CREATING GROWTH AND PROSPERITY FOR OUR ORGANIZATIONS: GETTING IN FRONT OF THE NEXT TECH TIDAL WAVE Paul Artell Smith Matthew Decker IIAW 118th Annual Convention 3 May 2017

Annual data

Workforce Participation by Age Groups—2000 to 2016 Ages 65-Older 100% Ages 55-64 58% Ages 35-44 20% Ages 16-24 25% The older you are the more likely you will stay working. The younger you are the more likely you will delay working.

The Research IBM Institute for Business:  Insurance 2020—Now what? Exploring Initiatives for Innovation PwC:  Insurance 2020 and Beyond—Necessity is the Mother of Reinvention Capgemini: Top 10 Trends in Insurance in 2017

IBM Says… [Insurance] is a lethargic industry in the use of innovation. Technology has leveled the playing field permitting non-traditional industries. All essential technology for insurance business today can be purchased. Demographics Matter: They will remake your company. Your company will not remake demographics.

PwC Says… CEOs of insurance companies see much more disruption ahead. Customers want “easy” product when, how & where they want. Only 10% of insurance CEOs are looking to partner with start-ups. 1.5 million people are added to the urban population each week.

Capgemini Says… Chatbot: human communication using artificial intelligence—so good that customers don’t realize they are talking to a computer program. More Value Added Services: from home monitoring to roadside assistance to lifestyle management. Internet of Things driving shift toward more risk management and risk mitigation.

Online Purchases Trend Millennials are the canaries in the coal mine. Make them happy, make everyone happy. Pleasing millennials is a challenge. Why? Legacy products aren’t attractive and historical ways of selling won’t work. https://www.ibm.com/blogs/watson-customer-engagement/2016/03/10/millennials-the-insurance-customer-has-changed-will-you/

Millennials Don’t Like “Showing Up” to Spend 50% of baby boomers bought insurance policies from local insurance agents… …but only 25% of millennials did so. https://www.ibm.com/blogs/watson-customer-engagement/2016/03/10/millennials-the-insurance-customer-has-changed-will-you/

Millennials Tend to Distrust Insurance Companies 89% of millennials believe their friends, not you. 93% of millennials read reviews before making a purchase. https://www.ibm.com/blogs/watson-customer-engagement/2016/03/10/millennials-the-insurance-customer-has-changed-will-you/

What The Experts Say are Megatrends Greater use of Augmented Reality (VR). Use of Automation and AI (telematics). Increase in mobile for risk management and customer experiences. Greater use of internet of things (IoT) for building data models. Social Media. Social Media. Social Media.

Venture Capitalists Are Hoping to Put You Out of Business TechCrunch reports that “since 2010, investors have funneled more than $2 billion in venture capital into the insurance-tech industry.” https://www.ibm.com/blogs/watson-customer-engagement/2016/03/10/millennials-the-insurance-customer-has-changed-will-you/

Scope Technology Scope is using Oculus Rift VR™ goggles to reconstruct an accident. The oculus rift creates a full-scale reconstruction of the last moments leading up to an accident. Scope Tech Video Next

Companies That Are Disrupting Insurance Industries Car Insurance Car Insurance Pay-Per Mile Car Insurance Renters Insurance Home Insurance Life Insurance All Insurances Property Insurance

Your Competing With Grocery Stores! Tesco (UK) and Kroger (US) have implemented the distribution of insurance products in their stores. Insurance doesn’t have a tech problem—the problem is the use of technology due to culture, internal politics and human resists change.

ROOT Car Insurance Car insurance: no agents, no phone calls, no hassle. Telematics Technology: Use your phone to measure your driving behavior for 2-3 weeks. ROOT Video Next

PolicyGenius Application Calculate your life insurance needs The most accurate online calculator to get the right amount of coverage - no more, no less. Apply online through PolicyGenius Our concierge service is with you every step of the way - free of charge.

Trov Application Insure your valuables with mobile app. Swipe to protect. Swipe to make a claim. Available incrementally in the US starting 2017 Trov Video Next

Accepting Obvious Change It doesn't matter if you like it. It doesn't matter if you believe it. It doesn't matter if you object to it. It is going to happen anyway.

Bibliography and Additional Readings "Insurance 2020 IBM Global Business Services Insurance Innovating beyond old models." IBM Global Business Services. IBM, n.d. Web. <http://www-935.ibm.com/services/us/gbs/bus/pdf/g510-6291-00.pdf>. "Insurance 2020: The digital prize – Taking customer connection to a new level." PWC, n.d. Web. <https://www.pwc.nl/nl/assets/documents/pwc-insurance-2020-the-digital-prize.pdf>. "Millennials: The Insurance Customer Has Changed, Will You?" Watson Customer Engagement. IBM, 10 Nov. 2016. Web. 02 May 2017. <https://www.ibm.com/blogs/watson-customer-engagement/2016/03/10/millennials-the-insurance-customer-has-changed-will-you/>. "Top 10 Trends in Insurance 2017." Capgemini. Capgemini Consulting Technology Outsourcing , n.d. Web. <https://www.capgemini.com/resource-file-access/resource/pdf/insurance_trends_2017_web_0.pdf>.