digital trends - redefining the insurance industry (2016)

DIGITAL TRENDSREDEFINING THE INSURANCE INDUSTRY

Head of DepartmentDept. of Computer EngineeringFaculty of EngineeringChulalongkorn University

[email protected]@natawutnhttp://natawutn.wordpress.comhttp://www.slideshare.net/natawutnupairoj

Asst. Prof. Natawut Nupairoj, Ph.D.

GARTNER’S TOP 10 STRATEGIC TECHNOLOGY TRENDS FOR 2016

DIGITAL MESH

Device Mesh

Ambient User Experience

3D Printing Materials

SMART MACHINES

Information of Everything

Advanced Machine Learning

Autonomous Agents & Things

Adaptive Security Architecture

Advanced Systems Architecture

Mesh App & Service Architecture

IOT Architecture & Platforms

NEW IT REALITY

DEVICE MESH

Wearable devices’ shipment will be doubled in 4 years

20% will be healthcare related devices

Find Jeans That Fit Your Shape!LIKE A GLOVE

INTRODUCING FDA-APPROVED INGESTIBLE SENSORS IN PILLS

http://www.forbes.com/sites/singularity/2012/08/09/no-more-skipping-your-medicine-fda-approves-first-digital-pill/

AMBIENT USER EXPERIENCE

Providing user experiences across different devices

Source: Google, “The New Multi-screen World: Understanding Cross-platform Consumer Behavior”, August 2012, http://services.google.com/fh/files/misc/multiscreenworld_final.pdf

90%

PEOPLE MOSTLY START FROM SMARTPHONE

Source: Google, “The New Multi-screen World: Understanding Cross-platform Consumer Behavior”, August 2012, http://services.google.com/fh/files/misc/multiscreenworld_final.pdf

Second Screen Experience

Consumer satisfaction with online experience, by industry

3D PRINTING MATERIALS

Source: http://www.t3.com/features/3d-printing

http://www.unfinishedman.com/digital-grotesque-beautiful-algorithmically-designed-3d-printed-room/

“The growing range of 3D-printable materials will drive a compound annual growth rate of 64.1 percent for enterprise 3D-printer shipments through 2019” -- Gartner

WHAT YOU CAN PRINT WITH 3D PRINTING

Tissues with blood vessels

Low–Cost Prosthetic Parts

Drugs

Tailor-made sensors

Medical Models

Bone

Heart Valve

Ear cartilage

Medical equipment

Cranium Replacement

Synthetic skin

Organs

Washington University in St. Louis

Chula Engineering +Phramongkutklao Hospital

IMPLICATIONS ON LIFE INSURANCE

Healthcare will be moving toward preventive and personalized – new business models, products, and services are possible

Modern distribution channels and will become more and more important -- multi-channel capabilities must be established


DIGITAL MESH

Device Mesh



SMART MACHINES








NEW IT REALITY

Social

Mobile

SensorsLocation

Search

Policy

POS

Claim

Payment

CRM

INFORMATION OF EVERYTHING

“Information has always existed everywhere, but has often been isolated, incomplete, unavailable, or unintelligible” -- Gartner

ADVANCED MACHINE LEARNING

Prof. Michael SnyderStanford University School of Medicine

• Genome indicates high risk for Type-2 diabetes

• Perform extensive blood tests every two months

• Into the 14-month study, analyses showed he developed diabetes

• The illness was treated successfully while in its early stages

AUTONOMOUS AGENTS AND THINGS

Behavioral trend tracking – customize fitness program setupFood intake tracking - visual recognize food intakeEnvironment factor tracking – modify fitness program recommendation

IMPLICATIONS ON LIFE INSURANCE

Business competitiveness depends on information management capabilities – information must be integrated and governance

Business agility becomes extremely important –business processes and IT infrastructure must be end-to-end digitalized, automated, and scalable

Data scientist becomes very sexy and hard-working profession


DIGITAL MESH

Device Mesh



SMART MACHINES








NEW IT REALITY

ADAPTIVE SECURITY ARCHITECTURE

Perimeter Defense is inadequate

Application must be accessible from anywhere

Continuous risk mitigation with behavioral and entity analytics

ADVANCED SYSTEM ARCHITECTURE

High-powered and ultra-efficient Hardware to support digital mesh and smart machines requirements

(cc) Beraldo Leal


Microservice ArchitectureBack-End AutomationHybrid-Cloud DeploymentThird-Party IntegrationAgile Development

Scalability – Flexibility – Agility

IOT ARCHITECTURE AND PLATFORM

IOT Architecture impacts all enterprise architecture

WHAT CAN THESE TRENDS BRING YOU?

New Product Offerings

• Derive customer’s understanding from behaviors and interactions to provide personalized / dynamic pricing

• Peer-to-Peer Insurance

Enable Advanced Customer Engagement (ACE)

• Interact with customers seamlessly and consistently across all channels (Omni-Channel)

• Targeted offerings – “segment of one”

Connecting with Business Partners with Greater Scalability

• API economy

• Elastic capabilities

Source: World Insurance Report 2016 from Capgemini and Efma

Source: http://www.towerswatson.com/en/Insights/Newsletters/Global/Emphasis/2014/the-internet-of-things-is-transforming-the-insurance-industry

ANALYTICS ENABLED STRAIGHT THROUGH PROCESSING

Source: Capgemini, “The Disruptive Impact of Big Data and Analytics in Insurance”, June 2015

WHAT IF THE FOLLOWING PLAYERS INVOLVE IN LIFE INSURANCE?

Source: Swiss Re, “Life insurance in the digital age: fundamental transformation ahead”, 2015

WHAT IF THE FOLLOWING PLAYERS INVOLVE IN LIFE INSURANCE?

Source: Swiss Re, “Life insurance in the digital age: fundamental transformation ahead”, 2015

Leverage search data for improved

distribution and underwriting

Leverage group buying power,

activity-based ads

Leverage data from Health Kit /

Apple Watch for personalized

pricing

Leverage customer purchasing,

product reviewing and interests for

targeted marketing

CP CHULA:CS PROGRAM

Big Data Theme

• Architecture• Map/Reduced

• In-Memory Processing

• Cloud Computing

• Performance Evaluation

• Analytics• Big Data Analytics

• Machine Learning

• Social Network Analysis

ARE YOU READY FOR CHANGES ?

digital trends - redefining the insurance industry (2016)

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