How well is the Life Insurance Industry keeping pace with rapidly changing technology? International Insurance Society 23 June 2014 London An industry transforming – key findings from our recent research of respondents say they will use digital to improve customer 82% technology relationships over the next 3 years, compared to 65% over the last three. 69% of respondents say they have a digital strategy beyond a website. However, only 37% say their digital initiatives are fully aligned to their company’s strategic objectives. Source: Digital Technology’s Effect on Insurance survey, KPMG International, May 2014 of respondents say developing innovative to meet changing customer 47% propositions preferences is their greatest priority for the next 2-3 years 43% of our respondents say the most important use of data and analytics is to improve top level decision making, yet 20% say the greatest barrier in implementing a strategy for data and analytics is management buy-in. Source: Digital Technology’s Effect on Insurance survey, KPMG International, May 2014 © 2014 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved. 1 New forces are impacting business models Are life insurers prepared for the changes afoot? © 2014 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved. 2 Introducing our panel Brigitte Parent, Senior Vice President, Sun Life Financial Tim Rozar, Senior Vice President and Head of Global Research and Development, RGA Reinsurance Company Russ Thornton, IT Strategy & Architecture Director, Legal and General John Warburton, Director Group Market Management, Allianz SE © 2014 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved. 3 Introductions © 2014 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved. 4 How well is the life insurance industry keeping pace with rapidly changing technology? Each of our panelists provided their views on the impacts of technology on the Life Insurance industry KPMG developed an executive summary bring forward the most salient points. The combined papers, including KPMG’s executive summary, can be found on the conference app. © 2014 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved. 5 How well is the Life Insurance Industry keeping pace with rapidly changing technology? International Insurance Society 23 June 2014 London What have we learned? Combined with today’s market challenges, increasing competition and related operating pressures, insurance leaders face three imperatives: 1. Formulate a future vision of their business model and their core capabilities in a digital world. 2. Adapt and transform that business model for the future, and enhance their ability to understand and satisfy customers. 3. Accept the strategic impact that technology and digital media will have on their organization and recognizing the changes required in a customer-centric, digital world, and embracing this reality by confronting legacy issues and creating the culture and capabilities to continuously enhance performance across the entire business. © 2014 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved. 10 Questions? International Insurance Society 23 June 2014 London kpmg.com/socialmedia kpmg.com/app © 2014 KPMG International Cooperative (“KPMG International”), a Swiss entity. 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