1. © 2011 OLIVER WYMAN FINANCIAL SERVICES 26 January 2012 PLACING STRATEGIC BETS What might the future hold for the insurance CIO?

2. 1 © 2012 OLIVER WYMAN30 August 2015 Our panellists Bill Ball AVP-Inforce Operations and Financial Control, John Hancock Life Insurance Dan Greteman, Senior Vice President and CIO, Nationwide Insurance Tsukasa Makino, Manager, IT Planning Dept and Corporate Planning Dept.,Tokio Marine & Nichido Fire Insurance Co., Ltd. Craig Weber, CEO, Celent Moderator - Catherine Stagg-Macey

3. 2 © 2012 OLIVER WYMAN30 August 2015 Section 1 THE INTERNET OF THINGS HOW WILL THIS IMPACT THE INSURANCE MARKET?

4. 3 © 2012 OLIVER WYMAN30 August 2015 The number of things connected to the Internet is greater than the Earth’s population That’s not just phones and tablets… 2003 2010 2015 2020 Connected things People Source: Cisco, 2011

5. 4 © 2012 OLIVER WYMAN30 August 2015 20 houses today generate more traffic than the entire Internet did in 2008 “Every year people share twice as much online.” Zuck’s Law 20122008 Source: Cisco, 2011

6. 5 © 2012 OLIVER WYMAN30 August 2015 If data is increasing so rapidly in volume and velocity… …how prepared are you to manage your business real-time and on a micro level? …what would it mean if a competitor got more data, quicker than you? …what could this mean for customers, agents and the propositions on offer? …what should IT be doing now to help the insurance business to evolve?

7. 6 © 2012 OLIVER WYMAN30 August 2015 Section 2 FUTURE PARTNERS AND SOURCING STRATEGIES

8. 7 © 2012 OLIVER WYMAN30 August 2015 Your partners share the same vision Note: Word Cloud created using data for the 2011 PAS RFI responses in 2011 from both GI and Life..

9. 8 © 2012 OLIVER WYMAN30 August 2015 If your partner is unable to offer you anything unique today… …is the choice of core solution now just a commodity purchase? …if so, where will you invest to differentiate your propositions? …what’s more important in the long-term: the solution or the partner? …if the partner, is that partner working with you today?

10. 9 © 2012 OLIVER WYMAN30 August 2015 Section 3 THE FUTURE OF THE CIO

11. 10 © 2012 OLIVER WYMAN The Future of the CIO OperationalStrategicDisruptive IT Environment Description In-house data center and network Maintenance activities > 60% Limited contracted application maintenance Legacy modernization underway or complete Outsourced network, operations, app development Expanding channel options Application of technologies that change business models SkillsOperations management Build and manage IT organization Technical IT expertise Contract management Peer relationship management Vendor relationship management Change management Integrate business and IT strategy Manage large scale transformation Negotiation Coaching Communication Develop business and IT strategy Partner risk sharing management BehaviorsSteady hand Detail – oriented Values extensive planning Adaptability Collaboration Politically astute Influence without authority Externally focused Take and manage professional risks PersonalityTechnician Production Manager Change agent Air Traffic Controller Visionary Entrepreneur

12. 11 © 2012 OLIVER WYMAN30 August 2015 CIO role questions… …do CIOs have a role in developing business strategy? …how can partners assist CIOs with meeting the disruptive needs of the insurance organization? …how balance operational and leadership skills and behaviors appropriately? …how are CIOs building tomorrow’s skills in your successor(s)?

13. 12 © 2012 OLIVER WYMAN30 August 2015