1. Future of Insurance Rafal Walkiewicz September 2, 2015 2015 Entrepreneurial Insurance Symposium

2. The Insurance Industry Experts New York London Hong Kong Sydney How To Win in the Technological Revolution? 1 “Sustaining innovation” will not save you from extinction

3. The Insurance Industry Experts New York London Hong Kong Sydney Do All Leading Innovators Eventually Fail? 2 To survive companies must embrace “Disruptive Innovation” Diminishing Returns of Sustaining Innovation Resource Allocation Dilemma Focus on Short Term Profit Innovation Traps

4. The Insurance Industry Experts New York London Hong Kong Sydney How Technology Disrupts P&C Insurance? 3

5. The Insurance Industry Experts New York London Hong Kong Sydney Internet of Things – Making Life Easier 4 Who owns the data? Who distributes “things”? Who has algorithms to analyze data?

6. The Insurance Industry Experts New York London Hong Kong Sydney Self Driving Cars Don’t Need Insurance 5 Telematics Autonomous driving Premium Falls Premium moves to Commercial Writers Personal auto insurance premium will eventually disappear We are investigating telematics and broadening the value proposition for the connected customer. If we are not effective in anticipating the impact of changing technology, including automotive technology, our ability to successfully operate may be impaired. - Allstate (currently $18bn of auto DPW, 66% of total premium) U.S. market shrinks from $180bn to $120bn U.S. market shrinks from $120bn to $80bn $80bn of premium from car manufacturers and infrastructure providers 2020 Safety Now20302040

7. The Insurance Industry Experts New York London Hong Kong Sydney Auto Insurance Disruption – How to Fight Back? 6 Who distributes “things? Who owns the data? Who has algorithms to analyze data? Insurer Standalone Model Partnership Model Consulting Model

8. The Insurance Industry Experts New York London Hong Kong Sydney What About Life? 7

9. The Insurance Industry Experts New York London Hong Kong Sydney Wearables – Making Life Longer 8 Why would customers agree to forfeit privacy? Internet of Things Wearables P&CLife Making life easierMaking life longer Life (mortality) insurers’ interests are well aligned with customers

10. The Insurance Industry Experts New York London Hong Kong Sydney End of Illness 9 Better Prediction Healthy Lifestyle / Preventive Medicine Youth Elixir / End of Illness Genetic Predispositions Behavioral Choices Medical Advances Big Data Life Insurers Health Insurers Healthcare Providers “Things” Manufacturers Pharma

11. The Insurance Industry Experts New York London Hong Kong Sydney Can Insurers Benefit From Disruptive Technology? 10

12. Thank you