innovative trend of digital insurance - oic.or.th · outline digital insurance now means too many...

March 28, 2018

Innovative Trend of Digital InsuranceeBaoTech Presentation at Thailand Insurance Symposium 2018

Outline Digital Insurance now means too many things. Where should we focus immediately? Connectivity: digital insurance is connected insurance Dramatic reduction of cost of connectivity enabling insurance to be connected to various other

businesses and people of all levels of incomes

Potential action plans? While keeping insurers’ core competencies in risk and investment management, insurance industry

can learn many things from the best internet companies Think of an insurance company as an App company: Connect to users digitally: real time, fully automated Start from top users: policyholders; agents/brokers Then add more and more affinity partners and experiment new products and new models

One big challenge for this immediate opportunity is legacy core system. Insurance Middle Office is a solution for massively connected insurance

eBaoTech is keen to become a strategic partner of digital insurance in Thailand and ASEAN eBao Software for core systems eBaoCloud InsureMO for massively connected insurance

© 2018 eBaoTech Corporation. All rights reserved. 2

Agenda

Immediate Actions and Real Examples2

3 eBaoTech Brief Introduction

Digital Insurance Trend1

Digital Insurance Trends

Digital Insurance: Immediate Opportunities

Digital Insurance: Too broad; too big; too hard to act on Technologies: internet; cloud; artificial intelligence; block train; internet of things New products: new risks; new ways of pricing; new ways of funding; new ways of

servicing New sales channels: internet New business models: P2P, and so on

What are real and immediate opportunities and proven? Connect insurance to everywhere, digitally Then plus AI and big data And then some others?


Digital Insurance: Opportunities and Challenges Digital insurance is connected insurance Insurance to be embedded in numerous affinity businesses Supporting other businesses and life events of people of all income levels


Opportunities Big growth potential Less commodity competition Huge room for differentiations and data driven

strategy

Challenges Very difficult to connect insurance to other

businesses Complex products and processes Conservative regulatory framework Culture of slow action and risk aversion Outdated systems in almost all insurers

Embed insurance in numerous affinity businesses

Long Tail (Inclusive) Insurance Made Possible

7

To the right (yellow) is the long tail; to the left (green) are the few that dominate. In this example, the areas of both regions are equal.

Insurance has been dominated by few top channels and limited product offerings

Cost of connectivity and transaction too high in the past

Can digital enable long tail and inclusive insurance?

Insurance everywhere needed?

© 2018 eBaoTech Corporation. All rights reserved.

Fast Drop of Connectivity Cost Leading to Long Tail Economy

8© 2018 eBaoTech Corporation. All rights reserved.

SKU (stock keeping unit) numbers in retail industry Small stores: hundreds Department stores: thousands WalMart: Tens of thousands Amazon.com and Alibaba: around 1 billions

Video channels of different eras Radio broadcast era: a few dozens Cable TV era: hundreds YouTube and similar internet based broadcast: hundreds of millions Micro video apps: everyone is broadcaster

Connectivity of Various Companies


Billion

100 Million

10 Million

1 Million

User Number

Frequency

WeChatUser: 1 Billions

TaobaoUsers: 500M

FacebookUsers: 2 Billions

Insurer A in China

Users: 130 Millions UberUser: 300 Millions

Bubble color:Red = low conversion rate Green = high Yellow = medium Blue = potentially high

Typical Insurance

Companies

How Insurers Can Learn from Internet Companies?

10

Insurance basics still fundamental and advantages of insurance companies Rick management Capital management

Learn from internet companies on how to connect to their users Lower cost of connectivity Improve user experience Increase frequency of interactions

“User” groups of insurance companies Policyholders Agent/brokers Bank clerks Car dealer shop clerks Travel agency clerks Wealth advisors Broad users of many internets with potential affinity for insurance


Challenge for Insurance Industry


Low “user” numbers Very slow and difficult to grow customer base Focusing on selling big premium policies

Low frequency interactions Mostly annual interactions

Extremely high unit cost of interaction with customers Too much manual work Everything is so slow Decision making is mostly human judgment instead of data driven

Core system today not designed for massive external connectivity: Need of insurance middle office

12

Channel/Affinity

Core Systems

InsureMO

Basic Elements of Digital Insurance

InsureMO: Insurance Middle Office


Immediate Plan & Real Examples

Potential Immediate Actions

1. Digital connectivity to top user groups:

Policyholders

Agents/brokers (maybe banks?)

2. Digital connectivity to many other user types Offline

Online

Mixed online/offline

3. Experiment new products and new models


Typical Approaches at Leading Insurers in China


Use WeChat official accounts to enable policyholder self services Almost all basic services done in real time with full automation

Use Apps to enable tied agents and key brokers to work in real time Sales Services on behalf of policyholders Claims reporting and continuous communications

Use API integration to enable bank channels to issue policy and conduct basic services in real time and fully automated

Try to add more and more!

15

Policyholder Self Service on WeChat AccountInsurance Market E-Counter Claim Services


Policy Services on WeChat AccountE-Counter: Support policy services to policy holder


Cancelation via WeChat AccountE‐Counter‐Policy Holders Surrender(1/2)Support policy holder self surrender the policy and withdraw the premium

18© 2018 eBaoTech Corporation. All rights reserved

Queries of All Status via WeChat Account


Claim Reporting via WeChat Account


Small Claims Done Online via WeChat Account


Agent App: More Powerful and RicherSupport all products list and search by category


Agent App: Creating Proposal

23

Support online proposals creation

Agent App: Benefit illustration

24

Support benefit illustration and share to social APP

© 2018 eBaoTech Corporation. All rights reserved

Agent App: Premium calculation and policy issuing

25

Support online issue and calculating premium automatically


Agent App: Including Electronic Signing

26

Re-check the orders and request the electronic signature with safety control


Agent App: Task Management

27

Agent query on own proposals, orders and policies


Connected Carriers

28

Datong (Top Life Broker in China): All Sales via App

Key figures of Datong in 2016 Partner with more than 100 insurers. Products: more than 1,000 insurance products, including Life, General

and Health. Users: more than 30,000 agents and 300,000 other users. Revenue: USD 373 million, at a growth rate of 111% (YoY).

eBaoCloud Middle Office

Powered by eBaoCloud

Life Auto Health Accident …

HuaXia TianAn ICBC-AXA EverGrand …

eBaoCloud Launched on October 8, 2016 Use case: social marketing platform, real time quotation, benefit illustration,

and while-you-wait policy issuance, assembly done via just a mobile phone. Variety: support diversified product types from multi-number of insurers. Velocity: On average, 100+ new products go-live on a monthly basis. Volume: Currently having 33000+ agents and 300,000+ registered users.

API called more than 3 million times every month.

Datong Quick Insurance Mobile App

WeChatMobile App


Connected Carriers

29

Traditional Channel: China Grand Auto, #1 Car Dealer

Key numbers of China Grand Auto in 2016 Number of car dealership stores: 670 Revenue: USD 19.3 billion Number of cars sold: 825,000 units Number of auto insurance policies sold: 2.38 millions with total premium

of USD 1.1 billion.

Powered by eBaoCloud

Guang Dong Si Chuan Jiang Su …

China Grand Auto Cloud Platform

Sales Service Claim CRM Report

PICC Tai Ping Fu De Du Bang China Continent

First major car dealer company using own platform for insurance sales, powered by eBaoCloud

eBaoCloud Launched early 2017 and now in national roll out Customer-Centralized Cloud Platform : Lifecycle management and

one screen access of multiple insurers’ products Bundling insurance products across lines: Able to package auto,

non-auto, even life products from multiple insurers Improved Renewal Ratio: Easy to follow up renewal tasks and

approach customers with automatic renewal management Improved Customer Service: Enable full chain customer service

including claim status updating and vehicle repair.



1. Digital connectivity to top user groups

Policyholders


2. Digital connectivity to many other user types

Offline

Online




Connectivity at Leading Insurers in China

© 2018 eBaoTech Corporation. All rights reserved 31

Typical range of channel connected digitally Top tier and most digital: thousands Tier 2 and modestly digital: hundreds Laggards: still only PC based website little traffic; some with WeChat accounts but no

transactional capabilities

Hundreds of connectivity demands every month from all parties 95% of rejected outright Cost and time to connect still too poor to accommodate

Challenges to make fast and cheap connections Technology: Middle Office being adopted fast Operations Culture Regulatory

Online Sales of Non Auto General Insurance: Almost all by Third Party Apps

Premium Incomes of Non‐auto insurance sold online

Percentage in total online insurance

Non‐auto Insurance Premiums (RMB 100M)Percentage in Total Online Sales

Data Source: CIRC


Products of Non Auto General Insurance

A&H Property LiabilityCredit Other

2017 Non‐auto general insurance sold online: by product lines

Data Source: CIRC


Long Tail Connectivity: Bamboo to Tree


35

Channel/Affinity

Core Systems

InsureMO




36

PaaS (InsureMO) enable CCIC to rapidly expand non-auto products to 20+ Channels with low effort

China Continent Insurance Company Connectivity

Quotation

Underwriting

Issuance

Endorsement

Cancellation

API byInsureMO

保险师

云中保渠道

亿保网渠道

保险师

保险盒子

兴民保险

向日葵渠道

员工通道渠道

小程序孕产妇渠道

易保中利

机构学平险渠道

汇金保渠道

流量用户渠道

疫苗险渠道

百度地图渠道

辽宁航意微信

通融普华

阿里体育渠道

零花钱APP渠道

非车营销流量用户渠道

非车营销零花钱APP渠道

动宝运动意外险

北京保易通渠道

唯品会

纪家保险APP体育保渠道


Affinity: Sina Weibo; JD.com; and Many Others

易保云

Sina Finance

APP

Business Connection

VariFlight

eBaoCloudAPI calls API calls

Insurers

Operation Support

Business Connection

eBaoCloud connect and enable multiple stakeholders in insurance ecosystem

Insurers: provide insurance products eBaoCloud: enablement and connectivity platform to bridge insurers and channels Xing Min: provide business connection and operation support to insurers and digital channels Digital channels(Sina, Xinhua net): contribute traffic


WeChat Account of A Medical Clinic in Shanghai


App of Leading Health Screen Company in China


App of Standard Wealth (Advisory Firm)


A MNC Life Insurer Adopting InsureMO in Asia

41

Business Case Partnership with telco, e-commerce web site to offering insurance product as membership benefits

One platform on public cloud to serve different countries includes Indonesia, Malaysia, Philippines etc.

Insurance products with flexible coverage, term and payment cycle (pay-as-you-go)

Highly automatic sales, policy servicing and claims

Architecture Detail- Product factory offering flexible and quick product rollout capability

- API to connect with partner’s front-end providing online, real-time

insurance service

- Full lifecycle capability include sales, servicing and claims

- Offering transaction detail to back office through variable

integration mechanism(MQ, API, file etc.)



1. Digital connectivity to top user groups

Policyholders


2. Digital connectivity to many other user types

Offline

Online




Cell Phone Screen Insurance via SINA Weibo


Micro Credit Insurance for Truck Drivers

44

Banks

11

22

33

44

Truck Drivers

Credit Insurers

Trucking sites for good owners and drivers to meet

Trucking fee AR loan Big data based credit

risk assessment Fully automated

Niche segment Credit Insurance for micro loans to ‘High risk SME and Individual’

B-B-C model, leverage 3rd part platform for customer acquisition and risk management

Fully automated process including credit check, risk evaluation, fraud indication and lending management supported by big data

Integrate with 100＋ partner, RMB 2 billion premium in 6 months


eBaoCloud

45

Customer in Europe: Enabling Product Innovation

MOONSHOTpowered by

eBaoCloud

eBaoCloud provides premium quote and issues policy

Insurance offering easily integrated into channel websites via automatically generated and exposed APIs

External risk data / profiling used to calculate client specific premium

Real-time parametric information from relevant data providers triggers automatic claim processing and settlement

API

cal

lsReports and financial data for Moonshot

Policy and claims data for insurance carriers

API callsAPI calls

Data Extraction

Train timetable

Shipping cost


Social Responsibility: Local Charity Insurance Platform

11

22

33

44

Elderly with no children

Insurers

Local Charity OrganizationsMaintain and qualify potential receivers of donations

Donors

Offline qualification of old people with no children

A&H insurance Fully automated

Technology change Charity Awarded as pioneer IT+ practice by government institution

eBaoCloud


eBaoTech Brief Introduction

Who We Are

200+INSTALL BASES/W and Cloud

30+COUNTRIES

1,500+PEOPLE

Asia Pacific:Shanghai (Global HQ and R&D)BangkokBeijingJakartaKuala LumpurMumbaiPune Singapore SydneyTokyoWuxi

Americas:New YorkSao Paulo

Europe:Zurich LondonRotterdam

GENERAL

LIFE HEALTH

CLOUD

Insurers

Broker/agents

Affinity partners

FinTech Startups

Core systems

Fast components

Implementation

Maintenance

SOFTWARE

SERVICES

Individual

Group

SME

Established in Year 2000

50+ customers 150+ install base


200+ Installations in 30+ Countries


eBao Offerings: Software and Cloud

50

Product Innovation: new risks; new pricing; slicing and mixing benefits at any level, across LOB

Traditional products connected to numerous new channels digitally

Connected Insurance: embedded anywhere, anytime, anyhow

Long

tail

Trad

ition

al

Traditional Long tail/Scenario based

Traditional/old business going digital: Big potential near term

PRODUCT

CH

AN

NEL

eBao Cloud

Product Factory

Policy Admin Claims RI

Party Management (customer centricity)

Data Warehouse and Analytics

eBao Software


51

Channel/Affinity

Core Systems

InsureMO





API Gateway

API Authentication

API AuthorizationRate Limit Control

RoutingService Registration

Tenant Management

Permission Management

API Registration

API Publish

API Test Case Design

API Aggregator

SMS Template Config

eMail Config

Payment Account Config

Configuration Center

Logging Analysis

Trace Monitor

Micro Service Monitor

CPU/RAM/OS Monitor

API Dashboard

Management related ServicesMonitor & Analysis

PAAS powered by

Alert Service

Service Discovery

SMS Service

eMailService

2FA Service

Common Services

Queue Service

Cache Service

K/V Store Service

Search Engine Service

eBaoCloud InsureMO Architecture ‐ Dockerized Micro Services powered by Kubernetes

Print Service

Encryption Service

Payment Service

Product Service

Quotation Service

Policy Service

Claim Service

Proposal Service

…

Foundation ServicesDatabaseService

Mobile APP Social MediaWeb Site Internet of Things

Insurance Services

InsureMO

API Gateway

…

QRCodeService

Image Service

…

Channels

IAAS Vendors

Examples of Insurers as CustomersGeneral Insurance Life Insurance


Distribution channel, Affinity, and FinTech Startups


Traditional Affinity FinTech

eBaoTech in Thailand

55

API – Platform (eBaoCloud)1. SEG-SEIC, Southeast Insurance2. NSI-Namseng Insurance3. NKI-Navakij Insurance4. Thaisri Insurance (TSRI – ERGO)5. AIG6. MSIG TH7. Lockton Broker8. Big C Broker

LS & GLS (Life Core System)1. Chubb Life (ACE Life)2. TSLI – Thai Samsung Life Insurance3. SELIC – Southeast Life Insurance

GS (General Core Insurance)1. SEG-SEIC

Recap Immediate focus Connectivity: digital insurance is connected insurance Dramatic reduction of cost of connectivity enabling connected insurance

Potential action plan Basics still fundamental: risk and investment management Think of an insurance company as an App company: Connectivity to top users: policyholders; agents/brokers Massive connectivity to many other user types New products and new models

Insurance Middle Office needed for massively connected insurance

eBaoTech keen to be a strategic partner of digital insurance in Thailand and ASEAN eBao Software for core systems eBaoCloud InsureMO for massively connected insurance


innovative trend of digital insurance - oic.or.th · outline digital insurance now means too many...

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