© 2012 CELENT, a Division of OLIVER WYMAN CONFIDENTIAL Jamie Macgregor, Celent Mike Fitzgerald, Celent WORKSHOP VISUALISING DISRUPTION

1 © 2012 CELENT, a Division of OLIVER WYMAN CONFIDENTIAL Recapping on our three key technology themes that will change the competitive landscape by Ubiquitous data 2 User expectations of simplicity and technology doing more of the work 3 Industrialisation of IT at scale

2 © 2012 CELENT, a Division of OLIVER WYMAN CONFIDENTIAL October 12, 2015 Revisiting the framework STATUS QUO Risk and Compliance Business model enablement and partnerships Market and product agility Efficiency and expenses Pre and post sale customer engagement Liability Management Improvement Innovation Disruptive effect Growth and RetentionProfitability and Control

3 © 2012 CELENT, a Division of OLIVER WYMAN CONFIDENTIAL October 12, 2015 Typical change portfolio: Initiative #92 IDTitleDetailDriverInvestmentRoI ……….… 92BPM Replace out of support workflow solution with modern BPM solution. Leverage solution to improve business efficiencies / enable process tracking - $10mMinimal …………

4 © 2012 CELENT, a Division of OLIVER WYMAN CONFIDENTIAL October 12, 2015 Where should initiative #92 be placed? STATUS QUO Risk and Compliance Business model enablement and partnerships Market and product agility Efficiency and expenses Pre and post sale customer engagement Liability Management Improvement Innovation Disruptive effect Growth and RetentionProfitability and Control Celent’s opinion Audience

5 © 2012 CELENT, a Division of OLIVER WYMAN CONFIDENTIAL October 12, 2015 However, what if... IDTitleDetailDriverInvestmentRoI ……….… 92BPM Replace out of support workflow solution with modern BPM solution. Leverage solution to improve business efficiencies / enable process tracking Risk and compliance $10mMinimal ………… IDTitleDetailDriverInvestmentRoI ……….… 92 Customer directed service Deliver a multi-channel self-service proposition enabling the customer to manage their products. Use automation to create STP enabling greater efficiency and lower NIGO rates. -$15m5 years …………

6 © 2012 CELENT, a Division of OLIVER WYMAN CONFIDENTIAL October 12, 2015 Where should initiative #92 be placed? STATUS QUO Risk and Compliance Business model enablement and partnerships Market and product agility Efficiency and expenses Pre and post sale customer engagement Liability Management Improvement Innovation Disruptive effect Growth and RetentionProfitability and Control Celent’s opinion Audience

7 © 2012 CELENT, a Division of OLIVER WYMAN CONFIDENTIAL October 12, 2015 Pushing the boundaries further… IDTitleDetailDriverInvestmentRoI ……….… 92 Customer directed service Deliver a multi-channel self-service proposition enabling the customer to manage their products. Use automation to create STP enabling greater efficiency and lower NIGO rates. Efficiency and expenses $15m5 years ………… IDTitleDetailDriverInvestmentRoI ……….… 92 Low-cost temporary insurance for poor risks Deliver a proposition targeted at high risk low income groups to provide short-term temporary cover via an ultra low cost STP infrastructure. Deliver primarily via mobile platform. - $20m4 years …………

8 © 2012 CELENT, a Division of OLIVER WYMAN CONFIDENTIAL October 12, 2015 Where should initiative #92 now be placed? STATUS QUO Risk and Compliance Business model enablement and partnerships Market and product agility Efficiency and expenses Pre and post sale customer engagement Liability Management Improvement Innovation Disruptive effect Growth and retentionProfitability and Control Celent’s opinion Audience

9 © 2012 CELENT, a Division of OLIVER WYMAN CONFIDENTIAL October 12, 2015 But, what about the trade-offs? IDTitleDetailDriverInvestmentRoI ……….… 92 Low-cost temporary insurance for poor risks Deliver a proposition targeted at high risk low income groups to provide short-term temporary cover via an ultra low cost STP infrastructure. Deliver primarily via mobile platform. Market and product agility $20m4 years ………… IDTitleDetailDriverInvestmentRoI ……….… 92 Low-cost temporary insurance for poor risks Deliver a proposition targeted at high risk low income groups to provide short-term temporary cover via an ultra low cost STP infrastructure. Deliver primarily via mobile platform. Market and product agility $20m $5m 4 years 2 years …………

10 © 2012 CELENT, a Division of OLIVER WYMAN CONFIDENTIAL October 12, 2015 Typical change portfolio: Initiative #7 IDTitleDetailDriverInvestmentRoI ……….… 07 Social Media Monitoring Monitor activity on social sites of prospects, agents, and policyholders. Better manage reputational risks. -$0.5mMinimal …………

11 © 2012 CELENT, a Division of OLIVER WYMAN CONFIDENTIAL October 12, 2015 Where should initiative #7 be placed? STATUS QUO Risk and Compliance Business model enablement and partnerships Market and product agility Efficiency and expenses Pre and post sale customer engagement Liability Management Improvement Innovation Disruptive effect Growth and retentionProfitability and Control Celent’s opinion Audience

12 © 2012 CELENT, a Division of OLIVER WYMAN CONFIDENTIAL IDTitleDetailDriverInvestmentRoI ……….… 07 Social Media Monitoring Monitor activity on social sites of prospects, agents, and policyholders. Better manage reputational risks. Risk and compliance $0.5mMinimal ………… October 12, 2015 However, what if... IDTitleDetailDriverInvestmentRoI ……….… 07 Social Monitoring in Customer Service Use social tools as alternative front-end to customer service systems Pre and post sale customer experience $2m2 years …………

13 © 2012 CELENT, a Division of OLIVER WYMAN CONFIDENTIAL October 12, 2015 Where should initiative #2 now be placed? Risk and Compliance Business model enablement and partnerships Market and product agility Efficiency and expenses Pre and post sale customer engagement Liability Management Improvement Innovation Disruptive effect Growth and retentionProfitability and Control Celent’s opinion Audience STATUS QUO

14 © 2012 CELENT, a Division of OLIVER WYMAN CONFIDENTIAL IDTitleDetailDriverInvestmentRoI ……….… 07 Social Monitoring in Customer Service Use social tools as alternative front-end to customer service systems Pre and post sale customer experience $2m2 years ………… October 12, 2015 Pushing the boundaries further… IDTitleDetailDriverInvestmentRoI ……….… 07 Peer-2- Peer distribution Establish a distribution brand based on social media principles where individuals can find and group together with their peers to fund an aggregate deductible and then place the excess layer above with the wider insurance industry -$2m2 years …………

15 © 2012 CELENT, a Division of OLIVER WYMAN CONFIDENTIAL October 12, 2015 Where should initiative #2 now be placed? Risk and Compliance Business model enablement and partnerships Market and product agility Efficiency and expenses Pre and post sale customer engagement Liability Management Improvement Innovation Disruptive effect Growth and retentionProfitability and Control Celent’s opinion Audience STATUS QUO

16 © 2012 CELENT, a Division of OLIVER WYMAN CONFIDENTIAL October 12, 2015 Why use a model? 1 Visualization to identify gaps, clusters and further opportunities 2 Stretching the boundaries to deliver more value 3 Help facilitate discussions about enabling technologies

17 © 2012 CELENT, a Division of OLIVER WYMAN CONFIDENTIAL October 12, 2015