Technology is Evolving Faster than Ever Before in this Digital Era. Autonomous Vehicles AI & Robotics (Machine Learning) More Data

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Technology is Evolving Faster than Ever Before in this

Digital Era

AI & Robotics (Machine Learning)

Mobile

Big Data & Analytics

Cloud

Social IoT

Smart Homes & Cities 3-D Printing

Broader & Deeper Automation

Genomics

Sharing Economy

Autonomous Vehicles

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Data is Not New for Insurers

Insurers have Terabytes & Petabytes of Data

Google & Amazon are Better at Using Data

However …

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Four Meta-Actions Will Shape Digital Insurance

Agendas in 2015

1. Insurers will use digital to get closer and more essential to the

customer

2. Digital insurance teams will focus on retention in the initial

sale

3. New digital sales channels will disrupt traditional underwriting

and distribution

4. Digital will spur insurers to look at new uses of capital—and

data--to drive innovation

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Insurers Ascribe Greater Importance to Fueling,

Conducting, and Responding to Data

Source: Forrester Research Business Technology Services Survey 2014 (final)

Base: 1532 global business and technology decision-makers in all industries; 85 global Insurance business and technology decision-makers

67%

64%

67%

74%

75%

68%

86%

71%

76%

79%

84%

86%

Improve our capabilities to partner with other companies, academic institutions, or other organizations

Create a comprehensive digital marketing strategy Create a comprehensive strategy for handling customers' multichannel activities

Better leverage big data and analytics in business decision-making Improve differentiation in the market Create a comprehensive strategy for addressing digital technologies like mobile,

social and smart products

Improve our products /services

How important are the following initiatives to your firm?

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…But it Takes Weeks or Months For Insurers to

Create That Business Intelligence

6%

0%

3%

19%

38%

30%

6%

9%

13%

41%

23%

2%

Never

More than a year

Within a year

Within months

Within weeks

Within days

"In general, when business users are looking for help with BI, how quickly does IT turn

around the following requests?"

Create New Complex BI Content

Create New Simple BI Content

Source: Forrester's Business Technographics Global Data And Analytics Survey, 2014

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…And Depend on a Variety of Analytics to Deliver on

Their Transformation Strategies

14% 26% 24% 30% 22% 34% 34% 46% 55% 39% 40% 55% 20% 22% 23% 28% 30% 36% 48% 52% 56% 58% 61% 69% Text analytics Advanced visualization Metadata-generated analytics Location analytics OLAP (aka "slicing and dicing" analytics) Embedded analytics Web analytics Dashboards Reporting Process analytics Predictive analytics Performance analytics

"What types of analytics are most likely to drive innovation and create new growth for

your department and/or firm?"

Insurance industry

Industry other than

insurance

Source: Forrester's Business Technographics Global Data And Analytics Survey, 2014

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Data is the Leading Force Driving Insurance

Transformation

• Create Customer Engagement Models

• Innovate Agent & Broker Interactions

• Re-imagine Risk Underwriting & Drive Underwriting

Efficiency

• Drive Pricing Excellence & Market Agility

• Next Generation Analytics Excellence

• Leverage Digital Capabilities

• 720° View of the customer

• Power of combining Structured & Unstructured

• Do not forget Simplification & Governance

• It is all about Data , Data & Data

Prescriptive

Descriptive Predictive Incr easing the va lu e of Da ta (What should happen?) (What will happen?) (What has happened?) People Process Technology

Establish Outcome based Framework

Outcomes

Actionable Insight

Enabled Actions

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Data

- Real Time

- Disparate Sources

- Social Media

- Portfolio History

Actionable Insights

- Portfolio/Account/Policy Information

- Real Time Location/Risk/Hazard Assessments

- Holistic View of the Insured’s Business

- Early Potential Fraud Detection

Enabled Actions

- Case Based Decision

- Identification of Cross Sell/Upsell

- Faster, More Accurate Decisions

- Straight Through Processing

Outcomes

- Increased Underwriting Profitability

- Predictable Results

- Improved Customer Service

- Better Retention

Underwriting

Transformation

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Market Drivers

Lack of Investment returns creating significant

pressure on Underwriting loss ratio

Lack of Investment returns creating significant

pressure on Underwriting loss ratio

Manual activities that prevent the Underwriter from

focusing on risk analysis / decision making

Manual activities that prevent the Underwriter from

focusing on risk analysis / decision making

TCS Solution Strategy

Simplification

Digital Reimagination

Proliferation of multiple and redundant

Underwriting applications that create increased

expense

Proliferation of multiple and redundant

Underwriting applications that create increased

expense

Need for customer experience &

overall customer satisfaction to remain

competitive

Need for customer experience &

overall customer satisfaction to remain

competitive

The TCS Underwriting Workbench (UWWB) is a solution accelerator that is

built on Pega7, PUI for Commercial Insurance and Analytics framework to offer

an automated environment for the Underwriter.

The UWWB is:

• Customizable to client requirements

• Integrated with a Geographic Information System (GIS)

tool for visualization of risk data

• Has a built-in component to perform text analytics

• Pre-configured with leading practice insurance

processing workflows

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The Underwriting Workbench (UWWB)Solution

Accelerator

Continuous

Underwriting

Drive “continuous underwriting” via automated / trended risk scoring and analytics.

Decreased

Underwriting

Time

Automate business processes to free Underwriting time.

Portfolio

Management

Enhance portfolio management via account level focus

.

Automated Risk

Selection

Provide focused risk selection appetite guide to agents via automated business rules.

Virtual

Collaboration

Promote best of class expertise via virtual collaboration.

Risk element

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NextGen Underwriting Capabilities

Underwriting

Workbench

Collaboration Tools Account Management Intelligent Workflow Data & Analytics Document Integration Core UW Functions & Tools • Risk Analysis

• Mobile Risk assessment • UW Decisions/Referrals • Pricing, Quoting

• ITV, Policy Support Tool • MVR

• 360 degree View • Clearance /Registration • Cross sell /Up sell

• Peer Review

• Social like collaboration • Video/Audio Chat • Checklist

• Next Best Activity

• Dynamic Case Management • Skill based work routing • Alerts and Tasks

• Integration with Backend Systems • Monitor book of Business

• Risk Scoring • GIS Mashup • Location analytics • Store/Retrieve

• Federated Policy Doc Search • Contract Edits

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UWWB – Powered By Pega7

A Single , Cohesive Underwriting Platform

Dynamic Case Management

Intelligent Workflows

Seamless Integration with Third Party Data Sources

Informed Decision Making

720 View of the Customer

Incorporation of Social Media

A More Informed, Better Managed Underwriting Process

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UWWB - TCS GIS Solution High Level Overview

CAT Visualization & Tracking – Impacted Policies

Intelligent Claim Allocation to

Claim Adjusters

Multi Geo Format Assessment like Zip Code,

Census Block Group, etc. Multi Channel – Context Sensitive Alerts Potential Loss Aggregates Calculation CAT Claims Analysis

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Role of GIS in Digital Insurer Transformation

• Better targeted marketing to areas where insurer is currently underexposed • Identifying prospects

Marketing

• Better understanding of risk accumulation and resulting exposure

• Better pricing of risk taking into account risk of perils and accumulation of risk at that location

• New business opportunities with risks previously declined

Underwriting

• Identifying fraud patterns using spatial analysis

• Mapping location of incidents to support large response teams

• Pinpointing locations where resources are needed in large-scale disasters • Allocating Adjusters in real

time

Claims & Servicing

• Aggregated view of risk exposure across lines of business

• Model impact of exposure to perils such as floods, fires, or windstorms

Risk Management

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Data Enables Predictive Underwriting

Customer Submits

Application Online

Straight thru Process (STP)

If Clean Case

For Policy Issue If

Complex Case

Work item sent to underwriter’s work list

Data sent to analytics platform

Application & STP data

Predictive Analytics Platform

Underwriting Data

Claims data

For the product Similar cases Application data Case History Predictive Analytics Result Underwriter

For Policy Issue

Decision

Approve

More data & Analytics needed

For Policy Issue

Decline

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A Day in the Life of an Underwriter (Future State)

Underwriter

Review in-basket for priority items Automated Geo-code

endorsement request for newly added location

Automated review of social media for client

activity

Issue automated acknowledgement letter based on

pre-configured business rules Review automated “out of

appetite” rejections based on

multiple occurrences from same producer

Automated clearance for prior quote submission

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