Keynote presentation at the CIO Leaders Summit in Kuala Lumpur, J.W. Marriott Hotel - 1st & 2nd June 2016

1. A CASE FOR STRATEGIC
TRANSFORMATION OF I.T.
- A C.E.O.’S PERSPECTIVE
RANGAM BIR
BUSINESS LEADER | TECHNOLOGY INVESTOR | BOARD MEMBER
FORMER CHIEF EXECUTIVE OFFICER, ALLIANZ LIFE INSURANCE MALAYSIA BERHAD
1ST JUNE 2016

2. PERSONAL INTRODUCTION
§ International Business Leader with around 19 years of experience
in the Insurance and Financial Services industry in Asia, Europe, the
Middle East, and Africa.
§ Successful track record of building winning businesses in fast
growing emerging markets.
§ Implemented innovative, digital business models to achieve
organizational transformation.
§ Former C.E.O. of Allianz Life Insurance Malaysia Berhad
§ Regional General Manager for Allianz Asia Pacific, Singapore
§ Interim C.E.O. of Allianz China General Insurance Company,
Guangzhou
§ Previously C.E.O. of Allianz-Tiriac Asigurari S.A., Romania
§ Chairman/Board Member in several companies in Asia and Europe

3. FIXING LEGACY SYSTEMS THE C.E.O. WAY

4. TRADITIONAL VALUE CHAIN APPROACH IN
INSURANCE SUPPORTED BY I.T.
§ Technology and Infrastructure
priorities
§ “Internal” Process focused systems
development approach
§ Technical functionality driven solutions
like Underwriting, Claims, Accounting
etc.
§ ”Not invented here” syndrome
§ Consistency and Reliability primary
objective
§ Regulatory and legal constraints
Insurance
Value
Chain

5. INSURANCE HAS TO TRANSFORM IN THE NEW
DIGITAL BUSINESS ERA
§ Digital businesses are not just having
a web-presence, selling online or
digitizing existing processes
§ The Digital business is a complete
transformation of the customer
interaction
§ There is no distinction between the
physical and digital domains
1990s 2000s 2010s 2020s
Websites
E-Business
Digital Marketing
Digital Business
Autonomous
Business
Value
Source: “Digital to the Core”, Raskino and Waller, 2015

6. DIGITAL BUSINESSES ARE CONFIGURED TO
ENGAGE WITH CUSTOMERSALONG THE LIFECYCLE
Source: Gartner, Inc. 2014
§ New opportunity to
create innovative
product and service
propositions
§ “Outside-in” Customer
perspective essential
§ Organization structures
and processesmay need
to be reconfigured
§ Interfaces, partnerships
become the norm
§ Regulationshould not be
a constraint

7. Awareness
Information
Transaction
Engagement
Usage
Interaction
Involvement
Advocacy
SHIFTING FROM A VALUE CHAIN APPROACH TO
360O CUSTOMEREXPERIENCE
Customer Insight
• Customized Flexible
and Modular
Offers
• Event-based
Insurance
Seamless Brand
Engagement
• Lifestyle & Life Stage
relevant engagement
• Cross platform integration
Real-time Personal
Interactions
• Informationand
Advisory
• Customer Support

8. KEY TECHNOLOGY DEVELOPMENTSIMPACTING
THE INSURANCEINDUSTRY
Source: Swiss Re 2016
And there’s a lot more on the way…like Autonomous Cars!

9. THE NEW LANDSCAPE OF FINTECH & INSURTECH
§ No. of InsurTech Startups:
Over 1,000
§ Volume of Capital
Invested: Over $ 10.0 bn
Core trends include:
§ Innovative Lifestyle
oriented product and
service propositions
§ Transparency in
Advisory, Product
Information, and Offer
§ Transaction fulfilment and
Customer Services

10. FROM TRADITIONTO INNOVATION - INSURERS
RAMP UP INVESTMENTSIN INSURTECH
• Insurers are responding to the InsurTech challenge with multiple
approaches
• Investments into Innovation Labs, Garages, Accelerators
• Technology Acquisitions and Partnerships
• Ecosystem plays being established by pioneers
• Allianz, AIA, Axa, Manulife, Aviva, Ping An all
active in this space

11. A STRATEGIC VIEW TO BUSINESS TRANSFORMATION
IS ESSENTIAL TO CREATE IMPACT
• Ensure complete alignment with Business Strategy and Priorities
• Engage in the transformation process rather than react to changes
• Create and visualize a Transformation Roadmap to ensure
commitment – but maintain flexibility and agility to adapt
• Strive ceaselessly to Reduce Complexity
• Focus on Flexible, Scalable, Modular Systems Architectureas
compared to monolithic, proprietary, complex systems architecture
• Shift from Projectdrivento Solutiondriven approach
I.T. teams have to be able to change from managing and developing
the “status quo” to driving future ready business solutions
BUSINESS
STRATEGY
STRATEGIC
IT

12. • Partnership models will
proliferatebetweeninsurers
and external service providers
• Platform architecture to
integrate innovative solutions
(InsurTech/FinTech/Start-ups)
• Agile, Iterative, Flexible
executionfocused on business
outcomes rather than on
project plans
• Creating Business Impact!
THE NEW DIGITAL BUSINESSWILL NEED A NEW I.T.
FRAMEWORK
Agile, Iterative, Flexible execution
Focus on Business Outcomes
Business
Impact
Partnership ModelPlatform Architecture
Innovation
Capability
Transformation
Capability
I.T. Excellence
Customer
Centricity
Operational
Excellence
Effective
Knowledge
Worker

13. THE IMPERATIVE FOR A CHANGING ROLE OF I.T.
WITHIN THE ORGANIZATION
§ Internal Focus
§ Process& Cost Efficiency
§ Service Provider
§ Tech. Systems Development
§ Complex & Sophisticated
§ End-to-end Systems
§ Standards & Protocols
§ Project Delivery
FROM
§ Customer Focus
§ Customer Experience
§ Business Partner
§ Solutions Development
§ Transparent & Relevant
§ Platform Integration
§ Agile Solutions
§ Business Impact
TO
Organizational Core

14. INNOVATION CASE STUDY – ZHONGAN
LEVERAGESPARTNERS TO RAPIDLY SCALE ITS
DIGITAL INSURANCEBUSINESS
Source: Company website; Press research; McKinsey
Background
▪ Digital Insurer founded in
Shanghai in Nov. 2013
▪ JV – key shareholders are
Alibaba, Tencent, PingAn
▪ Within just one year,
ZhongAn’s sales reached
~RMB 800 mn in 2014 with
over 200 mn customers
▪ Wide range of innovative
products (i.e. small ticket
accident or liability
insurance) related to e-
Commerce and Payments
▪ Recent valuation grew to 8
bn USD within just 18
months of operations
Biz model Impact
▪ Zhongan.com has
obtained digital
license and
continued to gain
momentum with
the supportof the
partners
▪ Innovation of
Products as core
(i.e., Return
freight insurance,
Zhong Le Bao,
Bai Fu An) to
reach out to
broader clientele
Partnership Contribution
Zhongan.com
Ecosystem Partners
Local Insurance Partner
▪ PingAn provides core UW
capability
▪ Access to local regulatory bodies
▪ Contact center outsourced
Other ProductPartners
▪ Bring additional customer base
with natural trigger points (e.g.
travel) allowing quick ramp up
Other Local Partners
▪ Provide capitalor bring
network with regulatory
bodies to improve efficiency of
strategy execution
▪ Alibaba provides platform and
access to customer base through
Taobao.com
▪ Tencent contributed access to
~400mn customers on WeChat

15. ZHONGAN’S DIGITAL I.T. ARCHITECTURE
70
ZhongAn's digital architecture has strong capabilities around
integration, product management, micro-service modularity
and big data
Channels
Business Intelligence
Supporting services
Sales
ERP & Finance
Core insurance
Broker
Channel
Direct
Channel
Banking
Channel
Partner
Channel
Traditional insurer application architecture
Channels
Website
Big Data Service
Supporting services
Sales
ERP & Finance
Product Management
Core insurance
Policy
Pricing Claims
Identity
Mobile
Social
Media
Integration Layer
Devices
Desktop Phone Tablet
ZhongAn’s application architecture
1
2
3
4
SOURCE: Expert interviews; industry reports; team analysis
Big Data to enable real-
time analysis to provide
sales, claims and under-
writing support solutions
4Micro-services based
architecture maximize
flexibility for change
3Product Management is
outside of core insurance
component and is modular
and configurable, hence
improves product innovation
Integration Layer
improves cross-channel
and cross-device
communication
1 2
ILLUSTRATIVE
PolicyPricing ClaimsIdentityProduct
Strong capabilities on Integration, Product Management, Micro-Service
Modularity, and Data Analytics

16. IN CONCLUSION – INNOVATETO STAY RELEVANT!
ü
ü
ü
The new Digital Business, with blurred physical and digital domains, will
require I.T. to be completely aligned with the Strategic Priorities of Business
I.T. execution will be measured in terms of Business Impact, rather than
project delivery
With proliferating partnerships, I.T. will have to adopt a Platform Model
to integrate innovative solutions – No place for “Not Invented Here”!
ü Customer Experience is the defining lens for designing customer journeys
rather than the traditional value chain approach
for the Customer

17. A CASE FOR STRATEGIC
TRANSFORMATION OF I.T.
- A C.E.O.’S PERSPECTIVE
RANGAM BIR
BUSINESS LEADER | TECHNOLOGY INVESTOR | BOARD MEMBER
FORMER CHIEF EXECUTIVE OFFICER, ALLIANZ LIFE INSURANCE MALAYSIA BERHAD
1ST JUNE 2016