2014 01 - sko2014 - s2014 sko insurance overview.peterku.3
DESCRIPTION
InsuranceTRANSCRIPT
2014 – U.S./North American Insurance Sales Team Enablement
Peter Ku
Sr. Director, Global Industry Marketing
Ph 1-650-385-5131
Agenda
• Top Business Imperatives in Insurance
• Technology Investments and Informatica
Opportunities
• Informatica Footprint in Insurance
• Upcoming Marketing Activities and Investments
Top Business Imperatives (Concerns?)
Improve
Customer
Experience
Grow
Revenue
Improve
profit
margins
Comply with
industry
regulations
CEO
Top CEO Priorities and Technology Investments
CEO Priorities
Improve Customer
Experience
Grow Revenue
Improve Profit
Margins
Comply with
industry regulations
Top CEO Priorities and CIO Investments
CEO Priorities CIO Priorities
Improve Customer
Experience
• Core Insurance Legacy Modernization
• Mobile and Digital Investments
• Cloud/SaaS Adoption
Grow Revenue • Business Intelligence
• Predictive Analytics
• Big Data Processing
Improve Profit
Margins
• Cloud/SaaS Adoption
• IT Consolidation
• IT Automation
Comply with
industry regulations
• Data Warehousing
• Business Intelligence
• Modernize Risk and Compliance
Applications
IT Investment Predictions by Insurance Carriers
IT budgets to grow at 6.5
percent CAGR (compound
average growth rate), for a
total IT spend of over $108
billion, by 2017
(Source: OVUM)
IT Investment Predictions by Insurance Carriers
IT spend in the life-insurance
market will grow at 7.6 percent
CAGR to reach a value of $49
billion by 2017, with the P&C
industry growing at 5.7
percent to reach a total market
size of $60 billion by 2017
IT Investment Predictions by Insurance Carriers
Gartner Research
forecasts worldwide IT
spending to grow by 3.6
percent in 2014
(compared to last year)
Improve Customer Experience
• Changing customer
demands in today’s
Digital-era of insurance
(mobile, social)
• Customer Facing
Technology is a
differentiator!
• Core Insurance Legacy
Modernization
• Mobile and Digital
Investments
• Cloud/SaaS Adoption
• Timely completion of
legacy modernization
investments
• Improved customer
information across
channels and business
lines
• Data Migration Solutions
Test Data Management
• MDM for Single View of
Customer
• Cloud DI & MDM
Why is this important? Key Investments
Data/ Tech. Challenges Informatica Solutions
Why is customer acquisition and retention so important to financial institutions?
• The cost of losing one customer is 4x
higher than obtaining that same
customer
• Satisfying and retaining current
customers is 3 to 10 times cheaper
than acquiring new customers
• A typical company receives around 65
percent of its business from existing
customers.
• A 5% reduction in the customer
defection rate can increase profits by
25% to 80%
Single View of Customer
On Premise Cloud
Call Center
Campaign Mgmt
Agent/Broker
• Growing adoption in SFDC
resulted in too many data
silos across regions & BU’s
impacting Metlife’s ability to
deliver rich customer
experience to grow their
business
• Manage trusted customer data
across SFDC for agents and brokers
• Manage and govern business data
across on-premise and cloud
solutions Integrate and exchange
data from 3rd party systems and
providers for improve customer
service and selling
Business Challenge How Did Informatica HelP?
Grow Revenue
• Avg. Product Per
Relationship at historical
lows
• More expensive to acquire
new customers vs.
growing revenue from
existing ones
• Analytics and Business
Intelligence
• Hadoop, Modernize DW
Platforms
• Incomplete, Invalid data
for predictive modeling
• Integration of unstructured
data (e.g. social, call logs,
machine data)
• Data Integration and
Quality for BI/Analytics
• MDM for Policyholder
• Cloud DI, MDM
• Big Data Integration
Why is this important? Key Investments
Data/ Tech. Challenges Informatica Solutions
Grow Revenue
• Double revenue in 5 yrs, achieve
12% RoE
• Improve profitability and customer
service across all channels
• Too many sources of the truth,
inconsistent customer data, lack
of insight into customer
interactions
• Single view of policyholder with MDM
with detailed relationship views
across the business
• Cleansed data quality issues for
downstream business applications
• Monitor and alert when issues arise
with critical business data
Business Challenge How Did Informatica HelP?
CFO
Marketing
Sales
Improve Profit Margins
• Low interest rates
severely impacting
reinvestment revenue
streams
• Legacy systems require
manual processes too
support = too expensive
• Legacy Modernization
(Underwriting, Claims,
etc.)
• Business Process
Automation Technology
• Timely completion of
legacy modernization
investments
• Need to automate
processes across systems
• Data Migration Solutions
(DI, DQ, TDM, DVO, ILM
Archive)
• Active End Points
Why is this important? Key Investments
Data/ Tech. Challenges Informatica Solutions
Legacy Modernization Survey
(Source: Celent – 2013)
Legacy Modernization
Analyst &
Data Steward
Developer &
Architect
CFO
• CFO and Chief Accounting Officer
were at risk of not realizing
quantifiable business value from
new Oracle Financials Application
Investment due to ongoing data
quality errors from IT systems
• Automated a sustainable data
governance process, enabling business
and data stewards to identify, fix, and
monitor the quality of their data in their
new Financial Management system
• Improve close of book processes, 50%
savings managing data quality
Business Challenge How Did Informatica Help?
Regulatory Compliance
• Increasing transparency into
enterprise risk management
by State and Federal
regulators
• Growing legal and regulatory
fines for non-compliance with
new and existing laws
• Analytics and Business
Intelligence
• Modernize Risk and
Compliance Systems
• Enterprise Risk Data
Warehouse
• Timely completion of
legacy modernization
investments
• Incomplete, Invalid data
for risk mgmt
• Lack of a single view of
risk
• Data Integration and
Quality for BI/Analytics
• Data Migration Solutions
(DI, DQ, TDM, DVO, ILM
• Data Services
Why is this important? Key Investments
Data/ Tech. Challenges Informatica Solutions
Insurance Death Master Compliance
Analyst &
Data Steward
Developer &
Architect
CCO
• CFO and Chief Accounting Officer
were at risk of not realizing
quantifiable business value from
new Oracle Financials Application
Investment due to ongoing data
quality errors from IT systems
• Discover and manage data quality
errors
• Identify and match against SSN DMF
• Relate customers with policies,
beneficiaries, and employees
Business Challenge How Can Informatica Help?
Compliance
DW
Death
File
Policy Admin, Claims,
U/W, CRM
INFA Penetration: Top 50 U.S. Insurance (as of Q3-2013)
19
INFA
customers Non-customers Total Penetration %
Top 25 22 3 25 88%
26-50 15 10 25 60%
Total 37 13 50 74%
Market Penetration
$12,118,889
$2,051,448
$0
$526,745
$0
26-50 Insurance Companies Total Lifetime REvenue: $14.6M (as of Q3-2013)
DI/DQ Actual MDM Actual ILM Actual
$59,985,459
$5,926,118
$2,042,468
$4,018,094 $1,106,906
Top 25 Insurance Total Lifetime Revenue: $73M (as of Q3-2013)
DI/DQ Actual MDM Actual ILM Actual
B2B/UM/CEP Actual All Else Actual
Total Lifetime revenue top 50 US Insurance: $87.7M
Data as of Q3-2013. SEE APPENDIX FOR DETAILS 19
INFA Penetration: Top 50 U.S. Insurance (as of Q3-2013)
20
INFA
customers Non-customers Total Penetration %
Top 25 22 3 25 88%
26-50 15 10 25 60%
Total 37 13 50 74%
Market Penetration
Total Lifetime revenue top 50 US Insurance: $87.7M
Data as of Q3-2013. SEE APPENDIX FOR DETAILS 20
Total Opptys and TAM: US. Insurance
Analysis of Spend vs. TAM vs. IT Budget, vs. Prop2 Spend – Banks vs. Insurance
How to read this?
• 100% = highly correlated vs. 0% is not.
• Marketing Content and Sales Tools
• eBook on “Improving Revenue and Customer Relationships”
• Solution Whitepapers: Death Master, MDM for Insurance, Realizing the Value of Big Data
• Customer Success Stories
• Sales Playbook
• Marketing Programs & Events
• 5th Annual FSI Executive Summit (March 5)
• IDMA Event (April)
• Informatica World
• New Hire
• Insurance/FS Solution Marketing Director
2014 Marketing Investments
Questions?