Multiple innovations are radically changing the insurance sector business profile. Client expectations: - Customer satisfaction has improved significantly - 3 clients out of 4 expect to be able to interact via multiple channels with the insurance company - International studies prove a high availability to share personal information when presented with discounts or aditional services - Growing request for transparency Product structure: - Connected insurance is more and more present (Oscar for health, Cardif for home, RCIS in crop insurance) - Pay per use (e.g. Metromile) - Digital insurance snack (e.g. temporary coverage offered by - - Tokyo Marine via mobile, the agreement between Generali and Obi Worldphones) - Cash back linked to “exemplary” behavior (e.g. Vitality Drive)

1. April 2016
From cure to care:
the disruptive opportunity
of connected health insurance

2. 2
“we’re now living in an Idea Economy,
where the ability to turn an idea into a
new product or service has never been
easier…”
Meg Whitman, CEO at Hewlett-Packard
Idea Economy

3. 3
Multiple innovations are radically changing the
insurance sectore business profile
• Customer satisfaction has improved significantly
• 3 clients out of 4 expect to be able to interact via
multiple channels with the insurance company
• International studies prove a high availability to share
personal information when presented with discounts
or aditional services
• Growing request for transparency
• Connected insurance is more and more present (Oscar
for health, Cardif for home, RCIS in crop insurance)
• Pay per use (e.g. Metromile)
• Digital insurance snack (e.g. temporary coverage
offered by Tokyo Marine via mobile, the agreement
between Generali and Obi Worldphones)
• Cash back linked to “exemplary” behavior (e.g. Vitality
Drive)
• Propose aditional services connected to insurance
coverage (e.g. USAA has built an offer around its
home insurance involving professionals - it includes
health products as well as household products)
• Welness and health services linked to a health
insurance policy (e.g. Medibank has reached a growth
rate of 10% in a few years based on revenues from
services)
• Access to prices already negociated by the Company
instead of claims of high frequency (e.g. Unipol
Banca-Unisalute)
• Beem offers a value proposition which consists in an
electric toothbrush communicating with the company,
dental coverage and a network of dentists
• Buying products from designated partners is key to the
behavior adjustment model also responsible for the
success of Discovery
• Allstate’s motor telematics offer has at its core the
"shopping reward"
• Mojio offers "retail" a motor telematics device with a
platform open to third parties to which Onsurance is also
connected (insurance policy comparison engine)
Source: Telematics, Connected Insurance & Innovation Bain Observatory
Client expectations Product structure
Services related to policy Role of ecosystems

4. 4
The technology, app and insurance policies
Beam Technologies Discovery Oscar
Source: Telematics, Connected Insurance & Innovation Bain Observatory
Electric
toothbrush
with Bluetooth
App for
accessing
dentist network
+ Dental care insurance
Glucose level
meter with
Bluetooth
• offered to all diabetics
registered with the Company
Actual daily use monitored and
encouraged within the loyalty
scheme designed by Vitality
Bluetooth pedometer offered
to all the insured
The Company’s
App gives a daily
goal linked to a
reward
30M$ invested by Google in
this insurance startup, recently
evaluated at 1,7B€

5. …affecting the whole insurance value chain and generating real
value for insurance P&L
4
5 Telematics
Value
Creation
1
2
3
…affecting the whole insurance value chain and
generating real value for insurance P&L
RISK SELECTION
• Normal walking steps form the basis
for an active lifestyle
• Underwriting process quality
improvement
RISK-BASED PRICING
• Pricing definition process
based on "quantity" and
"level" of risk exposure
SERVICES
• …concerning policy
information
• …having high value added for
drivers
• …related to insurance cross-
selling and product offer form
motor ecosystem
LOYALTY AND "BEHAVIOR STEERING"
• Loyalty systems based on detected
customer driving behavior
• Positive behavior encouragement
• Gamification logic
LOSS CONTROL
• Proactive intervention for claims
management, thus reducing final cash-
out
• Usage of actual telematics data for
claims management
• Preventive actions
Source: Telematics, Connected Insurance & Innovation Bain Observatory
5

6. Companies will have to face ever evolving challenges
Source: Telematics, Connected Insurance & Innovation Bain Observatory
• Consistency and continuity within the
user experience between the different
channels used
• Mobile as the main channel for
interacting (thinking in terms of
"digital snack")
• Single UX representative of all
the elements within the value
proposition; optimizing
communication in terms of:
o relevance
o frequency
• Customer holistic view cross
products (including connected ins.
and technical data) and cross
channel
• Strategy, framework privacy and
processes that help manage the
data potential
• Tool and competencies for creating a
competitive advantage based on
knowledge extracted from data
The
challenge
for the
Companies
Integrated User Experience Integrated Data Management
6

7. Row data
Computed
variables
Devices data
Context data
+
Insurer's
Knowledge
Insurer's
Product
Other
Data
Risk model
Customer insights
Tariff
Sales process
Insurer Big DataIoT value chain Big Data
Row data aren't smart
Traditional
insurance
data
Services delivery
…and learn to manage the IoT value chain…
Activity Level Calories
Elevation Heart Rate
Floors Steps
Distance MET
Sleeping
Weight Blood Pressure
ECG SpO2
Geolocation Blood Sugar
Level
Smoke Water
Intrusion Movement
Electricity Temperature
Humidity
Clients
Premium payments Claims handling
7

8. 1. Ecosystem
connection
2. Use 3. Collection &
transmission
4. Storage
& mgt
6. Real-Time
processing
7.
Delivery
• Set-up & data
collection model
evolution
- Compatible
Smartphones
- Certified
wearables
- Third-party
apps/
ecosystems
- Linked social
networks
• App and
monitoring service
activation
• Automated
processes
- Awareness and
suggestions
- Motivation
- Engagement
• M2M data
transmission
(device to
smartphone/
gateway)
• Data reception,
pre-processing
and local
aggregation
(smartphone /
gateway)
• M2M data
transmission
(smartphone/gate
way to cloud)
• Optimized
reception and
data
normalization
• Data sets
preparation
according to
requirement of
the Company
• Privacy mgt
• Archiving and
backup
• Delivery on
customer's app
of all
information and
services related
to health policy
• Automated
processes
- Behavioural
change
- Loyalty
- Up/cross
selling
• Processing with
the Company's
proprietary
algorithms at the
virtual data
centres (private
cloud)
• Interfacing with
Company
functions (UW,
claims, marketing)
and third-party
providers
5. Insurer’s
Analytics
• Integration data sets with actuarial data for:
- Building dynamic pricing models
- Strengthening loss control processes
- Evolving services customization
… through an end-to-end process including front and
back-end
Integrating also
user interfaces of
some health
services with
their specific
devices directly
connected with
their service
8

9. Risk mitigation
(how)
Target (who)
Healthy behavior steering
Healing process monitoring
Illness
presence
check
Service quality/price monitoring
Early warning identification
Service
(what)
With illness
Chronic/ elderly
At risk
Healthy
Indemnity
Medical service
supply
Medical
Expenses
Discount price purchase (negotiated by
the company)
Traditional positioning of Health
Insurance companies
Company
strategic role
(why)
Such approach enables an industry game change …
Expansion opportunities enabled by
Healthfront
9

10. ... by connecting the health insurance value proposition
to wellness and health services…
• Gamification and engagement based on
wearables and tailor-made goals
• Wellness contents (programs/diet) in
multiple formats
• Direct Personal Trainer consultation via
App
• Wellness agreements (services /
products)
• Medical contents in multiple formats
• Call center for emergencies
• Pharmaceutical products ordering and home-delivery
• e-health with specific devices for specific target patients (elder, heart problems and diabetes
patients, ...), including alerting on possible critical health conditions
• Professional medical advice
(messaging, call, video)
• “Discounted" prices for doctors and
structures which are part of
preferred network
• Online booking and payments for
medical visit (enhanced by
geolocation tool)
• Medical history and digital health
“agenda”
HEALTH SERVICES
WELLNESS HEALTH ACCESS & TOOLS
A
BBC
• Insurance health covers
(differentiated by client
segments)
• Expense management and
settlement process
monitoring
• Policy management tools
• Add-on covers
INSURANCE
OPPORTUNITIES
10
INSURANCE
COVERS

11. … and transforming the nature of the customer – insurer
interaction to create a seamless customer experience
11
•Gamification and engagement
•Wellness contents
•Personal Trainer advice
•Wellness services / products
•Professional medical advice
•Medical contents
•Call center for emergencies
•Pharmaceutical products
•e-health with specific devices
•Recommended care providers
•Online booking and payment
•Medical history
•Digital health “agenda”
Individuals spend over three hours a day,
fragmented in hundreds of micro-moments,
on their smartphones, which have become
an extension of our personal identity

12. - The End -
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