Crystal Ball and the Future of the Broker Distribution Channel• Bill Morris, Navicom• Greg Purdy, Pathway Partners• Simon Rivard, Aviva Canada• Jeff Roy, Excalibur Insurance• Patrick Vice, Insurance-Canada.ca, Inc. (moderator)

Setting the Stage What are 2 trends that will impact insurance business generally and brokers specifically?

– and –

How will these trends specifically impact the independent channel (market share, broker

population, market/product segments, etc.)?

The Age of Empowered Customers

“ Customers are interacting with technology differently… they

EXPECT that the businesses that they deal with KNOW more about them

and will offer SOLUTIONS that will make their lives EASIER”

Teresa McLaughlin, CMO TD Bank

Today’s RealityCustomer expectations are forever changed:• Service table stakes increasingly include:

Mobile connectivity

“Instant” response to electronic inquiry

Real time, 24/7, self service capability

Proactive, personalized customer experience

Ease of Use and Simplicity• Multi platform, intuitive, real time, accessible by policy holder • Solutions that factor in personal data, lifestyle choices• Better use of technology

Commoditization• Increased price transparency• New/different value propositions beyond insurance policy • Higher/personal service standards

Mass Personalization• Custom, proactive solutions (product and service)• Solutions that factor in personal data, lifestyle choices, risk • IoT driven

Key PL Insurance Trends

Third Party Data New Variables

Predictive Analytics

TRENDSWhat the Broker channel needs.

Integration with third party data, structured and unstructured.

Support for the use of new variables that enhance the customer experience.

The use of predictive analytics to anticipate consumer needs.

Consumer profiles based on behaviours and lifestyle.

Trends affecting the Broker channel.

ROLES OF SEGMENTATION TECHNIQUES

BEHAVIOURAL Provides context for understanding;• When• Where• Who• HowTo • Sell• Service• Market

2

TRADITIONAL APPROACH A critical component for fundamental risk evaluation

1

LIFESTYLE Provides key insight into Product design, development, marketing

3

PUT THE RIGHT SOLUTION IN FRONT OF EVERY CUSTOMER

o What types of data should be audited?o What are some ways brokers can include auditing in their daily

activities/processes?

The Connected ConsumerConnected consumers are making new demands for 24x7, Omni-channel etc.The Sharing Economy is driving new expectations and products

What must brokers do to:1. Be responsive to existing and new clients2. Use new data in new ways 3. Understand and service new products

Data ExplosionNew risks (Telematics, Cyber, etc.) are driving new data in underwriting, claimsNew marketing methods are capturing large amounts of structured/unstructured data

What can brokers do to:1. Understand and use these data?2. Understand consumers’ range of sensitivities to

sharing, using?3. Resolve the ownership/use of data in common

with insurers, others

Back to the Future (1)A US Agent group is… evaluating many of these trends, and now planning to re-capture 5-15 basis points of market share Questions to Audience:• Would you be comfortable in

undertaking a similar journey?• What would be your starting point?

Back to the Future (2)

Panelists…From what you’ve heard, would you change your mind on the trends / impact on brokers?

Thank you