future of insurance industry - global trends, demographics, emerging markets, technology, customer...

Dr Patrick Dixon Chairman Global Change Ltd

Insurance TrendsTake hold of your Future

Tuesday, 3 September 13

do things you really believe inLife is Short


Why I believe in insurance


Insurance: Confusing Messages



�Marke&ng: We are here to protect your family, to pay out generously and quickly if something happens to you, giving you peace of mind at a fair price. We believe in the value of what we do for you.



�Marke&ng: We are here to protect your family, to pay out generously and quickly if something happens to you, giving you peace of mind at a fair price. We believe in the value of what we do for you.

�Investor Rela&ons: Our mission is to make shareholders as much wealth as we can without breaking the law and landing up in prison. We raise life insurance premiums as high as we can get away with, and pay out as liBle as possible.


ALL BIG RISKS ARE RELATED


AGILITYmeans

more than one strategy


WGP 1980-‐2013 (%,constant prices)

Diversity to seizeglobal markets


EU GDP 1980-‐2013 (%,constant prices)


Vietnam GDP 1985-‐2011


>40% WDP by 2015

� IMF - adjusted for Purchasing Power Parity


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• Click to edit Master text styles


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£ 375 bn

$2.3 trillion US + $85bn per monthTuesday, 3 September 13

China 33% growth insurance premiums in 2010-‐11


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The future is about

EMOTION


CONVERGENCE OR

DIVERGENCEAll innovation is about

doing things differentlyto serve customers better


• Mother changed mind re banking online / mobile - in 3 hours, leapt 30 years


39


80% lost in seconds


ScreensSocial


300 million move to cities in China and475 million to cities in Africa by 2025


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40% WDP Asia Pacific by 2015


Europe Dying 4 couples to produce singlegreat-grand child

Stop AgeingTuesday, 3 September 13

75% of all US and UK wealth owned by those over 65 -‐ but many need to work


Older Money65% health budget on those over 65


66% of over 50s in Asia by 2050

�81 million now over 60 in India


Can we stop ageing ?


Genes à tests à insurance impact…

….A different kind of worldTuesday, 3 September 13

Eat more – weigh less

•30% of US newborns will become diabetic

•$100bn cost per year


http://www.schwans.com/recipes/recipe13.aspx?tb=4

http://www.schwans.com/recipes/recipe13.aspx?tb=4

Treatment which restores and maintains the youthful elasticity of hardened arteries, improves heart failure – and helps wrinkled skin.


Grow New Teeth

• Pigs teeth grown in rats

• Mice grow new teeth from nerve cells / gum tissue


Successful Heart repair

• Inject bone marrow stem cells after bypass

• Improves heart function


Monkeys on diet live longer• After 20 years - 80% alive v 50% on normal calories• Less cancer, diabetes, heart disease, strokes, brain decay

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Slow or no ageing is a reality in animalsImpact on average EU reZrement age of 60

• Rockfish, Turtles, some Whales

• No signs of getting old


lPeople like to belonglSense of identitylCommunity lFamilylLife insurance is always bought for tribe

Happy to Belong


Every strong brand creates a tribe


1 trillionpages a month


Would they recommend to a friend ?


Would YOU recommend to a friend

eg penalties for loyalty ?


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700,000 agents -‐ relaZonship markeZng


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Household, personal liability and legal expenses


"Perfection!," TripAdvisor Member, Mar17, 2013 This was the most beautiful hotel. Delightful, all perfect. We will stay again v soon. "Terrible! TripAdvisor Member, Feb 10, 2013 Terrible place, rats, dirty, noisy - sick with food poisoning for 2 weeks. Nearly died.


http://rome-hotels.tripadvisor.com/ShowUserReviews-g187791-d190138-r3433324-Rome_Cavalieri_Hilton-Rome_Lazio.html




Personal Financial Services in Asia

$300bn growth expected: 2011- 2020


Distribution – FUTURE DIRECT�From agents to banks�But trend is to go direct�Direct also reaches younger people


Brand values opportunity


We are only in first hour

of first day ofeCommerce


e-‐commerce hit $1 trillion in 2012 e-‐marketer


> 200 million mobile payments > $160bn


• Kenya -‐ 17m customers• $9bn pa -‐ >33% GDP• Tanzania 9m people• 35 naZon links via HomeSend Hub• Tuesday, 3 September 13

84

1.7bn phone users are unbanked


Paypal Mobile $141m -‐ $4bn 2009-‐11


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2m businesses use SQUARE in US

30 companies like Square in ChinaTuesday, 3 September 13

• 90% Microsob R&D• Azure $1bn revenues• Office 365 1bn revenues-‐ loyalty-‐ no piraZng-‐ instant upgrades

CLOUD


33% in UK don’t watch live TVTuesday, 3 September 13

70% UK bandwidth = YouTube + BBC Neflix video streams = 25% US bandwidth (27m users)


MobileMore than a

ChannelTuesday, 3 September 13

Free mobile devicescalls / web / TV / games / pay

2010 2013 2015

Data


• Zettabyte = 1024 ExabytesExabyte = 1024 PetabytesPetabyte = 1024 TerabytesTerabytes = 1024 Gigabytes

BigData


• Zettabyte = 1024 ExabytesExabyte = 1024 PetabytesPetabyte = 1024 TerabytesTerabytes = 1024 Gigabytes That's a data explosion of 44x in

What does Datamean for selling,

underwriting and fraud ?


Enron shady deals

matched to exotic bird

names


Netflix video analysing real-time trends to

recommend


Big Data means shift from

Marketing to Advice


• Home• Work• Online• Offline• Sales• Entertain• Phone• Mobile• Chat• Social web


• Home• Work• Online• Offline• Sales• Entertain• Phone• Mobile• Chat• Social web

ONECUSTOMER


BeyondCompliance

be ready for further rapid changes in regulationsand business models


$40 Trillion Green Tech Boom driven by oil price, cost cuts, green activism


Shale gas 33% US supplies

200 years global supplyUp from 60 years in 5 years


Data accepted widely

Science of global warming might possibly turn out to be incorrect, but it is highly influential


120,000 terawatts of sunlight /day7,000 times total global power usePower Moscow from Libyan Desert

“40% EU power = wind by 2050”


120,000 terawatts of sunlight /day7,000 times total power use

QUEBEC from ARIZONA


Solar cell generation parity <5-10 yrs


�30 million acres lost

�EU 5% gasoline and diesel from food

25% of 2010 US grain à fuel30% US grain burnt in cars


Power + FoodTuesday, 3 September 13

All sales based on a promisePurpose of business is to deliver on

your promiseProfit is your reward for doing so

Purpose of Business


Truth about Retail Funds�Yield after charges often very low�Many fund managers unwilling to invest own money in retail funds�Many in the industry say their own products are not worth investing in�Yesterday – “50% of us sell funds of funds but only 5% of us invest in them”


Every life covered, every family safe, every home secured

�For individuals – protecting wealth�For family – providing for their future�For community – or society enhancing�For the whole earth – the good of all

Making Life Better


Dr Patrick Dixon Chairman Global Change Ltd

globalchange.com4 MILLION VIDEO VIEWS


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