FINTECH IN CYBER RISK

259.1 Million 88.1 Million 79.0 Million 326.3 Million 66.0 Million Indonesia Digital Snapshot Total Population Internet Users Active Social Media Users Unique Mobile Users Active Mobile Social users 259.1 Million 88.1 Million 79.0 Million 326.3 Million 66.0 Million Sources: we are social - 2016

Indonesia Population Structure 10-14yo 15-19yo 20-24yo 25-29yo 30-34yo 35-39yo 40-44yo 45-49yo 50-54yo 55-59yo Digital Native – 60% Younger generation born and live in the internet era. They intend to be trend leaders Digital Adopters – 40% Older generation knew about internet when they were an adult. Often feel the need to adapt with new trend. Sources: worldbank, CIA world factbook

Fintech Uprising in Indonesia Financial technology (FinTech or fintech) is the new technology and innovation that aims to compete with traditional financial methods in the delivery of financial services. - wikipedia FINANCIAL MANAGEMENT PAYMENT INSURANCE LENDING CROWDFUNDING

Advantages Of Fintech In Insurance Create Innovative Products New Sales channel Reduce Costs Improve Efficiency OPPORTUNITIES RISKS Better understanding regarding the customer behaviour Benefit from more real time data from 3rd parties that help us in developing tailored products, sales, underwriting and pricing Increase quality of life through devices Confidentiality attacks Integrity attacks Availability attacks

Enhanced Insurance Value Chain Fintech Application in Insurance Enhanced Insurance Value Chain Discover Explore Select Product Apply Approve & Underwrite Service & Engagement Claims Influencers on buying decision Un-traditional providers and distributors that own the customer Comparison platforms and aggregators Online vs person Robo advisors vs agents New emerging products Customer led approach using big data Automated, online & mobile. Personalization using 3rd party data Automated & real time using 3rd party data Interactive and predictive customer service & support Automation of process Sources: adapted from KPMG 2016

Confidentiality Attacks Risks Of Fintech In Insurance Confidentiality Attacks Integrity Attacks Availability Attacks Preserving the secrecy of data to prevent its unauthorised disclosure Guarding against improper modification or destruction of information Making sure that systems are available promptly when needed

Confidentiality Attacks Mitigation the Risk Adopt security best practice (ISO 27001, etc) Implement IT security awareness to all stakeholders Develop and implement security & risk management Confidentiality Attacks Implement security tools focused on data security Data leakage prevention Integrity Attacks Availability Attacks Set up governance process related with IT delivery Employee education regarding how to avoid malicious attacks

Summary Embrace the digital world Manage the risk Risk management is everyone’s responsibility

“Digital is not about technology, it is about making customers’ lives easier. How do you make the process as frictionless as possible?” - Expert -