TRANSFORMATION OF INFORMATION TECHNOLOGY IN INSURANCE BUSINESS MODELS HENDRISMAN RAHIM CEO PT. Jiwasraya (Persero) The Chairman of AAMAI Yogyakarta, July 27, 2017

Advances in software and hardware that transforming Business Models Social Technology Economic Environmental Political FUTURE FACTOR Advances in software and hardware that transforming Business Models

Transformation of Tech. Information in Business Models Change of Distribution Models Change of Data Analysis Models Change of Strategic Decision Models

From Distribution Dominance to Distribution Destruction Internet, mobility and social networking have changed the game over the past decade and have created a new generation of customers Dominated Intermediaries (agent & broker) Buy ‘direct’ using online and of line ‘trust’ network Understanding consumer and business needs, and then matching and tailoring insurance products and solutions to their needs. This will result in a fundamental redefinition of the role of advice and the disappearance of distributors as a sales channel.

From Big and Structured Data to Unstructured Data Software and hardware can translate unstructured data into operational processing Capabilities to process Big Data & Large Volume Developing Storages with Capabilities to Analysis Unstructured Data Capabilities the ‘big data’ trend, global investment in advanced analytical techniques is increasing in order to develop the capabilities to process large volumes of data Artificial Intelligence techniques, such as machine learning, natural language understanding & intelligent decision-making will allow insurers to advance from using technology for transaction processing to decision-making

From Tactical Decision Making to Strategic Decision Making Artificial Intelligence Techniques Tactical & Operational Decision Making Strategic Decision Making The industry will use large amounts of real-time sensor data, unstructured data from social networks, and multimedia data such as text, voice and video. Unstructured data for forward-looking strategic decisions such as, which product or solution is most suited for a client given their current and future situation, also proactively managing customer experience to enhance retention of the customers. Historically, the insurance sector has used, primarily, internal data in a structured format to make tactical and operational decisions around which customers to target, how to price the risk, how to estimate the losses, etc.

Information Technology Transformation (in Insurance Industries) Phase 1 Phase 2 Phase 3 Phase 4 Phase 5 Information Technology Transformation (in Insurance Industries)

Benefit and Importance New Information Technology Enhancing Operational Efficiencies Increasing Revenue Improving Customer Experiences Benefit of New Inf. Technology The growth in smartphones, tablets, and cloud computing The explosion of computing power and storage The growth in active sensors and devices connected to the internet Importance of New Inf. Technology

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