Continue # Infosys POV 
 and  non-digital touchpoints.<|endoftext|>Thriving in the Post-Covid Insurance Growth © 2023 Infosys Consulting 10 

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 COVID is a strong use case of benefits of  behavioral segmentation CHANGED CONSUMER PREFERENCES Some people were financially relatively  unimpacted by COVID, while others might have  needed to tap into their savings, lose a job, or  make other adjustments in their life. E.g., in the  Philippines, unemployment doubled from 5.1%  to 10.4% from 2019 to 2020. The ones whom  COVID most impacted were 5-10% more  interested to acquire insurance than their less  impacted peers. Very importantly, only 50% of  people who were negatively impacted by  COVID were interested in sharing their  personal data for personalized pricing, while  80% of those who were less impacted were  willing to share that detail. Depending on the  country, 66-82% of the respondents in  Emerging South-East Asia were willing to share  personal data to get a customized insurance  plan.9, 19 80% 50% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% Less impacted by COVID More impacted by COVID Philippines insurance customers’  willingness to share personal data  for personalized price Thriving in the Post-Covid Insurance Growth © 2023 Infosys Consulting 11 

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 CHANGED CONSUMER PREFERENCES COVID induced a wave of insurance  terminations, but also new policies. For  example, in Philippines Life Insurance, the  switching increased by 35% from pre-COVID  levels. Study in USA examined similar switching  behavior and identified that price, experience,  and product to be the most significant reasons  for switching the insurance. The same was  applicable for both Life and Non-Life.  This  switching behavior can be forecasted and  prevented using advanced behavioral  models.20 0 200 400 600 800 1,000 1,200 1,400 1,600 0% 5% 10% 15% 20% 25% 2017 2018 2019 2020 2021 Philippines Life Insurance Policies Policies in effect (end of year) New policies Terminated policies Switches (est) +35% Count of policies,  x1,000 New & terminated policies,  % of total KEY ACTIONS FOR INSURERS ✓ Apply dynamic pricing and contextual offers to  increase conversion and average policy value ✓ Use AI and customer behavioral models to  predict and prevent customer churn Thriving in the Post-Covid Insurance Growth © 2023 Infosys Consulting 12 

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 Customer experience drivers that make an impact CHANGED CONSUMER PREFERENCES Advances in digitalization enable 5 key  customer experience trends: personalization,  Internet of Things, immediate response,  ecosystem offering, and product innovation. All  the trends have been further accelerated due  to the digital adoption by both customers and  insurers. Insurers who succeed in customer  experience can expect up to 15% increased  premium income and 10-40% reduction of  operating expenses compared to their less  successful peers.21 Personalization covers topics such as  targeted marketing, product tailoring /  bundling, dynamic pricing and policy  administration. Data-driven approaches allow  individual customer-specific tailoring as long as  the marketing materials, products, prices,  customer journeys, and other content or  processes are parametrized in such way that an  algorithm can define the appropriate approach  based on targeted customer’s information.  Personalization improves reach, increases click- through rates and conversion, number of  policies per customer, and the average value of  the policies.  Internet of Things is typically used to  gather health and usage related information  e.g., from smartwatch, smartphone or car’s  systems. This influx of data will enable  improved targeting and customer risk  assessments. With customer’s consent and  suitable apps, the same data can be used e.g.,  to alert when accidents occur, identify fraud,  collect details for claim application, and  recommend medical visits for preventive  health. IOT is currently a nice-to-have value- add, but it will be more pervasive across the  insurance value chain as the IOT devices will  become more prevalent. The pioneering  customers are already asking and expecting  insurance products to collect their data for  tailored pricing.  Thriving in the Post-Covid Insurance Growth © 2023 Infosys Consulting 13 

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 CHANGED CONSUMER PREFERENCES Immediate response is the customer’s  experience of straight-through processing.  Whether the process in underwriting or claim  handling, customers are increasingly expecting  immediate responses. The customer  expectations of the digital world arise from  leading non-insurance digital services, e.g.,  Netflix provisions all the content immediately  after subscription; Grab will immediately tell  the car and driver’s details including estimated  time of arrival once the ride is ordered. These  expectations are liquid: customers expect them  from all digital services, and increasingly also  from the B2B interactions they have. Process  mining, automation, digital applications, e- KYC, e-Signatures, intelligent assessment of  customers claims, and automated fraud checks  are a few opportunities insurers are pursuing to  improve their response times. Operational  uplifts focus on turn-around time, but they also  reduce manual effort, operational cost, and  improve the customer experience of each  transaction.  Ecosystem enables insurers to serve their  customers as a part of a larger ecosystem.  Insurers’ typical partners include banks as a  distribution channel for bancassurance.  Insurance ecosystem may extend to Insurtech,  3rd party data exchanges / provision, customer  risk analyses, white labeled underwriting, retail  and business collaboration for distributing  bundled insurance products, alliances between  healthcare and insurance, financial  consolidation / asset management. The  ecosystem will need a robust technology  platform to facilitate the layered exchanges  through APIs; it might be that the platform  provider is yet another 3rd party in the  ecosystem. Ecosystem and platform offerings  will require careful disaggregation of the  business model; targeted white-label products  and services focusing on volume and efficiency,  whereas holistic service provision requires  market leading customer experience layer and  plethora of enticing offers from the ecosystem.  Ecosystems enable growth and efficiency  based on where the insurer wants to focus.  Product innovation is supercharged by  digital capabilities. New digital technologies  enable e.g., usage-based pricing, modular  offerings, parametrized products,  disaggregated insurance policies, and low- value micro insurances. Further, digitalization  enables supercharging the product innovation  and market testing processes e.g., through  simulation and automated A/B testing. We  have witnessed that a range of specific,  customer-friendly insurance policies have  enabled faster growth compared to policies  with extensive and difficult-to-understand  coverage. In the emerging markets with limited  insurance literacy, simplification and  concreteness have been successful. Most  market-responsive insurers were able to  provide targeted health insurance products for  COVID and for the potential side effects of  COVID vaccinations.<|endoftext|>KEY ACTIONS FOR INSURERS ✓ Focus on customer experience with a  dedicated team owning the Customer  Experience end-to-end ✓ Innovate and launch new products to  market alone or as a part of an ecosystem ✓ Operational excellence is a driver for  customer experience  Thriving in the Post-Covid Insurance Growth © 2023 Infosys Consulting 14 

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 Selected high-performing insurers and their growth relative to market True stories of driving insurance growth from the  market SUCCEEDING IN THE NEXT NORMAL In 2020, businesses needed to quickly respond  to the abruptly changed business environment.  Financially, the insurers saw increased claims  and general downturn in sales. At operational  level, working from home policies mandated a  massive shift in remote working forcing the  insurers to open the company’s private on- premises network to be accessible remotely.  That shift in connectivity digitalized parts of  many customer-facing and back-end processes  resulting in hybrid workflows. Essentially,  COVID accelerated insurers’ digital  transformation plans from 3 years to 3 months.  The most successful insurers were able to  capitalize on digital, mobile-first channels  when interacting with their customers. They  were able to retrain their workforce to use the  new digital technologies and utilize agile ways  of working to seize the opportunities as they  arose. Furthermore, leveraging partnerships  helped the customers to gain access to services  bringing value for the entire ecosystem.<|endoftext|>We analyzed Philippines, Malaysia and Thailand  markets to identify the leaders through COVID.  We highlight 3 success stories showcasing  growth through the pandemic and gain of  market share in their respective