THE

TRANSFORMATION

OF INSURANCE

Allianz Global Corporate & Specialty SE

Insurance Institute of Gauteng

Broker Leadership Forum

Michele Williams, Head of X|S|E

17th May 2018

THREE PREDICTIONS FOR THE FUTURE

Products will look fundamentally different

IF YOU ARE AROUND 30

YEARS OLD TODAY, YOUR

CHILDREN MAY NEVER NEED

TO KNOW HOW TO DRIVE A

CAR BY THEMSELVES

INDUSTRY 4.0

INTANGIBLE ASSETS

THREE PREDICTIONS FOR THE FUTURE

Existing roles will evolve and new roles will emerge

BLOCKCHAIN

DEVELOPER

DRONE PILOT

DATA SCIENTIST

BLOGGER

Service platforms will play a central role

THREE PREDICTIONS FOR THE FUTURE

Products will look fundamentally different

Existing roles will evolve and new roles will emerge

Service platforms will play a central role

THE CHANGING ROLE OF THE UNDERWRITER

The Future Underwriter

X|S|E – THE AGCS SMART EVOLUTION

X|S|E focus is to drive this transformation journey, leveraging new data, technologies and partnerships through:

Driving exploratory journeys triggered by different technologies, changes in business model and new global business

trends

Using data and technology to enhance our capabilities in Underwriting, Sales and Claims

Developing our AGCS data science expertise, providing the skills and technical foundation to deliver expertise to the

initiatives

Transformation is led by the business in response to client and business needs

• In today’s insurance landscape risks are changing, and clients along with their insurance needs are evolving rapidly.

• In this emerging landscape AGCS is committed to further embrace the insights provided by the effective use of data and

technology, and transform them into valuable products and services supporting the changing client risks and insurance

environment.

DIGITAL AGENDA: SELECTED PROJECTS FROM AGCSONLINE PORTALS – EASY ACCESS TO AGCS’ SERVICES FOR CUSTOMERS AND BROKERS

AllianzGo

Launched in September 2017, AllianzGo is our new distribution

platform for SME business in North America. AllianzGo offers

Brokers online access for three products – Business Owners Policy

(package product for small business), Commercial Auto and

Workers’ Compensation, from quote to issue to payments to claims –

all online in just a few clicks.

myAGCS.com

Our core platform for major clients and brokers continues to grow as

we take on board regular client feedback. Aside from global insurance

program data for Allianz Multinational clients, Allianz Risk Consulting

and Global Catastrophe Risk data, most recent enhancements

include the AXCO Knowledge Pool highlighting insurance regulatory

changes in key markets, a client dashboard, a claims page and a

page for Alternative Risk Transfer program reporting.

CT2Go: Clinical Trials

Clinical Trials require liability cover as a mandatory requirement,

often at short notice, and must be able to deliver policy certificates

locally as and when needed. AGCS’ new online portal offers clients

the ability to insure standalone trials online and issue certificates

immediately, thereby reducing uncertainty and administration at a

critical time in medical research programs.

MySmartGate

In collaboration with Insurtech mgm technology partners,

MySmartGate is an online self-service portal aimed at all distribution

partners serving small and medium-sized companies. Currently

being rolled out in selected markets, this easy-to-access service

offers Financial Lines products including Cyber to more than 500

distribution partners, giving them the ability to quote, bind and renew

business online in a few clicks.

Flock Cover: Drone Insurance

AGCS is partnering with InsurTech Flock to launch Europe’s first ever

real- time drone insurance product. Flock Cover is a mobile app that

aggregates and analyses big data relating to a drone flight, assesses

the risk on the spot, and enables the operator to purchase ‘pay-as-

you-fly’ drone insurance at the touch of a button covering both liability

(up to £10Mn) and equipment cover.

CUBE General Aviation

CUBE General Aviation is our new online platform for General

Aviation (GA) business in Germany. Launched in September 2017,

this platform provides policy quotation and placement services for GA

underwriters and connected Allianz agents, with a fully automated

process from quote to certificate. CUBE will enable us to deliver faster

and better services to our GA clients.

Praedicat Cyence Supply Chain Analysis

DIGITAL AGENDA: SELECTED PROJECTS FROM AGCSDATA ANALYTICS – INVESTING IN TECHNOLOGY TO IMPROVE RISK ANALYSIS

Harnessing the power of big data predictive

analytics to identify the liability risks of the future,

AGCS is partnering with US-based Insurtech

analytic company Praedicat Inc. The partnership

will help clients understand potential emerging

liability risks impacting their company through

deep analysis of large volumes of peer-

reviewed scientific literature.

Cyber risk is one of the least well analyzed and

modelled risks of today, but AGCS is partnering

with Cyence, the leading cyber risk analytics

and modelling specialists, to accelerate and

improve cyber pricing. By linking Cyence’s

powerful analytics tools to AGCS industry data,

we will be able to tailor underwriting to better fit

the needs of our clients from SMEs to the

largest multinationals.

Understanding the complex supply chain

relationships is key to providing adequate

insurance cover to corporate clients. That is why

AGCS has developed various tools based on big

data that allow to map and visualize the

complex location networks as well as supplier

relationships up to the fourth tier. These tools will

enable us to identify exposures and

accumulation issues and help us understand CBI

risks better.

DIGITAL AGENDA: SELECTED PROJECTS FROM AGCSTECHNOLOGIES TO ENHANCE EFFICIENCY AND CUSTOMER SERVICES

Blockchain

AGCS is exploring the potential of the exciting Blockchain technology for the corporate insurance segment. AGCS line of

business Alternative Risk Transfer has successfully trialed this technology by creating a prototype solution for the existing

captive insurance program of a global client. Another pilot demonstrated the benefits of Blockchain for transacting a natural

catastrophe swap.

Robotic Process Automation

AGCS is developing robotic process automation bots to perform repeatable rules based tasks such as data entry and extraction

or policy administration, benefitting customers and AGCS with faster turnaround times and exceptional quality standards at

reduced cost. With the first phase of more than 40 robots currently planned, the first are already active, and the remaining to be

released in Q1 2018. So far, bots are cutting normal processing time by around 90% compared to manual entry with a zero

error rate.

Claims technology

At AGCS, we understand that with the rise of new technologies and innovation, our customers expect greater speed, ease

of service and personalization when it comes to claims handling. That is why we are trialing numerous initiatives and

projects around new technology and data analytics in order to transform our claims customer journey. Current pilots include

a live stream loss adjusting app, drones services and aerial information platform, a digital defense lawyer toolkit, a

thermographic imaging initiative as well as a chat bot project.

Claims Journey

Blockchain

THE BI / CBI JOURNEY

Uses web scraping

and text analytics to

identify and visualise

relationships

between companies

at a company level

Status: BAU

Assesses the

robustness of the

clients management

systems around their

supply chain and

identifies areas for

improvement

Status: BAU

Determines the

probability of

relationships at

location level to

identify and quantify

the accumulation

exposure from

named and

unnamed locations

Status: PoC

Detailed

interdependency

mapping at client

level, identifying

critical scenarios and

loss estimates

Status: PoC

High Touch Low Touch

Supply IBI Prepared

SCRMA

Information sharing between systems

A.V.A