1. BREATHE
NEW LIFE
INTO LIFE
INSURANCE
HOW WEARABLES
DATA FUELS
PROFITABLE
REVENUE
STREAMS FOR
INSURERS
Kym Gully
Product Strategy and
Development Lead –
Accenture Life and
Annuity Software
October 30, 2019

2. Copyright © 2019 Accenture. All rights reserved. 2
The world’s largest global strategy,
consulting, digital, technology and
operations company.
DELIVERING
HIGH
PERFORMANCE
With 492,000 employees in more than 200 offices in 55 countries, Accenture
brings a unique perspective to the client’swe serve.

3. Copyright © 2019 Accenture. All rights reserved. 3
BRINGING THE POWER OF ACCENTURE TO THE
LIFE & ANNUITY MARKET
Accenture is a leader in the market, helping carriers innovate and
grow by applying today’s most modern new business and policy
administration capabilities.
DIGITAL
FRONT END
CORE
ALIP
ALIP
CLOUD
ANALYTICS
BACK END
INTEGRATION AS A SERVICE
ORCHESTRATION
New Business
Underwriting
Policy Administration
Claims & Payout
IaaS
PaaS
SaaS (in development)
DevSecOps
L&A Analytics
AI
Virtual Assistants
Video
Mobility & Portals
Quotes & Illustrations

4. Copyright © 2019 Accenture. All rights reserved. 4
WEARABLES ARE CHANGING
LIFE INSURANCE
Around 76 percent of the more
than 32,000 insurance customers
we recently surveyed around the
world were interested in health
monitoring services.*
WEARABLES MARKET:
$84 BILLION BY 2022**
* The Voice of the Customer: identifying disruptive opportunities in insurance distribution,
Accenture Research, 2017
** Wearable Electronic Devices, Worldwide, Gartner Forecast, 2018

5. Copyright © 2019 Accenture. All rights reserved. 5
IMPROVING HEALTH
PROTECTING WEALTH
People want to live well at all stages of life.
“Everyday insurers”:
• Connect
• Engage
• Encourage

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BECOMING AN
EVERY DAY INSURER
…
LEISURE
EDUCATION
WELLNESS
HOUSING
SHOPPING
TRAVEL
WORK
RETIREMENT
…
LIVING
SERVICES
INSURANCE
PREVENTION ASSISTANCE
MOMENTS
THAT
MATTER

7. Copyright © 2019 Accenture. All rights reserved. 7
WEARABLES AND
WELLNESS DEVICES
PROLIFERATE
“Blood pressure watches, sleep tech and more:
CES 2019 was all about health” – CNET
CES saw a 15% increase in floorspace dedicated to
health tech*
*Source: https://www.cnet.com/news/from-a-blood-pressure-watch-to-sleep-tech-ces-2019-was-all-about-health-tech/

8. Copyright © 2019 Accenture. All rights reserved. 8
PREDICTING RISK
ENCOURAGING WELLNESS
Massive databases; 300+ million records
Health risk engines
No need to
create new
data
No APS
required
Ongoing
updates;
sentient
628

9. Copyright © 2019 Accenture. All rights reserved. 9
REDUCING RISK
REDUCING TIME
Traditional evidence Progressive evidence
STATIC – DELAYED TIME DYNAMIC – REAL TIME
M O N T H S
APS, Exam1,
MIB, MVR, Rx
GATHER
INFORMATION
MANUAL
ANALYSIS
RISK
SNAPSHOT END
FROZEN IN TIME
Electronic
medical
records
(hospital)
Electronic
health
records
(doctor)
Fitness
devices
Wellness
app risk
engines
APS
Exam1, MIB,
MVR, Rx
ALL THE TIME
“ PAY A S YO U L I V E ”

10. Copyright © 2019 Accenture. All rights reserved. 10
INTELLIGENT DIGITAL
EVIDENCE DATA PLATFORM
VALUE PROPOSITION
Increase and
expand
customer
engagement
Enable
underwriting
immediacy
Expand
provider
ecosystem
to achieve a
critical mass
From static to
recurring
always on to
enable
personalized
intelligence
AI based data
analysis to
enrich risk
assessment

11. Copyright © 2019 Accenture. All rights reserved. 11
UNLOCKING VALUE
DIGITAL INSURANCE PLATFORM
Connected people, health and wellness
PLATFORMS
LIFE
INSURANCE
HEALTH
WELLNESS
PERSONALIZED
PRODUCTS, RATING
PAY AS YOU LIVE
HEALTHCARE
PROVIDERS’ DATA
e.g. Hospital, Medicine
HIV test, nutrition advice
FITNESS CLUBS AND
WELLNESS PROGRAMS
(e.g. quit smoking)
CASHBACK
(e.g. on purchases
of healthy food)
LOYALTY PROGRAM
Points awarded for
healthy behavior
WEARABLE FITNESS
MONITORING DEVICES
Premium based on healthy
activities and changing over time
NEW UW
DECISIONING

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APPLYING WEARABLES DATA TO DRIVE
BUSINESS OUTCOMES
PAY AS YOU LIVE
• Periodic calls to wellness risk
engine
• Continuous underwriting
• Paired with product pricing
adjustments for changes to
premium/charges, coverage
availability and cash refunds
PERSONALIZED
PRODUCTS
• Risk factors received and passed
to product engine
• Risk factors incorporated into
product mechanics
• Adjusted product quoting (e.g.
premium, charges)
UNDERWRITING
• Injects wellness risk data
• Risk at the margins
• Impact to rating (debits/credits,
risk class, table ratings)
• Fraud detection
• Inform underwriting requirements
• Dynamic application

13. Analytics
WEARABLE
TECHNOLOGY
VENDORS
Devices
Data Access
Controls
Copyright © 2019 Accenture. All rights reserved. 13
WEARABLES INTEGRATION
CONCEPTUAL ARCHITECTURE
NEW
BUSINESS & PAS
Rules Engine
Review Data
Device Users
authorize admin
system to subscribe
SecureData
Storage
Underwriting
ADMIN
SYSTEM
IPAAS
API Gateway
Device
Connectors
Device Users
stream data
Get
Subscribed
Data

14. John Hancock Vitality® Program
• Based on point system
• Customers engage 600 times per year*
• 30% lower hospitalization costs*
Irish Life My Life Program
• Based on scoring system using clinical trials data
• #1 downloaded app in Ireland
Copyright © 2019 Accenture. All rights reserved. 14
USE CASES
*Source: AccentureTechnologyVision for Insurance 2019
+ =

15. Copyright © 2019 Accenture. All rights reserved. 15
CHALLENGES
ETHICAL
Ethical
• Negative impact on risk pools
• Cost prohibitive insurance
• Low perceived need

16. • GDPR, HIPAA, HITECH, GINA
• Evolving legislation regarding external
social data (New York state)
– Social data in risk evaluation: insurer must prove the
third-party data source is not biased in any way
– Transparency in how data is collected
• Algorithm transparency - Challenging
– Challenge: most are proprietary and difficult to
prove unbiased
CHALLENGES
REGULATORY
Copyright © 2019 Accenture. All rights reserved. 16
Regulatory

17. Copyright © 2019 Accenture. All rights reserved. 17
WHERE ARE
WEARABLES
GOING?
46 percent
of consumers would pay more for
personalized, real-time
services ...
…and they’re willing to share more
personal data to get them.
Source: Accenture 2017 Global Distribution & Marketing Consumer Study.

18. Copyright © 2019 Accenture. All rights reserved. 18
QUESTIONS