OESAI : LIFE INSURANCE TECHNICAL TRAINING 12-13 OCT 2016 – TRAVEL LODGE, GABORONE BOTSWANA Presented by Ezekiel Macharia, Chief Actuary (KAFS)

Technology In Life Assurance Distribution OESAI COMPREHENSIVE LIFE INSURANCE TECHNICAL TRAINING Ezekiel Macharia Chief Actuary – Kenbright Actuarial & Financial Services Day 2, Thursday 13th October, 2016

Rise of Artificial Intelligence tools to be used ion other industries 6.5 times lower on GDP per capita BMW – Self Driving Bike Rise of Artificial Intelligence tools to be used ion other industries

AGENDA Current Distribution Channels Sale Process Technology Options Other distribution options Conclusion

Current Distribution Channels Internal tied agents Independent agents Direct & Online Mailing Worksite marketing Telemarketing

Distribution by Product

Sales Process Warm Client & Ready to Pay Cold Clients Need Insurance? Want Insurance? Luke Warm Not Ready to Pay

Fill in Form & Underwrite Sales Process Fill in Form & Underwrite Cold Clients Warm Client & Ready to Pay Pay Premium Customer Service Renewal Need Insurance? Want Insurance? Luke Warm Not Ready to Pay

Technology Options Brokers vs Aggregator Service Call Center vs Chat Bot Data as a Service Block Chain vs Insurance Process

Aggregator Service

Broker vs Aggregator Service Provides comparison Personalized Retail & Corporate Both simple & complex products Present & Past Provides comparison Automated Retail Currently at simple products Present & Future

Chat Bots

Call Center vs Chat Bots Uses people Expensive Retail & Corporate Both simple & complex products Present & Past Uses robots (AI) Cheap Retail Currently at simple products Present & Future

Manual Forms vs Data as a Service Legal Voluntary Expensive Inefficient Hinders automation – makes simple underwriting attractive Present & Past Partially Illegal Intrusive Cheap Efficient Supports Automated Underwriting (preferred & simple) Future Data as a Service

Manual Forms vs Data as a Service Legal Voluntary Expensive Inefficient Hinders automation – makes simple underwriting attractive Present & Past Partially Illegal Intrusive Cheap Efficient Supports Automated Underwriting (preferred & simple) Future

Block Chain vs Insurance Process Insurance as a Process Decentralized Fully Automated Future Shareholder & Policyholder are the same (or not) Centralized Partially Automated Present Shareholder & Policyholder are different (or not)

Other Distribution Options Messaging Services WhatsApp, Snapchat, Periscope Bundling Within other products (automated bundling) Free attachment WIFI linked insurance

Fill in Form & Underwrite Sales Process Fill in Form & Underwrite Cold Clients Warm Client & Ready to Pay Pay Premium Customer Service Renewal Need Insurance? Want Insurance? Luke Warm Not Ready to Pay

Conclusion Distribution depends on products Technology can improve all insurance distribution channels – online as a channel is not mutually exclusive. Let us review the sales process and look at key emerging trends in technology as a separate entity

? QUESTIONS ezekiel@kenbright.co.ke +254 722 540 045

Actuarial & Financial Services Kenbright – established in 1993