Technologies For Next Gen Digital Insurance 19 May

Technologies For Next. Gen Digital Insurance 19 May 2017

INSURANCE IS A VERY RISKY BUSINESS Government & Regulatory Macroeconomic factors Environmental changes Credit Risk Operational Risk Market Risk ©Larsen & Toubro Infotech Ltd. Privileged and Confidential 2

OFTEN BEEN VERY CONSERVATIVE BUT ITS CHANGING NOW § § § Traditional way of thinking Business model hasn’t evolved much unlike other industries Slow in adopting technology Data rich but Insight poor However, this is changing… Insurance on demand Smart healthcare Virtual Call center New distribution channels P 2 P Insurance TRADITIONAL INSURANCE IS DYING. DON’T BECOME A CASUALTY ©Larsen & Toubro Infotech Ltd. Privileged and Confidential 3

What’s Changing? Abundance of Data Industry 4. 0 Adoption Maturing & Cost effective Technology Rising Customer Expectations Technology Aware Clients Insuretech’s eating pie Under served market - HNI - Small Commercial New Risks - Cyber - Shared Economy ©Larsen & Toubro Infotech Ltd. Privileged and Confidential 4

Focus on Personalized Products Efficient Operations Straight Through Processing Behavior based personalized products Based on data analytics Analytics Human Augmentation with Smart Devices Wow Experience My way of communication No Touch Claims Proactive Alerts for prevention Analytics ©Larsen & Toubro Infotech Ltd. Privileged and Confidential Analytics 5

Internet of Things ©Larsen & Toubro Infotech Ltd. Privileged and Confidential 6

Internet of Things Key constructs - Digital Twin - Digital Thread - Ability to define behaviour & Trigger events for outlier scenario - Act on trigger – Edge Devices ©Larsen & Toubro Infotech Ltd. Privileged and Confidential 7

Connected Insurance - Real time Monitoring of Risk § § § Equipment Lighting Temperature Vibration Fire Active Monitoring Risk Profile Improvement My Factory § § § Air Fuel Ratio Boost Pressure Absolute Load Value Actual Engine Torque Harsh Braking § § § Value added “Service” Introduction My Cars Water Pressure Frozen pipes Temperature Motion Moisture Connected HNI Sensory data Analytics platform No Touch Claims Fraud Reduction Prevention, Claim, Service Alerts My Homes Connected Inland Marine Smart Construction ©Larsen & Toubro Infotech Ltd. Privileged and Confidential Smart Property Smart Home 8

Who is doing what? Home insurance customers for State Farm and American Family get discounts for using Nest smart devices in their homes, like this smoke and CO detector Liberty Mutual has partnered with Google’s Nest to implement connected smoke alarms in the home, enabling customers to reduce risk & home insurance premiums American Modern Insurance built a sample smart’ home outfitted with the latest smart devices to figure out how the technology affects risk and claim response Church insurer Guide. One has smart devices as a key part of its Safe. Church program Democratization of Telematicsbased Insurance products Affinity group & Employee benefits through Group Channel for Home Appliances Utilities Breakdown ©Larsen & Toubro Infotech Ltd. Privileged and Confidential 9

Blockchain ©Larsen & Toubro Infotech Ltd. Privileged and Confidential 10

Blockchain Key Construct - Open Online Ledger - Immutability - Better Security - Smart Contract ©Larsen & Toubro Infotech Ltd. Privileged and Confidential 11

Insurance Industry Challenges and what does Blockchain address? Blockchain Delivers Insurance Industry Challenges Secure, de-centralized transactions among many parties in the Internet of Things Fraudulent Claims Reduced fraud and increased trust and security Identity & Information Authenticity Involvement of multiple parties while conducting Insurance business Trust, Increasing transparency and efficiency in multiparty transactions Streamlined clearing and settlement without intermediation High Cost of Intermediation Improved efficiency in anti-money laundering (AML) and “Know Your Customer” (KYC) compliance Increasing Cost of Operations due to lack of trust Reduced transaction costs Delays in collection & disbursement 12 ©Larsen & Toubro Infotech Ltd. Privileged and Confidential 12

Blockchain & IOT – Goods In Transit Block. Chain Nodes Contract ID: Package Ownership: Threshold: Current Temp: Contract Status: Contract ID: Package Ownership: Threshold: Current Temp: Time: Contract Status: Contract ID: Package Ownership: Threshold: Current Temp: Contract Status: Warehouse Supplier 13 ©Larsen & Toubro Infotech Ltd. Privileged and Confidential 13

Who is doing what? Diamond Verification Registry Verification required by Insurers, owners, claimants and law enforcement. For CAT Bonds Blockchain technology for trades involving ‘CAT Bonds’, Flight delay Insurance, Mobile Phone Theft, Auto Glass Repair, Instant Insurance Policies For Transfer of Property Title To eliminate transactional risk from the existing land registration system. Transfer of property title would become more efficient and secure. For Unemployment Insurance The company pays premiums into a smart contract, and if there are no claims, over time the premiums would go down. Retrocession proof of concept in B 3 i: For developing and proving the use of blockchain distributed ledger technology and smart contracts within the industry. Currently includes: Achmea, Aegon, Ageas, Allianz, Generali, Hannover Re, Liberty Mutual, Munich. Re, RGA, SCOR, Sompo Japan Nipponkoa Insurance, Swiss. Re, Tokio Marine Holdings, XL Catlin and Zurich Insurance Group ©Larsen & Toubro Infotech Ltd. Privileged and Confidential 14

Chatbots ©Larsen & Toubro Infotech Ltd. Privileged and Confidential 15

What is Chat/Voice bot Key Construct - Voice / Chat based conversation - Natural Language processing - Converting chat to business context ©Larsen & Toubro Infotech Ltd. Privileged and Confidential 16

Insurance Use Cases - Intelligent Voice Bots Agency / Customer Support Claim Handling Policy Servicing ©Larsen & Toubro Infotech Ltd. Privileged and Confidential 17

Claim Handling “Bob, I have filed your claim. Let me also send you a towing van. Should reach you within 15 minutes” – Lee, Auto Claim Bot Automated recognition of Claimant using Voice biometrics or Mobile UID Informs or summons ‘nearest’ emergency services based on Location intelligence Capture FNOL. Email / SMS claim number. Record conversation for Claim Adjuster. Facilitate inquiries such as Claim status, Payment status, Claim filing process etc. Benefits § § No ‘Long Wait’ for Claims Handling Consistency of experience across channels – web, mobile, call center Multi-lingual capability to handle diverse callers, optimizing usage of resources Integrated capabilities – Claim system, customer databases, location intelligence, analytics etc. Proactive status update to customer across claim lifecycle Interpret Io. T data and highlight anomalies, maintenance reminders, risk trends etc. ©Larsen & Toubro Infotech Ltd. Privileged and Confidential 18

Who is doing what? Quoting Process Guide user through quoting process Annuity Self Services Fund withdraw, change options NY Life- Tele Underwriting with Voice Signature ©Larsen & Toubro Infotech Ltd. Privileged and Confidential 19

Technology is at your disposal Personalized Products Efficient Operations Straight Through Processing Behavior based personalized products Based on data analytics Analytics Human Augmentation with Smart Devices Wow Experience My way of communication No Touch Claims Proactive Alerts for prevention Analytics ©Larsen & Toubro Infotech Ltd. Privileged and Confidential Analytics 20

LET’S SOLVE ©Larsen & Toubro Infotech Ltd. Privileged and Confidential