive and

dynamically generated▪ Transparency through simplified &

cleansed T&C

6. Use of premiums▪ „according to life business“▪ Contribution Costing (DBR)

- Acquisition costs Marketing- Acquisition costs Commission- Administrative costs

o Contracto Ongoingo Cancellationo Collection

- Claims costs- Claims handling costs- Reinsurance- Tax- Discount ( i. e. bundling)

>Risk premium

Following parameters ensure transparency and define the onboarding process of ONE products

ONE - Technical building blocksCan be easily extended, free of redundancy

Premiumbreakdown

Household

LiabilityTerms &

Conditions(T&C)

Customerinput

„Other“parameter

i. e. Accident

Claims SLAs

Claims Highly automated triage

Summary of ONE USP’s & benefits

CLIENT EXPERIENCE: SIMPLE – FAST – SEAMLESS

• 100% digital – no paperwork or any non-digital side works required

• Purely real time (each process can be finished immediately online)

• Instant availability of protection (immediate policy issuing)

• SLA driven operations model (each business process has an optimized reaction time proactively defined, communicated – via tracking tool - and promised by ONE)

• Convenient client communication via chatbots plus individual document centers (to share all kinds of documents); assuring readiness for further levels of automation via robotics

• Technical continuity without any media breaks

• Easy premium payments via credit cardor direct debit

PRODUCT FEATURES

• ONE: 1 client – 1 relation – 1 policy (via bundling; end of outdated multiple tariffs views)

• Minimized number of underwriting questions, highly automated

• Highly customizable product to fit individual needs

• Cost transparency (premium breakdown)

• Cancellation of old policy if desired• Daily cancellation right of ONE policy• Honoring of deductibles via premium

reduction• Focus on transparency through

simplified & cleansed terms & conditions (T&C)

• T&C not static, but dynamic on individual coverages

• Claims handling with instant cashback in most of the cases

• “Pay back": premium reduction in case of claims-free periods

BUSINESS MODEL

• ONE owns the value chain end-to-end and assures optimized efficiency and agility without dependencies

• German pilot (launch September 2017) implemented on a single platform as multi-mandate solution, which can be rolled out into other countries and into new lines of businesses rapidly and effectively

• Prepared API environment for cooperation with broker portals, affiliates and 3rd party distributors will assure growth and sustainability of customer base

Motivation

Why greenfield ?

Definition Digital

ONE – Fix the basics

ONE – Vision

Operating Model

Trusted data collectors will be winner of second data revolution

Level of

intimacyJointly used Mainly yours Personal Intimate Invasive

Internet of Things Device Growth

Hybrid data model: Semi automated and indirect data collection for selected

products

Fully automated and direct data collection for ONE dynamic and self-adjusting

coverage

Near-term data usage Mid &long-term data usage

The future of insurance is data, transparency and trust

Who might win the upcoming trust challenge ?

Traditional broker

Insurtechs

Comparison portals

Source:EYInnovalue DigitizationStudy2016

“Insurance is a means of protection from financial loss. It is a form of risk management primarily used to hedge against the risk of a uncertain loss.

Insurance is a means of proactive observation of individual risks and the potential for a financial loss. It is a form of technology supported risk management tool leveraging smart devices data and Artificial Intelligence.

ONEclient- ONErelation- ONEinsurercomplete&seamlessriskobservation

Why“n”policieswith“m”insurerswithoutdependencies???

ONE Vision

MODULARIZATION TIMESTAMP IOT CONNECTIVITY

Createonesetofindependentbuildingblockswithstandardizedinterfacesthatcanbepackagedintosalesproducts.Amodularizedproductincludesasetofrules,describinghowmodulescanbecombined.

AbilitytoprovidecoverageforvariabletimeperiodswitharbitraryONandOFFdates.Technically,thesmallesttimeunitbeingonesecond.

CreateinsurancecontextwithIoT devicesembeddedineverydayobjects,enablingthemtosendandreceivedata.Examples:mobilephones,wearables,smarthomes,connectedcars.

CoverOFF

time

CoverON

28.04.201806:45:59

09.05.201818:29:42

“Geo-zone”

x x

Geo-triggeringexample

ON-/OFFfunctionalityUsagebasedPricing

ContextbasedAlertsContextbasedUnderwriting

ContextbasedPricing

ONE – 3 pillars of technical readiness

ONE Travel Light - First Geo-Triggered Product

Theft

Loss

AccidentalDamage

Goingonvacation?AsyouarepartofourONEcoachprogramweareofferingyouexclusivebaggagecoverage.

Therightcoverage at the righttime = geo-trigger usecase

€0.20*for€500perday

General

€0.50*for€1,500perday

LaptopMobile

€0.60*for€1,000perday

PricingMethodologyBaseRatesDailyratesderivedfromexternalbenchmarksuntilinternaldataavailable

ModularizationTravelmodulewiththreecomponents

TimestampUsagebasedpricingbasedonactualconsumptionratherthanannualaverages

Geo-Triggering(IoTapplication)Geotriggerusedforup-/crosssellonlyuntilgeo-informationmaybeusedonpeer-groupbasis

TravelBaggageCoverage

*Non-bindingfiguresforillustrativepurposesonly

Let’s begin Continue Total Amount Payable 3.25€

ONE – Outlook “Travel Light”

Motivation

Why greenfield ?

Definition Digital

ONE – Fix the basics

ONE – Vision

Operating Model

Strategic approach - ONE „Single Platform“

SINGLEPLATFORM

IT

PROCESSES

PEOPLE

ONE - Hybrid distribution model

Sale

s pa

rtne

rCa

rrie

rCu

stom

erONE

2ONE direct customer

33rd party customer

1Broker

customer

Brokers “Affiliates”

ONE - IT architecture “Single Platform” - Overview

Middleware

DB DB

Brokerweb

Directapp / web

3rd party

API

Claims TPA

ONE - IT architecture “Single Platform” - Details

Global market leader MunichRe provides reinsurance for ONE and supports with innovative product development and data analytics capabilities

Provides state of the art CRM technology (future-proof, cost-efficient, agile)

ONE relies on a turn key standard backend solution, which is highly flexible and already market proofed

Consultancy EY Innovalue supports ONE through project management and setting up operations

ONE is supported in actuarial questions by the market leader Milliman

PwC is confirmed for the revision at entity and group level

CMS provides legal advice for the product roll-outs

Local market leader Marxer supports ONE with setting up the Liechtenstein entity and carrier

Claims Management

ONE - Supporting companies and investors

Partners Investors

The enablement of ONE targets is founded on stimulating & persistent relations with various established market experts

STRATEGIC PARTNERSHIPS

Stephan Ommerborn+41 79 819 18 42 (mobile CH)

[email protected]