MahendraNambiar

Vice PresidentSolutions & Innovation HeadCapgemini Global Insurance

EACH UNDERPINNED BY TECHNOLOGY,THE AVAILABILITY OF DATA AND THE APPLICATION OF INSIGHTS

Connectivityand ArtificialIntelligence

CustomerCentricity

Transparency

Three Key Innovation Themes

DATA&

DIGITAL

The 7 Major Disruption Areas Where We SeeOpportunities To Innovate In Insurance

OMNI-CHANNEL CUSTOMER EXPERIENCE

CUSTOMER ENGAGEMENT &EXPERIENCE EXPECTATIONSCONNECTED DEVICES, IOT, & USAGE

BASED INSURANCE

NEW RISKS& NEW MARKETS

THE SHARING ECONOMY

DISRUPTIVE ENTRANTS &BUSINESS MODELS

REGULATORYENVIRONMENT SHIFTS

These Innovations Are Already Disrupting OtherIndustries Fundamentally

Largest Taxi ServiceThat Owns No Taxis

Largest AccommodationProvider That Owns NoReal Estate

Largest Phone CompanyThat Owns No Telco Infra

Most Valuable RetailerThat Has No Inventory

Biggest Media OwnerCreates No Content

World’s Largest MovieHouse Owns No Cinemas

THIS LEVEL OF DISRUPTION IN INSURANCE IS POSSIBLE

IoT = Internet Of Things = Insurance Of Things …Is Just At The Beginning…

Connected Car Connected Home

Connected Self Connected Commerce

And Its AboutConsuming The Data

And Deriving Real TimeImpactful Insights

… The Pace Of Change Is Undeniable …

Source: CB Insights 2015

With Access To Data Being The Primary Motivation

… And Is Creating A Tremendous Amount Of DataFor New Insights

UBI Is Just Scratching The Surface, With PrimaryApplications In Auto Insurance

Dynamic Data Visualization Will Generate RapidInsights For Pricing and Portfolio Decisions

Customers Will Demand Deeper TransparencyAnd Personalized Insurance Services (Products)

Insurance Companies Are Investing In Start-ups…

Insurance corporates completed over 35 investments in privatetech companies in 2015. The acceleration in investments showsno sign of slowing

Source: CB Insights 2015

… And Others Are Transforming The BusinessModel Like With Peer To Peer (P2P) Insurance

For Insurance Carriers For Policy Holders

Self selected pools offerlower risk profiles

Less likely to report smallclaims

Reduces moral hazard ofinsurance

Premium Discounts if there areno claims

Ability to pool risk with cohesivegroups to minimize risk

Have a vested interested inspreading the word and gettingfriends to join

Lemonade(USA)

Geuvara(UK)

Friendsurance(Germany)

InsPeer(France)

PeerCover(New Zealand)

This Map Of Insurance Startups DemonstratesThe Possible Partnership Capability

Source: Cole Bermuda

And So, How The Market Is Responding?

Using anonymized social andsearch engine data. BBM identifiesunmet insurance needs. Buildsaffinity groups and negotiatesdeals with insurers. Sells throughsocial networks.

Bought By Many was namedFintech Innovation of the Year in2015.

Partnership with Ping An in ChinaAcquired an Insurance Broker inthe UK

Social Distribution

This is an example of bringinginsurance products to thecustomers journeys rather thancreating a new insurance journey.

Alibaba and ANT achieve this byoffering products that areintegrated into the ecommercejourney, shipping insurance forexample.

In 2013, Ant Financial set up itsown insurance company calledZhong An.

This is an online life insurancecompany underwritten by ScottishFriendly Assurance Society. BeagleStreet started in 2012 and isdesigned to allow people who haveexperienced a major life momentsuch as buying a house, gettingmarried or having a baby to getaffordable life insurance quickly.

This company has refocused therelationship with the insured tothat of an advisor, a life eventsguide. The model is tuned toreinforce trust with the endcustomer.

Integrated Insurance Events Partner

https://www.youtube.com/watch?v=3h8-GEX159M

https://www.youtube.com/watch?v=K7mNiY6ts2k

What Is Your Starting Point?

Whatever path you chose to accelerate thetransformation of your business, four things are ofparamount importance:

1. Fully Understand Your Starting Point (& Your Target!)

2. Focus More On Management Intensity ThanTechnology Intensity

3. Capability Optimization Is Not Innovation

4. Leverage Data And Insights As The FundamentalCatalyst For Innovation

www.capgemini.com

The information contained in this presentation is proprietary.© 2013 Capgemini. All rights reserved. Rightshore® is a trademark belonging to Capgemini.

About CapgeminiNow with 180,000 people in over 40 countries, Capgemini is one of theworld's foremost providers of consulting, technology and outsourcingservices. The Group reported 2015 global revenues of EUR 12 billion.Together with its clients, Capgemini creates and delivers business andtechnology solutions that fit their needs and drive the results theywant. A deeply multicultural organization, Capgemini has developed itsown way of working, the Collaborative Business ExperienceTM, anddraws on Rightshore®, its worldwide delivery model.