Insurance Spotlight:
Building The Digital Core
Mahendra Nambiar`
NY, September 24th
#CWIN17

Building The Digital Core | 9/25/2017
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The insurance industry is in a moment
of profound transformation.
Everything that we formerly accepted as gospel –
our products, customer experiences, partners
and processes – is being challenged by new
technologies, new customer expectations and
emerging demographics, and by new business
models.

Building The Digital Core | 9/25/2017
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The World Insurance Report 2017
8,000+
100+
Customer responses
data points
Executive insurance
interviews
10
th
Year of
publication
 Digital Collaboration Redefines
Insurance
 Navigating the Innovation
Conundrum
21
Insurance markets covered
(VoC survey + Executive interviews)
Report
Themes
Produced with Efma
2

Building The Digital Core | 9/25/2017
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The primary theme from the WIR 2017 is that today’s customers demand
quality digital touch points from insurers
Convenience
Agility
Personalization
 Small Commercial customer satisfaction declined 18 points among (five-10
employees size) compared to 2016. The preference for self-service has grown by 28%
since 2015.
 31.4% of respondents are using at least one non-traditional Insurance firm, per
WFTR 2016.
 The demographic of small business owners is shifting with GenY becoming an
important constituent to consider when designing customer interactions
 Small Business Owners view their business in very personal terms – to support
Personalization to support CAP.
While Customer
Expectations grow ..
Traditional Insurers are not effectively coping with rapidly evolving
business models and InsurTechs..
Traditional insurers are struggling to realize competitive advantage from technology
investments..

Building The Digital Core | 9/25/2017
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Digital Insurers and InsurTech are focusing on four key dimensions
to fuel market differentiation and deliver CAP
5
• Insights drive
differentiation
opportunities
• Cloud based systems
enable speed to market
• New Partnership
Ecosystems
• Increased STP
• Greater Consistency
• Improved Compliance
Improved Operational
Efficiency
• Intuitive, simple, data-
driven experiences
• Mutual value exchange
• Collaborative, Intelligent
Workbenches
• Improved Data
Management /
Governance
• Incorporation of 3rd
Party (including IoT)
Data
• Robust analytics
Better Customer,
Agent, and Employee
Experience
Industry Predictions for 2018
$6.6 billion+ expected to be spent to
enhance the total customer experience
$3.7 billion+ expected to be spent on
cognitive software
Insurance data volume will grow 94%
33% of insurers will have more than half of
their new application infrastructure projects
in the cloud
84% of the data will be unstructured
Omni-engagement levels will become a
barometer of customer profitability
Source: Turbo-charged transformation: How cognitive underwriting is revolutionizing the insurance industry url: https://assets.sourcemedia.com/4e/48/7571fba8407a8af87c371b94e990/gbw03372usen.PDF:
Source: Three ways Digital is Changing Core Systems Transformation url: https://www.dig-in.com/opinion/3-ways-digital-is-changing-core-systems-transformation
What will it take to create competitive advantage in the Marketplace?
Improved Data and
Analytics
New Products,
Services, Offerings and
Markets

Building The Digital Core | 9/25/2017
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Our research and experience shows that meeting these customer
demands requires a “digital insurer” mindset
A mindset that promotes innovative ecosystem, operates on hyper efficient & adaptive core
business capability and leverages data to provide convenience, agility and personalized
customer experience for sustainable & profitable growth.
 Embraces Transformation As The New Normal
 Treats Experience As The Product
 Recognizes that Data Is The Differentiator
 Treats the Core As The Coeur
“Digital Insurers” are performing better and will more effectively ‘future-proof’ their business
against these competitive threats

Building The Digital Core | 9/25/2017
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A “digital insurer” mindset brings out the following
core organizational competencies..
 Customer Experience As The New Product
 Improved digital experience across omnichannel touchpoints
 Enhanced and more frequent engagement delivered through valuable
interactions
Drive Premium Growth And Retention
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2 Improve Profitability
 Data driven risk selection and pricing to be highly responsive to market
changes
 Leverage all available insights to drive efficient claim outcomes
 Ability to leverage internal and external data efficiently on demand
 Magnified impacts from automating insights via analytics
 Enabling intelligent automation
 Enterprise wide process and desktop automation
 Machines learning for intelligent routing and document ingestion
Lower Expense Ratio4
3 Increase Market Share and Reduce TCO
 Operating model agility to reduce friction
 Agility in technology delivery: Speed to market with Cloud First MVP
 Continuous transformation as the new normal
 Agility across the business value chain
 Culture of innovation
 Rapid product design and deployment

Building The Digital Core | 9/25/2017
Copyright © 2017 Capgemini and Sogeti. All rights reserved. 8
Capgemini’s Digital Core is an integrated solution to rapidly acquire
the Digital Insurer competencies and deliver high business value
Digital CX
CloudChoice
Insights & Analytics Next Gen IT DeliverySmart Automation
Leading Technology Co-Innovation Business Services
Your business gains“Digital Core” builds the competencies
Retention
Growth
Profitability
Your Customers experience “CAP”
Higher
Customer Value
Prop
Insight Driven
Organization
Continuous
Business Agility
Hyper
Efficiency
Leading Digital capability
Quicker Idea-to-Market
Improved quality & TAT from
Automation
Continuous Improvement on KPIs
Transparent utility price
Cultural Shift towards Innovation
Collaborative Governance
Unique personalized
engagement
Quickly responding to
evolving market
Improved UW &
Operational efficiency
Capgemini Power of One™

www.capgemini.com
The information contained in this presentation is proprietary.
Copyright © 2017 Capgemini and Sogeti. All rights reserved.
Rightshore® is a trademark belonging to Capgemini.
www.sogeti.com
About Capgemini and Sogeti
With more than 180,000 people in over 40 countries, Capgemini is one of With more
than 190,000 people in over 40 countries, Capgemini is one of the world's foremost
providers of consulting, technology and outsourcing services. The Group reported
2016 global revenues of EUR 12.5 billion. Together with its clients, Capgemini
creates and delivers business, technology and digital solutions that fit their needs,
enabling them to achieve innovation and competitiveness. A deeply multicultural
organization, Capgemini has developed its own way of working, the Collaborative
Business Experience™, and draws on Rightshore®, its worldwide delivery model.
Sogeti is a leading provider of technology and software testing, specializing in
Application, Infrastructure and Engineering Services. Sogeti offers cutting-edge
solutions around Testing, Business Intelligence & Analytics, Mobile, Cloud and
Cyber Security. Sogeti brings together more than 23,000 professionals in 15
countries and has a strong local presence in over 100 locations in Europe, USA
and India. Sogeti is a wholly-owned subsidiary of Cap Gemini S.A., listed on the
Paris Stock Exchange.