1. Fall Midwest IASA Conference
Council Bluffs, Iowa
September 12-13, 2019

3. Today’s presenters Rick Kes RSM Senior Industry Analyst
Matt Wolf RSM Senior Industry Analyst

4. Learning objectives
Learn what is causing digital transformation within the insurance sector
Learn why insurance companies need to care about digital transformation
Learn how insurance companies approach digital transformation

5. Evolution of digital (1 of 2)

6. Evolution of digital (2 of 2)
U.S – 2014
U.S – Present
MIND
MACHINE
PRODUCT
PLATFORM
When we think about digital transformation we can recognize in many ways this has been going on for a long time. The question you want to ask is what’s new – and as suggested in the book “the Second Machine Age” have we reached a new inflection point in the impact of digital transformation.
Many will argue the timing, but for today’s discussion we’ll suggest this next way of digital transformation really started to kick into high hear in 2014, and as part of that we are seeing transformation occurring in 3 core area:
The balance between Mind (centralized decision making and individual involvement in all decisions) and Machines has seen as dramatic shift as machines are being used increasingly in business to connect desperate data sets, to make decisions faster and to remove individual bias (conscious or unconscious) from decision.
We are seeing a shift from Product (the company in control and focused on what to make and what to sell) to Platforms. Great examples of platforms we are all familiar with are Uber, Lyft, Air B&B and Facebook. Organizations that don’t own the product, but create the platform to connect with customers in an efficient way
And finally a shift from core audiences to crowd being a better descriptor of our audiences, and the impact these audiences have on our business. It’s more and more today about how you engage with the community, and how the community engages with you.
CORE
CROWD

7. Digital transformation is already universal
Facebook has over 33,000 chatbots in production

8. Definitions
Consumerism – the shift to purposefully adapt a business model to align more with the consumers needs and wants
Digital technology - enables immense amounts of information to be compressed on small storage devices that can be easily preserved and transported (encyclopedia.com)

9. What does digital mean for insurance?
More than an app
Individually customized
On-demand
More than just improved efficiency

10. Technologies in use today
Blockchain
Data analytics
Automation
IoT
Mobile / Platforms

11. What does “digital” mean for insurance?
Prudential Q Earnings Call:

12. What does “digital” mean for insurance?
State Auto Financial Q Earnings Call:
State Auto Financial K:

13. What does “digital” mean for insurance?
MetLife – Chief Digital Officer
Who else puts intentional focus on their consumer?
Source: Accenture and Oxford Economics

14. System integration and IT collaboration are significant hurdles
Source: Accenture and Oxford Economics

15. What does it all mean?
Digital transformation is not only about doing things differently, but doing different things – from gathering and analyzing data for smarter decision-making to engaging clients, customers and suppliers in new ways

16. Why insurance organizations need to care about consumerism

17. New entrants
Source: interview with RGAX’s CEO Dennis Barnes

18. Why is data evolving?
Consumer Preferences
Technology
Data

19. What does digital transformation look like?

20. Brand
Consumerism
Importance of Brand

21. Insurtech investment
Source: WillisTowersWatson

22. RSM’s connection to Insurtech

23. What can you do?
Invest in digitally upskilling your talent around AI, analytics, RPA
Define what “digital” means to your organization
Start with small incremental steps to fund larger initiatives
Focus on: leadership, ideas, velocity
* “How Digital are You?”, A Report from the National Center for the Middle Market and Magento

24. What can you do?
Develop tools to better understand your consumer segments
Certain segments may react better than others to digital engagement
Create partnerships with start-ups and other non-traditional companies
Consider divestures of what you are not good at

25. Questions?
Contact information: