FROM INSURANCE TO RESILIENCE
DIGITAL REPORT 2021
IN ASSOCIATION WITH:
2
October 2021
FROM INSURANCE TO RESILIENCE WRITTEN BY: JOANNA ENGLAND PRODUCED BY: JAKE MEGEARY
businesschief.asia
3
HANNOVER RE
4
October 2021
HANNOVER RE
Dominique Roudaut, chief strategy, partnership and innovation officer of Hannover Re, explains the reinsurer’s role as an ecosystem orchestrator
I
n 2019, Hannover Re launched their Asian frequent engagement. The traditional Growth Initiative. The company’s objective insurance model where insureds pay a was to expand its footprint in Asia with an premium once a year and eventually get the innovative approach, including expanding benefit of it the day a claim occurs has proved in Personal Lines. The motivation behind short, simply because it fails to engage with the move was client-centric, targeting endthe customer. users through expanding on With client-centricity existing partnerships with presenting as a core value “WE CAN ALSO insurance companies. of the company, embracing ASSIST INSURERS It resulted in Hannover change became essential in WITH ASSESSING Re Personal Lines launching future proofing Hannover AND SETTLING 20 product innovations over Re’s plans. CLAIMS WITHIN the past 10 months with as “We want our insureds MINUTES WITH A many partners. to get something out of DIGITAL FNOL USING insurance every day with Dominique Roudaut, chief THE SMARTPHONE partnership and innovation prevention services and officer of Hannover Re relevant information, CAMERA OF AN Malaysian Branch, covering educating and empowering INSURED” Asia excluding China and them to change their AnZ, explains, “Hannover Re behaviour”, Roudaut says. DOMINIQUE ROUDAUT clearly distinguishes its effort The insurance company CHIEF STRATEGY, PARTNERSHIP, AND INNOVATION OFFICER, between enhancing insurer’s has designed its engagement HANNOVER RE services for end-users, in a way deemed valuable solutions for insurance company portfolios, and relevant enough to not need additional and strategy enablement for distribution”. rewards and incentives. However, in some “We provide resilience for end-users; markets there have been tweaks to the format customer-centricity, efficiency, and to provide this appreciated value, nudging relevance for insurers, as well as pointed further behavioural change. solutions for distributors, to better enable In the process, Hannover Re has aspects of their strategy.” evolved from a pure-play reinsurer into an ecosystem orchestrator and integrator. In End user-centric services the process we have evaluated over 700 According to Roudaut, Hannover Re’s services insurtechs and have engaged over 30% of for end-users are geared towards generating these potential partners around specific use businesschief.asia
5
HANNOVER RE
Hannover Re Corporate clip
cases for each ecosystem focused on:
“HANNOVER RE’S ECOSYSTEM PARTNER CAN ALSO CONTACT ANY SOCIAL MEDIA TO TAKE DOWN AN OFFENSIVE POST”
another 400 passengers because a flight has been canceled”. • Lifestyle “The Hannover Re • Travel team recognised the • Health and wellbeing experience of flight • Consumption disruption could be • Mobility improved for passengers. Instead of queuing, our Personalised services customers get notified of that address real needs any disruptions by SMS Training and supporting within two minutes of employees have played a the event. And receive DOMINIQUE ROUDAUT major part in the shift too. a call within 15 minutes CHIEF STRATEGY, PARTNERSHIP, AND INNOVATION OFFICER, Hannover Re prioritises from our team, getting HANNOVER RE training their teams in them lounge access, seat Design Thinking, which, says Roudaut, has availability on the next flight, or overnight stay allowed the company to better address the at the airport hotel. cultural shift required by its user-centric “There is no paperwork to wade through for approach. claims and the disruptions are automatically He explains, “Travel is a good example. As dealt with from that moment on. We have travelers, we have all experienced having to a similarly inspired solution for luggage, queue at an airline desk for two hours with enhancing further the resilience we aim for.” 6
October 2021
HANNOVER RE
The goal is to tailor insurance to fit into the insured lifestyle – rather than an insured having to change its agenda around insurance and life events. As an ecosystem orchestrator, Hannover Re, identifies, compares, and selects relevant potential partners with our insurance company clients and chooses the preferred ones with whom it can synergise and co-design a solution to the problem identified, as defined by end-users.
TITLE: CHIEF STRATEGY, PARTNERSHIP, AND INNOVATION OFFICER INDUSTRY: REINSURANCE LOCATION: LONDON C suite at the crux of customer centricity, insurance innovation and digital distribution with 20 years of P&L leadership, strategic, innovation, transformation, digital, ecosystem, product and underwriting experience at a country, regional and global level. From vision to execution transformation of culture, processes and organisation across multiple countries to be more efficient (transformation) and relevant (innovation) in order to achieve P&L targets. Lead relationships and client negotiations for large, sensitive and complex deals. Influence stakeholders at every level in a matrix environment. Customer experience advocate and customer centric insight (anthropologist, design thinker, disruptive strategist) leading to contextually design awarded and patented insurance products and services delivered through a relevant customer journey and experience.
EXECUTIVE BIO
Cyber crisis prevention and assistance In the current climate, cyber-attacks are devastating and user priorities are usually prevention, crisis assistance, and then insurance. Hannover Re provides prevention services together with its select ecosystem partner via an application that checks the vulnerability of customer mobile phones or computers. The solution comes complete with a dashboard to monitor the security score in real-time. Every vulnerability comes with an action plan to address it and improve the resilience score. Roudaut says ease of use is paramount in encouraging adoption if the action plan is too cumbersome for a user to implement, Hannover Re has a hotline that remotely addresses what needs to be done on a customer’s device to improve their resilience to cyber risks. If a claim then occurs, the service provides swift and streamlined crisis management. “Hannover Re’s ecosystem partner can also contact any social media to take down an offensive post. This is often far more urgent than paying a lump sum for psychological assistance, which is also covered under the insurance. “The cyber solution product can also connect with social media platforms to
DOMINIQUE ROUDAUT
Digital strategy vision and implementation, notably in frontier markets, encompassing ethnographic insight leading to design products & services, customer journey, UI/UX, building an ecosystem with digital partners, along with underwriting and insurance operations expertise for front and back office and navigating the regulatory field.
businesschief.asia
7
HANNOVER RE VO I C E A N A LY T I C S
Massive Fraud Loss Reduction + Accelerated Straight-Through Processing
LOW RISK
POTENTIAL RISK
HIGH RISK
Using military-grade voice analytics, Clearspeed™ provides unique fraud alerts derived from analyzing a person’s voice through questionnaires and conversations — allowing you to quickly and accurately triage claims of all kinds. Request a Demo | Contact a Representative
clearspeed.com
HANNOVER RE
to inform, educate, empower and prevent,” says Roudaut.
re-enact a hacked account, instead of the insured having to re-create one from scratch.” Thanks to data collected through the prevention service, Hannover Re can even re-create the telematics of cyber. This ensures the products also have a fair market price to all insured because each policy can be based on an individual risk profile. “The solution enables us to engage specifically with some personas and market segments with specific communication relevant to them and their cyber exposure
“ WE DO NOT POSITION OUR SOLUTIONS AS A SOURCE OF ANCILLARY REVENUE. RATHER, THEY ARE CORE TO FULFILLING THE STRATEGY OF A DIRECT DISTRIBUTOR” DOMINIQUE ROUDAUT
CHIEF STRATEGY, PARTNERSHIP, AND INNOVATION OFFICER, HANNOVER RE
A scientific approach to healthcare services Medical research indicates that those with the best prognosis are the ones with the best support system. Hannover Re deliberately sought out an ecosystem partner that could recreate such a support system with an app and coach service as part of their Critical Illness insurance cover. The cancer support system helps insured to document how they feel, write a journal, track their symptoms, and receive educational content on their condition and treatment to better alleviate its consequences. These include tips on sleep or nutrition. The app provides them with a connected community of real people who are going through similar experiences. The support system also offers unlimited access via video, chat, SMS, voice call to a certified health coach who can accompany the insured further. Providing patients with support during their illness and treatment regimen is also essential, says Roudaut. “These solutions help the insured become active in their treatment journeys because they are empowered with the right support and information instead of being corralled on the conveyor belt of white blouses.” He continues, “The same thought process led Hannover Re to also deploy early detection and cognitive training as a way to prevent Alzheimer’s disease available via an app and to deploy mental health coaching designed to create a new positive habit within a 16-week programme based on what the insured wants to improve also app and coach driven.” Global leader in internet disruption solutions Stability of service since the global digital transformation has become essential for businesschief.asia
9
HANNOVER RE
companies worldwide. Hannover Re recently launched an unprecedented solution with their ecosystem partner Riskwolf to insure internet outages via an index, 1st for consumers. A growing number of countries have enshrined access to high-speed internet as a fundamental right. “Outages are well documented and nothing is currently being done about it,” says Roudaut. He points out that while insurance can’t fix a network failure, end users can at least receive an indemnity for it. “Together with Riskwolf, Hannover Re is working towards further outage insurance iterations for the digital economy and SMEs.” The goal is to deliver solutions to direct distributors that help them fulfill their strategy, be it market differentiation, retention, growing some market segment, building trust with their merchants and clients, or becoming more environmentally friendly. “We do not position our solutions as a source of ancillary revenue. Rather, they are core to fulfilling the strategy of our clients , those who are the product distributor.” 10
October 2021
HANNOVER RE
User centricity also requires IT capabilities in order to deliver the entire insurance journey on a mobile phone. Roudaut explains that Hannover Re clients are not only insurance companies. They are also to assist the direct distribution clients such as MNO, MMO, Banks, retailers, and eCommerce companies who work with our insurance clients. He says, “Ecosystem partnerships effectively digitises the entire insurance journey through a mobile phone, a feature appreciated by our MNO and SME clients notably.” Insurer centric solutions: Motor insurance Hannover Re offers a Business Intelligence (BI) dashboard to insurance companies to monitor and pilot their portfolio performance. This provides a user-friendly interface between the customer and service provider. According to Roudaut, the more details the customer can share with us, the better our insights are. The business visualisation tool enables insurance clients to better assess performance on top-line (distribution, market segment, geography, personas, demographics, age, make, model, etc.) and bottom line (granular LR and CR on every possible micro-segment). The next stage is the analysis of the portfolios – for trends and performance metrics. Microsegmentation for propensity and sensitivity analysis can be deployed for more accurate price points per personas, distribution segments, demographics. The aim is to increase margin and market share where it is possible and where it makes sense. “Our approach has yielded a minimum of a two percentage point improvement of the client’s combined ratio and a double-digit increase in conversion rates and top-line growth.” The third essential ingredient is innovation. Roudaut points out that the process is key. “As ethnographers we have defined the use businesschief.asia
11
HANNOVER RE
HANNOVER RE
case for end-users. The Job to Get Done is not insurance but how to get from A to B in a safe and engaging manner,” he says. “As ecosystem orchestrators, we have scouted, compared, and selected the best telematics, engagement, claims, smart city, mobility as a service company, and environmental impact measure and offset to integrate into our offering.” As such Hannover Re strives to offer insurance partners a turnkey pay-as-youdrive solution that is precise enough to be relevant, engaging enough to drive consumer behaviour. The Hannover Re solution favours neither the car nor the driver. Rather, it is mobility-centric. Sustainability and green providers Sustainability is high on Hannover Re’s
agenda. The company’s mobility solution empowers customers to define their journey by combining public and private modes of transportation. It helps end-users, insurers, and the planet Roudaut adds, “We also launched a solution enabling users to measure and offset any purchase made online through an eCommerce platform. It tends to increase conversion rates while internalising the cost of production, packaging, and shipping on the environment.” Optimisation for sales and claims Hannover Re’s innovations have been pivoted towards sales and claims optimisation to better improve customer centricity while alleviating pressure on the Loss Ratio and streamline insurance back-office operations. businesschief.asia
13
14
October 2021
HANNOVER RE
“WE PROVIDE RESILIENCE FOR END-USERS; CUSTOMERCENTRICITY, EFFICIENCY, AND RELEVANCE FOR INSURERS, AS WELL AS POINTED SOLUTIONS FOR DISTRIBUTORS, TO BETTER ENABLE ASPECTS OF THEIR STRATEGY” DOMINIQUE ROUDAUT
CHIEF STRATEGY, PARTNERSHIP, AND INNOVATION OFFICER, HANNOVER RE
The company’s solutions for claims revolve around fraud and First Notice of Loss with different partners for every ambition and every budget. An innovative way to assess fraud and adjudicate claims is a triage mechanism for high volume low value claims powered by Clearspeed recycling and improving on a technology – notably used by defense forces in war zones to for instance hire local resources and better distinguish between an earnest translator and a potential suicide bomber. This solution improves user centricity by adjudicating volume claims quickly while still protecting the balance sheet zooming on red flag cases. “We can also assist insurers with assessing and settling claims within minutes with a digital FNOL using the smartphone camera of an insured,” says Roudaut.
Hannover Re’s approach to innovation combines: • Reinsurance • Reassurance, where Hannover Re accompany (reassure) our insurance clients with their customer-centric, change management, and innovation journey • Ethnographic insight and data analytics • Ecosystem orchestration, integration, and facilitation for deployment Ultimately, putting the customer at the heart of the process and taking a holistic approach to business, is paying off for Hannover Re. From providing swift and essential support services to paying attention to sustainable solutions, the company is future-proofing against the changes sweeping the industry globally. Roudaut adds, “We deliver resilience, not merely insurance. We craft experiences from A to Z.”
businesschief.asia
15
Level 32, Mercu 2 No. 3, Jalan Bangsar KL Eco City 59200 Kuala Lumpur Malaysia T 60 3 2687-3600 hannover-re.com POWERED BY: