Insurance in a

digital world:
the time is now
EY Global Insurance
Digital Survey 2013
Overview Insurance in a digital world: the time is now

This is the third in a series of EY customer-focused studies

and thought leadership. Following our 2012 Global Consumer
Insurance Survey, Voice of the customer: time for insurers to
rethink their relationships, we launched The journey toward greater
customer centricity to explore what insurers must do to become
more customer-centric. Both reports highlight digital’s key role
in meeting consumer expectations, spurring this research to find
out if the insurance sector is raising its digital game — and how.

Our definition of digital: an enabler, as well as a

distribution channel
Our scope extends beyond online distribution channels to a wide
range of digital technologies: mobile (smartphones, tablets and
apps); social media; cloud computing; analytics to mine business
data and turn it into actionable insights; and digital platforms to
interact and share information among insurer, agent and consumer.
These technologies can be applied across the entire insurance
value chain, from engaging and interacting with customers
and distributors to sales and marketing, service fulfillment
(underwriting and payment) and reinvestment.

Case studies appear throughout the report to demonstrate the use of

digital applications in a variety of industries. They exemplify how digital is
being applied to improve the customer experience.

Contents

Executive summary 4

01 Our findings: global overview of key themes 8

02 How should insurers respond? 28
03 How EY assists clients’ digital business development 36
Conclusion 41

04 Our findings: regional highlights 44

Contacts 56

2 Insurance in a digital world: the time is now EY Global Insurance Digital Survey 2013
Introduction

Insurance in a digital world:

the time is now

Insurance companies face conflicting challenges. They must contend

with continuing instability in financial markets, low interest rates,
increasing acquisition costs, changing regulation and catastrophic
losses from ongoing natural disasters. Yet the global insurance market
shows unprecedented growth potential, whether it is the sizable
global population moving into retirement with greater life expectancy
and health protection needs or the massive emerging markets of
South America, Asia and Africa demanding the full suite of insurance
products. But the toughest challenge faced by the insurance sector is
the one that is transforming consumer behavior and business models —
digital technology.

Digital is a new market force that is driving a massive change in consumer expectations. It will
require a different set of skills, culture and measurement. Industries such as telecommunications,
consumer products, and media and entertainment have already harnessed digital to attract and
retain new customers. It is time for insurers to evolve and respond: they cannot afford to be on the
sidelines of the shift to digital.

In light of this imperative, EY undertook a ground-breaking survey of more than 100 industry
players to understand how the digital agenda is reshaping the sector and to what extent life and
non-life insurance companies are grasping and exploiting the shift to digital. To complement these
insights, our report outlines examples of digital innovation and, based on our experience, suggests
practical areas that insurers should prioritize now to tackle the challenges ahead.

At a time when the speed of digital change is so fast that standing still means falling further behind,
this new survey provides fascinating insights into how insurers can respond to — and succeed in —
the digital future.

We hope you find our survey results informative and thought-provoking.

Shaun Crawford Graham Handy

EY Global Insurance Leader EY Global & EMEIA Insurance Customer Leader

Insurance in a digital world: the time is now EY Global Insurance Digital Survey 2013 1
EY Global Insurance Digital Survey

Research approach
and methodology

During 2Q 2013, EY conducted a global survey with participants from more than 100 insurance
companies to understand how the digital agenda is reshaping the insurance sector. An even split
of participants from life and non-life insurance companies included large global organizations,
regionally focused insurers and single jurisdiction insurers. The three main geographic regions
targeted were Europe, Asia-Pacific and the Americas, with additional contributions from Africa.

Within these regions, we targeted specific countries in the scope of our survey, although additional
countries are represented because some companies provided a regional response. For example,
while our primary focus in Europe is the UK, France and Spain, we received additional contributions.
The table below shows the final list of countries included in the scope of our survey.

Given the wide spread of companies, we aimed to weight responses to provide a balance of views
from a diverse mix of insurers. Specifically, each response was given an equal weighting at the
national level by company. In situations where there were multiple respondents from one company
in a country, the responses for that company were averaged. To extrapolate regional views from
country results, the gross written premium (GWP) of insurance business and the purchasing power
parity (PPP) of countries were used to weight the country responses.1

Scope
Europe Americas Asia-Pacific Africa and
Middle East
Target countries
UK US Australia South Africa
Spain Canada Hong Kong
France Mexico Thailand
Chile Singapore
Malaysia
Indonesia
Japan
South Korea
India
Other countries
Germany Argentina China Kenya
Ireland Brazil Taiwan Namibia
Italy Colombia Vietnam Nigeria
Netherlands Uruguay Philippines UAE
Poland Bangladesh
Turkey

1 GWP data for each country was obtained from Swiss Re Sigma report (No 3/2012) for both life and non-life business. The PPP of each country was obtained from
the OECD website (using USD as the base currency). The GWP for all countries was then scaled by their PPP (providing an “adjusted GWP”).

2 Insurance in a digital world: the time is now EY Global Insurance Digital Survey 2013
Digital is a catalyst for
dramatic change, one
that threatens rapid
transformation of the
competitive landscape
and that established
insurers are particularly
ill-placed to deal with.

3
Key findings

Executive summary

New digital technologies are irrevocably changing the way consumers

engage and interact with insurers. Traditional operating structures are
being disrupted, driving insurance executives to reassess their business
model. It is time for insurers to re-evaluate their future direction and
make the digital agenda a high priority.

Consider the following critical questions: how do you manage or operationalize your digital strategy;
how do you establish a balance between pilot projects and exploratory initiatives versus more
transformational change; to what extent is your digital program driven by opportunity realization
versus risk and reputation; and how do you strengthen the partnership between the CIO and CMO
to help create a compelling business case for change that convinces the CFO?

While the majority of insurers believe in the importance of digitalization to deliver the customer
experience, many express concern that they will be left behind as shorter-term corporate priorities
lie elsewhere. This survey was conducted to determine where insurance companies are now, their
approach to digital strategy and execution, their ambitions for future digital maturity and their
views on what gets in the way.

Our key findings

1
Insurers acknowledge their current low levels of digital maturity and the need to take action.

Insurers trail the entire digital spectrum: customer engagement, use of analytics and adoption
of mobile and social media. Almost 80% of respondents do not see themselves as digital leaders,
believing instead they “only play the digital game” or are “still learning to use digital capabilities
for a competitive advantage.”

2 Companies have high digital ambitions — but are they grounded in reality?

Insurers aspire to future digital leadership; however, attaining their goals will require significant
— and rapid — improvement to close the current gap. By their own admission, more than two-thirds
feel they have delivered some easy quick wins, but they have not made transformational progress
to realize their ambitious digital objectives.

3 Insurers are holding themselves back.

Internal factors — legacy technology, slow pace of delivery and culture constraints — not
the external market, are hindering progress . Focusing on key enablers such as culture and
innovation will release significant future value and enable companies to better grasp digital
business opportunities as they arise.

4 Insurance in a digital world: the time is now EY Global Insurance Digital Survey 2013
Executive summary

4 It’s all about retention through improved customer experience.

The two biggest drivers of digital strategies are “enriching the customer experience” and
“regaining more direct control of the customer relationship” — far ahead of “attracting prospective
customers and increasing sales.” While the cost of acquisition continues to rise, retaining existing
customers is an increasing necessity and should be a critical and measurable benefit of any
improvement in the customer experience, digitally enabled or otherwise. 

5 Distributors are digital customers, too.

Respondents consistently cite intermediary and agent channel strength or resistance as one of the
top three inhibitors in implementing their digital strategy. But distributors face the same challenge
as insurers — respondents believe that “improving the efficiency and quality of interactions with
customers” will be the most important use of digital for intermediaries and agents over the next
three years. Sharing the benefits of investment in digital and communicating a clear mutual value
proposition to deliver a better customer experience will help to minimize channel conflict.

6 Analytics are critical to digital success.

With technology changing so rapidly, insurers need new skills to exploit the digital challenge.
Analytics capabilities (segmentation, customer data and predictive modeling) emerged as the
most in-demand skill set in both sectors (and most strongly in non-life), followed closely by
technology and marketing capabilities. In our experience, many organizations do not deliver
analytics capabilities early on, but they are a prerequisite for extracting maximum value from
digital investment.

7 Insurers need to embrace the mobile and social media wave.

Current focus on mobile products and services is limited. But with mobile and tablet use growing
exponentially, neglecting mobile is turning one’s back on the future. Similarly, insurers could be
taking social media more seriously, recognizing its value as a relatively inexpensive marketing tool
and a means to engage with and influence skeptical, digitally savvy younger consumers.

This report explores the insurance sector’s digital capabilities and the future direction of the digital
agenda, based on our global insurance research. Survey findings are complemented by examples of
innovative applications of digital from insurance and other sectors.

Insurance in a digital world: the time is now EY Global Insurance Digital Survey 2013 5
Executive summary

01

6 Insurance in a digital world: the time is now EY Global Insurance Digital Survey 2013
Section 01
Our findings: global overview of key themes

Our findings: global overview

of key themes

Insurers are currently lagging behind

the digital curve, and conditions for
future success are not yet in place. As a
result, many may struggle to deliver on
customer expectations; new entrants
and digitally leading competitors will
look to exploit this failing.

Insurance in a digital world: the time is now EY Global Insurance Digital Survey 2013 7
01

Our findings: global overview

of key themes

In just two decades, digital technology has • In their self-assessment of digital

transformed the world. There are almost as enablement, insurers are far from bullish.
many mobile subscriptions as there are people — Digital leadership — strategy development,
6.8 billion compared with the global population business planning, organizational buy-in and
of 7.1 billion — and 40% of the world is online.2 execution — merits just 1.8 to 2.8 out of 5 on
the EY Digital Maturity Model (see Exhibit 1).
Moreover, they are voracious new adopters: Insurers’ perception of themselves as digital
it took Google six years to reach 50 million leaders received the lowest global average at
users, while its social networking site Google+ 1.8; 45% say they are not “setting the baseline
needed just 88 days to reach that number.3 As for the digital game,” while another 34% “are
consumers increasingly shift from computers still learning to develop digital capabilities for
to smartphones and tablets, they can research, competitive advantage.”
compare prices and buy anytime, anywhere.

79%
The easy access that Apple, Google and Amazon
deliver is what consumers now expect
from everyone.

In our survey, we explored companies’ level

of digital readiness and asked them to assess
their current state of digital maturity and say they are “not setting the baseline” for
target future state4 across areas such as digital digital or are “still learning.”
strategy and leadership, implementation and
customer experience. Here are our findings.
• A striking number have no up-to-date

1
digital business case. Nearly half (47%) say
Insurers acknowledge their current low they have no single cohesive digital strategy
levels of digital maturity and the need business case. More positively, 57% say that
to take action. within three years, they intend to have a
regularly updated digital business case that
integrates detailed budgets and forecasts with
Insurance companies (most notably life) trail financial and HR planning.
the entire digital spectrum, from customer
engagement and use of analytics, to adoption
of mobile and social media. While the non-life A surprising number of insurers
business is more advanced, particularly in auto have no clear business case for
and home insurance, digital adoption is still
inconsistent within global organizations. digital, which is a necessary pre-
cursor to securing support from
the top.

2 “The world in 2013: ICT facts and figures,” International Telecommunication

Union, February 2013.
3 “Google+ Usage Skyrockets, Hits 50 Million Users?,” PCmag.com website,
www.pcmag.com/article2/0,2817,2393640,00.asp, accessed 6 September
2013.
4 EY’s Digital Maturity Model tracks digital capabilities; companies rate
themselves against a set of defined multiple-choice answers on a scale of
1–5, with 1 as basic, 3 good and 5 leading.

8 Insurance in a digital world: the time is now EY Global Insurance Digital Survey 2013
Our findings: global overview of key themes

Exhibit 1: Current and target future state Global current Global target future
levels of digital maturity Global life current Global life target future
Global non-life current Global non-life target future

Digital strategy and leadership 1 2 3 4 5

Do you see your organization as a digital leader

in your industry?

Do you have a business case for digital and is

your investment integrated into the financial
planning of the company?

Do you have a clear, well-executed

implementation plan for your digital strategy?

Do you have the right operating model in place

to deliver and run digital capabilities?

Has your digital strategy got support from

senior management? Do they lead by example?

Customer experience 1 2 3 4 5

How does digital inform and support

segmentation?

How do you use digital channels to attract

prospective customers?

How do you manage and build brand loyalty

through digital channels?

How does digital support your Customer Value

Management? (Including cross-sell, up-sell and
retention efforts)

How do you reduce your cost to serve using

digital channels?

All average scores on scale 1-5

Insurance in a digital world: the time is now EY Global Insurance Digital Survey 2013 9
Our findings: global overview of key themes

• A majority of companies do not feel they online rewards, discounts, apps or “live”
have an appropriate operating model. 12% website assistance (e.g., virtual assistant, chat,
say their organizational structure facilitates click to call), although 27% expect to provide
their digital strategy, but more than half lack these benefits in the future.
the right operating model to deliver digital

89%
capabilities. For example, one-quarter say
“our operating model is not very flexible
to changes in the digital space; our
organizational structure does not facilitate
the execution of digital business strategy.”
Another one-third believes their model does
not react to short-term changes but will adapt don’t consider past interactions when
in the long term. Looking ahead, 78% aim to recommending products or services to
have an organizational structure to support online customers.
their digital strategy within three years.

57%
• There is poor alignment to the customer
experience in particular. Current state
findings reveal a marked inconsistency.
Insurers’ assessment of their digital strategy
and leadership is generally higher than their
view of how digital supports their customer
have operating models that do not experience; clearly the value of the former
facilitate digital. is not reaching customers. This failure
potentially leaves insurers on the sidelines of
the shift to digital, exposed to both the loss of
• Most respondents say their digital existing customers and a scarcity of new ones.
strategy has support from the top — but Consequently, they stand to miss out on the
actions speak louder than words. Over chance to improve customer experience and
40% of insurers have support from senior retention levels at a relatively low cost.
management and a digital sponsor within

2
their C-suite, but more than one-third of
respondents believe senior management
support is “not always backed by actions, Companies have high digital ambitions
budgets or resources.” Currently, only 5% — but are they grounded in reality?
say their C-suite execs “personally lead by
example” and incorporate digital platforms
(blogs, Twitter, Facebook, etc.) into their In their three-year plans, insurers return an
agenda; however, nearly one-third envisage average of 3.5 up to 4.5 on the EY Digital Maturity
such a future state in three years. Model (see Exhibit 1). To close such large gaps,
companies need to make extraordinary — and
• The majority of insurers use digital at rapid — progress to reach their targeted future
a basic level to support customer value states outlined above.
management. Only 11% use predictive
modeling to identify prospects for targeted, • In view of the significant gap between current
personalized email marketing campaigns, use state and future ambitions, are insurers
online product comparison tools or encourage investing enough? Nearly 70% of respondents
development of an online community. A spend less than 10% of their business and IT
startling 89% do not leverage past interactions development budget on digital. Some differences
when recommending products or services emerge: 79% of non-life companies spend less
to online customers. Just 1% currently offer than 10%, with a further 11% spending in the

10 Insurance in a digital world: the time is now EY Global Insurance Digital Survey 2013
Our findings: global overview of key themes

Exhibit 2: Current and planned future spend on

digital development

Current spend on digital* Expected increase in digital spend*

0%-10% 10%-20% 20%-30% 30%+ <5% 5%-10% 10%-25% 25%-50% 50%+
Global Global
68% 23% 8% 0% 18% 38% 23% 8% 15%
Over 1
year
Global life 9% 17% 36% 21% 16%
Over 3
69% 28% 4% 0% years
7% 8% 22% 39% 24%
Over 5
Global non-life years

79% 11% 10% 0% Europe

28% 46% 0% 0% 27%
Over 1
Europe year
5% 29% 29% 9% 27%
84% 9% 7% 0% Over 3
years
5% 8% 17% 33% 37%
Asia-Pacific Over 5
years
52% 43% 5% 0%
Asia-Pacific
2% 34% 55% 2% 7%
Americas Over 1
year
61% 30% 10% 0%
0% 2% 55% 34% 9%
Over 3
0%-10% 10%-20% 20%-30% 30%+ years
0% 2% 26% 60% 12%
Over 5
years

Americas
21% 31% 19% 19% 10%
Over 1
year
19% 14% 31% 27% 10%
Over 3
years
10% 11% 22% 36% 21%
Over 5
years
<5% 5%-10% 10%-25% 25%-50% 50%+

*Excluding “Don’t knows”

Insurance in a digital world: the time is now EY Global Insurance Digital Survey 2013 11
Our findings: global overview of key themes

68%
10%–20% range (see Exhibit 2). In contrast,
68% of life insurers spend less than 10%, with a
higher proportion, 28%, spending 10%–20%. This
reflects the current state of sector capability,
with the less advanced life sector currently
spending more to transform.
believe they have delivered some easy quick
• Globally, few companies intend to significantly wins but not made transformational progress.
increase their investment. The majority expect
their spend to increase 5%–10% over the next
year, 10%–25% in three years and 25%–50% over • Many insurers realize they are falling short
five years (see Exhibit 2). A surprising number of of their ambitions. More than two-thirds
respondents do not know how much they spend, have delivered some easy quick wins, but only
highlighting the disparity between ambition 10% cite transformational changes to digital
and delivery. From our experience with other capabilities. To realize their ambitious digital
sectors, the most common reason technological objectives, insurers need a well-defined and
transformation projects fail is because of a achievable ambition, matched closely with
disconnect between ambition and level of realistic investment, and a significant increase in
investment. With consumer industries rapidly the pace of delivery.
expanding their digital capabilities, it is critical

3
that the insurance sector’s projected spend is
realistic and clearly matches its ambition.

67%
Insurers are holding themselves back.

Insurers face many internal barriers and

challenges with respect to digital, and many have
not yet framed a compelling case to “rewire”
implement digital as part of business-as- their businesses. This may be attributed to a
usual activity. traditionally internally focused business that
has not been subjected to the same consumer
pressures as retail industries — until now.
• The pace and style of delivery are Regardless of the reasons, failure to embrace
not commensurate with the scale of digital exposes the industry to considerable risk.
transformation required. Some 67% of insurers Senior management has a collective need to
are implementing digital as part of business as drive this from the top, which is not as much the
usual or using pilot programs to “test and learn.” responsibility of the CEO and CFO as it is the CIO
Only one-quarter have introduced incubator and CMO in tandem.
units or single digital programs, and even fewer
have used “NewCo” operations (although non-life • Insurers’ digital progress is largely impeded
companies make more use of these techniques). by internal factors, not the external market.
Insurers’ style of delivery contrasts sharply with The main inhibitors of digital progress are
other industries. An EY survey of the media legacy technology constraints (80%), slow
and entertainment industry in 2012 found that pace of delivery (64%), and intermediary and
almost one-third have a central visionary team or agent strength or resistance (40%). The first
digital center of excellence responsible for digital two impediments present difficulties that only
strategies. A central digital “mission control” at insurers can resolve; the third one offers an
the heart of a business helps break down silos opportunity to exert a strong influence.
and enables a more collaborative approach to
accelerate digital transformation.

12 Insurance in a digital world: the time is now EY Global Insurance Digital Survey 2013
Our findings: global overview of key themes

In our experience,
the most common
reason technological
transformation projects
fail is because of a
disconnect between
ambition and level
of investment.

Insurance in a digital world: the time is now EY Global Insurance Digital Survey 2013 13
Our findings: global overview of key themes

68%
• Creation of a compelling business case for
investment is a major challenge. When CFOs
are faced with an immediate choice over capital
investment, digital development often loses out.
The business case for digital is multifaceted and
non-linear, and it must focus on extracting value
from the in-force customer-centric data that of life companies say internal company
is generated. structure or culture constraints is the
key challenge they face in delivering their
• Culture is a major issue for both sectors. digital strategy.
“Internal company structure or cultural
constraints” and “creating a culture of
innovation” are top challenges in delivering
digital strategy (see Exhibit 4). As insurers
accelerate their digital progress, they must
address the internal barriers that are impeding
progress for their organization. Focusing on
culture and innovation will release significant
future value and enable them to better grasp
digital business opportunities as they arise.

Exhibit 3: Top inhibitors of digital growth Global

in insurance market Global life
Global non-life

80%
Legacy technology constraints 75%
88%
64%
Slow pace of delivery by insurers 66%
72%
40%
Intermediary/agent channel strength or resistance 41%
45%
33%
Lack of a compelling business case 34%
30%

Regulatory restrictions/environment impeding 32%

digital growth 29%
29%
24%
Perceived customer/data security issues 24%
17%
19%
Insufficient consumer demand 23%
12%

14 Insurance in a digital world: the time is now EY Global Insurance Digital Survey 2013
Our findings: global overview of key themes

Exhibit 4: Key challenges faced by companies Shown in descending order for Global life sector
in delivering their digital strategy

Global life Global non-life

Internal company structure or 68% 64%

culture constraints

Creating a culture of rapid innovation 63% 68%

and development

63% 65%
Systems issues in implementation

Integrating digital with other 61% 50%

distribution channels

Gaining internal management buy-in 52% 47%

and investment

50% 45%
Lack of skills/difficult to find expertise

47% 43%
Lack of resources (time and budget)

46% 44%
Channel conflict

44% 34%
Developing a clear technology strategy

41% 42%
Building solutions with flexibility

Designing new digital offerings 40% 29%

effectively for customers

34% 25%
Lack of methodology framework

21% 23%
No business case for investment

Insurance in a digital world: the time is now EY Global Insurance Digital Survey 2013 15
Our findings: global overview of key themes

4
their insurer. Digital technology can enable
It’s all about retention through companies to improve and personalize
improved customer experience. communications, and thus the customer
experience, without a disproportionate
increase in costs.
• Improving the quality and frequency of
contact boosts customer loyalty and • Insurers rate themselves poorly on how
retention. EY’s Voice of the customer survey digital supports the customer experience.
found a positive correlation in customer Global averages range from 1.2 to 2 out of
satisfaction between quality and frequency 5 for marketing, sales and customer service;
of contact, increased cross-selling and less digital enablement of segmentation and
switching to other providers, yet we found customer value management (retention,
nearly two-thirds of customers claim they up-sell and cross-sell) have the lowest current
receive no, or just one, annual contact from maturity levels. Insurers fail to communicate

Exhibit 5: Drivers of companies’ digital strategy

Global (life and non-life)

32%
Enriching the customer experience

Regaining more direct control of the 20%

customer relationship

Attracting prospective customers and 14%

increasing sales

Reducing cost to serve customers 9%

and intermediaries

9%
Increasing internal efficiencies

5%
Managing and building brand

Competitors are offering it and we want 3%

to keep up

2%
Increasing up-sell and cross-sell

5%
Other

16 Insurance in a digital world: the time is now EY Global Insurance Digital Survey 2013
Our findings: global overview of key themes

at critical times and miss opportunities to digital products were reshaping the market.
engage with the customer in the life cycle of When Kodak decided to get in the game it was
a policy through the use of digital retention too late.”5 A similar plight could happen to
triggers and predictive modeling. As these insurance companies, as supermarkets and
areas have the most ambitious target future airlines begin to sell financial services and
states, these are the biggest gaps to close. insurance products online. And it is not too far-
fetched to imagine that Google — with its rich
• The top drivers of digital strategies are analytical archive — could become a formidable
customer experience and control of the underwriter of the future.
customer relationship. While insurers are
using digital channels to help target potential Case study: omni-channel integration
prospects, the two biggest drivers of digital
strategies are enriching the customer Retail chain stocks up on
experience (improving long-term customer digital
relationships) and “regaining more direct
control of the customer relationship” (see Traditional UK department store chain
Exhibit 5). Clearly insurers view digital as a John Lewis strengthened its customer
key way to extract value from the in-force relationships and revitalized its image by
book, making investment in digital all the integrating its town center stores with digital
more essential. channels. By identifying the increasing
number of digital touch points in the
• Online self service offers the potential to purchasing journey, the upscale retailer
reduce costs. The introduction of self-service developed an omni-channel customer
functionality is expected to increase most experience for its 149-year-old brand.
in importance in the future; however, this
is perhaps more for customer convenience Initiatives include free in-store Wi-Fi, an
than cost reasons. Our survey found that cost iPhone app to order and purchase for in-
reduction was not a top driver of insurers’ store pickup, a shopping wall for consumers
digital strategies, cited by only 9% globally, to photograph and “virtually” purchase
perhaps acknowledging the challenge (and products pictured in store windows, a “click
expense) of redesigning legacy systems that and collect” service combining digital and
many companies have experienced. While physical channels, and an online portal for a
insurers have long been criticized for not personalized shopping experience.
improving service levels, they are now using
digital to improve and enhance the service John Lewis has also entered the insurance
experience without a disproportionate market, offering car, pet, travel, wedding,
increase in cost. event and life insurance online (using
different insurance underwriting partners),
• Companies that fail to deliver a richer, more which it successfully integrated with its core
convenient customer experience can be left retail business.
behind. Eastman Kodak Company — the former
leading US photographic film and camera
manufacturer — did not file for bankruptcy
because people stopped taking photographs;
it failed because it took a product-centric
view. According to Forbes.com, “Kodak did
not fail because it missed the digital age. It
actually invented the first digital camera in
1975. However, instead of marketing the new
technology, the company held back for fear of 5 “Kodak Failed By Asking The Wrong Marketing Question,” Forbes.com
website, www.forbes.com/sites/avidan/2012/01/23/kodak-failed-by-asking-
hurting its lucrative film business, even after the-wrong-marketing-question, accessed 6 September 2013.

Insurance in a digital world: the time is now EY Global Insurance Digital Survey 2013 17
Our findings: global overview of key themes

Case study: digital lowers barriers to entry Clearly, many life companies have not yet
grasped the extent to which digital capability will
AirAsia’s owner takes off soon be integral to success. In many markets,
in insurance more digitally adept and agile companies are
targeting prospective customers at key policy
Tune Group, which owns successful regional events, life stages or renewals. Insurers must
low-cost airline AirAsia, launched an online recognize the emerging digital landscape as an
insurer to leverage the airline’s extensive opportunity to retain and grow customer value.
digital infrastructure (the significant
customer database of its online ticketing and

46%
reservations system). Tune Group offers travel Only
insurance to customers when they book.

Tune Insurance, which also offers life and

non-life insurance and reinsurance, sold
6 million policies in 2012 and has sold
3.65 million policies in 1H 2013 across 13 of life companies believe that “customers
countries, including Malaysia, Indonesia, will ultimately leave us” if they fail to
Thailand, Singapore and China. Launched in embrace digital.
2011 and floated on the Kuala Lumpur stock
exchange in 2013, the insurer added 1,000
agents and 15 branches across Malaysia and

5
a wider range of non-life products through a
2012 acquisition.
Distributors and agents are digital
As Tune Group looks to buy insurance customers, too.
companies in Indonesia and Thailand,6 its
goal is to be recognized as ASEAN’s leading
regional digital insurance franchise by 2015. Intermediary and agent channel strength or
resistance was consistently cited in the top three
inhibitors to digital success and must be a high
• Life insurers in particular are complacent priority in digital planning.
about the risk of losing customers. The
majority of insurers (81%) believe they could lose • Investing in distribution network technology
competitive advantage if they fail to embrace is fundamental to success. The effective
digital, and 74% feel this may affect their ability integration of sales and service channels is
to innovate. However, life insurers seem less essential for customers to have a positive,
concerned (46%) than non-life companies (60%) brand-affirming experience at every touch
that “customers will ultimately leave us” or that point. In the life sector, where many companies
“partners may shift their business elsewhere” are now embedding direct channels into
(48% versus 58%, respectively). Undeniably, historically agent- or intermediary-based
life insurance is a special case. Non-negotiable channels, integrating digital with other
requirements, such as customer medical tests, channels is a particular hurdle. Globally, both
limit whole life policies as exclusive online sectors consider it the fourth biggest challenge
transactions, and long-term policies have in delivering digital: 61% of life insurers and
infrequent touch points and exit policies, diluting 50% of non-life companies.
the urgency of ongoing customer service.
• Agents and intermediaries face the same
challenges as insurers. Our respondents
6 “Tune founder to swallow insurance firms,” investvine website, http://
investvine.com/air-asia-founder-to-swallow-insurance-firms, accessed
believe that “improving the efficiency and
1 August 2013. quality of interactions with customers” will

18 Insurance in a digital world: the time is now EY Global Insurance Digital Survey 2013
When retention, cross-sell
and up-sell ratios fail to
meet aspirations, insurers
must look to the digital
landscape to retain and
grow customer value
across the customer’s
life cycle. If they don’t,
others will.

19
Our findings: global overview of key themes

Exhibit 6: Agents use of digital — increase in Global life

importance over next three years Global non-life
Shown in descending order for global life sector

4.09
Improve efficiency and quality of interactions
with customers
2.68
2.64
Increase process efficiencies

2.33
2.39
Expose/offer self-service capability
to customers
1.36
1.49
Reduce risk and improve controls

0.40
1.02
Collect, pay and reconcile commissions

0.81
0.98
Capture quantitative and qualitative
customer information
0.53
0.78
Reporting and tracking — sales pipeline,
policy setup, etc.
0.91
0.71
Using social media

0.65
0.52
Providing education/general advice to
market, e.g., blog
0.27
0.24
Delivering or receiving training/knowledge

1.29
These are not % responses; they are weighted scores
based on respondents’ ranking in order of importance.

20 Insurance in a digital world: the time is now EY Global Insurance Digital Survey 2013
Our findings: global overview of key themes

be the most important digital function for In our experience, many organizations run
agents and intermediaries over the next three the risk of not delivering digital analytics soon
years (see Exhibit 6). Enhancing process enough, instead waiting until digital is more
efficiency and exposing or offering self-service embedded into the organization. But well-
capabilities to customers are also high on developed analytics capabilities are a prerequisite
the list. for extracting maximum value from digital
investment, not something to consider later.
• Supporting agents’ digital strategies
can minimize channel conflict. Sharing
the benefits of digital investment through Without the appropriate analytics
technology co-development, technical skills and tools in place, the digital
expertise, analytics, customer management
and communication can be beneficial for business case may never be realized.
both parties. An agency force with good
communication agility and the right digital
tools to manage the customer will become Case study: customer data analytics
a key strategic asset. It is critical that the
intermediary or agent channel is enrolled Discovery Life leverages
early and insurers communicate a clear value wealth of consumer data
proposition around the mutual benefits of
digital to deliver a better customer experience. Since Discovery Life entered the life
insurance market in South Africa in 2000,

6
it has gained substantial market share,
essentially becoming a leading provider for
Analytics are critical to protection policies. It has been successful
digital success. in tapping into a wealth of consumer data
through its Discovery Vitality program, an
incentive plan initially set up to promote
With technology opportunities and challenges better claims experience for the company’s
changing so rapidly, insurers need new skills health business. For example:
to exploit the available digital opportunities.
Analytics capabilities such as segmentation, • It uses innovative techniques to obtain
customer data analytics and predictive modeling consumer data through online health
emerged as the skill set most in demand, cited assessments and wristbands that record
by 75% globally. This was closely followed real-time fitness levels.
by technology (mobile applications, risk • Given this wealth of data and advanced
management technology, data warehousing) data analytics, it can take advantage of
at 72% and marketing capabilities (social robust underwriting and pricing techniques
media and mobile marketing, loyalty program to gain a competitive advantage in the
management and “retail” promotions) at 58%. South African life insurance market.
• The access to real-time data also enables
Discovery Life to be more responsive to
emerging trends.
• Its success is further aided by a number
of loyalty programs, many designed
to encourage healthier dietary and
fitness practices.

Insurance in a digital world: the time is now EY Global Insurance Digital Survey 2013 21
Our findings: global overview of key themes

7
• Disparities exist between online and mobile
Insurers need to embrace the mobile functionality. While some insurers do offer
and social media wave. mobile apps for insurance quotations, policy
maintenance and insurance claims submission,
our survey found significantly less use of mobile
By 2020, four out of five people will have access for even the most digitally enabled customer
to a mobile phone or tablet computer; even interactions, such as providing company
today, one out of five searches for financial information and customer self-service facilities
services come via mobile, and Google research (see Exhibit 7). Even the non-life market, with
shows 65% of purchase journeys start on a simpler, shorter-term products that can be more
smartphone before moving on to a PC or tablet.7 easily enabled digitally, significantly under-
exploits mobile.

Exhibit 7: Online vs. mobile digital functionality Online

Mobile

Provide information about our company/products 92%

47%
Provide customer self-service facilities 74%
40%
Provide quote 72%
43%
Transact/purchase online 66%
35%
Educate our customers about brand values 63%
30%
Allow customers to submit complaints 57%
21%
Facilitate online/virtual communication 40%
17%
Enable customers to submit and process 39%
claims online 23%
Request and process settlement/payment online 39%
26%
Contribute to product development and 34%
market research 15%
Enable customers to digitally record and 29%
document claims 27%
Provide financial advice 18%
9%

7 “The New Multi-Screen World Study,” Google Research, http://www.google.

co.uk/think/research-studies/the-new-multi-screen-world-study.html.

22 Insurance in a digital world: the time is now EY Global Insurance Digital Survey 2013
Our findings: global overview of key themes

43%
Only Case study: leveraging social media

Friendsurance making
insurance social again
Under the slogan “Making insurance social
again,” German company Friendsurance has
of insurers provide mobile quotes compared to implemented the concept of online peer-to-
72% who provide these online. peer insurance.

Friendsurance uses social media to link

• Less than one-third of global respondents friends together to buy collective non-life
have a distinct mobile strategy for policies from established insurers. A small
intermediaries and agents. However, nearly amount of cash is set aside to cover small
two-thirds plan to develop one. To pursue claims, and if the pool is untouched at
mobile, it will be critical to select services year-end, it is shared among the group.
that support the customer experience and to This discourages fraud, as fraudulent claims
measure success carefully. A recent survey damage friends’ interests.
found that 59% of apps do not break even.8 Too
many organizations release mobile apps then Policyholders save up to 50% on premiums
forget to measure the customer experience, (small claims are handled without insurer
thereby falling into the trap of wasted digital involvement, using network payback), while
spend and a proliferation of apps. insurers reduce their claims ratios, process
costs and customer acquisition costs as
Case study: use of mobile technology customer numbers grow virally.

Mobile shopping for time-

strapped consumers • Non-life insurers are more advanced on the
social media front. Nearly 80% of non-life
Commuters can select groceries for same- insurers (versus 66% of life) use Facebook to
day delivery by using their mobile phones to interact with customers and agents, although
scan product photos on their way to work. both sectors have low presence on Twitter
UK supermarket chain Tesco — with more (42%), LinkedIn (35%) and YouTube (34%).
than 6,500 mainstream stores in 12 markets Insurers should consider taking social media
— has set up virtual stores in South Korea. more seriously, recognizing its value as a
They are located at sites, such as subways relatively inexpensive marketing tool and as a
and underground railway stations, that are means to engage with and influence digitally
convenient for time-strapped consumers. savvy younger consumers.

Shoppers scan barcodes on pictures of

chosen items. Products ordered en route With mobile and tablet use
to the office are delivered by the time the growing exponentially, neglecting
shopper gets home. The virtual grocery
stores show how technology — in this case, mobile and social media is turning
quick response (QR) barcodes and remote one’s back on the future.
frequency identification (RFID) capability —
can create new opportunities to connect with
customers and make their lives easier.

8 App Promo Survey 2012.

Insurance in a digital world: the time is now EY Global Insurance Digital Survey 2013 23
Our findings: global overview of key themes

Digital levels the playing

field, and other consumer
industries are keenly
aware of this. It’s quite
possible that the leading
digital insurer of the 21st
century has yet to emerge.

24 Insurance in a digital world: the time is now EY Global Insurance Digital Survey 2013
Our findings: global overview of key themes

One final thought Established players are publicly raising their

Given the current state of the industry’s digital digital game:
capabilities, respondents are reluctant to name
digital leaders in insurance, instead citing • One global insurer has made customer
Amazon, Google and Apple as the companies centricity a strategic priority and is investing
they admire most. In the US, Progressive substantially in digital technology, building a
was mentioned most for its online quoting global media plan to support digital and multi-
and servicing, consumer-friendly digital access initiatives and disseminating digital
platform, customer orientation and presence expertise across teams. Additionally, the
across digital channels. Additional companies company has shown its top-down support for
mentioned include Japanese Lifenet and the program by adding a key decision-maker
Spanish direct insurer Verti. It’s possible that the with digital expertise to its Board of Directors.
leading digital insurer of the 21st century has
yet to emerge. • Another global player embarked on a group-
wide digital transformation program in 2010,
building a target picture that focuses on
customer interaction, analytics, products and
productivity. This has required a substantial
investment to increase the frequency and
quality of customer contact through web,
mobile and social media.

Other insurers will need to take on similar

transformational digital activities if they are to
keep pace with their peers.

Insurance in a digital world: the time is now EY Global Insurance Digital Survey 2013 25
Our findings: global overview of key themes

02

26 Insurance in a digital world: the time is now EY Global Insurance Digital Survey 2013
How should insurers respond?
Section 02

How should insurers respond?

Digital may be the solution to meet

both the expectations of customers and
distributors, as well as aligning with the
CFO’s cost agenda.

Insurance in a digital world: the time is now EY Global Insurance Digital Survey 2013 27
02

How should insurers respond?

Adapting to a new digital landscape presents Identify initiatives that deliver the
many difficulties for insurers due to their legacy most upside
of offline infrastructure, complex products and • Leverage customer experience data and
regulation. They face challenges in introducing analytics capabilities to identify where best
new channels to market while simultaneously to focus digital spend rather than making
remodeling traditional ones. As an example, potentially inaccurate assumptions around
telephone call centers must evolve into contact customer needs
centers, staffed by expert call handlers with • Reconsider spending on non-core digital
the skill sets and tools to support multi-channel technology that may not deliver maximum
offerings. While sales of personal non-life benefits
products have moved online in many markets,
the life and pensions sector has not adopted Help distribution partners develop digital
digital as much and is unprepared for the capability by sharing resources and expertise
fundamental shift in consumer behavior. If customers are to have positive, brand-
affirming experiences at every touch point, the
With companies at different evolutionary stages, effective integration of all sales and service
no single solution can seamlessly integrate channels is essential. Existing channels will
digital into a business. However, certain need to change and adapt; otherwise, digital
elements are intrinsic to all effective digital will simply complicate the process and frustrate
strategies. Insurers can consider their digital customers.
development as two successive steps.
• Leverage digital investment and expertise to

Step 1:
enhance capabilities of intermediaries and
agents help them become “agents of the
the here and now future” — to deliver long-term value
• Provide agents and intermediaries with
digital analytics, tools and service to
Companies must plan immediately to keep improve customer segmentation, sales and
pace with competitors and protect their core promotional targeting and controls
business. As they focus on fixing the basics and • Segment your distributor database to focus
addressing customer “pain points,” they also on those partners who are willing to embrace
need to make sure that key enablers for the digital
future — such as an analytics skills base — are in
place. Organizations can start by taking these Frame the investment argument
following action steps. for digital
• Shift executive board focus from short- to
Create a digital strategy and clearly define long-term decision-making; the industry has
ambition historically centered around new business and
• Map out the current and target state of digital market share, not on deriving value from the
maturity and create a road map to get there in-force book — digital can be part of this shift
• Determine the vision by looking outside the • Recognize the potential disconnect between
industry, recognizing that leadership may not front-office distribution and the CFO’s agenda
be an option in every dimension due to cost, • Find an acceptable balance of spend between
competitive positioning or strategic business retention versus acquisition
rationale • Increase focus and investment over time
• Communicate the strategy and ambition to through analytics capabilities
staff, agents, partners and customers to help • Present the business case as an enabler to
manage expectations deliver the wider strategic agenda to support
customer, regulatory and financial initiatives

28 Insurance in a digital world: the time is now EY Global Insurance Digital Survey 2013
How should insurers respond?

Digital technology needs

to be joined seamlessly
with other channels —
effective integration
across all sales and
services is essential.

Insurance in a digital world: the time is now EY Global Insurance Digital Survey 2013 29
How should insurers respond?

Build analytics capabilities in step using mobile banking due to top one billion
with digital by 2017, mobile increasingly is becoming the
• Develop an analytics infrastructure, establish preferred payment tool.9 Early engagement
the platform and select tools. in mobile offers significant opportunities:
• Remember that analytics is a foundation enhanced loyalty by offering extra convenience,
capability that should be planned and increased retention through more convenient
developed simultaneously with digital. If access to renewal, stronger brand positioning
organizations delay analytics, the digital by differentiating oneself as an innovator and
investment disappoints and analytics take earlier adaptor, and enhanced efficiencies
longer to deliver. (e.g., use of mobile to manage claims incidents
• Target customer “pain points”: listen to and processes).
customers’ priorities and needs, rather than
making potential erroneous assumptions. • Develop mobile and tablet skill sets, products
Analytics help take insurers from “we think” to and services to bring mobile capability up to
“we know.” online functionality in target areas, selected
on the basis of robust customer analysis
Develop mobile functionality • Measure effectiveness of preexisting and
Mobile represents a new medium for purchase new apps to make sure they deliver to the
and transaction. With the number of people customer — and the company

Exhibit 8: The digital “virtuous circle” —

non-linear business case

Digital offerings/
capabilities
More customer Increased productivity/
insight (data) reduced cost to serve
More relevant tailored offerings

Data analysis and Digital distribution/

segmentation capability customer access

Better experience = customers more

willing to share data

Increased sales

Digital service tools/

better customer
experience

Increased customer
retention
Increased customer
satisfaction

9 Mobile Banking: Financial Services Meet the Electronic Wallet, EY and

Knowledge@Wharton, 2013.

30 Insurance in a digital world: the time is now EY Global Insurance Digital Survey 2013
How should insurers respond?

Take social media seriously Start to embed innovation in your

Recognize the benefits of social media. Data organization
can deliver insights to segment and target To secure future digital success, insurers
customers, it can disseminate product and must change their mindsets, their operating
service news more rapidly than traditional models and the way they listen to and
marketing media, it provides access to the engage with customers and partners.
spaces younger consumers frequent, and it To do this, insurers must embrace and
helps to educate customers effectively. Some embed a culture of innovation. There is one
auto insurer campaigns, for example, have important distinction, however: do not focus
harnessed blogs, Twitter, YouTube and Facebook solely on innovations themselves — focus
to provide driver education and safety tips.10 on becoming an innovative company.

• Refresh or establish profiles on primary social • Identify existing culture constraints as a positive
media sites first step. Tap into outside influences, such as
• Delete non-core pages or they will dilute external discovery centers or industry research
your brand labs, and seek insights from other sectors, as to
• Monitor the airwaves regularly and respond how you might address them.
rapidly to brand-damaging online comments • Align innovation with business and individual
— social media is a digital grapevine, and bad goals, reflecting achievement in company
news travels fast key performance indicators (KPIs), personal
performance targets and rewards.
Case study: customer-centric digital offering • Assign a responsible team that is accountable
for new ideas and distributing top-down and
The writing is on the wall for bottom-up innovation across the company.
Australian insurer Youi • Establish physical spaces, events and “test and
learn” processes to generate digital ideas, assess
Australian non-life insurer Youi markets its their feasibility, and pilot and nurture them.
customer-centric strategy under the slogan

Step 2:
“We get you.” Youi allows customers to post
service feedback — good or bad — directly
on its website “wall.” The company uploads near term
unfiltered customer appraisals to its site
every five minutes. Comments range from
the positive (“I only have great things to The near term is about meeting evolving
say about Youi”) to the negative (“The call customer expectations as they continue to
seemed cold and unhelpful”). It also posts grow in line with technology. Transformational
real-time customer satisfaction scores for all activities will dramatically improve the customer
to see. experience and lead to a paradigm shift within
an organization in the first two to three years.
The wall feature, “Discuss. Share. Tell.”
resembles the popular customer/peer review Consider organizational culture when
feature of consumer sites such as Amazon. contemplating transformation
By allowing current and prospective users to Not every company has the flexibility or speed
see real customer reviews, Youi promotes an to extract value from establishing a digital
open, attentive and responsive brand image. incubator unit to test and learn from new ideas.
For some, their traditional culture and business
operating model may lack the agility required.
Faced with significant challenges and costs,
some companies may opt to create entirely
10 Social media in insurance – how to interact better with your customers, EY,
new businesses.
July 2011.

Insurance in a digital world: the time is now EY Global Insurance Digital Survey 2013 31
How should insurers respond?

Transforming an organization’s conservative Case study: innovative customer service model

mindset and product-centric legacy structure
in the longer term will be the biggest challenge. Mutual innovation for NewCo
Critical questions to ask include: customers
• Can you invest in digital in one part of the Online phone company giffgaff illustrates
value chain and achieve market leadership how an established business can create an
— or does it need across-the-board digital innovation-infused NewCo. Ex-state telco
improvement? Telefónica created UK-based giffgaff as a
• Is centralized ownership of a digital program separate brand under the slogan “The mobile
required? company run by you.” Applying the principle
• Should you develop your existing distribution of mutuality, only 16 customer service
model incrementally or incubate a separate operators manage several hundred thousand
“greenfield” digital business focused on users with no call centers. Customers answer
specific customer segments or product lines? each other’s queries — on average within
three minutes — and receive point incentives
Embrace cloud computing to drive operational to redeem for prepay credit.
efficiency and effectiveness
Digital will require increased flexibility, faster Customers are asked to generate new ideas
speed to market and more accurate insights to and are rewarded for innovative suggestions.
support strategic decision-making and manage giffgaff runs at 25% of the service cost of
risk. Cloud computing can provide insurers Telefónica’s other propositions, which is
with a flexible, scalable, low-cost alternative to reflected in its pricing, to the benefit of the
traditional IT delivery methods and, therefore, customer. The company’s Net Promoter Score
should be an essential element of digital strategy. is 75, significantly above the industry norm
In an interview with EY, Nigel White of IBM’s and approaching that of Google and Apple.
Cloud Division observed that “clients are using
cloud for hosting of new mobility applications,
analytics, e-commerce front ends to integrate Creating a significantly different business requires
channels and ERP-based back-end production- doing significantly different things. Rapid change
level solutions. With all the variety of uses, the is required to adapt to new and fast changing
critical element though is to enable effective market conditions. Insurers need to recognize
integration with the existing environments.” that it is almost impossible to do this using top-
Insurers should take steps to: down, imposed and directive approaches, which
have been the traditional tools of change. We
• Understand the impact of cloud computing on believe that change is best supported through
insurance business model innovation and as a evolutionary approaches that orchestrate large
means of reducing barriers of entry for new, scale collaboration and engagement across the
non-traditional players whole organization early on in its change journey
• Enhance top-line growth and better manage and that this transformation is best achieved by
risk through improved customer and business thinking and learning by doing. The new tools
intelligence by leveraging cloud-enabled big available to all, combined with knowledge sharing
data and advanced analytics capabilities and media production techniques, are providing
• Whether building from new or transforming powerful opportunities for enabling large-scale
the existing business model, consider cloud systemic transformation of organizations from
technologies to underpin the business and the inside out.
IT architecture and delineate from legacy
infrastructure If you want to be a rapidly growing and successful
digital insurer, we think you need to focus on the
Create a sustainable culture of collaboration five components shown in Exhibit 9 on the right.
and innovation

32 Insurance in a digital world: the time is now EY Global Insurance Digital Survey 2013
How should insurers respond?

Exhibit 9: Creating a digital culture

A culture of thinking, producing and learning by doing

01 Leadership alignment
Alignment of leadership around a compelling story through the use
of tools, methods and approaches that will form the DNA of the
future ways of work and digital culture (using video, animates and
social media)

02 Cultural alignment
Defining the cultural shifts necessary for the business to achieve its
purpose and creating interventions to achieve this alignment

03 Collaborative working
Creating the physical, online and cognitive (methods,
tools, approaches) environments to support the business
and embed cultural change 01 02 03 04 05

04 Enablement
Delivering the training, education and development opportunities
necessary to shift the ways of working, as
well as undertake development activity on specific topics pertaining
to cultural change, through the use of the collaborative working
environments (03) — thinking and learning by doing

05 Momentum
Establishing the performance management systems
to reinforce the new ways of working and sustain the collaborative
environment

Insurance in a digital world: the time is now EY Global Insurance Digital Survey 2013 33
How should insurers respond?

03

34 Insurance in a digital world: the time is now EY Global Insurance Digital Survey 2013
Section 03
How EY assists clients’ digital business development

How EY assists
clients’ digital business
development

EY helps organizations to calibrate an

appropriate response to the opportunities
and challenges that “the digitization of
everything” presents. Our agenda is
to work with clients to find the answer
that drives benefit and unlocks value,
to produce an executable solution that
is grounded in the practical realities of
implementation.
Insurance in a digital world: the time is now EY Global Insurance Digital Survey 2013 35
03

How EY assists clients’ digital

business development

EY’s customer advisory services help our clients Credential

grow profitable customer relationships through
deep analytics and sustainable change. We Innovation Center
offer a suite of issue-based, value-led services
to clients around digital transformation, helping We deployed our innovation framework to
organizations to calibrate their response to create an “Innovation Center” for our client,
the opportunities and challenges that “the a global insurer operating in Asia-Pacific,
digitization of everything” presents. In support which included creating the strategy
of this, we invest heavily in industry and market (mission, vision and goals), defining the
research and have published extensive thought innovation “engine” (core capabilities
leadership on digital and customer strategy in and support execution) and establishing
insurance and other sectors (see EY reading list an operating model. Using cross Asia-
on page 53). Pacific resourcing, jointly the client and
EY worked together to create a road map,
Credential which included the opportunities and an
implementation plan detailing activities for
Digital operating model the first 100 days. The project provided the
client with greater clarity around the value
To address compliance concerns, a leading proposition of the center and how it will help
UK FS provider conducted a digital operating them achieve their business objectives.
model review to create a group digital center
of expertise. The company chose to adopt
a hybrid approach to digital transformation Our view is that digital strategy cannot be
that would ensure compliance, share best created in isolation from corporate and customer
practices, leverage economies of scale strategy and should not start with technology.
and accelerate innovation. This approach We are objective, with no vested interest in any
ensured strategic alignment but with design, particular technology or outcome. Our agenda
build and test federated to business units is to work with our clients to find the answer that
or specialist teams. It was essential to build drives benefit and unlocks value. We work with
a group-wide capability for mobile devices; clients to co-develop an executable solution that
however, there was little or no specialist is grounded in a sound understanding of the
mobile delivery capability or experience practical realities of implementation and what is
within the business units. Therefore, a more required to successfully embed change across
centralized approach was taken to drive the organization.
mobile transformation across the group.
Our proven Digital Strategy Canvas (see
Exhibit 10) is a comprehensive and iterative
methodology to develop, test and hone digital
strategy. This approach acknowledges that the
key elements — corporate strategy, customer
strategy, target operating model and enabling
capabilities — are interdependent, non-linear
components that should inform and shape each
other as digital capabilities develop.

36 Insurance in a digital world: the time is now EY Global Insurance Digital Survey 2013
How EY assists clients’ digital business development

Aspects of this overarching methodology include: with an “inside-out” design of capabilities to

deliver these experiences, thereby aligning
• Digital maturity assessment — a diagnostic shareholder value with customer value. Our
framework to assess the relative maturity approach focuses on defining customer
of a client’s current digital capabilities and interactions across multiple touch points,
customer experience. This tool can also be recognizing that the customer accesses the
used to help clients define their future state insurance experience across many different
ambitions across similar dimensions. channels, and understanding how these
improve business performance.
• Digital and multi-channel customer
experience design — aligning an “outside-in,” • Customer analytics and insight — the use of
customer-centric view of new experiences deep analytical techniques to unlock the value

Exhibit 10: EY Digital Strategy Canvas Our Digital Strategy Canvas is a visual representation of
the EY method for digital strategy projects. It represents
all the key elements that need to exist and be in alignment
to create a robust and implementable digital strategy. The
model is not linear; each dial informs and shapes the other
as the project progresses.

Vision
Mission
statement

Financial
objectives
Corporate
strategy
Customer Customer
proposition objectives
& strategy
Brand Segmentation Digital
initiatives
Benefits
Digital model
ambition
Research &
Personas
insight
Customer Prioritization

strategy Digital
Customer
journeys
Visualization road map
Supplier

Intentional
Digital strategy shortlist

customer
experience
Road map
Supplier
selection
Digital
governance
Customer- framework
Business
driven processes
innovation

en
t

People &
em
Risk & operating
compliance model
g
Enabling na
capabilities ma
m
gra
Pro
Benefits Technology
realization & tools

Partners & Information

ecosystem & insight
Program

Insurance in a digital world: the time is now EY Global Insurance Digital Survey 2013 37
How EY assists clients’ digital business development

in data and customer insight. We help clients to Credential

gather and make sense of customer data, apply
descriptive and predictive tools to create insight, Digital analytics strategy
and build and sustain analytical capabilities. and roadmap
• Digital analytics — we assist in optimizing A major US consumer and commercial
every aspect of the customer’s experience insurer lacked a digital analytics strategy
using measurement and analysis to drive and was dissatisfied with the results of
decisions on digital spend, digital touch points its technology and resource investment.
and customer journey. Furthermore, digital analytics had not been
adopted properly and were fragmented
• Data enrichment and management — helping across business lines. The solution was not
to unlock the value in existing systems, adequately supported, resulting in ad hoc
investing effectively in new capabilities and analytics efforts that had limited value for
leveraging new data sources. senior management. In response, we created
a comprehensive digital analytics strategy
• Innovation culture development — developing for the company’s existing technologies,
a culture of innovation through organizational resources and business needs. This included:
cultural alignment, leadership alignment, • A current state assessment that compared
collaborative working environments, industry peers across five major
enabling capabilities and performance dimensions of analytics
systems. Specifically, we can support • A data science road map that described
capability development such as design and and prioritized a comprehensive portfolio
implementation of an “innovation center” of analytics projects
or “lab”. We assist in developing the value • A technology ecosystem with a phased
proposition, determining the capabilities evolution, which we recommended to
required and designing the structure, metrics, support the overall strategy
resources and governance to deliver. • Restructuring the core teams and offshore
support to build a true analytics Center of
• Digital governance — evaluating current status Excellence
across a number of dimensions — social media • Most importantly, creating organizational
risk analysis, digital strategy, governance consensus on the focus, goals, and
framework, awareness and monitoring — and requirements for digital analytics
identifying the next steps to improve overall
governance and effectiveness.
Credential

Digital governance
A major European bank engaged EY to
review its web assets. Their web presence
had grown to over 500 customer-facing
web/microsites with differing governance,
development and support arrangements.
This exposed the client to significant
regulatory and reputational risk.
The subsequent rationalization and
restructure of the supplier, process and
support model enabled the client to realize
efficiency savings.

38 Insurance in a digital world: the time is now EY Global Insurance Digital Survey 2013
How EY assists clients’ digital business development

Digital: some key questions to consider

Strategy • Ambition: Where do you want to be on the Digital Maturity Model? Do you have a
clear view of what “digital” aims to achieve?
• Priorities: Do you know which customers, products, channels and customer
trigger points require digital attention — and which do not? What are your
competitors doing in this space?
Implementation • Do you have a clearly defined digital analytics road map to deliver your strategy?
• Does your organization have clarity on digital ownership and accountability?
• Have you communicated an early call to action, aligned ambition and plan — with a
senior sponsor and tone set from the top?
• Has a group, regional or country-level digital policy been written, communicated
and monitored for consistency?
Technology and • Have you identified preferred platforms that align with digital strategy?
operating model • Can your operating model quickly detect and respond to shifting customer
demand in digital space? If not, how can you develop this?
Analytics • Are you rolling out analytics in tandem with digital?
• Do you have the right capabilities in place — a strong analytics team and
supporting tools?
• Are you capturing, storing and using current customer data to maximum value?
Understanding the • Are you listening to the “voice of the customer” to understand pain points from
customer the customer’s perspective? What about the “voice of the advisor”?
• Are you evaluating customer behavior to determine response to shifts in digital
communications and processes?
Customer service • Are you changing call centers to contact centers and integrating customer data
and experience across all media and digital channels?
• Do you know where to invest your customer service digital spend to deliver the
most commercial value to your organization and address the customer’s wants
(expected “hygiene” features versus true “delights” for the customer)?
Distribution • Have you engaged with distribution partners on a shared digital strategy that is
agreed on by all parties?
• Are you sharing the benefits of your digital investments with partners (where
appropriate) for win-win outcomes?
Culture • Have you appointed non-executive director(s) who will champion the digital
agenda?
• Does your performance management system reflect measures, KPIs and rewards
that align with your digital vision?
• Have you established an innovation center or equivalent function to focus on new
ideas and digital test and learn?
• What steps are you taking to embed innovation in the organizational culture?
• Do you know what cultural factors are impeding digital development and
innovation? Is there a plan to address them?
Mobile • Are your digital platforms optimized for mobile access (as appropriate for your
organization)? If not, which areas will you target first?
• Are you measuring your mobile applications’ effectiveness and reacting
accordingly?
Social media • Are you addressing potential threats, “monitoring the airwaves” and responding
rapidly and in the right way to brand-damaging online comments or events?
• Are you realizing early opportunities and quick wins? Are you seeding ideas
online, interacting with customers and making use of data volunteered by
customers through social media sites?
• Do you have web analytics in place? Do you know what your customers are doing
and what they are saying about you, and are you spotting wider trends?

Insurance in a digital world: the time is now EY Global Insurance Digital Survey 2013 39
How EY assists clients’ digital business development

40 Insurance in a digital world: the time is now EY Global Insurance Digital Survey 2013
Conclusion

Digital capability is essential to be a successful insurance company,

now and in the future. Of course, it is not a panacea and not without
complexities, from the need for seamless integration with offline channels,
to the necessity to align staff behind new ways of doing things. But, in
tandem with other channels, digital is essential to deliver a satisfying
customer experience — and future business growth.

Yet this survey and our experience with clients illustrate that insurers
are falling behind other consumer industries. Despite being realistic
about their shortcomings, and notwithstanding their future ambitions
for digital leadership, many insurers are not moving sufficiently fast
or investing enough to catch up. As such, they stand at risk of being
overtaken by more innovative and digitally focused competitors and
new entrants.

However, our findings also highlight a transformational market

opportunity for established insurers. Furthermore, because so many
companies are starting from similar low levels of digital maturity and
are struggling with the same challenges, the rewards will be great to
those that “crack the digital nut.” Although smaller players and new
entrants may be more nimble, established insurers may be better
placed to bear the capital costs of experimentation. The steps outlined
in our report can help build the foundation for sustainable business.
Inevitably, the challenge of being an insurer in a competitive world
will not end there. Global economic stability and forward-thinking
regulation that balances consumer protection with the need for
an open, innovation-fostering environment are just two other
necessary imperatives.

Like other consumer industries, insurers should move swiftly to

digitalize their companies. The time to act is now.

Insurance in a digital world: the time is now EY Global Insurance Digital Survey 2013 41
How EY assists clients’ digital business development

04

42 Insurance in a digital world: the time is now EY Global Insurance Digital Survey 2013
Our findings: regional highlights
Section 04

Our findings:
regional highlights

While conducting this survey, many

regional differences emerged,
ranging from current levels of digital
maturity, to the perceived challenges
of implementation. Understanding this
diversity is a critical input to global
insurers’ digital advancement.

Insurance in a digital world: the time is now EY Global Insurance Digital Survey 2013 43
04

Our findings:
regional highlights

Asia-Pacific
Asia-Pacific insurers have far less clarity
around the barriers to digital progress and
future investment than their global peers. One
reason may be that the region’s developing
and emerging nations are at an earlier stage in
their digital journey. Although Australia aligns
more with the digitally developed European
and US markets, it is outweighed by the
large number of Asian countries included in
our survey; therefore, our findings are more
representative of Asia.

Digital strategy clarity is lacking.

A significant number of Asia-Pacific
respondents did not know (or disclose) current
levels of digital development spend: 79% versus
40% globally. Such lack of clarity is mirrored
looking forward: 58% estimated future spend However, there could be a false sense of
increases, compared to 81% globally. This may security: 16 Asian countries are in the top 30
reflect the greater geographic complexity of the countries in terms of internet users; together,
region or the deferral of strategic planning to they account for 42% of the world internet
the group level at this point in time. population. Digitalization presents a significant
opportunity to Asian insurers to reach
Another reason for the lack of clarity may be customers in more remote areas, and failure to
a weaker sense of urgency and top-of-mind recognize this will cost insurers dearly.
awareness. In 2013, GDP growth for Asia
is forecast at 5.75%, compared to a 3.25% Integrating digital with other distribution
global average.112Such prosperity, combined channels is a top challenge.
with lower insurance penetration and density Underlying the importance of agency
rates in this region, means digital innovation distribution in Asia-Pacific, 68% of life insurers
has not been considered necessary to secure consider that “integrating digital and media
customer growth. Instead, insurers have with other distribution channels” is the top
historically focused on targeting market share, challenge they face in delivering their digital
often by expanding their sales forces. This strategy. This is far less of a concern in non-
may explain why regional respondents rate life. The prevalence of agency inefficiency
the consequences of not embracing digital and high support costs is reflected in regional
significantly below global levels. Almost respondents’ higher ranking of intermediaries’
one-quarter (21%) anticipate no short-term current use of digital to “improve efficiency and
impact, compared with 15% globally. In fact, quality of customer interactions” than global
only 37% believe customers will ultimately participants. The fact that Asian insurers are
leave and 39% think business partners will far more likely than their global peers to have
shift business elsewhere, compared to global mobile strategies for their intermediaries (44%,
averages of 51% and 49%, respectively. compared with 29% globally) is another sign of
the dominance of the agent network.

Customer experience and internal efficiency

are driving digital strategy.
Asia-Pacific insurers view the benefits of digital
11 World Economic Outlook, International Monetary Fund, April 2013. through a slightly different lens. Like their

44 Insurance in a digital world: the time is now EY Global Insurance Digital Survey 2013
Our findings: regional highlights

global peers, enriching the customer experience for business purposes. This is also reflected in
is the key driver of digital strategy. However, lower use of online and social media monitoring
“increasing internal efficiencies” ranks second, (56%, compared with 75% globally).
cited by 24% of respondents, compared to only
9% globally. Only 7% of regional respondents see Lack of interest in social media may reflect a
“regaining more direct control of the customer more general reluctance to use digital to engage
relationship” as a driver, compared to 20% in customer dialogue, at least for softer types
globally. This reflects the central role that agents of communication. Asian insurers are more
continue to play in the Asia-Pacific region. likely than their global counterparts to interact
digitally with customers at financial stages (e.g.,
Regulatory restrictions are a higher concern. quotes, transactions and payment). For example,
Overall, the region has a mixed view of what is 83% of regional insurers provide online quotes,
hindering its digital development. The global and 70% offer online purchase/transaction
view positions it firmly as the responsibility of capabilities (72% and 66% globally). In contrast,
insurers: legacy technology, pace of delivery 82% provide company and product information,
and cultural constraints. In contrast, Asia-Pacific and 49% educate customers about their brand
recognizes legacy technology issues (63%) values, compared to 92% and 63% globally.
but also blames regulation (44%), a lack of a
compelling business case (41%) and perceived

7%
customer/data security issues (40%). The “slow Only
pace of delivery by insurers,” considered the
second strongest global inhibitor, ranks fifth in
the region, with the regulatory environment is
far more of a concern. The focus on regulatory
concerns may be explained by the number and
disparity of regulatory jurisdictions in Asia- of regional respondents see “regaining more
Pacific. Regulatory environments vary from direct control of the customer relationship”
traditionally prescriptive to more permissive as a driver, compared to 20% globally.
regimes. Asian regulators have historically
been more protective of a less sophisticated
consumer class, taking a more prescriptive
approach. However, the region has undergone a
rapid, wide-ranging evolution in the regulatory
environment in recent years. Anticipated new
consumer protection regulations may impose
tighter compliance demands on insurers — for
example, around the education and training
of sales and customer service staff. Evolving
regulation will undoubtedly affect how well
insurers can respond to the digital challenge.

Social media and mobile tools have a lower

perceived value.
Asian insurers are less likely than their global
counterparts to use social media and mobile
tools to interact with customers and agents: 30%
use mobile apps, lower than half the global ratio
of 61%. Facebook use is much higher at 60%,
but still short of the global percentage of 71%.
The infrequent use of apps and social media
may suggest that insurers distrust such tools

Insurance in a digital world: the time is now EY Global Insurance Digital Survey 2013 45
Our findings: regional highlights

Americas
The scope of the Americas region in our
survey comprises a diverse range of countries.
For example, direct insurance and direct
to consumer marketing are still only just
emerging in Latin America but much more
developed in North America. Nonetheless,
the region has much in common across many
indicators of digital advancement, from
budgetary spending, to customer engagement.

There is a high level of support for digital.

The region spends more on digital than the rest
of the globe. One-third of Americas respondents
say they spend between 10% - 30% of their IT
development budget on digital, compared with
19% globally. Company business models support
digital more effectively. One in four respondents
says “our organizational structure facilitates the
execution of our digital business strategy” and
“digital operating functions are integrated into
our overall operating model,” compared with
12% globally. In contrast, just 14% of insurers in Twitter is used by 68% of Americas’ companies
the region say “our operating model is not very versus 42% globally; and LinkedIn is used by 57%
flexible to changes in the digital space” with in the region, compared with 35% globally.
digital operating units being “stand-alone or
fragmented,” compared with 26% globally. Reflecting this higher level of use, 91% of
companies monitor what customers say about
Insurers show more digital interaction and their brands online and in social networks, against
mobile engagement. a global ratio of 75%. In Latin America, countries
The Americas demonstrates a greater level of such as Colombia have leapfrogged many
digital interaction with customers, including the developed countries and now have more active
use of mobile devices, as evidenced by these social networks than London and Paris.
findings:
Legacy technology constraints are the top
• 76% allow customers to conduct transactions inhibitor of digital growth.
and purchases online, compared with Despite its relative digital maturity, insurers in
66% globally. the Americas see their existing systems as a
• 50% enable customers to submit and process major impediment to digital growth, with 96%
claims online versus 39% internationally. citing “legacy technology constraints” as the
• 57% use online customer engagement in top inhibitor, compared with 80% globally. This
product development and market research is particularly prevalent in Latin America, where
versus 34% internationally. significant M&A activity in recent years is creating
• 44% enable customers to digitally record claims even greater complexity to the legacy challenge.
submissions, compared with 29% globally. In this context, 81% of insurers in this region say
they have the greatest need for new technology
This higher level of online and mobile engagement resources to deliver their stated digital strategy
also extends to greater use of social media. For (compared to 72% globally and ahead of analytics
example, Facebook is used by 87% of insurers as the most in-demand skill globally).
in the Americas, compared with 71% globally;

46 Insurance in a digital world: the time is now EY Global Insurance Digital Survey 2013
Our findings: regional highlights

57%
The “slow pace of delivery by insurers” is the
second highest inhibitor of digital growth, cited
by 76% of insurers in the Americas versus
64% globally. The internal organization is
seen as a challenge by both life and non-life
companies. For life companies, “creating a
culture of innovation” is the highest challenge use online customer engagement in product
(81%, compared with 63% globally). Among development and market research versus
non-life companies, 87% cite “internal company 34% internationally.
structure or culture constraints” as a major
challenge, compared with 64% globally.

There is a greater sense of urgency.

Both the higher awareness of digital challenges
— and the greater progress to date — may reflect
a more acute sense of urgency in the Americas.
Insurers are over a third more likely than the
global average to think customers will leave
them if they do not embrace digital. This is the
leading consequence cited by insurers in the
region, but it is in third place globally, behind
concerns over losing competitive advantage
and ability to innovate in the market. In citing
their digital drivers, “reducing cost to serve
customers and intermediaries” is far more
important in the Americas at 18%, compared
with the global average of 9%.

Insurers have a positive assessment of digital

leadership and success so far.
Insurers in the region are more likely to consider
“we are one step ahead of our competitors and
use digital to increase market share” — at 38%,
compared to 17% globally. Particularly within
the high-growth markets of Latin America,
digital is seen as strategically important for
reaching out to the new middle class who are
buying for the first time. Although similar
numbers report “we are making good progress
but still have some way to go” (46% versus
51% globally), a larger proportion of regional
insurers (16% versus only 10% globally) claim
they “have made transformational changes to
our business’ digital capabilities.”


Insurance in a digital world: the time is now EY Global Insurance Digital Survey 2013 47
Our findings: regional highlights

Europe
Our results show Europe lagging behind
other regions in current capability and
immediate investment plans, with insurers
rating themselves at the lowest digital
maturity level. In many industry sectors
in Europe, and particular in non-financial
services, the customer services environment
and loyalty management are well-developed.
Our discussions with European insurers have
highlighted that they do not look to financial
services to set a benchmark of where they
should aim. Insurers may therefore be judging
themselves against a higher benchmark than
perhaps their peers in other global markets.
responding better over recent years.
The analysis of European insurers’ results
highlight some clear regional differences as Many insurers believe they have a long way
follows: to go.
The gap between how European insurers rate
Slow pace of delivery is acknowledged by their current levels of digital maturity and
European insurers. the global average is particularly wide. As
Many European insurers have multiple legacy mentioned earlier, this may be due to a harsher
systems that do not lend easily to customer- assessment against other industries. Currently,
centric digital activity. From our survey, it is clear 90% rate themselves at the lower end of the
that the resulting cost and complexity issues maturity scale (1 or 2 out of 5) as a digital
have pushed digital down their agenda — or at leader, compared with 79% of their global peers.
least tempered digital ambitions to allow for what
can be done most readily within the confines of Further disparities between European insurers
existing infrastructure. and others include:

Another influence is the high proportion of • 67% rate themselves as 1 out of 5 for
independent agents or intermediaries and the managing and building brand loyalty through
significant shift in their power over the customer digital channels, compared with 53% globally.
relationship in recent years. Nearly 50% of • 76% rate themselves as basic in using digital
respondents cite this as an inhibitor to digital to reduce cost to serve customers, compared
growth, and “regaining more direct control of with 55% globally.
the customer relationship” is the highest driver • 28% admit they currently have no business
of digital strategy in Europe by some margin case for their digital strategy, compared to
(39%, ahead of second place driver “enriching 10% globally (and 53% admit their “digital
the customer experience” at 23%). initiatives are not communicated well to
other internal stakeholders and employees,”
The vast majority of those surveyed (93%, higher compared to 37% globally).
than any other region) cite “slow pace of delivery
by insurers” as the most significant inhibitor. Despite this relatively low current self-
Legacy systems cost and complexity issues may assessment, European insurers have, like their
influence this perception. Interestingly, virtually global peers, ambitious future state targets. And
no one believes that lack of consumer demand in some areas, such as reducing cost to serve and
for digital is an inhibitor, so clearly cost and getting the right operating model in place, they
complexity have prevented the industry from have even higher than average digital ambitions.

48 Insurance in a digital world: the time is now EY Global Insurance Digital Survey 2013
Our findings: regional highlights

Europeans are spending less on digital in reduce the cost of customer experience through
the near term but have significant long term digital. For many insurers, the critical next step
investment plans. to achieve their ambitious future state targets
Overall, Europeans intend to spend less on must be to develop a clear and adequately
near-term digital investment than other regions. funded digital business plan.
A larger majority (84% versus 68% globally)

76%
currently spend less than 10% of their IT
development budget on digital. This perhaps
reflects the current state of markets such as the
UK, where more than 50% of new business for
classes such as personal motor is already online.
This is a rate of digital penetration in the sales
process that is unmatched by any other market. rate themselves as basic in using digital to
Of those that estimated, the vast majority (69%) reduce costs to serve customers, compared
expect this to increase by less than 10% in the with 55% globally.
next year. However, the region’s long-term
plans are more ambitious: more than one-third
of European carriers expect to increase digital
spend by more than 50% over the next five
years, compared with 18% globally.

European insurers perceive

different challenges.
European insurers cite company structure or
culture constraints (90%), lack of skills (70%)
and channel conflicts (67%) as their top three
challenges to executing their digital strategy.
Although company structure/culture is also the
top global challenge (albeit at a lower 68%), lack
of skills (50%) and channel conflict (46%) are
viewed as less of a challenge globally. European
non-life insurers feel particularly challenged by
scarcity of skills/expertise and channel conflict:
79% and 74% cite these challenges, compared
to only 66% of life insurers. Analytics and
technology capabilities are most needed by
European insurers (in line with global results),
suggesting that the recruitment battle will be
fierce for people armed with these skills.

Insurers remain positive about their

digital future.
Despite their challenges, European insurers
are more positive than those in other regions
about their success to date. Two-thirds (68%),
compared with 51% of all global companies, say
they are “making good progress but still have
some way to go.”

In conclusion, European insurers are missing

opportunities both to enhance the quality and

Insurance in a digital world: the time is now EY Global Insurance Digital Survey 2013 49
Our findings: regional highlights

Exhibit 11: Top inhibitors of digital growth in Global

the insurance market, by region Asia-Pacific
Americas
Europe

80%
Legacy technology constraints 63%
96%
86%

64%
Slow pace of delivery by insurers 35%
76%
93%

40%
Intermediary/agent channel strength or resistance 34%
41%
48%

33%
Lack of a compelling business case 41%
32%
26%

32%
Regulatory restrictions/environment impeding 44%
digital growth 20%
29%

24%
Perceived customer/data security issues 40%
19%
7%

19%
Insufficient consumer demand 33%
13%
7%

50 Insurance in a digital world: the time is now EY Global Insurance Digital Survey 2013
Our findings: regional highlights

Exhibit 12: Online vs. mobile digital Online

functionality, by region Mobile

Global 72%
43%
Asia-Pacific 83%
44%
Provide quote
Americas 80%
53%
Europe 48%
30%

Global 66%
35%
Asia-Pacific 70%
41%
Transact/purchase
Americas 76%
44%
Europe 48%
16%

Global 74%
40%
Asia-Pacific 69%
37%
Provide self-service facility
Americas 83%
50%
Europe 70%
34%

Global 39%
23%
Asia-Pacific 45%
32%
Online claims
Americas 50%
35%
Europe 32%
21%

Insurance in a digital world: the time is now EY Global Insurance Digital Survey 2013 51
Our findings: regional highlights

Exhibit 13: Current and target future state Global current Global target future
levels of digital maturity, by region Europe current Europe target future
Asia-Pacific current Asia-Pacific target future
Americas current Americas target future
Digital strategy and leadership 1 2 3 4 5

Do you see your organization as a digital leader

in your industry?

Do you have a business case for digital and is

your investment integrated into the financial
planning of the company?

Do you have a clear, well-executed

implementation plan for your digital strategy?

Do you have the right operating model in place

to deliver and run digital capabilities?

Has your digital strategy got support from

senior management? Do they lead by example?

Customer experience 1 2 3 4 5

How does digital inform and support

segmentation?

How do you use digital channels to attract

prospective customers?

How do you manage and build brand loyalty

through digital channels?

How does digital support your Customer Value

Management? (Including cross-sell, up-sell and
retention efforts)

How do you reduce your cost to serve using

digital channels?

All average scores on scale 1-5

52 Insurance in a digital world: the time is now EY Global Insurance Digital Survey 2013
Additional reading
from EY

Voice of the customer: time for insurers to rethink their relationships

The journey toward greater customer centricity

This time it’s personal: from consumer to co-creator

Case study: the digitization of everything

Digital data opportunities: using insight to drive relevance in the digital world

How to build analytics into the insurance value chain

Social media in insurance — how to interact better with your customers?

Digital agility now! Creating a high-velocity media and entertainment organization in the age of
transformative technology

Delivering results through claims technologies: how well insurers are prioritizing investment in
claims technology

Mobile Banking: Financial Services Meet the Electronic Wallet (EY and Knowledge@Wharton)

Smart Commerce: banks battle for customers at the frontline of digital retail

The mobile money revolution is here

The Mobile Maze: Navigating consumer usage of mobile data

The future of life insurance: Demographic and digital disruption demand transformation in retail distribution

Measuring and Evaluating Your Social Media Effort (Semphonic, 2012)122

12 Leading US digital measurement and data analytics consulting firm Semphonic was acquired by EY in April 2013.

Insurance in a digital world: the time is now EY Global Insurance Digital Survey 2013 53
Additional reading from EY

54 Insurance in a digital world: the time is now EY Global Insurance Digital Survey 2013
Additional reading from EY

Insurers who equip

their distributors with
the digital tools to
improve their own
customer relationships
can minimize any
channel conflict.

Insurance in a digital world: the time is now EY Global Insurance Digital Survey 2013 55
Contacts

Find out more about how we can help at www.ey.com/insurance/customer or contact a member of
our team:

Shaun Crawford +44 0 20 7951 2172

Global Insurance Leader [email protected]

Graham Handy +44 0 20 7951 8173

Global & EMEIA Insurance Customer Leader [email protected]

Shona Burns +61 424 280 242

Global Insurance Customer Advisor [email protected]

Christine Delany +44 0 20 7951 1733

Director, Global Insurance Center [email protected]

May Knight and Russel Lok +852 28499518

Asia Insurance Customer Leaders [email protected]
+65 6309 8100
[email protected]

Walter Poetscher and Chris O’Hehir +61 2 9248 5145

Australia Insurance Customer Leaders [email protected]
+61 2 9248 5435
[email protected]

Kaenan Hertz +1 212 773 5988

US Insurance Customer Leader [email protected]

James Littlewood +1 305 415 1849

LatAm Insurance Leader [email protected]

56 Insurance in a digital world: the time is now EY Global Insurance Digital Survey 2013
Contacts

Insurance in a digital world: the time is now EY Global Insurance Digital Survey 2013 57
EY | Assurance | Tax | Transactions | Advisory
Contacts

About EY
EY is a global leader in assurance, tax, transaction and
advisory services. The insights and quality services we
deliver help build trust and confidence in the capital markets
and in economies the world over. We develop outstanding
leaders who team to deliver on our promises to all of our
stakeholders. In so doing, we play a critical role in building a
better working world for our people, for our clients and for
our communities.

EY refers to the global organization, and may refer to one or

more, of the member firms of Ernst & Young Global Limited,
each of which is a separate legal entity. Ernst & Young
Global Limited, a UK company limited by guarantee, does
not provide services to clients. For more information about
our organization, please visit ey.com.

© 2013 EYGM Limited.

All Rights Reserved.

EYG no. EG0141

ED 1114

In line with EY’s commitment to minimize its impact on the

environment, this document has been printed on paper with a high
recycled content.

This material has been prepared for general informational purposes only and is
not intended to be relied upon as accounting, tax, or other professional advice.
Please refer to your advisors for specific advice.

ey.com

58 Insurance in a digital world: the time is now EY Global Insurance Digital Survey 2013