Emerging market segments in the GCC region and how insurance technology can be a catalyst for change.

1. Emerging Market Segments :
How Insurance Technology Can Act As A Catalyst For Change
A GCC perspective
Insurex, 9th October 2012, Dubai
Kalpesh Desai
CEO, Agile Financial Technologies YOUR LOGO
www.agile-ft.com
Confidential Page § 1

2. Agenda
1 Where are we today?
2 Emergence of new market segments
Insurance
Technology
3 Technology as a catalyst for change
4 About Agile Financial Technologies
Confidential Page § 2

3. Agenda
1 Where are we today?
2 Emergence of new market segments
Insurance
Technology
3 Technology as a catalyst for change
4 About Agile Financial Technologies
Confidential Page § 3

4. Where we are today?
Stricter
financial
viability and Low GDP, low
capital interest rates,
adequacy moderate equity
norms Less Social media
performance
money for invasion
business
operations,
customers Pervasive mobile
& channels Lower technology
WPS
interest rates Toll on
enforcement clients’
and pension restrict
businesses
plans to savings
replace gratuity
Regulatory reforms
Post crisis business Technology at an
trigger structural
sustainability pressures inflection point
changes
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5. The System Under Pressure
Increased Regulation & Oversight
Clients Chann
el Dem
• Demand new ands
products & services
• Client Acquisition & “In”Side
Retention • Asset Quality
• Risk-averse/ • Dated, disparate,
unforgiving inflexible systems
• Infrastructure
• Margin & Cost
Econo pressures
my
Environment
• Liquidity crunch
• Regulatory &
compliance
uncertainties
• Industry consolidation
& convergence
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6. Regulation drives deeper penetration
§ UAE mulls the introduction of pension funds to replace end of
service gratuity
- Will give rise to the emergence of pension fund managers, administrators and
custodians
- New possibilities for insurers to launch group pension products
§ Mandatory health insurance gives rise to deeper penetration for
health insurers
§ Introduction of Wage Protection System gives rise to payroll
processors, many of whom are contemplating micro-credit products,
typically backed against end-of-service benefits, credit life plans,
unemployment protection insurance or pension plans
- Most blue-collar workers do not have bank accounts and receive smart cards
from payroll processors which gives them access to their money
- Because they aren’t part of the traditional banking system, insurers will have to
innovate to reach their doorstep
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7. Agenda
1 Where are we today?
2 Emergence of new market segments
Insurance
Technology
3 Technology as a catalyst for change
4 About Agile Financial Technologies
Confidential Page § 7

8. The demographic landscape
Expat population
in the GCC is
29% of the expected to
population is
reach 50mn by
under 15 years of
2013
age
• Approximately 18mn
• Educated, exposed to of these are
int’l media & new “unbanked”
technology
• Social attitudes and
norms are changing
rapidly
Population is
largely urbanised
• Pressure on urban
infrastructure
• Expats with a long term
sting in mind in the
region, tend to acquire
properties rather than
pay rent
Emergence of new market segments
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9. Accessibility challenges
New age customers The “unbanked”
• Prefer technology over face-to-face interactions • Limited access to banking channels
• Choose what they use • Payments processed through WPS agents/
• Always “on” exchange houses
• Expect instant access • Predominantly remit moneys back home
• Oblivious to policies • Remittances in 2011 were 270 Bn$ with
approximately 50Bn$ remitted by this sector
• Largely uninsured, even for funeral products
Door-step insurance : Different strokes for different folks
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10. Traditional Distribution/ Service Channels
§ Traditional distribution and service channels do not provide
extensive reach to the potential customers, due to restrictions in
their location/ customer reach/ control over the operations
- Branches/ Offices
- Call centers
- Website/ Web portals
- Agents
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11. Traditional Vs. New Channels
Complex
Mobility is the future New for old
Vs. Simple products
• Complex products • Even though internet • New sales and
need personal touch and new technology service channels are
(agent) and advisory are accessible and designed to attract
services to sell, convenient for the potential customers,
however there are new age customer, however it is
many products that there exists huge important to preserve
can be sold and potential with the the old ones and
serviced directly “unbanked” make sure they
online and “over the population that does smoothly transition
counter” not have access to from the “traditional
• Gives rise to the technology and needs ways to the future”
importance of product service truly at their
design and doorsteps
positioning with
respect to their sales
and distribution
channels
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12. Social Media in Insurance
§ A recent Boston Consulting Group study revealed:
- 47% of consumers who use social media do so in order to obtain the opinion of
friends and peers before making a buying decision.
- 64% of consumers who pick an insurer based on friends’ advice are satisfied
with their choice, compared with 56% of those who do not rely on feedback.
- 14% of consumers are connected to their insurance agents via Facebook,
Twitter, or LinkedIn, and 25% of these are connected to their agents on two or
more social networks.
§ Social media can be used as a very power referral method to
increase sales
§ Teach your agents/ brokers to utilize social media to increase their
market presence
§ Insurers can use social media to SELL and SERVICE efficiently
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13. Social media portals can be a virtual branch
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14. Social media as a means of identifying fraud
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15. Agenda
1 Where are we today?
2 Emergence of new market segments
Insurance
Technology
3 Technology as a catalyst for change
4 About Agile Financial Technologies
Confidential Page § 15

16. Your customer wants a choice
Insurance
Co
SMS/ Door-step
Mobile
Services Insurance
Customer
Internet/ Bank/
Online Financial
Services Advisor
Social Agents/
Media Brokers
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17. The (r)evolution
As needs evolve
§ Demand for a flexible technology deployment model evolves
§ Flexibility in processes becomes a must
§ Your infrastructure should be conducive to enable innovation
§ You should be able to evolve new user experiences
§ You should be able to implement new pricing models
§ Effect change in organization structures and management through
effective decision making
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18. Business Expectations
IMPROVE
CUSTOMER GENERATE
SERVICE GROWTH
ENHANCE LOWER
PRODUCTIVITY COST
MORE VALUE
FOR LESS
MONEY
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19. The barrier
• Inflexible Applications
• Islands of information
• Tedious Product Development
• Multiple interface points
• Business Continuity
imperatives
• Lack of research
• Manage new regulatory &
compliance norms
• Manage business essential
activities
• Increase competitiveness I.T.
Business
Confidential Page § 19

20. Where will your priorities lie?
Growth
• Client relationships
• New product launches
Survival • Grow market share
• Comply with new regulations • Improve operational efficiency
• Improve risk profile • Achieve customer profitability
• Reputation management • Achieve margins
• Reduce losses • Achieve investor expectations
• Protect customers‘ assets
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21. Can we strike a balance?
Survival Growth
• Comply with new regulations • Client relationships
• Improve risk profile • New product launches
• Reputation management • Grow market share
• Reduce losses • Improve operational efficiency
• Protect customers‘ assets • Achieve customer profitability
• Achieve margins
• Achieve investor expectations
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22. Technology Trends impacting your landscape
Internet computing
Analytics Mobile Computing
Collaborative Security and
Communication Sustainability
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23. Collaborative Communication
§ The way we communicate has changed
- Social media
- Community forums
- Collaborative tools
- Content dissemination
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24. Collaborative Communication
§ Insurers to provide innovative programs and social networking tools
as part of their communication and collaborative process
§ A collaborative communication framework can enable the movement
of highly skilled adjusters and agents to a centralized model
allowing lower-cost field resources to tap into their knowledge base
§ Collaboration enables accuracy in underwriting decisions, loss
decisions, and more interactive customer servicing models
§ The distribution channel extends beyond traditional media channels
and social networks are used to promote and capture new business
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25. Do Not Ignore Social Computing
Core Insurance
Software
Employee/ Employee /
Customer
Customer
Social
Mobile Networking
Devices Accounts
Portals
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26. “Socially” Active Insurance
2-way messaging Advisory, origination, Mobile Apps/ Portals
service management for Customers and
Agents
Core Insurance Technology Platform
FB Quotations/ Claim Full Service and Interaction
Link to Agents/ Sales/ Claims Capabilities
Intimations/ live Interaction and
officers
Advice
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27. Mobile Computing
§ Mobile channels can become a highly differentiated channel for
core business
§ Immediate impact as common transactions such as payments,
alerts, loss submission, emerge as competitive differentiators
§ Carriers can rapidly reach emerging markets where mobile devices
and coverage exceed traditional connectivity
§ Mobility applications for agents and brokers enable insurers to
differentiate and capture/retain distribution channel mindshare
§ Empowering agents and brokers with just-in-time account and
product information will enable a tailored experience when they
interact with their customers in the field
§ The mobile device feature set will enable new applications to lower
loss-costs and improve underwriting data
Confidential Page § 27

28. Sample Apps
The Mobile Branch
Field Activities
Client / Insurance Premium Endorsement Premium Claim Intimation Cover Note
Policy Enrollment Calculation Requests Collections Request Generation
Core Insurance System
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29. Doorstep Insurance
Instant Instant
Capture Payments
Instant
Service
Confidential Page § 29

30. Security Imperatives In The New Era
Compliance
Portable
and
Devices
Regulation
Cyber
Outsourcing
Threats
The rise of
Cloud Security social
Computing Imperatives networks
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31. Technology as an enabler of business agility
Increased o Create value for your customers
Response
Levels
o Improve experience for
distributors, partners and
Increased employees
Revenues
o Reduce the sales cycle
Cost o Enhance interoperability
Efficiency between systems
o Shift to holistic integrated
systems from islands of
Scalability
disparate information
o Provide integrated view of
Integrated/ customer information
Aligned across various products
Processes
o Improve information-sharing
practices
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32. BUSINESS AGILITY
!! NOT A LUXURY !!
The ability of a business to adapt
rapidly and cost efficiently in
response to changes in the
business environment.…
Confidential Page § 32

33. Agenda
1 Where are we today?
2 Emergence of new market segments
Insurance
Technology
3 Technology as a catalyst of change
4 About Agile Financial Technologies
Confidential Page § 33

34. Corporate Overview
Products
Technology Solutions
The Company We Keep
Our Infrastructure
Confidential Page § 34

35. Corporate Overview
Products
Technology Solutions
The Company We Keep
Our Infrastructure
Confidential Page § 35

36. The Evolution
Agile Financial Technologies is an Indian IT company focused on providing products and services to the
Banking, Asset Management, Insurance, Financial Services and Capital Market sectors
Investors include IDG Ventures India (US$ 6.8Bn Fund) and Quvat, Singapore (US$ 1.2 Bn$ Fund)
M&A, Product Development and Services Delivery led by a strong management team
Strong management team with
Acquisition of intellectual property
OEM relationships with strategic experience in managing large Vertically integrated services
and IT/ITES companies focused
components to fill the value chain enterprises and executing large delivery process
on the BFSI sector
projects
Recognized as an emerging market leader in the provisioning of software products to the BFSI sector by
leading analyst firms and publications
Confidential Page § 36

37. Milestones
Named in Gartner’s 2010 report as one of 25 leading BFS software
providers
Named in IBS Intelligence Sales League, 2010. Ranked # 6 in lending
solutions
Ranked 107 in the global Fintech 100 report for 2011
(American Banker/IDC Connect)
Awarded the “Best Asset Management Software Provider” in the Middle
East in 2011 by World Finance (UK)
Awarded the “Best Support Partner for Finance Companies for 2011” and
was a finalist for the “Star of Business Award” by SME Advisors & ADCB
Red Herring Asia 2012 finalist
Confidential Page § 37

38. Our Presence
Central & Eastern Europe Middle East
§ Russia
§ UAE
§ Poland
§ Oman
§ Kazakhstan
§ Bahrain
§ Kingdom of Saudi Arabia
§ Kuwait
§ Qatar
Asia Pacific
Africa
§ India (Global Delivery Center)
§ Mauritius § Sri Lanka
§ Kenya (Comesa Support Hub) § Indonesia
§ Tanzania § Malaysia
§ Uganda § Phillipines
§ Malawi § Singapore
§ Ethiopia
§ Nigeria (Ecowas Support Hub) Americas
§ Ghana § North America
§ Zambia § U.S.A.
§ Zimbabwe § Latin America
§ Libya § Mexico
Confidential Page § 38

39. Corporate Overview
Products
Technology Solutions
The Company We Keep
Our Infrastructure
Confidential Page § 39

40. Our application footprint
Financial Services Group
Bank Asset
Micro Mgmt
Pension Life General
Finance Fund Insurance Insurance
Co
Personal Private Banking &
Banking Corporate Banking Wealth Management
Trade Cash Wealth Family Banc
Loans Deposits Finance Loans Treasury PMS
Mgmt Mgmt Offices Assurance
Business functions within a financial services group that Agile FT’s software automates
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41. Banking Suite
Agilis Investment Management
• Wealth Management
• Funds Management
• Transfer Agency
• Financial Planning
• BancAssurance
• Stock Broking Back Office
• DMat
• Registrar (RTA)
Agilis Treasury Management
• Forex (interbank, merchant and loans & deposits)
• Fixed Income
• Money Market
• Equity
• Mutual Funds
• Derivatives (interest rate & currency),
• Commodities (bullion, silver, etc), among others
• Liabilties Management
Agilis BancAssurance
• Multi-carrier support
• Life and Non-Life underwriting workflow
• Reconciliation of policies, commissions, fee income
• Inward/outward commission reporting structure
• Customer relationship management
• Integration with Core Banking and Core Insurance engines
Confidential Page § 41

42. Banking Suite
Agilis Lending
• Loan Origination
• Loan Management
• Loan Collections
Agilis Credit Monitoring
Confidential Page § 42

43. Financial Inclusion
Agilis Universal Microfinance
• Core banking for MFIs
• CGAP Compliant
Agilis DoorStep Banking
• Last mile connectivity
• Hand-held based POS devices
• ISO8583 messaging based switch and controller
Agilis MicroInsurance
Confidential Page § 43

44. Investment Management Suite
Exchange
Prop Book Fixed
Incomes
Money
Mkt
Real
Estate
Islamic
Forex
CRM
Traded
Deriva?ves
/Debt
Family
Instruments
Investments
Instruments
Family
Products
Corporate Treasury Bonds/ Bonds/ Vanilla
Integrated GL
Equity Treasury Buy Spot
Shares Debentures Sukuks Swaps
Bills Real Estate Trades
Conv.NonC
NAV
Wealth Managers Bonds Shariah
Preference Commercial Selling Forward Exotic Computation
Shares Floating/ Compliant
Papers Real Estate Trades Swaps
Fixed Equity
Mutual Funds Treasury Position
Warrants Bonds Certificate of Lease
Discounted Deposits Murabaha FX Swaps
Real Estate
Hedge Funds Market Risk
ETFs Bonds Call Buy/ Build/
Money Sell
Private Equity ALM
Asset Repos &
Options Backed Reverse
Portfolio Managers Securities Repos Exposure & Limits
Futures Floating
Insurance Funds Rate Agr
Options on
Futures
Pension Funds
Pricing Engine Settlement Manager Market Data Interface Integration APIs
Straight-Through Processing : Integrated Front/Mid/Back-office workflow
Confidential Page § 44

45. Universal Lending Suite
Web Enabled Correspondence
Dashboards Email Alerts Mobile Alerts
User Interface & Tracking
Handheld POS
Presentation Layer
Individual/Group Shares/Savings Loan Origination, Loan Contract Credit Monitoring,
Agilis Smart Switch
Customer Account Appraisal & Execution & Recovery &
Creation Operations Approval Disbursement Closure
Branch Management
ATM Networks
Individuals Loan Processing Loans Savings/
Groups Shares
Workflow Deposits
Customer Information Products
Operations Management
Mobile Banking
Credit Risk
Management Reporting Engine Core Financial
Accounting General Ledger
Engine
System
Web Services
Agilis Lending Suite Last Mile
Connectivity
Confidential Page § 45

46. Insurance
Core Insurance
• Agilis Non-Life
• Agilis Individual Life
• Agilis Group Life
• Agilis Health
• Agilis Pensions & Annuities
• Agilis Takaful
• Agilis MicroInsurance
• Agilite (Lite Non-Life Insurance – Live in 90 days)
Agilis Insurance Broking
• Rate comparison-Policy Administration-Claims follow up-Accounting
• All life and non-life businesses covered
• Powerful commission tracking
Agilis Channels
• BancAssurance
• Customer Self Service
• Agents
• Third Party Administrators
• Brokers
• Web Services
• Mobile Insurance
Confidential Page § 46

47. Core Non-Life Insurance
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48. Life Insurance
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49. Corporate Overview
Products
Technology Solutions
The Company We Keep
Our Infrastructure
Confidential Page § 49

50. Technology Services Offerings
Dedicated ODC setups Technology Solutions
• Project Management / Service Delivery • Business analysis and design
• Experienced Skill-sets with domain knowledge • On-premise support
• Process driven approach base on international • Offshore development services
best practices and standards
Dedicated
Offshore
Domain Knowledge Development Technology Skills
• Investment Management Center • Oracle
• Capital Markets • SQL Server
• Lending • .Net
• Islamic Finance • J2EE
• Trade finance & factoring • Jdeveloper11/ADF
• Microfinance & microinsurance Technology
• Oracle Forms & Reports
• Life Insurance Solutions
• Non-Life (P&C) Insurance
• Takaful
• BancAssurance
• Insurance Broking
Oracle Applications Practice
• Oracle Applications
• Oracle BI
• Oracle CRM
Confidential Page § 50

51. Corporate Overview
Products
Technology Solutions
The Company We Keep
Our Infrastructure
Confidential Page § 51

52. The Company We Keep
Banking
Asset
Management
Financial
Services
Insurance
Insurance Brokers
Confidential Page § 52

53. Corporate Overview
Products
Technology Solutions
The Company We Keep
Our Infrastructure
Confidential Page § 53

54. Infrastructure
§ India – Global Delivery Centre
- 150+ associates in product development, support and
delivery across Mumbai and Pune
- Mumbai : Investment Management & Insurance Groups
- Pune : Lending & Microfinance Group
§ Middle East & Africa
- Dubai Internet City
- Regional Support
- Sales
§ Rest of the world
- Level 1 & 2 support to regional clients through our
extensive reseller channel consisting of 30+ channel
partners in 20 countries
Confidential Page § 54

55. Thank you
Kalpesh Desai
Confidential Page § 55