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CIO Summit 2013
The changing role of IT
Nagib Kassis
Head of IT & Business Alignment
© Copyright Allianz 15/05/2013
2
Overview of Allianz
© Copyright Allianz 15/05/2013
Fast facts …
World’s largest P & C Insurer
$3.74 billion in GWP in Australia
$490 million net operating profit after tax
Over two million policy holders in Australia and NZ
Leading Workers Compensation insurer
Voted Large General Insurance Company of the Year (2009, 2011-2012)
Brands include …
3
Hypothesis
© Copyright Allianz 15/05/2013
IT has never been more important in insurance
IT will be even more important in the future
What are some of the future challenges?
Do we know how fast?
Are we prepared?
4
IT has never been more important to insurance
© Copyright Allianz 15/05/2013
Social Mobile
Big Data Cloud
5
IT has never been more important to insurance
IT in insurance
Business/IT alignment
Architecture
Digital innovation
Data and processes
Complexity
Robustness and
scalability
Security
People
6
IT has never been more important to insurance
© Copyright Allianz 15/05/2013
IT in insurance
Business/IT alignment
Architecture
Digital innovation
Data and processes
Complexity
Robustness and
scalability
Security
People
7
Business IT Alignment
© Copyright Allianz 15/05/2013
Business IT
� High demand for IT
� Do IT my way
� Parochial View
� Higher appetite for risk
� Limited capacity
� Do IT right way
� Enterprise view
� Lower appetite for risk
8
Business IT Alignment
© Copyright Allianz 15/05/2013
Business IT
� High demand for IT
� Do IT my way
� Parochial View
� Higher appetite for risk
� Limited capacity
� Do IT right way
� Enterprise view
� Lower appetite for risk
Agile
9
Business IT Alignment
© Copyright Allianz 15/05/2013
Business IT
� High demand for IT
� Do IT my way
� Parochial View
� Higher appetite for risk
� Limited capacity
� Do IT right way
� Enterprise view
� Lower appetite for risk
Combined Governance Framework
Agile
� Collaborative
� Pace Layering
Tools & frameworks to empower business & give more control
10
IT has never been more important to insurance
IT in insurance
Business/IT alignment
Architecture
Digital innovation
Data and processes
Complexity
Robustness and
scalability
Security
People
© Copyright Allianz 15/05/2013
11
Allianz Digital Architecture in Action
Consumer Layer
Claims PortalCall Centre Portal
Integration Layer
ACMS
Policy
Search
QuotePolicy
SearchFNOL
Business Process Layer
Service Provider Layer
FNOL Business RulesMotor Quote / NB
Component
Business Rules
Policy
Search
Service
Customer
Search
Service
FNOL
Motor
Service
Motor
Quote
Service
Motor
Bind
Service
Validate Policy
Fraud Detection
Duplicate ClaimCalculate Excess
FNOL Motor
Component
Invoke Business
Rules
Save
Unpaid Premium
Motor Quote Business
Rules
Validate
Underwrite
RateInvoke Business
Rules
Save
POLISY
Policy Search
Customer
Search
Customer
Update
Add Policy
Lodge Claim
Co. 1 Co. 6 Co. 7 Co. 9
Create IRF
Customer
Update
Service
Reminder
Service
Customer
Search
Lodge
ClaimNotify Follow Up
TW Inbox TW Inbox
12
Consumer Layer
Claims PortalCall Centre Portal
Integration Layer
ACMS
Policy
Search
QuotePolicy
SearchFNOL
Business Process Layer
Service Provider Layer
FNOL Business RulesMotor Quote / NB
Component
Business Rules
Policy
Search
Service
Customer
Search
Service
FNOL
Motor
Service
Motor
Quote
Service
Motor
Bind
Service
Validate Policy
Fraud Detection
Duplicate ClaimCalculate Excess
FNOL Motor
Component
Invoke Business
Rules
Save
Unpaid Premium
Motor Quote Business
Rules
Validate
Underwrite
RateInvoke Business
Rules
Save
POLISY
Policy Search
Customer
Search
Customer
Update
Add Policy
Lodge Claim
Co. 1 Co. 6 Co. 7 Co. 9
Create IRF
Customer
Update
Service
Reminder
Service
Customer
Search
Lodge
ClaimNotify Follow Up
TW Inbox TW Inbox
Allianz Digital Architecture in Action
13
Consumer Layer
Claims PortalCall Centre Portal
Integration Layer
ACMS
Policy
Search
QuotePolicy
SearchFNOL
Business Process Layer
Service Provider Layer
FNOL Business RulesMotor Quote / NB
Component
Business Rules
Policy
Search
Service
Customer
Search
Service
FNOL
Motor
Service
Motor
Quote
Service
Motor
Bind
Service
Validate Policy
Fraud Detection
Duplicate ClaimCalculate Excess
FNOL Motor
Component
Invoke Business
Rules
Save
Unpaid Premium
Motor Quote Business
Rules
Validate
Underwrite
RateInvoke Business
Rules
Save
POLISY
Policy Search
Customer
Search
Customer
Update
Add Policy
Lodge Claim
Co. 1 Co. 6 Co. 7 Co. 9
Create IRF
Customer
Update
Service
Reminder
Service
Customer
Search
Lodge
ClaimNotify Follow Up
TW Inbox TW Inbox
Allianz Digital Architecture in Action
14
IT has never been more important to insurance
IT in insurance
Business/IT alignment
Architecture
Digital innovation
Data and processes
Complexity
Robustness and
scalability
Security
People
© Copyright Allianz 15/05/2013
15
Digitalisation affects the insurance industry
1 Forrester Technographics European Benchmark study, 2011
2 BPM data, 2012, P&C only
3 Forrester Technographics (European Average)
4 BrightLocal.com, 2011 (US + UK)
5 Forrester, Q4 2009, Q4 2011 (US)
55+ age group catching up online usage
Utilisation of Mobile also in insurance
Social media multiplies impact of customer
experience
Offers are getting more transparent
Customers getting self-directed and active
Customer centricity calls for a multi-access offer
100% increase of online purchase of home & car insurance overt the last 5 years in Europe¹
Strong utilization of internet before purchase in Europe2 +42%
64% of customers shopped online within the last 3 months³
3/4 of 55+ customers rely on Social Media for purchase decisions in US/UK4
15% insurance search via mobile today6
30-35% of hybrid customers in Germany / France9
Digitalisation
Impacts on
insurance
business
model
80% increase of unsatisfactory service comments via Social Media in the last 2 years5
6 http://mobithinking.com/mobile-marketing-tools/latest-mobile-stats
7 Industry experts
8 Forrester
9 Multi-access business model
Source:
© Copyright Allianz 15/05/2013
50% of people who did leisure travelling within the last 12 months booked at least 1 leisure trip on line8
10% theoretical permutations for online configuration of BMW 7 series 7
16
Trends in Digital/Mobile
� Business Capability Bundling
� Mobile Payments
� Location-Based Services
� Usage-Based Insurance (Telematics)
� Mobile Advertising
� Straight Through Processing
� Paperless process
� Rich Media (HTML5, Image Capture, etc.)
� MDM/BYOD – Mobile Device Management
� Mobile User Interface Design
� Cross-Platform Enablement
� Tablet Proliferation
17
IT has never been more important to insurance
© Copyright Allianz 15/05/2013
IT in insurance
Business/IT alignment
Architecture
Digital innovation
Data and processes
Complexity
Robustness and
scalability
Security
People
18
IT has never been more important to insurance
© Copyright Allianz 15/05/2013
IT in insurance
Business/IT alignment
Architecture
Digital innovation
Data and processes
Complexity
Robustness and
scalability
Security
People
19
Complexity is a fact of life - how we manage it is the challenge
0
1
2
3
4
5
1 Time
Bad complexity
Good complexity
Complexity within a company
� Special / multiple discount systems� Segment-specific solutions without
modularisation� Special rating � Niche products breaking platform logic with low
volume/scale effects� Customer/channel specific print/wordings
� Multi-channel provider� Multi-labeling/branding� Process automation� Comprehensive product range
Drives differentiation and competitive advantage
Motor examples
Drives cost
© Copyright Allianz 15/05/2013
2020
Managing complexity – A journey…
Customer perception
Market pricing
Sales approach/format
Service offering
Processes
IT
Products/tariffs
Degree of differentiation
Zero baseToday Target
© Copyright Allianz 15/05/2013
“Complexity is your enemy. Any fool can make something complicated. It is hard to make something simple.”
- Richard Branson
21
IT has never been more important to insurance
© Copyright Allianz 15/05/2013
IT in insurance
Business/IT alignment
Architecture
Digital innovation
Data and processes
Complexity
Robustness and
scalability
Security
People
New Good Complexity
Service Growth
Business GrowthIncreasing demand through:
� STP
� Paperless office
� Shift online
� New products/services
Increasing demand through:
� STP
� Paperless office
� Shift online
� New products/services
Digitalisation, innovation and consumerisation and big data
Digitalisation, innovation and consumerisation and big data
Robustness and Scalability…
Vo
lum
e o
f e
lect
ron
ic t
ran
sact
ion
s
20102005 2015
Today
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IT has never been more important to insurance
IT in insurance
Business/IT alignment
Architecture
Digital innovation
Data and processes
Complexity
Robustness and
scalability
Security
People
© Copyright Allianz 15/05/2013
24
Malware
(SaaS)
Infrastructure
(Cloud)Attacks
Data
© Copyright Allianz 15/05/2013
25
Computer ‘Infection’ (as-a-Service)
Cyber-attacks-as-a-Service
© Copyright Allianz 15/05/2013
26
IT has never been more important to insurance
IT in insurance
Business/IT alignment
Architecture
Digital innovation
Data and processes
Complexity
Robustness and
scalability
Security
People
© Copyright Allianz 15/05/2013
27
Hypothesis
© Copyright Allianz 15/05/2013
IT has never been more important in insurance
IT will be even more important in the future
What are some of the future challenges? HUGE
28
Hypothesis
© Copyright Allianz 15/05/2013
IT has never been more important in insurance
IT will be even more important in the future
Do we know how fast?
What are some of the future challenges? HUGE
Faster than we probably think
29
Hypothesis
© Copyright Allianz 15/05/2013
IT has never been more important in insurance
IT will be even more important in the future
Are we prepared?
Do we know how fast?
What are some of the future challenges? HUGE
Faster than we probably think
…………………..