Senior Strategist Tom Whitbrook, explores the future of insurance propositions, customer experience and operations as well as how #insurers can build the organisational and technological capabilities required to become the insurer of the future.

1. Becoming
the Insurer
of the Future
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2. © The App Business 2
The foundations
of insurance
have changed

3. Transportation and travel have been transformed by the
rise of on-demand services. E-commerce has shifted the
focus of retail from storefronts to warehouses.
The sharing economy, co-living and online marketplaces
have changed the way we view assets such as homes.
The transformation in these industries has fundamentally
changed the landscape for insurers, opening up a plethora
of new use cases, raising customer expectations and
enabling new competition to enter the market.
However, despite the customer need and the business
imperative, the insurer fit for the future is yet to be built.
Which leaves us asking – how can we build an insurer
ready for the future?
In the following slides, we identify the real challenges
facing insurers and provide insight on how you can
overcome these challenges and get ahead
of the competition.
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Technology is continuously changing
every aspect of our lives. Which
means the Insurer of the Future needs
to be different from the insurer of
today.

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We aren’t just buying an annual home or
contents insurance policy to cover the home
we live in; we need protection for the room
we rent out during the term while the eldest
child is at university.
We aren’t just insuring the car for the daily
commute; we need it covered on the days
we decide to drive for a ride sharing service
like Uber.
We aren’t just insuring the office against
a potential break in; we need to protect
digitally stored customer data against
cyber theft.
The insurer of tomorrow serves
a world very different to the one
the insurer of today was built for.

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There has never been
a more exciting time
to be an insurer

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The entire value chain is ripe for change:
frictionless disclosure, instant MTAs,
subscription-based policies, macro-insurance,
automating claims… the list goes on.
Darius Kumana, CoFounder at Wrisk

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Why insurance is exciting
Customers
want you
to succeed
When it comes to insurance,
customers still want the things
they’ve always wanted – security,
value and peace of mind for
themselves and their loved ones.
What’s changed is how they
expect those outcomes to be
achieved. New technology brings
with it a promise of simplicity,
clarity and convenience –
something customers want,
and expect from you.
You’ve got more
help than ever
before
The technology
is out there
and ready to go
Regulators
are on
your side
A customer-centred digital
journey enabling them to
interact with you easily is an
obvious start point. But there
are a plethora of established and
new technologies that can be
leveraged to transform the
insurance value chain. From
drones and connected cameras
to IoT and ML, we’re seeing new
use cases emerge daily.
It’s never been easier to
experiment thanks to new
‘sandbox’ environments created
by the regulator. Now you have a
safe space to test hypotheses
and find ways to radically
transform your cost base, lower
your operational costs and
improve performance.
Thanks to the growing
ecosystem of vendors, who offer
everything from compliance to
loss prevention, you can now
pick and choose what you build
yourself, and who you partner
with. Getting products built,
tested and launched can happen
in months as opposed to years.

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What does the future of
insurance propositions,
customer experience and
operations look like?

9. Insurers will continue to
offer broader composite
offers or bundles, offering
comprehensive ‘macro-
insurance’ services to
drive customer value
and brand loyalty. Digital
providers like Wrisk offer
great experiences to help
cross-sell and manage a
range of policies.
Insurers will serve more
of the ‘long-tail’, targeting
specific products to
underserved needs,
like health insurance
for fitness fanatics
or coverage for camera
drone businesses. Sold
on a self-service basis
and personalised to suit
specific customer contexts
and requirements,
technology will enable
these more complex
products to be easily
distributed.
Micro insurance coverage
– or pay-as-you-go
insurance – will be
integrated or bundled
with products, services or
features, rather than sold
as an add on or post-
purchase. Early examples
include Alexa’s ‘Guard
Mode’ for home security
or Revolut’s pay-per-day
geolocation-based travel
insurance.
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Propositions
9
Macro-
insurance
Self-service or
personalised coverage
Pay-as-you-go
insurance

10. Insurance propositions
will increasingly connect
customers to a broad
network of partners,
enabling them to provide
services beyond simply
paying out claims. For
example, providing
customers with access to
on-demand lodging near
their home in case of
home damage, or more
complementary
preventative services,
such as asset security and
monitoring to prevent
damage in the first place.
Advancements in data
openness, ‘regtech’
services and investment in
the user experience make
seamless application
processes and journeys
commonplace.
Authentication via services
like Facebook or Google
enables digital data
exchange that makes it
simple for customers to
provide on-boarding
information.
With the proliferation of
connected sensors, a
broader range of data
delivery mechanisms and
the ability to use machine
learning to efficiently draw
inferences, insurers will be
enabled to better protect
and serve customers. For
example, camera-
equipped drones could
facilitate remote
assessment of property
conditions for pricing,
maintenance and the
claims assessment
purposes.
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Customer
Experience
10
Partner
networks
Frictionless
application processes
Machine vision
insurance

11. Shared
services models
Leaders will pursue an
infrastructure that delivers
technological openness.
Rather than inflexible
processes based on
business silos, the insurer
of the future’s approach
will be based on APIs and
SDKs that facilitate flexible
workflows and services,
combining and re-
combining them as
needed to deliver
business value.
Machine Learning will
enable a transition from
descriptive analytics to
predictive and prescriptive
analytics. Flagging
potentially fraudulent
claims or identifying new
risk behaviours in data
sourced from partners
can aid fraud and risk
management.
As “every company
becomes a software
company”, the insurer of
the future will be made up
of teams focused on agile
product delivery.
Empowered product and
development teams with
the tools to deliver
innovations to market
rapidly can own the
delivery of products end-
to-end, improve customer
responsiveness and
reduce time to market.
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Operations
11
Machine learning
& automation
Agile ways
of working

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With all this opportunity,
why isn’t the future here yet?

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Lack of clarity,
vision and purpose
Organisations fall into the trap
of assuming they know what
customers want, and prioritising
the needs of the enterprise.
As a result, they do what
they’ve always done and
aren’t identifying, nor collecting,
the data needed to identify new
opportunities for improvement.
Not
data-driven
Slow and
bureaucratic
Hamstrung by
legacy stack
Organisations aren’t asking the
right questions, following the
right indicators, or acting rapidly
on the results. This leads to them
being unable to change
processes that are no longer
producing value, and unable to
move quickly to grasp new
opportunities.
It’s the classic story – legacy
systems continue to make it hard
for organisations to move and
respond quickly. As a result,
we’re seeing a lot of repetition
and workarounds which
ultimately lead to large amounts
of waste and a poor, disjointed
experience for employees and
customers.
Organisations continue to suffer
from slow and disconnected
feedback loops. Whether they’re
not capturing the data, or not
getting the right data or not
capturing actionable data,
the outcome is still the same
– they aren’t unearthing valuable
insights that would enable them
to continuously learn and grow.
Silo-ed ways
of working
Organisations struggle to break
down the internal barriers of
reporting lines, channels and
org charts. This keeps valuable
knowledge, insight and
capabilities from being
combined to create value, and
instead creates dysfunctional
and disconnected experiences
for customers and staff.
Organisational and Technological capabilities
remain the biggest blockers to getting there

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How to overcome
the blockers

15. TAB’s experience across numerous
industries undergoing disruptive
transformation, in particular the wider
financial services landscape, affords
a unique viewpoint into the organisational
and technological blockers described
within the previous section.
The challenges are significant,
yet not insurmountable.
In order to overcome them, fresh
thinking needs to be injected into your
organisation. Starting with a leadership
shift in focus to delivering clearly
articulated outcomes that marry business
objectives with customer expectations.
In addition to this; empowering teams
to explore and identify new solutions,
sharing capabilities, integrating
automation and building for tomorrow’s
security requirements today, will
accelerate the rate of change.
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Where to start?
15
Over the next few pages we’ll describe
5 key drivers for moving your business
towards the insurer of the future…

16. Outcome-based Strategy
and Leadership
16
Identifying and prioritising the most valuable outcomes
to solve is key to providing focus to delivery teams.
This also ensures new products, services and software
are aimed at solving real customer, employee and
business problems, ultimately delivering true value
to the business.
Design a strategy around solving real customer
and business needs, then prioritise the most valuable
outcomes to solve.
Inspire change by making it clear what the focus is
and creating a safe to fail environment that encourages
creative innovation and risk-taking.
Desired OutcomeBusiness/User Problems and pain points
We look to understand
the business and user’s
context and the outcomes
they want.
We seek-out and identify
the problems and pain
points that get in the way.
We design, test and iterate
solutions to achieve the
outcomes effectively.
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The role of leaders isn’t to dictate solutions or tell their
teams how to work – or even exactly what to work on.
Their role is to empower their teams through
transformational leadership that delivers clarity on
business goals and inspires change.
Their focus should be on end-to-end value delivery for the
customer and how it translates into KPIs for the
organisation and delivery teams.
Leaders should drive lean management at the heart of the
organisation by placing focus and execution excellence
onto a limited range of strategic goals.
Transformational
Leadership
and Empowered Teams

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Secure by design
18
Insurance is an industry built on customer data, so
protecting that data is non-negotiable. As user
expectations on how they interact with technology change,
so does the expectation that their data remains secure.
This can be achieved in two ways:
1. ‘Shift left on security’ practice intended to consider
and address security issues as early as possible in
the process
2. ‘Secure by design’ building design security into the
product foundations.
Ticking the compliance boxes doesn’t have to be hard. But
security should never be an afterthought; it should be built
to protect customers at every touchpoint.
Building security as a consideration to start with makes it
ultimately easier to integrate other providers products and
services safely without compromising the stack

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Creating open services with shared capabilities is often
hindered as much by silos in the business as it is by the
existing legacy stack.
Don’t get rid of the organisational chart all together.
Take a more holistic approach – separate technical
capabilities from the often complex organisational
structure of an insurer, and optimise for reuse and
consistency across organisational boundaries.
The goal is to build a scalable, future-proof stack that
reduces waste and provides higher levels of consistency
by enabling capabilities as shared services.
Shared Capabilities

20. Automation
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Automation is critical to reducing the effort and cost of
rapidly delivering change.
Building the capability for automated deployment, testing
and monitoring into the infrastructure, closes the gap
between high speed and high quality delivery.
Application performance monitoring should be rich
enough to identify potential problems and the root cause
of issues, as well as surfacing the right alerts when
required.
Robust logging and monitoring can enable ‘self-healing’
infrastructure with automated applications that can
correct themselves when things go wrong.

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Start small
21
Depending on the organisation,
the scale of this challenge can
seem overwhelming.
How can you change a culture
and ways of working
embedded for years
overnight?
The answer is to start small,
with a single team working on a
single solution. This team can
prove the value of new ways of
working, then split and seed
ideas around the organisation
when that success has been
proven. These solutions can be
developed over time rather than
attempting to replace existing
infrastructure in one go.

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