TRANSFORMATION OF THE INSURANCE INDUSTRY IRI Ops / Tech IRI Ops / Tech THE DIGITAL TRANSFORMATION OF THE INSURANCE INDUSTRY Breakout Panel

Challenges Carriers Face Carriers face systems, digital adoption and regulatory challenges Carriers have made substantial investments in legacy systems, but… Many systems are outdated, disparate and do not communicate with each other Lack ability to capture email addresses Even though enhancing these systems would allow for a better customer experience, it is often not cost effective to do so

Digital Adoption Dilemma Carriers may not have direct access to the account holder Customers have signed up for eDelivery but still receive paper Single-digit consent rates are the norm

4 Things Insurance Companies Should Know

Paper Reliance

Digital Drives Savings

Beyond Email

Consumer Digital Trends

95% 87% Investors are Digital investors US adults Age is NOT a factor use the Internet investors use the Internet Income = $75K + Apps and tools vary Internet usage is consistent among Millennial Generation X Baby Boomers 81% Smart phone 55% Tablet device 78% Social network Sources: Pew Research and 2015 KPCB Internet Trends Report

Digital Expectations Continue to Rise Consumers are digital and they don’t communicate with their financial services providers in a vacuum As a consumer your account holder lives an active digital life Sources: ComScore

35 51 70 Digital Behavior Spans Demographics age of the oldest Millennials age of the oldest Gen X’er age of the oldest Boomers 19 – 35 years old this year 36 – 51 years old this year 52 – 70 years old this year In Q1 2015 Millennials became majority of US workforce, outpacing both Boomers and Gen X ahead of projections Use email for work grudgingly Are the most important demographic for asset retention and acquisition in the next 10 years Gen X adults are looking more like the millennials − digitally savvy and driven by experience and convenience Mobile usage is ubiquitous This is the target demographic in the Robo Advisor Market Boomer behavior is shifting; heavily influenced by co-workers, children and grandchildren Media consumption is shifting from TV to online (16 hrs per week TV and 19 hrs per week online) 82% use internet to research health and wellness Sources: Pew Research, Google, IPSOS

Changes in the Workforce Add Complexity Sources: Pew Research and 2015 KPCB Internet Trends Report

Investors May Not Be Digital With You With the exception of online banking, financial firms have been largely unsuccessful in establishing digital relationships Retail Banking Wealth Management Insurance Credentialed 75% 25% 6% Active Users 60% 5% 1% Total of Clients Sources: Broadridge Data Analysis and Quantcast

A New Dynamic and

Self-Service / Online only Consumers Are Solving Their Own Pain Points Self-Service / Online only Full Service Respondents from online survey 269 231 Have signed up for electronic delivery and turned off paper 40% 33% Get paper statements but also review online 32% 49% Store personal documents in the cloud 67% 60% Online survey conducted in September, 2104. Age range 30 – 65+. Income $75k - $500k+. Education: any. Employment: any. 1. Survey Response: I turned off the paper and I only get statements electronically 2. Survey Response: I get the paper statement in the mail, but review them online as well 3. Survey Question: Have you ever uploaded a document or PDF to a cloud drive solution like Dropbox, Onedrive, Google Drive or Evernote?

What Consumers Choose to Store in the Cloud Consumers are using cloud services as a personal archive for their most important financial documents

Innovations & Opportunities

Expand Your Reach into New Consumer Channels

Click to View Full Report Transform Static Communications into Experiences Click to View Full Report Personalized Created for each recipient Rich Graphics Interactive charts to pull investors deeper Recipient 1: Rachel Here the user’s preferences have been set to receive her annual report with more emphasis placed on details around the people who manage the fund, as well as high-level fund information. Content Delivered in Blocks Allows different content to be surfaced for each recipient based on preferences Regulatory Compliance The complete annual report available with just a click Fully Interactive Each element links off to more information Relevant Information Content is selected to ensure the highest level of engagement over time

Click to View Full Report Make Your Communications More Valuable Click to View Full Report Personalized Created for each recipient Rich Graphics Interactive charts to pull account holders deeper Recipient 2: Ben Here the account holder has different interests, All of this is totally automated to ensure that each account holder is delivered the right information most likely to drive engagement with their fund subaccount. Content Delivered in Blocks Allows different content to be surfaced for each recipient based on preferences Regulatory Compliance The complete annual report available with just a click Fully Interactive Each element links off to more information Relevant Information Content is selected to ensure the highest level of engagement over time

The First Step to Digital: Get the eConsent Build or Buy? There are options to over-taxing internal IT. Start small and iterate – but begin the digital journey now. You don’t have to go it alone. Do your research! TECHNOLOGY APPROACH PARTNER To ensure accuracy and compliance, you will need to systematically capture and maintain your eConsents. Before you opt to build your own, consider your alternatives. Many vendors, including Broadridge, offer consent management software. It’s not necessary to shift to digital all at once. In fact, trying to do so can be difficult, costly, and may lead to wasted time and money. You can begin your transformation sooner, adjust as you go along, and ultimately ensure a smoother transition. Many firms are now re-imagining customer engagement – like Broadridge and OpenMarket. Do your research by connecting with these firms to see if they have the right capabilities and service culture to partner with you.  

We are here to help! In Conclusion Digital is no longer coming; it is here To better engage customers, adopt a “go-to-them” strategy Tools exist that can help your company increase digital adoption Every journey begins with a single step … We are here to help!

To learn more … Senior Director Product Management Broadridge Regulatory Data & Communications corey.fiedler@broadridge.com Vice President Business Strategy & Development Broadridge Digital Solutions michelle.jackson@broadridge.com For more information, call us toll-free at +1 800-481-2331 or visit broadridge.com