Digital Innovation (Getting ideas to market) Eoin Lyons [CEO OPAL] We are living even longer:@

People don’t want protection. They don’t want a mortgage. The want a home (with shelves)

Problem statement

Players: Heritage but slow or fast but not trusted Traditional Balance sheet strength + brand equity + secure Slow + bureaucratic + risk averse Fintech Engaging ideas + Fast + Risk takers Need cash + security

Our industry is focussed on incremental improvements to the “drill” Product development and process optimisation is important but won’t solve the protection gap (and isn’t interesting) How can we innovate? (i.e. test new and creative ideas in the market)

Some thoughts

If you are not paying you are the product

=> The they pay model TV in the US has always been funded by advertisers not consumers >90% Google’s revenue is from advertising Provider of product or service creates value for consumer – somebody else pays They wanted your attention – now they want your data => The they pay model

Financial services already deploy this model Growth of group income protection is interesting development They pay Linked to income not mortgage Other FS markets successfully bundle “free” offers on a commoditised product

“Data” bargaining power of consumers will increase Somebody else pay for our protection for access to data?

Protection hero – 1m lives saved and counting

Any ideas?

Disrupt by joining up the value chain? Innovator Fintech Traditional Platform

“If you build it they will come” Fully digital protection platform in 4 months IFAs, customers (& insurer) can self-serve >25% of IFA interactions are outside business hours Build more capability and service when and where it is needed [innovate –> measure –> learn –> innovate]

Offer the option of digital journey? Traditional over 50s scheme traditionally administered Created digital link to CRM of our client Customer now has option to self-serve Features and functionality can be added as we learn [innovate –> measure –> learn –> innovate]

Don’t be afraid to fail, but fail quickly and use the lessons learned Our business: Find out when and where the customer needs the hole in the wall Don’t be afraid to fail, but fail quickly and use the lessons learned Winning business model will combine strengths of traditional and new

Thank you! contact: eoinlyons@opal-uk.com POWERFUL SOFTWARE AND ADMINISTRATION SOLUTIONS