Webinar: CX up AND costs down?

1. CX up AND costs down?
9 December 2020

2. Presentations are intended for educational purposes only and do not replace independent professional
judgment. Statements of facts and opinions expressed are those of the participants individually and,
unless expressly stated otherwise, are neither the opinion nor position of The Digital Insurer. The
Digital Insurer do not endorse or approve, and assume no responsibility for, the content, accuracy or
completeness of the information presented.
Disclaimer

4. Today’s Panelists
Bruno Domingues
Solutions Architect,
Intel
Jeff Picozzi
Global Insurance Lead,
Red Hat
Fred Giron
VP & Research Director,
Forrester
Yi Qin Teow
Market Impact Consultant,
Forrester

5. Discussion Agenda
60
mins
12:00 -12:05
12:05-12:15
12:15 -12:25
12:25 -12:35
12:55 - 1:00
System modernization landscape among APAC insurers
Welcome & Introductory remarks
Wrap - up
Overview of the APAC insurance industry
How you can kickstart your system modernization
journey with success
12:35 -12:55 Fireside chat

6. Questions & Answers
How to participate:
If you have a question please type into the Q&A area
If you have a comment please type into the chat area
Session format:
The moderator will use a combination of his own questions
and those from the audience

7. CX has a long way to go…

8. CX has a long way to go…

9. BUT
Pressure on expenses is
building
SO KEY QUESTION
BECOMES
Is it possible for insurers
to invest in CX going up,
whilst also bringing
running costs down?

10. In this webinar, we will:
• Discover how system modernization helps to enhance customer experience
delivery standards
• Understand why system modernization is more than just a technology play, but a
crucial factor for the future success of insurers
• Hear about the experiences and challenges that APAC insurance leaders are facing
in their modernization journey

11. Fred Giron
VP & Research Director,
Forrester

12. December 9th 2020
Modernize insurance core
applications with cloud
Fred Giron
VP, Research Director

13. 1- Onboarding
solutions shift
emphasis from
"acquire" to
"engage."
5- "Zero back
office" (ZBO)
eliminates
technical debt.
2- The original
direct-to-consumer
channel — the
agent — goes
digital.
3- Technology
teams embrace
app ecosystems
for differentiation.
4- Alternative data
trains insurance AI
machines.
Existing industry trends in the P&C and life segments
in APAC have been accelerated by COVID
6- Legacy
systems move
center stage.

14. © 2020 Forrester. Reproduction Prohibited.
App modernization drives business modernization
Cloud powers three parallel enterprise strategies:
Build new
cloud-native apps
(innovation)
- HDFC Life (India) creates
a digital platform using
public cloud
- Insurance-as-a-service
platforms…
Migrate existing
infrastructure
(cost savings)
- I&O transformation (light)
- Use containers
“How do we optimize
infrastructure to free innovation
funds?”
Modernize existing
legacy apps
- I&O transformation (heavy):
from admin to curation,
orchestration, PF engineering
- AppDev transformation (heavy):
continuous delivery, integration,
business process reinvention.

15. Lift & shift is the
preferred option to
reap low hanging
fruit (costs) in FSI
in APAC
But it stops firms from accessing
cloud’s real benefits…
And it is certainly not enough for
app modernization…
Base: 113 cloud infrastructure decision-makers in FSI firms in APAC; Source: Forrester Analytics
Global Business Technographics® Infrastructure Survey, October 2020
Lift &
shift
Replace
Build new
apps
Rewrite
35%
29%
28%
26%
25%
21%
20%
19%
Targeting apps with cost savings
or latency reduction to host on…
Migrating existing
apps/workloads into an…
Building net-new applications in
cloud environments
Migrating existing
apps/workloads into a hosted…
Migrating existing
apps/workloads into a public…
Cloud-first for all new workloads
and license renewals
Complete rewriting of existing
workloads into your cloud…
Partial rewriting of existing
workloads into your cloud…
Which of the following are the primary
parts of your organization's cloud strategy
specifically (COVID impact)?
Lift &
shift

16. Everything about
apps is changing at
once
PATTERNS: NEW ARCHITECTURES
• Microservices Patterns
• Serverless Patterns
• Modernizing The Monoliths
PROCESSES: NEW AUTOMATIONS
• DevOps Pipeline & Workflows
• CI/CD Tools
• Infrastructure As Code
PLATFORMS: NEW INFRASTRUCTURE
• Container Platforms + VMs + Serverless
• Public Cloud, On-Premises Cloud, Edge Cloud
• On-prem hyperconverged and pay-per-use licensing
App modernization can be seen
as a daunting task…
Few enterprises have aligned
maturity across all three cloud-
native domains…

17. © 2020 Forrester. Reproduction Prohibited.
• Firm needed to rebuild a strong software engineering capability that had been decimated by
years of outsourcing.
• End-of-life application provided an opportunity to embrace modern software engineering
practices:
1. Leveraged an opinionated cloud development platform.
2. Focused on changing software development habits.
3. Started the shift from a project culture to a product culture.
4. Established trust with the business through software excellence.
Use cloud-native as a culture shaping opportunity
How a large ASEAN FSI firm used end-of-life applications as an opportunity to embrace modern software
engineering practices to modernize their app landscape

18. © 2020 Forrester. Reproduction Prohibited.
App modernization: overcome three hurdles
To get started with core app modernization
• Identify the compelling event that answers,
”Why Modernize Now?”
• Find the best application(s) to start, with the
most immediate impact on CX
• Align modernization across people,
platforms, and practices

19. Thank You.
Fred Giron
VP, Research Director
fgiron@forrester.com

20. Yi Qin Teow
Market Impact Consultant,
Forrester

21. System modernization landscape
among APAC insurers
A commissioned study conducted by Forrester Consulting on behalf of Red Hat

22. 22© 2020 Forrester. Reproduction Prohibited.
Firmographics
Source: A commissioned study conducted by Forrester Consulting on behalf of Red Hat, December 2020
Base: 114 core systems modernization decision makers and influencers in the APAC insurance market
Primary revenue line
3%
12%
8%
12%
42%
23%
Large commercial…
Reinsurance
Mid-market…
Small business…
Personal lines…
Life insurance Personal
(65%)
Commercial
(35%)
Geography
China (19%)
Japan (19%)
India (20%)
Australia
(18%)
SEA (23%)
[Singapore,
Indonesia, Thailand] 24%
61%
16%
Planning to
begin
modernization
efforts in the
next 12 months
Currently
undergoing
modernization
efforts
Completely
finished
modernization
efforts
Core systems modernization plans
Personal insurance firms are ahead
of their commercial counterparts in
modernization plans – 20% have
completed modernization efforts as
compared to 8% for commercial
insurance firms.

23. 23© 2020 Forrester. Reproduction Prohibited.
Responsibility within IT
4%
24%
29%
24%
19%
Divisional C-level (e.g., CIO)
Application architecture
Enterprise architecture
Developer
Infrastructure/operations 39% 35%
25%
Influence
decisions
Part of a team
making
decisions
Final decision
maker
Responsibility in core systems
modernization
Respondents are from
IT (63%), Customer
Experience (20%)
and Product (17%)
functions
Survey respondent demographics
Respondent level
11%
13%
22%
47%
7%
C-level exec
Vice president
Director
Manager
Project manager
Source: A commissioned study conducted by Forrester Consulting on behalf of Red Hat, December 2020
Base: 114 core systems modernization decision makers and influencers in the APAC insurance market

24. 24© 2020 Forrester. Reproduction Prohibited.
System modernization is critical to business success for today’s
insurers in APAC
of respondents believe their core system modernization
initiatives are the most critical component of their digital
business strategy
of respondents believe the performance of their core
systems differentiates their firm in the broad
insurance marketplace
78%
61%
Source: A commissioned study conducted by Forrester Consulting on behalf of Red Hat, December 2020
Base: 114 core systems modernization decision makers and influencers in the APAC insurance market
CURRENT STATE

25. 25© 2020 Forrester. Reproduction Prohibited.
Across the various legacy systems, claims management systems are
of topmost priority for modernization
Question: Which core systems are your highest priority for modernization?
30%
33%
36%
43%
39%
41%
46%
49%
47%
25%
27%
29%
27%
32%
35%
35%
33%
44%
55%
60%
65%
70%
71%
76%
81%
82%
91%
Product design
Marketing
Billing
Rating
Business intelligence
Underwriting
Fraud prevention/investigations
Policy administration
Claims management
High priority Critical priority High/Critical priority
Source: A commissioned study conducted by Forrester Consulting on behalf of Red Hat, December 2020
Base: 114 core systems modernization decision makers and influencers in the APAC insurance market
CURRENT STATE

26. 26© 2020 Forrester. Reproduction Prohibited.
Most insurers primarily approach
core system modernization with
cloud migration and/or retooling
Firms are more focused on upgrading / moving core
systems to the cloud than consolidating / retiring
them.
Question: What steps are you taking / did you take
to modernize your core systems?
20%
23%
27%
36%
48%
57%
65%
Retiring our existing core
systems
Consolidating duplicate systems
into a single system
Replacing a core system we've
built ourselves
Improving the user experience
(service calls, APIs, etc.) of our
existing systems
Replacing one or more vendors
Retooling/enhancing our core
systems
Moving at least one of our core
systems to the cloud
Personal insurance firms are more focused on
retooling core systems while commercial insurance
firms focus more on cloud migration
Personal vs. Commercial Insurance
Source: A commissioned study conducted by Forrester Consulting on behalf of Red Hat, December 2020
Base: 114 core systems modernization decision makers and influencers in the APAC insurance market

27. 27© 2020 Forrester. Reproduction Prohibited.
However, legacy constraints present insurers with migration and
integration difficulties in their modernization journey
Question: What technology challenges have you experienced / might experience with your core
system modernization efforts?
40%
45%
57%
61%
71%
Choosing between best of breed vs. suite of
products
Data conversion
Cloud migration
Integrations with up/downstream systems
Data migration
57% of insurers cite
lack of skills as a barrier
from modernizing their
core systems to their
fullest expectations
Source: A commissioned study conducted by Forrester Consulting on behalf of Red Hat, December 2020
Base: 114 core systems modernization decision makers and influencers in the APAC insurance market
CHALLENGES

28. 28© 2020 Forrester. Reproduction Prohibited.
Insurers also struggle with proving the business value of the
investment made
Question: What business challenges have you experienced / might
experience with your core systems modernization?
52%
Achieving the
planned ROI
45%
Proving a defined
business case
40%
Demonstrating
financial impact
Source: A commissioned study conducted by Forrester Consulting on behalf of Red Hat, December 2020
Base: 114 core systems modernization decision makers and influencers in the APAC insurance market
69% of insurers
spend less than
10% of their IT
budget on system
modernization
initiatives
CHALLENGES

29. 29© 2020 Forrester. Reproduction Prohibited.
To ease challenges faced, respondents require solutions that offer
greater agility and flexibility in deployment
Question: What capabilities would be most useful as you undergo your core system modernization efforts?
4%
7%
10%
11%
8%
18%
19%
23%
12%
12%
12%
12%
14%
12%
11%
13%
8%
11%
11%
11%
13%
11%
17%
16%
24%
30%
33%
34%
35%
41%
47%
52%
Simple cloud-based deployments
Continuous upgrades to cloud
solutions
Improved out-of-the-box deployment
capabilities
Active ecosystem of value-add
services
Library of configurations
Low-code capabilities for
changes/updates
Range of deployment options
Ability to leverage the cloud
Rank 1 Rank 2 Rank 3 Total
Source: A commissioned study conducted by Forrester Consulting on behalf of Red Hat, December 2020
Base: 114 core systems modernization decision makers and influencers in the APAC insurance market
OPPORTUNITIES

30. 30© 2020 Forrester. Reproduction Prohibited.
Successful modernization not only allows insurers to work better,
faster and smarter, but also improves customer experience
Question: What benefits have you realized / do you expect to realize from modernizing your core systems?
39%
50%
51%
55%
56%
58%
60%
65%
70%
Increased customer acquisition/retention
Positive ROI
Improved productivity
Faster time to market
Better employee experience
Improved uptime/resiliency
Agility
IT Speed
Improved customer experience (CX)
Source: A commissioned study conducted by Forrester Consulting on behalf of Red Hat, December 2020
Base: 114 core systems modernization decision makers and influencers in the APAC insurance market
OPPORTUNITIES

31. Jeff Picozzi
Global Insurance Lead,
Red Hat

32. Red Hat Perspective on
Insurance
Jeff Picozzi
Global Insurance Lead
Red Hat

33. Customer success in the financial services industry

34. 34
Source: Red Hat Generali Switzerland case study, October 2019.
Challenge
Integrate systems to stay competitive and meet end customer and sales agent
demand
Solution
Generali Switzerland chose to build its new platform on Red Hat® OpenShift®
Container Platform, a solution that incorporates Kubernetes and other open source
projects into an enterprise container platform for cloud environments.
Why Red Hat
“We had a very challenging goal to finish the connection platform within a year,”
said Nicoll. “With Avectris, IPT, and Red Hat, we were able to successfully meet this
short deadline.”
Results
● Centralized access to up-to-date data for sales agents
● Improved time to market, resulting in daily releases
● Increased productivity by automating repetitive manual tasks
The new platform makes
accessing accurate data easier.
Having a consistent view of the
same data is key having a
comprehensive understanding of
our customers.
Christian Nicoll
Director of Platform Engineering
and Operations,
Generali Switzerland Products and services
Red Hat OpenShift Container Platform
Red Hat Ansible® Engine
Red Hat Consulting

35. Improving Customer Experience
Customer
Experience
Layer
Mobile Apps Web Systems IOT
Insurance
Applications /
Services
Legacy Core
Systems
CI/CD
Deployments
Insurance Data
Repositories
Customer Agent PartnerRegulators
API Gateway
Container
Platform
Infrastructure
Layer

36. 36
Source: Red Hat case study. “Huatai Life speeds development with open source with I.T. and Red Hat OpenShift,” Aug. 2018.
Challenge
Adopt a more agile IT system to support rapid online growth.
Solution
Huatai Life’s teams worked closely with Red Hat® Consulting to deploy container
technology and container-native storage as the foundation of its updated IT environment.
Why Red Hat
Huatai deployed open source technology from Red Hat to gain freedom from vendor
support lock-in.
Results
● Decreased application release times by 85% from 2 weeks to 2 days
● Reduced time for a single insurance transaction from 6 seconds to 0.3 seconds
● Increased maximum concurrent transactions from 50 to 500 transactions
Products and services
Red Hat OpenShift® Container Platform
Red Hat Ceph® Storage
Red Hat Consulting
Improved
application
development costs
by 30% and
software
development costs
by 94%

37. Greater scalability
Less system control
Less scalability
More system
control
Deploy on private, scale on public when needed
> >
Public cloud Private cloud
Open hybrid cloud
>
The OpenStack word mark and the Square O Design, together or apart, are trademarks or registered trademarks of OpenStack Foundation in the United States and other countries, and are used with
the OpenStack Foundation’s permission. Red Hat, Inc. is not affiliated with, endorsed by, or sponsored by the OpenStack Foundation or the OpenStack community.
37
Cloud Deployment Models
Hybrid cloud solutions based on insurer’s needs, maturity, and readiness

38. REFERENCE ARCHITECTURES
(RAS)
RELEASE NEW SERVICES QUICKLY, EFFICIENTLY, AND AT SCALE
Includes predefined end-to-
end hardware and software
Can be deployed quickly
Horizontally scalable
Excellent system utilization
Jointly engineered by Intel and Red Hat to enable businesses to release new
services quickly, efficiently, at scale, and with container-native storage
Software
▪ Red Hat OpenShift Container Platform 4.3/4.4 (4.3+)
▪ Red Hat OpenShift Container Storage
hardware
▪ Intel Server Systems with 2nd Gen Intel Xeon
Scalable processors
▪ Intel SSD Data Center Family
▪ Intel Ethernet Network Adapter
LEARN MORE AT <INTEL.COM/REDHAT>.
3

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youtube.com/user/RedHatVideos
facebook.com/redhatinc
twitter.com/RedHat
Thank You

40. Snap Poll
40
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41. Fireside Chat
Bruno Domingues
Solutions Architect,
Intel
Jeff Picozzi
Global Insurance Lead,
Red Hat
Fred Giron
VP & Research Director,
Forrester
Yi Qin Teow
Market Impact Consultant,
Forrester

42. Post webinar activities
Recording will be emailed to registered participants
Please give us your feedback and participant suggestions
If you would like to follow-up with any of the panelists
jpicozzi@RedHat.com
fgiron@forrester.com
yteow@forrester.com
bruno.domingues@intel.com
hugh.terry@the-digital-insurer.com
simon.phipps@the-digital-insurer.com

43. Feedback please

CX up AND costs down?
9 December 2020