Property & Casualty Insurance Top Trends 2021

2. 2© Capgemini 2020. All rights reserved |Life Insurance Trends 2021 – December 2020 Top Trends in Property & Casualty Insurance for 2021 by Capgemini Source: Capgemini Financial Services Analysis, 2020. Industry evolution never stops For P&C Insurers, it is time to revisit business & operating models

3. 3© Capgemini 2020. All rights reserved |Life Insurance Trends 2021 – December 2020 Top Trends in Property & Casualty Insurance for 2021 by Capgemini Source: Capgemini Financial Services Analysis, 2020. Future frontrunners will be customer-centric, adopt intelligent processes, go to market quickly, and will closely collaborate with ecosystem partners.

4. 4© Capgemini 2020. All rights reserved |Life Insurance Trends 2021 – December 2020 Top Trends in Property & Casualty Insurance for 2021 by Capgemini Source: Capgemini Financial Services Analysis, 2020. Trend 1: Reinventing business processes To remain competitive in today’s rapidly evolving risk landscape, insurers must reinvent their business processes and customer engagement strategy. The risk landscape is evolving Disruptive environmental patterns Technological advancements Evolving social and demographic trends New medical and health concerns Changing business environment

5. 5© Capgemini 2020. All rights reserved |Life Insurance Trends 2021 – December 2020 Top Trends in Property & Casualty Insurance for 2021 by Capgemini Source: Capgemini Financial Services Analysis, 2020. Trend 2: Entry of Non-traditional firms Newcomers are leveraging their digital expertise and data management capabilities to provide an experience-led engagement to insurance customers. Non-traditional firms’ presence in the insurance space BigTech firms Product Manufacturers Coverage for own products Coverage for products selling on their platform Insurance distribution Investments in InsurTechs Providing Innovative solutions for the insurance industry Coverage for own products Insurance distribution

6. 6© Capgemini 2020. All rights reserved |Life Insurance Trends 2021 – December 2020 Top Trends in Property & Casualty Insurance for 2021 by Capgemini Source: Capgemini Financial Services Analysis, 2020. Trend 3: The rise of conversational commerce Chatbots, voice assistants, and other digital conversational platforms enable P&C insurers to offer service and support, help customers purchase policies, file claims. Benefits of conversational commerce Quicker resolution times Optimized use of call center infrastructure Multilingual customer support Efficient data capture Enhanced fraud detection

7. 7© Capgemini 2020. All rights reserved |Life Insurance Trends 2021 – December 2020 Faster turnaround time Reduction in cost of adjustment process Less effort from customers More accurate estimation Enhanced fraud detection Top Trends in Property & Casualty Insurance for 2021 by Capgemini Source: Capgemini Financial Services Analysis, 2020. Trend 4: Increasing investments in touchless claims processing As providing better claims experience is becoming a level playing field, carriers are increasingly investing in touchless claims processing to gain a competitive advantage. Benefits of touchless claims processing

8. 8© Capgemini 2020. All rights reserved |Life Insurance Trends 2021 – December 2020 Top Trends in Property & Casualty Insurance for 2021 by Capgemini Source: Capgemini Financial Services Analysis, 2020. Trend 5: Increasing usage of IoT devices The use of IoT plays a critical role in enabling insurers to be a preventer of risks and partner in customers life, in addition to being a better payer. Benefits of IoT Accurate risk assessment Discounts based on driving behavior Easy claims processing Risk prevention services Value-added services

9. 9© Capgemini 2020. All rights reserved |Life Insurance Trends 2021 – December 2020 Top Trends in Property & Casualty Insurance for 2021 by Capgemini Source: Capgemini Financial Services Analysis, 2020. Trend 6: The role of agents is revitalized Insurance firms are investing in digitalizing their agents and are enabling them to be a strategic advisor to their customers. Benefits of empowering agents with digital tools Seamless and standardized data exchange Faster turnaround time Increased distribution reach Provide personalized advice

10. 10© Capgemini 2020. All rights reserved |Life Insurance Trends 2021 – December 2020 Top Trends in Property & Casualty Insurance for 2021 by Capgemini Source: Capgemini Financial Services Analysis, 2020. Trend 7: Telematics data exchanges gain momentum As usage-based insurance becomes mainstream, insurers are partnering with telematics data exchanges to create innovative offerings. Benefits of telematics data exchanges Cost- effectiveness Pricing risks more precisely Ease of insurance shopping Enhanced fraud detection Fosters innovation

11. 11© Capgemini 2020. All rights reserved |Life Insurance Trends 2021 – December 2020 Top Trends in Property & Casualty Insurance for 2021 by Capgemini Source: Capgemini Financial Services Analysis, 2020. Trend 8: Insurers launch new offerings P&C insurers are exploring offerings that suit customers’ evolving needs to offer an experience-led engagement. How insurers satisfy today’s policyholders Cater to changing customer preferences Bundled offerings collaborating with ecosystem players Products for new business models

12. 12© Capgemini 2020. All rights reserved |Life Insurance Trends 2021 – December 2020 Top Trends in Property & Casualty Insurance for 2021 by Capgemini Source: Capgemini Financial Services Analysis, 2020. Trend 9: Collaboration with ecosystem partners P&C insurers collaborate with ecosystem players to acquire technology capabilities, expand their distribution network, and bundle insurance offerings. Benefits of collaborating with ecosystem partners Faster time-to- market Innovative offerings Better distribution Better customer insights

13. 13© Capgemini 2020. All rights reserved |Life Insurance Trends 2021 – December 2020 Top Trends in Property & Casualty Insurance for 2021 by Capgemini Source: Capgemini Financial Services Analysis, 2020. Trend 10: APIs take center stage P&C insurers adopt APIs to provide insurance services via ecosystem partners and integrate offerings of other players. What so great about open APIs? Faster time-to-market Easy integration with ecosystem partners Seamless data exchange Better risk assessment

14. 14© Capgemini 2020. All rights reserved |Life Insurance Trends 2021 – December 2020 Top Trends in Property & Casualty Insurance for 2021 by Capgemini Source: Capgemini Financial Services Analysis, 2020.

15. 15© Capgemini 2020. All rights reserved |Life Insurance Trends 2021 – December 2020 Top property & casualty insurance trends in 2021 – adoption priority and business impact Source: Capgemini Financial Services Analysis, 2020.  Priority of adoption refers to the urgency of adopting a particular trend to maximize value creation in 2021. This rating is based on the identified trends for an insurer operating in current environment.  Business impact represents impact of an identified trend on an insurer’s business in 2021. The impact could be on customer experience, operational excellence, regulatory compliance, or profitability.  This matrix represents the view of Capgemini analysts for an insurer working in the current operating environment. • Low interest rate environment • Operational disruption due to COVID-19 • Uncertain regulatory environment • High competitive environment and increased focus on customer centricity due to new-age players • Emerging consumer preferences. The factors above will vary by insurer depending on business priorities, geographic location, and several other factors. For specific requirements, please contact insurance@capgemini.com. Priorityofadoption(2021) MediumHighSignificant Business impact (2021) Medium High Significant 8 9 7 1 3 25 64 The evolving risk landscape requires insurers to reinvent business and customer engagement Non-traditional firms are making their presence felt in the insurance industry As self-service becomes the new normal, conversational commerce is on the rise With an eye on differentiation, insurers are investing in touchless claims processing Insurers are increasingly using IoT to enhance CX and reduce losses The role of agents is revitalized as customers are increasingly using digital channels Telematics data exchanges gain momentum as usage-based insurance goes mainstream Insurers launch new offerings to provide customers experience-led engagement More insurers are collaborating with ecosystem partners to build innovative solutions As seamless collaboration with ecosystem partners becomes critical, APIs take center stage Trend 1 Trend 2 Trend 3 Trend 4 Trend 5 Trend 6 Trend 7 Trend 8 Trend 9 Trend 10 10

16. 16© Capgemini 2020. All rights reserved |Life Insurance Trends 2021 – December 2020 A global leader in consulting, technology services and digital transformation, Capgemini is at the forefront of innovation to address the entire breadth of clients’ opportunities in the evolving world of cloud, digital and platforms. Building on its strong 50-year heritage and deep industry-specific expertise, Capgemini enables organizations to realize their business ambitions through an array of services from strategy to operations. Capgemini is driven by the conviction that the business value of technology comes from and through people. It is a multicultural company of almost 220,000 team members in more than 40 countries. The Group reported 2019 global revenues of EUR 14.1 billion. About Capgemini Learn more about us at www.capgemini.com This message contains information that may be privileged or confidential and is the property of the Capgemini Group. Copyright© 2020 Capgemini. All rights reserved. People matter, results count.