2014 01 - sko2014 - s2014 sko insurance overview.peterku.3

2014 – U.S./North American Insurance Sales Team Enablement

Peter Ku

Sr. Director, Global Industry Marketing

pku@informatica.com

Ph 1-650-385-5131

Agenda

• Top Business Imperatives in Insurance

• Technology Investments and Informatica

Opportunities

• Informatica Footprint in Insurance

• Upcoming Marketing Activities and Investments

Top Business Imperatives (Concerns?)

Improve

Customer

Experience

Grow

Revenue

Improve

profit

margins

Comply with

industry

regulations

CEO

Top CEO Priorities and Technology Investments

CEO Priorities

Improve Customer

Experience

Grow Revenue

Improve Profit

Margins

Comply with

industry regulations

Top CEO Priorities and CIO Investments

CEO Priorities CIO Priorities

Improve Customer

Experience

• Core Insurance Legacy Modernization

• Mobile and Digital Investments

• Cloud/SaaS Adoption

Grow Revenue • Business Intelligence

• Predictive Analytics

• Big Data Processing

Improve Profit

Margins

• Cloud/SaaS Adoption

• IT Consolidation

• IT Automation

Comply with

industry regulations

• Data Warehousing

• Business Intelligence

• Modernize Risk and Compliance

Applications

IT Investment Predictions by Insurance Carriers

IT budgets to grow at 6.5

percent CAGR (compound

average growth rate), for a

total IT spend of over $108

billion, by 2017

(Source: OVUM)

IT Investment Predictions by Insurance Carriers

IT spend in the life-insurance

market will grow at 7.6 percent

CAGR to reach a value of $49

billion by 2017, with the P&C

industry growing at 5.7

percent to reach a total market

size of $60 billion by 2017

IT Investment Predictions by Insurance Carriers

Gartner Research

forecasts worldwide IT

spending to grow by 3.6

percent in 2014

(compared to last year)

Improve Customer Experience

• Changing customer

demands in today’s

Digital-era of insurance

(mobile, social)

• Customer Facing

Technology is a

differentiator!

• Core Insurance Legacy

Modernization

• Mobile and Digital

Investments

• Cloud/SaaS Adoption

• Timely completion of

legacy modernization

investments

• Improved customer

information across

channels and business

lines

• Data Migration Solutions

Test Data Management

• MDM for Single View of

Customer

• Cloud DI & MDM

Why is this important? Key Investments

Data/ Tech. Challenges Informatica Solutions

Why is customer acquisition and retention so important to financial institutions?

• The cost of losing one customer is 4x

higher than obtaining that same

customer

• Satisfying and retaining current

customers is 3 to 10 times cheaper

than acquiring new customers

• A typical company receives around 65

percent of its business from existing

customers.

• A 5% reduction in the customer

defection rate can increase profits by

25% to 80%

Single View of Customer

On Premise Cloud

Call Center

Campaign Mgmt

Agent/Broker

• Growing adoption in SFDC

resulted in too many data

silos across regions & BU’s

impacting Metlife’s ability to

deliver rich customer

experience to grow their

business

• Manage trusted customer data

across SFDC for agents and brokers

• Manage and govern business data

across on-premise and cloud

solutions Integrate and exchange

data from 3rd party systems and

providers for improve customer

service and selling

Business Challenge How Did Informatica HelP?

Grow Revenue

• Avg. Product Per

Relationship at historical

lows

• More expensive to acquire

new customers vs.

growing revenue from

existing ones

• Analytics and Business

Intelligence

• Hadoop, Modernize DW

Platforms

• Incomplete, Invalid data

for predictive modeling

• Integration of unstructured

data (e.g. social, call logs,

machine data)

• Data Integration and

Quality for BI/Analytics

• MDM for Policyholder

• Cloud DI, MDM

• Big Data Integration

Why is this important? Key Investments

Data/ Tech. Challenges Informatica Solutions

Grow Revenue

• Double revenue in 5 yrs, achieve

12% RoE

• Improve profitability and customer

service across all channels

• Too many sources of the truth,

inconsistent customer data, lack

of insight into customer

interactions

• Single view of policyholder with MDM

with detailed relationship views

across the business

• Cleansed data quality issues for

downstream business applications

• Monitor and alert when issues arise

with critical business data

Business Challenge How Did Informatica HelP?

CFO

Marketing

Sales

Improve Profit Margins

• Low interest rates

severely impacting

reinvestment revenue

streams

• Legacy systems require

manual processes too

support = too expensive

• Legacy Modernization

(Underwriting, Claims,

etc.)

• Business Process

Automation Technology

• Timely completion of

legacy modernization

investments

• Need to automate

processes across systems

• Data Migration Solutions

(DI, DQ, TDM, DVO, ILM

Archive)

• Active End Points

Why is this important? Key Investments

Data/ Tech. Challenges Informatica Solutions

Legacy Modernization Survey

(Source: Celent – 2013)

Legacy Modernization

Analyst &

Data Steward

Developer &

Architect

CFO

• CFO and Chief Accounting Officer

were at risk of not realizing

quantifiable business value from

new Oracle Financials Application

Investment due to ongoing data

quality errors from IT systems

• Automated a sustainable data

governance process, enabling business

and data stewards to identify, fix, and

monitor the quality of their data in their

new Financial Management system

• Improve close of book processes, 50%

savings managing data quality

Business Challenge How Did Informatica Help?

Regulatory Compliance

• Increasing transparency into

enterprise risk management

by State and Federal

regulators

• Growing legal and regulatory

fines for non-compliance with

new and existing laws

• Analytics and Business

Intelligence

• Modernize Risk and

Compliance Systems

• Enterprise Risk Data

Warehouse

• Timely completion of

legacy modernization

investments

• Incomplete, Invalid data

for risk mgmt

• Lack of a single view of

risk

• Data Integration and

Quality for BI/Analytics

• Data Migration Solutions

(DI, DQ, TDM, DVO, ILM

• Data Services

Why is this important? Key Investments

Data/ Tech. Challenges Informatica Solutions

Insurance Death Master Compliance

Analyst &

Data Steward

Developer &

Architect

CCO

• CFO and Chief Accounting Officer

were at risk of not realizing

quantifiable business value from

new Oracle Financials Application

Investment due to ongoing data

quality errors from IT systems

• Discover and manage data quality

errors

• Identify and match against SSN DMF

• Relate customers with policies,

beneficiaries, and employees

Business Challenge How Can Informatica Help?

Compliance

DW

Death

File

Policy Admin, Claims,

U/W, CRM

INFA Penetration: Top 50 U.S. Insurance (as of Q3-2013)

19

INFA

customers Non-customers Total Penetration %

Top 25 22 3 25 88%

26-50 15 10 25 60%

Total 37 13 50 74%

Market Penetration

$12,118,889

$2,051,448

$0

$526,745

$0

26-50 Insurance Companies Total Lifetime REvenue: $14.6M (as of Q3-2013)

DI/DQ Actual MDM Actual ILM Actual

$59,985,459

$5,926,118

$2,042,468

$4,018,094 $1,106,906

Top 25 Insurance Total Lifetime Revenue: $73M (as of Q3-2013)

DI/DQ Actual MDM Actual ILM Actual

B2B/UM/CEP Actual All Else Actual

Total Lifetime revenue top 50 US Insurance: $87.7M

Data as of Q3-2013. SEE APPENDIX FOR DETAILS 19

INFA Penetration: Top 50 U.S. Insurance (as of Q3-2013)

20

INFA

customers Non-customers Total Penetration %

Top 25 22 3 25 88%

26-50 15 10 25 60%

Total 37 13 50 74%

Market Penetration

Total Lifetime revenue top 50 US Insurance: $87.7M

Data as of Q3-2013. SEE APPENDIX FOR DETAILS 20

Total Opptys and TAM: US. Insurance

Analysis of Spend vs. TAM vs. IT Budget, vs. Prop2 Spend – Banks vs. Insurance

How to read this?

• 100% = highly correlated vs. 0% is not.

• Marketing Content and Sales Tools

• eBook on “Improving Revenue and Customer Relationships”

• Solution Whitepapers: Death Master, MDM for Insurance, Realizing the Value of Big Data

• Customer Success Stories

• Sales Playbook

• Marketing Programs & Events

• 5th Annual FSI Executive Summit (March 5)

• IDMA Event (April)

• Informatica World

• New Hire

• Insurance/FS Solution Marketing Director

2014 Marketing Investments

Questions?