2014 01 - sko2014 - s2014 sko insurance overview.peterku.3
DESCRIPTION
InsuranceTRANSCRIPT
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2014 – U.S./North American Insurance Sales Team Enablement
Peter Ku
Sr. Director, Global Industry Marketing
Ph 1-650-385-5131
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Agenda
• Top Business Imperatives in Insurance
• Technology Investments and Informatica
Opportunities
• Informatica Footprint in Insurance
• Upcoming Marketing Activities and Investments
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Top Business Imperatives (Concerns?)
Improve
Customer
Experience
Grow
Revenue
Improve
profit
margins
Comply with
industry
regulations
CEO
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Top CEO Priorities and Technology Investments
CEO Priorities
Improve Customer
Experience
Grow Revenue
Improve Profit
Margins
Comply with
industry regulations
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Top CEO Priorities and CIO Investments
CEO Priorities CIO Priorities
Improve Customer
Experience
• Core Insurance Legacy Modernization
• Mobile and Digital Investments
• Cloud/SaaS Adoption
Grow Revenue • Business Intelligence
• Predictive Analytics
• Big Data Processing
Improve Profit
Margins
• Cloud/SaaS Adoption
• IT Consolidation
• IT Automation
Comply with
industry regulations
• Data Warehousing
• Business Intelligence
• Modernize Risk and Compliance
Applications
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IT Investment Predictions by Insurance Carriers
IT budgets to grow at 6.5
percent CAGR (compound
average growth rate), for a
total IT spend of over $108
billion, by 2017
(Source: OVUM)
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IT Investment Predictions by Insurance Carriers
IT spend in the life-insurance
market will grow at 7.6 percent
CAGR to reach a value of $49
billion by 2017, with the P&C
industry growing at 5.7
percent to reach a total market
size of $60 billion by 2017
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IT Investment Predictions by Insurance Carriers
Gartner Research
forecasts worldwide IT
spending to grow by 3.6
percent in 2014
(compared to last year)
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Improve Customer Experience
• Changing customer
demands in today’s
Digital-era of insurance
(mobile, social)
• Customer Facing
Technology is a
differentiator!
• Core Insurance Legacy
Modernization
• Mobile and Digital
Investments
• Cloud/SaaS Adoption
• Timely completion of
legacy modernization
investments
• Improved customer
information across
channels and business
lines
• Data Migration Solutions
Test Data Management
• MDM for Single View of
Customer
• Cloud DI & MDM
Why is this important? Key Investments
Data/ Tech. Challenges Informatica Solutions
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Why is customer acquisition and retention so important to financial institutions?
• The cost of losing one customer is 4x
higher than obtaining that same
customer
• Satisfying and retaining current
customers is 3 to 10 times cheaper
than acquiring new customers
• A typical company receives around 65
percent of its business from existing
customers.
• A 5% reduction in the customer
defection rate can increase profits by
25% to 80%
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Single View of Customer
On Premise Cloud
Call Center
Campaign Mgmt
Agent/Broker
• Growing adoption in SFDC
resulted in too many data
silos across regions & BU’s
impacting Metlife’s ability to
deliver rich customer
experience to grow their
business
• Manage trusted customer data
across SFDC for agents and brokers
• Manage and govern business data
across on-premise and cloud
solutions Integrate and exchange
data from 3rd party systems and
providers for improve customer
service and selling
Business Challenge How Did Informatica HelP?
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Grow Revenue
• Avg. Product Per
Relationship at historical
lows
• More expensive to acquire
new customers vs.
growing revenue from
existing ones
• Analytics and Business
Intelligence
• Hadoop, Modernize DW
Platforms
• Incomplete, Invalid data
for predictive modeling
• Integration of unstructured
data (e.g. social, call logs,
machine data)
• Data Integration and
Quality for BI/Analytics
• MDM for Policyholder
• Cloud DI, MDM
• Big Data Integration
Why is this important? Key Investments
Data/ Tech. Challenges Informatica Solutions
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Grow Revenue
• Double revenue in 5 yrs, achieve
12% RoE
• Improve profitability and customer
service across all channels
• Too many sources of the truth,
inconsistent customer data, lack
of insight into customer
interactions
• Single view of policyholder with MDM
with detailed relationship views
across the business
• Cleansed data quality issues for
downstream business applications
• Monitor and alert when issues arise
with critical business data
Business Challenge How Did Informatica HelP?
CFO
Marketing
Sales
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Improve Profit Margins
• Low interest rates
severely impacting
reinvestment revenue
streams
• Legacy systems require
manual processes too
support = too expensive
• Legacy Modernization
(Underwriting, Claims,
etc.)
• Business Process
Automation Technology
• Timely completion of
legacy modernization
investments
• Need to automate
processes across systems
• Data Migration Solutions
(DI, DQ, TDM, DVO, ILM
Archive)
• Active End Points
Why is this important? Key Investments
Data/ Tech. Challenges Informatica Solutions
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Legacy Modernization Survey
(Source: Celent – 2013)
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Legacy Modernization
Analyst &
Data Steward
Developer &
Architect
CFO
• CFO and Chief Accounting Officer
were at risk of not realizing
quantifiable business value from
new Oracle Financials Application
Investment due to ongoing data
quality errors from IT systems
• Automated a sustainable data
governance process, enabling business
and data stewards to identify, fix, and
monitor the quality of their data in their
new Financial Management system
• Improve close of book processes, 50%
savings managing data quality
Business Challenge How Did Informatica Help?
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Regulatory Compliance
• Increasing transparency into
enterprise risk management
by State and Federal
regulators
• Growing legal and regulatory
fines for non-compliance with
new and existing laws
• Analytics and Business
Intelligence
• Modernize Risk and
Compliance Systems
• Enterprise Risk Data
Warehouse
• Timely completion of
legacy modernization
investments
• Incomplete, Invalid data
for risk mgmt
• Lack of a single view of
risk
• Data Integration and
Quality for BI/Analytics
• Data Migration Solutions
(DI, DQ, TDM, DVO, ILM
• Data Services
Why is this important? Key Investments
Data/ Tech. Challenges Informatica Solutions
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Insurance Death Master Compliance
Analyst &
Data Steward
Developer &
Architect
CCO
• CFO and Chief Accounting Officer
were at risk of not realizing
quantifiable business value from
new Oracle Financials Application
Investment due to ongoing data
quality errors from IT systems
• Discover and manage data quality
errors
• Identify and match against SSN DMF
• Relate customers with policies,
beneficiaries, and employees
Business Challenge How Can Informatica Help?
Compliance
DW
Death
File
Policy Admin, Claims,
U/W, CRM
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INFA Penetration: Top 50 U.S. Insurance (as of Q3-2013)
19
INFA
customers Non-customers Total Penetration %
Top 25 22 3 25 88%
26-50 15 10 25 60%
Total 37 13 50 74%
Market Penetration
$12,118,889
$2,051,448
$0
$526,745
$0
26-50 Insurance Companies Total Lifetime REvenue: $14.6M (as of Q3-2013)
DI/DQ Actual MDM Actual ILM Actual
$59,985,459
$5,926,118
$2,042,468
$4,018,094 $1,106,906
Top 25 Insurance Total Lifetime Revenue: $73M (as of Q3-2013)
DI/DQ Actual MDM Actual ILM Actual
B2B/UM/CEP Actual All Else Actual
Total Lifetime revenue top 50 US Insurance: $87.7M
Data as of Q3-2013. SEE APPENDIX FOR DETAILS 19
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INFA Penetration: Top 50 U.S. Insurance (as of Q3-2013)
20
INFA
customers Non-customers Total Penetration %
Top 25 22 3 25 88%
26-50 15 10 25 60%
Total 37 13 50 74%
Market Penetration
Total Lifetime revenue top 50 US Insurance: $87.7M
Data as of Q3-2013. SEE APPENDIX FOR DETAILS 20
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Total Opptys and TAM: US. Insurance
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Analysis of Spend vs. TAM vs. IT Budget, vs. Prop2 Spend – Banks vs. Insurance
How to read this?
• 100% = highly correlated vs. 0% is not.
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• Marketing Content and Sales Tools
• eBook on “Improving Revenue and Customer Relationships”
• Solution Whitepapers: Death Master, MDM for Insurance, Realizing the Value of Big Data
• Customer Success Stories
• Sales Playbook
• Marketing Programs & Events
• 5th Annual FSI Executive Summit (March 5)
• IDMA Event (April)
• Informatica World
• New Hire
• Insurance/FS Solution Marketing Director
2014 Marketing Investments
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Questions?