the role of emerging technology in risk management...distributed architecture q42, q44, q43 base =...
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THE ROLE OF EMERGING TECHNOLOGY IN RISK MANAGEMENT
CHRISTINE LEONGMAY 2019
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2
COMPANIES ARE LARGELY DEPENDENT ON THE INTERNET FOR BUSINESS GROWTH; IN FIVE YEARS, AVERAGE TARGETED GROWTH DEPENDENT ON THE INTERNET WILL DOUBLE.
Q1, Q2, Q3
90% rank business growth through internet-
enabled initiatives in their top three strategic priorities
77% of businesses became largely dependent
on the internet over the past 10 years
Average targeted growth dependent on the Internet economy (%)
Base = Total sample; n=100
19
26
34
q3_1 q3_2 q3_3
Next year Next three years Next five years
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WHICH MEANS…..
Every transaction will become digital.
And in order to benefit from this growth,
92% say a trustworthy internet economy is very or extremely criticalto their organization’s future growth.
Technology is now front and center of every organization and indeed has taken over much of our daily lives.
As everything becomes digital,
trust and user experience will become critical to success.
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KEY TECHNOLOGY TRENDS
BLOCKCHAIN IS THEDISRUPTOR
IOT, AI & ROBOTS
SEAMLESS USER EXPERIENCE
SELF MANAGEDDIGITAL IDENTITY
SECURITY & PRIVACY, REGULATIONS
AUGMENTED REALITY BIOMETRIC IS EVERYWHERE
HUMAN CENTRIC & PERSONALIZATION
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53% 60% 60% 48% 40%
39%
32% 33%
42%
46%
Artificial Intelligence (Ai) Internet of Things (IOT),Industrial Internet of Things
(IIOT)
Smart/Connected Devices Blockchain/Distributed Ledgers Extended Reality (AugmentedReality, Virtual Reality)
Already adopted Planning to adopt within 2 years
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Q31, Q32, Q30
Base = Total sample; n=100
Top 5 technologies companies have adopted or are planning to adopt in the next 2 years
Base = Adopted/planning; base varies due to selections in q31
93% agree: An ambitious emerging technology agenda demands a trustworthy internet economy.
87% Solutions involving Digital Identity, Blockchain, and AI are promising with regard to their potential to reduce cybersecurity issues
KEY EMERGING TECHNOLOGIES STATS
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THE MAIN BENEFITS OF BLOCKCHAIN ARE SECURITY, SPEED AND TRACEABILITY. THE MAJORITY BELIEVE IT IS ALREADY HELPING WITH INTERNET SECURITY.
70%
58%
50%
39%
30%
28%
25%
Increase security
Increase speed
Real-time trackand trace
Reduce costs
Single source oftruth
Smart contractsand automation
Distributedarchitecture
Q42, Q44, Q43 Base = Total sample; n=100
Advantages of blockchain technology? (Top three)
53%
46%
1%
Yes, it is helpingalready
Yes, but it is stillin development
and not yetmature enough
(currentlylacking
technologicalmaturity)
I don'tunderstand
enough aboutblockchain toreally know
Blockchain as a part of the solution to network/internet security
Percent of infrastructure expected to be on blockchain by 2030 (average)
Average percent of infrastructureon blockchain by 2030
44%
Copyright © 2018 Accenture. All rights reserved. 7Source: https://www.visionetsystems.com/blog/tear-down-those-silos/
WE ESTIMATE >30% OF A BUSINESSES COST BASE IS LOCKED UP IN DATA MESSAGING AND QUALITY ISSUES
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BLOCKCHAIN = BUSINESS TRANSFORMATION
SHARED DATASYSTEMS
TRADITIONAL
DATA
SYSTEMS
• “I see what you see”• “Can you send me what I need?”• “Here’s what I know, what do you
know?”• “How can we align?”• “Did you receive it?”• “Is it right?”
8
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PROVENANCE TAMPER
EVIDENCE
CONTROL SECURITY
We know where it came from and can trace its’ complete history
We know if someone has tried to change it
We can control what someone can see and do at a data element level
We can encrypt and segregate data at a data element level
9
FOUR KEY FEATURES CREATE THE
CONFIDENCE
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Emerging blockchain use cases
Instant Claims Disbursements
Property insurance
Reinsurance
Industry Fraud Utility
Subrogation Industry Utility
Peer to Peer Insurance
Warranty Registration & Validation
Car insurance
Oil & Gas
UtilitiesReal Estate
Payments
Capital Markets
Asset Management
Public Services
Customer Data
Supply Chain
Identity
Insurance
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DECENTRALIZED IDENTITY:KNOWN TRAVELLER DIGITAL IDENTITY
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IDENTITY & RISK MANAGEMENT?
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EVERY TRANSACTION STARTS WITH AN IDENTITY
• The need for an identity both the digital and physical world from getting access to essential services to accessing social media.
• Identity verification touches almost every industry from people to supply chain. • A more trustworthy identity means a more trusted transaction and thus lower risk
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WHAT IS IDENTITY?
It makes something or someone the same today as it, she, or he was yesterday.
Identity
Physical identity was designed to enable face‐to‐face transactions among entities.1
Digital identity enables transactions in the digital world and offers improved functionality for its user.2
Physical Digital “?”
Emerging topics and advancements in digital technology, AI, robotics, automation will require new thinking
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PHYSICAL IDENTITY
• Designed for face-to-face transactions
• Trust based on visual documents/person
DIGITAL IDENTITY
• Digital identity is acknowledgement by trusted parties of our existence in the digital world
• Have the rights & permissions to transact
Trust is based on face-to-face interaction …No face-to-face trust
A VERIFIABLE AND TRUSTABLE DIGITAL IDENTITY IS BECOMING ESSENTIAL IN OUR DAILY LIFE
You can see me, so you can
trust me
I am real andI exist
Without a trusted identity in a digital world, we would struggle to transact, access services, and be acknowledged that we are who we claim to be
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BLOCKCHAIN ENABLES DECENTRALIZED IDENTITY THROUGH TRUST
Secure Tamper-Evident Distributed
Trust
Data is cryptographically secure – sensitive data can be
locked down
Built-in mechanisms to verify data has not been changed –
information cannot be altered
Participants have access to the same data – real-time updates
and information
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OPPORTUNITIES FOR INSURANCECapabilities such as RPA, Blockchain, Digital ID, AI, Biometrics could help to reduce risks and augment existing risk management capabilities
New business models and ways of sharing risks
New role for the insurance market?
More accurate, higherquality data
Efficiency gains throughsharing and automation
Enabling greater trust where it did not exist before
Better user experience andtrust-building with customer
Greater trust in data, identities, and transactions
Greater transparency and auditability
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RISKS & CONSIDERATIONS
18
Interoperability
AI & Machine Learning -Ethics
Technology led, not value led
Blockchain – Security is still essential
Digital ID – privacy and security, and choice
Speed of change in technology & lock in
User experience
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Consider the new role and potential new products - insuring against risks for corporates to share data?
Insurance is critical to enable partnerships & new ecosystem for data sharing and organizations to take risks
Be prepared for disruptions and new partnerships
WHAT DOES THIS MEAN FOR INSURANCE?
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THANK YOU