The Digital Insurer Award - FWD (data AI)

1. FWD Smart
Insurance:
AI-Everywhere
TDI Awards 2021
April 2021

2. 2 FWDData& AnalyticsSuccessCase Sharing @FWDInsurance 2021
FWDSmart Insurance– AI Everywhere
Modernising Data Architecture for Smart Insurance
DATA CONSOLIDATION AND PROCESSING
Group Cloud
Data Platform
DATA
API
AND
VIRTUALISATION
FWD DATA
MARKETPLACE
Group Data
Warehouse
GO
TH
PH
ID
SG
HK
JP
VN
MY
bolttech
Data
Standardisation
&
Transformation
Data Marts
Customer& Operations
Distribution
…
Customer
Intelligence Center
AI LAB
Data
Ingestion
Daily Batch Data
Processing
NearReal TimeData
Streaming
Data
Tokenisation
Unstructured Data
Analytics
AI /ML
Engine
Playpen /Prototype
DATA GOVERNANCE
TechnicalMetadata Master/ ReferenceData DataQuality DataAccess
BusinessGlossary
DATA AND AI APPLICATION
Cloud First Embedded with AI Applications
eCommercePortal
• Recommendationengine
• Nextbest product
• AIunderwriting
• Dynamicpricing
C360Dashboard
• Segmentation
• Nextbest action
• Insurancescore
• Earlylapse prediction
FWD Moments / CustomerPortal
• API
• Recommendationengine
• People like you
RCS /UW Me
• AIClaimsprocessingfor STP
• AIUW forSTU
CRM(e.g.IRIS,SFMC)
• Propensityto buy
• AIleads generationandtracking
• ROX
API with Digital Banks
• IntegratedwithBanks’direct digital
channels
• DatasharingandC720for cross-sell/
upsell
Data
Visualisation
PolarisIncentive
Experience Speedometer
CustomerDashboard
MSD/DSD
DigitalDistribution
NBMPulse Dashboard
Protection Dashboard
ESG Dashboard
DATA SOURCES
Local Data
Sources
Life Asia
Group Asia
DMS
Salesforce
Hyperion
Medallia
Google Analytics
Digital Forms
...

3. 3
01 - FWD Smart Insurance – AI Everywhere
FWD Smart Insurance: AI-Everywhere
At FWD, our vision is to change the way people feel about insurance and to achieve this, we need to leverage on
big data and AI to build intelligent, convenient and fresh customer experiences along our customer digital
journey.
FWD Smart Insurance: AI-Everywhere — @ FWD 2021
1 2
3
4
1 AI Claim
To deliver the best in-class customer experience, the best-in-class claims experience
is needed. Supported by our Group Data Platform, our AI Claims Decision Engine
with straight-through processing can help us approve customers’ claims quicker and
with higher accuracy rate.
4 AI Winback
Covid-19 has led to job loss and more customers surrendering their policies
before maturity or even lapsing in payments. Our AI Winback model helps
identify at risk customers so that early intervention can be undertaken.
2 AI Next Best Offer
Harnessing data and AI to improve upsell / cross-sell campaign conversion
rates. The display of intelligent recommendations on Customer Intelligence
Dashboard also help Agents and Telemarketers improve their productivity.
3 AI Lapse Prevention
Built-in AI Models predicts the likelihood of customer with lapsed policy to be re-
instated so that personalized campaigns can be crafted and relevant actions
taken to retain customers.

4. 4 FWD Smart Insurance: AI-Everywhere — @ FWD 2021
AI Claim
Hong Kong AI Claim Decision Engine – Personal
Accident
LocalOperationidentifythelist of accidentkeywords
Claimswithnoaccidentkeywordsindiagnosisare12
times morelikelytobe rejectedduetotheclaimisnot
accidentalinnature
ClaimHistory
• NumberofClaims
• HistoricalClaimAmount
• AccidentDescription
• ….
Policy Details
• PolicyIssueDate
• Premium
• PaidtoDate
• Coverage
• ….
CustomerDemographics
• AgeGroup
• Martial Status
• HKResidencyStatus
• ….
Feature Engineering
• Identify Hidden Pattern
• Learn from Subject Matter Experts
Data Consolidation
• Data Validation
• Identify Available Data Source
• Conduct Aggregation& Text Mining
ModelDevelopment
• XGBoost models were built to predict the risk level of PA
claims
Status of last relatedclaims
Claimswithlastrejectedrelatedclaimare550%
modelikelytoberejectedas comparedtoclaimswith
lastapprovedrelatedclaim
Approval Accuracy
PredictedApproval:20,549; ActualApproval:20,346
TrainingData
Approval Accuracy
PredictedApproval:5,165; ActualApproval:5,101
ValidationData
Approval Accuracy
PredictedApproval:3,480; ActualApproval:3,412
TestingData
TrainandValidatemodel byusing2015– 2019PAclaims.
Test Model performancebyusing2020PAclaims
98.0%
98.8%
99.0%

5. 5
Real time
architecture
Real time
data API
LESS THAN 1SECOND
FWD Data & Analytics Success Case Sharing @ FWD Insurance 2021
AI Claim
Claim 2.0 as an Example: Real time Data API and AI insights
Real time AI insights available on
Claim 360 Dashboard

6. Monthly Actual
Assisted APE
J F M M J S N
A J A O D
Business
Improvement
8.5
%
Before
29.48%
High
propensity
13.08%
Jan- Dec 20
Conversion rate
Top 1
Seller
Interview
K.Thanapol
Nontakarn
55%
C360 Benefit
• C360 V2 gives Complete Information such as
benefit return, my family, claim information &
riders attached.
• C360 is not just a sale tool, but by using it I can
Provide Service to Customers and make
them appreciate our service before they decide to
buy more policies.
Personal Technique
• Daily Search all Customers in C360 as it
contains all information necessary for telesales
before opening sales calls.
• Explore Customers’ Product Holding and
offer pension product when they have various life
policy coverage.
AI Next Best Offer
Thailand Next Best Offer and Customer 360
6

7. 7
AI Lapse Prevention
Philippines Conservation Framework: The Consumer Hat
FWD Smart Insurance: AI-Everywhere — @ FWD 2021
ofpolicycancellationwasdueto
financialneedsbroughtaboutby
COVID-19
78%
• ADBforecastedPHeconomyto
contract7.3%in2020
• 10.9 millionFilipinoslosttheirjobs
perPSA
• Poorhithardby2.9%foodprice
inflationduetopandemic
Consumer
Insights
Q1:Due to the pandemic, what challenges have you experienced/are
experiencingin payingyour insurance premiums
Q2:Whatdo you think your insurance providercan do tohelp you
with these challenges?
Andrew, 35|Cruise Line Bar Waiter
“I hope myinsurance company wouldaccept deferredpayment options,
allowingme topay more, when I have more.”
Maita, 23|Sales Assistant
“… consideration samagiging amount ng monthly payment... May mga
instancesna maypay cutor nawalan ng work.”
Anna, 24|Freelancer
“I wouldreally appreciate ifmyinsurancewould allowme topay justthe
amount thatI can reinstatemypolicy.”
Sheryl, 43|Partner Manager
“Hassle forthem kasinung nagpandemic wala na silanakukuhang letter.So
now akonagbabayad. I enrolledthemto myaccount na lang.”
WhatConsumersLook For?
 DeferredPayment Program
 DecreasedPremiumAdjustment
 LowPremiumto Reinstate
 ADA/ACAEnrollment
Impacton FWD
Decreasing
Policy
Persistency
Decreasing Customer
Retention
Increasing
surrenders/
Withdrawals
Someinitiativestobe rolledoutunderPersistencyProject
Programs
• BuildPremium
Payment Programs
• BuildRecapture
Offer
Programs
• Conservation
module
development for
newand existing
agents
Programs
• Pre-lapseand
Lapse comms
• MarketOutlook
regularEDM

8. 8
AI Lapse Prevention
Philippines Analytics to Support Programs under
Conservation Framework
FWD Smart Insurance: AI-Everywhere — @ FWD 2021
HighRiskto Lapse
 Customer/ Policy Level
 Drivers leading to lapsation
Analytics Model
Models UseCase
HighRiskto Surrender
 Customer/ Policy Level
 Driversleading to surrender
HighProbabilityto Reinstate
 Customer/ Policy Level
 Drivers leading to reinstatement
Cross-sellModel
 NextBest Offer
LapsePrevention
Surrender Prevention
Winback
Customer Retention
Various Analytics model
developedto cater different
conservation scenarios

9. 9
AI Lapse Prevention
Philippines Analytics to Provide Intelligent Indicators At
Touchpoints
FWD Smart Insurance: AI-Everywhere — @ FWD 2021
Front-End Application
ConsumingAnalyticsOutput
 Customernotification on
premiumdue
 NextBest Product offering
based oneligibility
 Policy information/ status
availability
Customer
Enablingcustomerswith
informationrelated to themso
theycanmanagetheirpolicy
better.
Agent
Enablingagentswithrisk of lapsation/ surrenderso
theycanmanagetheirpolicy persistencybetter,
usingmobile App, IRIS.
Contact Centre
Enablingintelligent alerts atcontactcenteron risk of
lapsation/ surrenderso theycanrecalibrateconversation
tomanagerisk.

10. 10
AI Winback PH
PH AI-Powered Winback Campaign (under Conservation
Framework)
Integrated Campaign Journey
• Activatedemail,outboundcallandsalesforcetoreachcustomers;providingflexibleandeasy
reactivationprocessthatworksbestforthem –via hubs,hotline,andonlinepaymentportal.
Email &outbound call PaymentPortal Talk toadvisor
Target Clients
• Predictivemodeltoidentifycustomerswhohaspotentialtobere-instatedandarealsoless
likelihoodtolapseagain,withpremiumpolicypaidinthepast9 months
FWD Smart Insurance: AI-Everywhere — @ FWD 2021
Campaign Conversion
• Conversionupto 17.3%
• Reinstated Premiumis 45% higherthanBAU ;
• 42% of reinstatedpersistencycohortisattributableto thecampaign/model

11. 11
AI Winback
Thailand Winback Campaign using Telesales & Customer 360
Dashboard
Very High
10.2k
High
10.0k
Medium
5.3k
Low
15.3k
Very Low
13.2k
Winback Rate
2.0x
1.0x
0.8x
0.6x
0.5x
Predictive model developed by using
random forest technique
Target Clients
• Inactivecustomerswhohaveallpolicieslapsed,orhavenotheldany inforcedpolicyforless
than5 years
Campaign Journey
• MonthlyleadspassedtoTelesalestocontactcustomers.
• SupportedbyCustomer360 dashboard,agentshaveaccess tonearreal-timeinformationon
customers’demographics,policy&claims history,andintelligentrecommendationonNext
BestOffer,sothattheycanextenda ‘personaltouch’whenengagingwithcustomers,thereby
enhancingthebuyingexperience.
Campaign Conversion
• Conversionupto 15% usingwinbackmodeldeveloped withRandomForest
technique
• Contactratehasalso improvedto 55.4%(vsBAU 48.3%)
FWD Smart Insurance: AI-Everywhere — @ FWD 2021

12. Thank you.