KPMG Connected

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Insurance
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 Contents
01 An insurer’s guide to getting connected 3

Connected insurers have one thing in

02 common: They are built around their
customers
4

03 Connected insurers master eight core

capabilities 5

04 Why KPMG? 14

05 Read our latest insights 15

06 Get in touch with one of our experts 16

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2
An insurer’s
A guide for insurers carrying out digital transformation
Insurers have been hurtling towards a perfect storm of converging market trends that all point to the inconvenient truth that disruption
and change are here to stay. To defend their position, insurers must set their ambitions beyond merely weathering the storm. They need

guide to getting
to focus on coming out of this storm stronger, more resilient and ready to take on the inevitable storms of the future. In other words, they
need to embrace the digital transformation by ‘getting connected’. This guide explains how.

The key to being able to tackle this perfect storm lies in the title of You need eight capabilities to become connected

connected
this publication: Get connected! When we say ‘get connected’ we To capture this holistic view, we introduce eight capabilities that
mean ‘get connected in every possible way’. Connect to your together form a framework that we believe enables your
customers, your partners, your employees, to every single party organizations to become ‘connected’. They are the ingredients for
and every single part of your ecosystem. building a strong offensive against the perfect storm we are
hurtling towards. We hope they will inspire you to enable
What does ‘getting connected’ mean? transformative change in your organizations by ‘getting
Transformative change must be executed with a holistic view, connected’.
tying together the front, middle and back office integrating the
organization’s capabilities and systems with the customer
touchpoints. It means crossing boundaries, tearing down walls,
combining silos — all so that you can anticipate how one change
in your organization’s ecosystem creates a chain reaction across
your organization’s people, processes and technology.

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3
Connected insurers have one thing in common: Employees

They are built around their customers Market

dynamics
Front,
An approach built around the customer… ability to look holistically through each of these lenses when executing a Customers middle and
connected journey and the ability to understand the implications a change and digital
It is generally accepted that since the advent of digital-first organizations, back office
in one has for the other lenses. They are keenly aware of how all the signals
such as Amazon and Google, customers have begun to expect instant
gratification or 24/7 service. We also know that these expectations have different elements and players in an enterprise are connected, and how to
permeated into customers’ expectations of the other services that hold a orchestrate change along those connections. All the while painting inside
share in their wallet. Today, customers expect personalized service when, the lines of a regulated environment, adopting the lens of the regulator to
Channel
where and how they want it. understand what strokes and colors to paint with.
and
Armed with all the information they find online mostly through comparison business
Successful organizations are fully aligned with their purpose
websites, and with more choice from new entrants, insurance customers are partners
and brand
now more empowered than ever. Insurers increasingly find themselves in a
Through each of the five lenses, there needs to be clear alignment with the
battle to stand out — so much so that success today requires a solution that
organization’s purpose and brand. This means that the choices the
is built around the customer; one that senses and responds to changes in
organization makes in connecting with customers or with an ecosystem of
the customer’s expectations with agility and flexibility. This embodies what
business partners, should be driven by who they want to be as an Connected insurers use 5 ‘lenses’
we call a Connected insurer — an insurer that is customer-centered, agile Truly connected companies use five different ‘lenses’ to
organization. For example, a newspaper that aims to continuously keep their
and digitally focused to keep up with today’s challenges. draw the right path forward within the boundaries of a
readers fully informed will make different choices than a newspaper focused
on providing short updates. Both can successfully attract a large readership, regulated environment.
…requires a holistic view of your organization
but their success depends on their ability to deliver on their brand promise. These lenses are:
KPMG-commissioned research by Forrester* reveals that high-
performing organizations build robust growth strategies by making Every insurer is on a journey to becoming a Connected insurer  Connect to customers with compelling value
significant investments in eight core capabilities (discussed in the propositions, opportunities and interactions.
Having to be customer-centric and digitally transformed is not new. One
next section). These capabilities can be recognized in some way or  Connect and empower employees to deliver on the
could even argue that all insurers have, for a while, been on a path to
another within initiatives in every digital transformation effort. customer promise.
becoming a Connected insurer. But it is a rocky path. We often see
However, successful digital transformation efforts develop these
executives and their firms undertake enormous efforts to transform their  Connect front, middle and back offices to execute
capabilities holistically through a connected view of the organization.
business to become digitally enabled. Even so, a large part of the the customer growth agenda.
industry still struggles to find the right focus and align their efforts to
Connected insurers use five 'lenses' that are inextricably linked to the  Connect the ecosystem of business partners to
move at a fast-enough pace.
customer as well as one another (see diagram to the right). They have the jointly delivery on commitments to customers.
 All within a regulated environment with high
*Base: 1,299 professionals involved with customer-centric strategy decisions expectations from regulators and the general public.
Source: A commissioned study conducted by Forrester Consulting on behalf of KPMG, September 2018.

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44
Connected insurers master eight core capabilities
Eight capabilities to help you get connected
KPMG commissioned global research by Forrester* has identified that high-
“Offer me products that work for me”
performing organizations invest in eight core capabilities. These capabilities span
Customers expect products that apply to their
across all attributes of the customer experience.
specific circumstances
We believe that — when leveraged effectively through the five lenses — investment
in developing these capabilities will result in a connected organization. One that
breaks through organizational silos to provide next-level customer experience, that “Know me and recognize me” “Make our interactions
is personalized, seamless, responsive and digitally enabled. Customers want policies with Insight-driven Innovative Experience- enjoyable and easy”
strategies & products & centricity
In the figure on the right, we highlight these eight capabilities, presenting them in insurers who recognize them and Customers expect personalized,
actions services by design
the context of how they translate to the customer experience. These capabilities their preferences as individuals empathic experiences
serve as the blueprint for the Connected insurer to embed transformation as a

2x
business-as-usual in the organization.
“Don’t try to sell me products” “Don’t keep me waiting”
What does good look like? Customers want to engage on Seamless
Responsive
Customers expect immediate
their terms, via their channel of interactions fulfillment following a decision
Investing in and pursuing these core capabilities is a journey, not a goal post. In the operations
choice & commerce (e.g. claim payment, card
next section, we will delve into the different capabilities, providing examples of how
they can be leveraged, and showcasing KPMG solutions that can act as
Impact issuance, loan payment offer)
accelerators to build such capabilities.
“Let me speak to motivated “Don’t make me shop around”
Digitally- Integrated
staff, empowered to help me” Aligned and
enabled partner &
Customers expect insurers to
Customers want to speak to empowered offer a full range of products and
technology alliance
workforce
humans for specific cases architecture ecosystem services, partnering with other
(e.g. high value payments, providers where necessary
complex products)
“Keep my information safe and update your
service without disruption”
Customers want to know their data is secure
and expect minimal service disruption

*Base: 1,299 professionals involved with customer-centric strategy decisions

Source: A commissioned study conducted by Forrester Consulting on behalf of KPMG, September 2018.

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5
Capability 1

Insights-driven strategies & actions Only of insurers

surveyed globally
Insight-
driven

7%
strategies &
before the
actions
pandemic, reported
A Connected insurer is a truly data-driven organization. It leverages real-time data and insights to optimize the enterprise, being extremely
delivers personalized and authentic experiences to its clients and helps clients manage the everyday risks they face. effective at Innovative
Insurers have a history of basing important (pricing) decisions on large amounts of meticulously analyzed data, and many collecting products &
have invested in data scientists and analysts. This led to new propositions such as usage- or behavior-based pricing. Now, valuable data services
they set their sights on becoming truly data driven. Source: Harvey Nash/KPMG CIO Survey 2020

Experience-
What does good look like? Our accelerators to build this centricity
capability by design
Dynamic pricing as a response to changes in risk profiles Achieving ‘compliance by design’ to preserve data governance
Once a consolidated market, insurance is now a fragmented Building data systems to inherently embed compliance to regulations
business landscape with low barriers to market entry. On the demand within internal processes is a critical aspect of a Connected Insurer. — Data and analytics Seamless
side, millennials are willing to try nascent online start-ups that offer Effectively managing organizational policies and ethical security interactions
flexible premium pricing depending on changes in risk profiles. standards by design, promotes innovation since it minimizes security KPMG firms' advanced data management
& commerce
Customers demand that responsible behavior be rewarded with concerns and repetitive efforts. Clear data governance is brought capabilities are designed to help organizations
lower premiums or other benefits. about by building compliance within rather than around the systems overcome the challenges that stem from
and processes. managing large amounts of data and complex
Single view of the customer across all policy administration combinations of data sources and data models. Responsive
systems Creating value and excellence through integrated modelling and We have a long track record of helping clients operations
reporting establish a data governance framework that can
Sources of digital and social media can provide insurers with publicly
serve as the foundation for trust, helping to
available information about a customer’s life. This helps insurers to As reporting converges in the areas of finance, risk and actuarial,
ensure long-term data quality, accuracy and
develop personalized marketing strategies and guidance on next insurers can gain competitive advantage by simplifying reporting and
compliance. Aligned &
best actions (both predictive and prescriptive) for individual enhancing clarity in business data to their stakeholders through
empowered
customers. This can entail cross-selling of other risk mitigation and integrated reporting. Communicating their vision through granular
— Ethics/AI in control workforce
value-added services, in addition to traditional insurance policies. insights of strategic priorities and business models will help key
stakeholders take better-informed decisions that further build the trust KPMG Artificial Intelligence In Control
Predictive analytics that help with next best actions in the insurer. implements a model to help guide organizations Digitally
Next best is a customer-centric approach that evaluates possible along the AI evolutionary lifecycle from strategy enabled
actions when an event or trigger has occurred before selecting the through execution to evolution. The AI In Control technology
best suited. Predictive analytics helps in servicing clients, commercial “Know me. I want my insurer to communicate solution includes methodologies, tools and architecture
and sales efforts, prevention activities and much more to ensure a controls for an AI program to drive better
with me when, where and how I prefer it.” business outcomes.
value-added customer journey. Integrated
partner &
alliance
ecosystem

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66
Capability 2

Innovative products & services

For the Connected insurer, customer value propositions are tailored to the market of today. These propositions are 79%
of insurers saw
accelerated progress
in the creation of new
digital business models
and revenue streams
Insight-
driven
strategies &
actions

developed to engage the most attractive customers and drive profitable growth. The Connected insurer innovates in areas since the Covid-19 Innovative
including price, products and services. They innovate with the needs and priorities of customers in mind and anticipate pandemic products &
where demand is moving. This is how the Connected insurer builds competitive advantage. services
Source: KPMG CEO Outlook 2020

What does good look like?

Experience-
Our accelerators to build this centricity
Rooted in the customer ecosystems Strict product lifecycle management capability by design
The ecosystems which customers inhabit are changing and Product lifecycles are managed tightly when products inevitably
Connected insurers have a sense of understanding of the reach the end of their lifecycle (or need to change to stay viable).
implications of those changes. Take the mobility ecosystem, where Products that are no longer viable or needed, offer no value to — Powered marketing, sales and service Seamless
car manufacturers are developing Autonomous Vehicles and insurers and their customers. Thus, clear processes are needed for interactions
providing Mobility-as-a-Service (MaaS), which fundamentally closing down products, migrating products and updating policy terms KPMG Powered Marketing, Sales and
& commerce
changes the risk of driving. Having such a sensing capability enables and conditions. This reduces legacy build-up and allows the insurer Service provides immediate access to leading
a quick and innovative response. to keep up with customer needs, thereby becoming more cost- practices and processes to help put
efficient. consumers at the heart of your organization's
Short time to market for new products and services decision making. It uses pre-configured cloud Responsive
Products tailored to fit the customer’s needs technology to help transform the front office to operations
The new product cycle and changing product configurations are meet today's challenges.
performed with high speed. The world is changing at an accelerating The products offered give customers what they truly need, based on
pace and new innovations are being adopted ever quicker. The risk data-driven insights and individual circumstances. Product offerings
— Data-driven pricing
of products reaching the market when a problem is already solved is go beyond the traditional insuring of risk and into the domains of risk
Aligned &
similarly increasing. A short time-to-market allows insurers to fill the prevention, risk advice, and tailored pricing methods such as usage- Using data analysis to determine price points empowered
current needs of customers and capture more market share. based and behavior-based pricing. Tailored products allow insurers allows your organization to balance customer workforce
to better help their customers, while driving their own profitability. satisfaction with profitability.
Customer centric product and service design
The product and service design process is not just for customers, but — Design thinking Digitally
also by customers. Every product or service is designed around the “Protect me — support me in my time of need. A design-thinking approach can be leveraged
enabled
real, verified needs and wants of customers, and tested with I want products that apply to my specific to help your organization develop and test
technology
customers before being released publicly. This is how insurers can architecture
circumstances when I need it” new business model opportunities.
make their products connect to customers and help solve real issues.
Integrated
partner &
alliance
ecosystem

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77
Capability 3

Experience-centricity by design
A Connected insurer is built around its customer. That customer’s experience (as well as the experience of employees) is at 38%
Insight-
driven
strategies &
actions

the core. Connected insurers step back and design the experience they want to deliver to these audiences. They then Innovative
intentionally create that experience, ensuring it is the same in every interaction with the organization. This helps build a of consumers are happy to share their products &
solid reputation with customers and builds teams that understand the business’s overarching vision. personal data to improve their experience services
Source: Consumers and the new reality, 2020

What does good look like?

Experience-
Our accelerators to build this centricity
Consistent brand experience throughout customer journey and resolves issues with minimum effort required on the part of the
customer. It offers personalized interactions and instills trust and
capability by design
A customer’s experience is consistent wherever they are in their
customer lifecycle. From marketing to underwriting and from claim empathy. This turns customers into brand promotors and builds
handling to policy cancellation. A Connected insurer intentionally goodwill for the organization.
— CX economics Seamless
shapes that experience, inspiring the feelings customers have
Personalized, meaningful interactions interactions
towards their insurer. Optimizing the economic value of your CX
& commerce
Interactions with a Connected insurer leave a lasting, positive investments by balancing customer
Employee experience mirrors the desired customer experience impression on the customer. This is achieved through meaningful expectations and experience.
Employees are treated as equally important as the customer because and personalized messages. Generic mailings, for example, are
employees are the ones making it all happen. Clunky and replaced by the proactive offering of relevant information and — The Six Pillars Responsive
cumbersome internal processes are replaced to empower employees services at the right time. This allows insurers to connect with their operations
The six universal qualities that help
and to help them focus on important work. This is how Connected customers at the right time, with the right message in the right way.
organizations understand how well their
insurers foster a happy and productive workforce that treats customer experience is delivered. When
customers the way the organization aims to. embedded properly, these enable
“I want empathic experiences from my insurer. organizations to prioritize the right initiatives
Aligned &
empowered
Great CX and focus on customer journey One that manages my policies in a clear and and deliver excellent customer experiences. workforce
The customer experience (CX) and journey a Connected insurer transparent way.”
makes customers feel good. The organization meets expectations — Experience design
Visualize the customer experience across Digitally
enabled
touchpoints and uncover opportunities to
technology
(re)design the experience for specific
architecture
customer segments.

Integrated
partner &
alliance
ecosystem

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88
Capability 4

Seamless interactions & commerce

Connected insurers are relationship businesses. Prospects and customers are engaged at multiple touchpoints, with an 3 in 4
insurers reported
accelerated
progress on their
seamless digital
Insight-
driven
strategies &
actions

customer experience
integrated experience ensured across them. Whether the customer’s entry point is marketing, sales or a service desk, the since the Covid-19 Innovative
business delivers an omni-channel experience and provides the opportunity to buy in across the lifecycle. While doing so, pandemic products &
the Connected insurer makes the customer feel valued. services
Source: KPMG CEO Outlook 2020

What does good look like?

Experience-
Our accelerators to build this centricity
Preference-driven interactions across channels customer preferences as well as other KPIs, Connected insurers
capability by design
Customers can switch between channels as they please, where continually shift resources to create an optimized channel mix. As
information can seamlessly transfer from one channel to the next. demand (and the possibility) for physical meetings is lowered, the
The Connected insurer ensures this by making multiple channels Connected insurer may shift resources to chat bots or a call center.
This allows it to meet demand in a cost-efficient manner. — Powered Enterprise Seamless
accessible and by using a constantly updated, efficient CRM
interactions
system to transfer information across channels. This enhances the KPMG’s Powered Enterprise solution
Empowered employees & commerce
customer experience and reduces processing time, as customers provides a toolkit for rapid business
and employees do not need to go over the same questions Employees have the tools and information they need to fully support modernization in an organization. Using our
multiple times. customers without having to go through too many layers of pre-configured solutions on leading cloud
bureaucracy. The Connected insurer ensures that employees are technology, we help clients integrate Responsive
Secure interactions trained well and have access to the tools that they require, processes solutions to drive efficiency, speed and operations
are lean and information is readily available when needed. control. This provides a rapid and solid front-
Customer privacy is safeguarded through strong identity
Additionally, employees are empowered to seek out others in the office transformation increasing customer
management systems. The Connected insurer uses methods such
ecosystem when required. This speeds up the customer service retention while reducing cost to sell.
as multi-factor authentication for customers logging into their account
process and enhances the sense of purpose for employees. Aligned &
and strict end-to-end encryption protocols for chats. This helps create
— Channel analytics empowered
(a feeling of) security for the customer and avoids damage to the
workforce
insurer’s reputation. As many companies shift their customer-
“I want a consistent message from the broker, facing channels towards digital mediums, we
Optimized channel mix third-party administrator, their carrier, etc. find organizations struggling to adapt the Digitally
user experience (UX) towards new or
The availability of channels is optimized to reflect customers’ Manage this claim for me, please” enabled
preferred communication methods. Based on CX economics, different channels. Through our UX and technology
analytics expertise, KPMG firms guide clients architecture
towards leveraging and optimizing a superior
UX across the right channels to drive growth. Integrated
partner &
alliance
ecosystem

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99
Capability 5

Responsive operations of respondents who

believe rapid software
Insight-
driven

65%
strategies &
delivery is important, actions
say changing
Connected insurers know they must have the right operational practices in place if they are to execute on the promise to customer
their customers. They operate the business with efficiency and agility. They have the right enterprise decision analytics, expectations for Innovative
operating models and procurement services in place. This helps Connected insurers keep the customer promise in a digital capabilities is products &
consistent and profitable way. the leading reason why services
Source: KPMG Customer Experience Survey 2020

What does good look like?

Experience-
Our accelerators to build this centricity
A one company approach use of emerging technologies such as RPA, AI, low-code/no-code capability by design
The Connected insurer has a one company approach to governance, technologies to speed up the time-to-market for customer-facing
processes, data and IT to promote simplicity (and reduce improvements. As firms leverage the power of multi-disciplinary
— Digital actuary solution
complexity). This ensures the right operational processes are in teams through citizen development and adopt an agile way of
Seamless
place to achieve maximum synergies between business units and working, they break through functional silos and skills shortage Digital advancements have enabled actuaries to
interactions
allows for a short time-to-market for change and innovations. hurdles to deliver new propositions to customers with more speed make better use of advanced methods and
& commerce
than ever before. models. Examples include analyzing claims data
Responsive fraud and financial crime management using machine learning and improving portfolio
Integrated core systems and processes development forecasts based on individual claims
Fraud risk and financial crime management are embedded in the data. To prepare for the digital actuary of the
organization’s day-to-day operations. Fluctuating volumes and The finance, actuarial and risk core systems and their processes are Responsive
fully integrated. That alignment makes subsequently created models future, KPMG works with clients to identify how operations
changes in customer needs and regulations are dealt with swiftly. they can tap into the potential of actuaries as
Using all available data and proactively analyzing information puts more accurate and granular. It also creates a single source of truth.
Integration ultimately lowers the cost of control for the Connected contributors to the innovation agenda or leaders in
the insurer in the lead and lets the insurer adjust practices whenever modelling new parts of the insurance value chain.
necessary. This increases organizational effectiveness and prevents insurer and can reduce time spent on reporting. It provides more
reliable data for decision making and allows for quick and adequate Aligned &
large remediation efforts. empowered
responses to changing customer needs. — One company
workforce
Race with the machines Processes in your company can be harmonized
There is continued focus within organizations to digitize their firms in and simplified by creating an organization-wide
an effort to improve and automate processes. Making use of speech- “Don’t keep me waiting. I want to feel that my process flow template. With as a result: better Digitally
to-text technologies, many insurers have been able to digitize, claims are handled in the right way and in an cooperation, more efficient processes and enabled
improved insight into your organization. technology
analyze and leverage their inbound customer calls to improve their efficient way” architecture
customer support channels. Operationally, organizations have made
— Citizen development
Citizen development gives users without coding Integrated
experience the opportunity to build simple partner &
applications using low-code or no-code platforms. alliance
ecosystem
This allows IT experts to focus on larger projects,
entities provide no services to clients. All rightswhile removing bureaucracy and potential alignment
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10
10
issues from the software development process.
Capability 6

An aligned & empowered workforce

A Connected insurer has an agile organizational structure and is ready to adapt. Teams in the organization embrace 8/10
HR executives agree that
HR needs to actively
challenge the future
workforce composition
Insight-
driven
strategies &
actions

(who to buy, build, borrow,

change and support the company in recruiting and attracting the right people at the right time. At the same time, bot) in order to meet the Innovative
Connected insurers foster a customer-centric culture and inspire people to deliver on the customer promise and drive up future needs of the products &
business performance. organization services
Source: KPMG HR Transformation

What does good look like? Experience-

Our accelerators to build this centricity
Great place to work and magnet for talent reflects this this view and understands and focuses on doing what is capability by design
Employees are kept engaged and connected to their team and their right for the customer. Using methods including leadership, training
organization. This is especially important when working from home, and incentives such a customer-centric culture can be fostered. A
like during the COVID-19 crisis. The Connected insurer empowers customer-centric culture creates alignment across the firm and builds — Scaled agile implementation Seamless
employees to make a tangible impact and rewards commitment with the insurer’s brand with its customers. interactions
KPMG professionals have broad knowledge
clear signs of appreciation. The attraction and retention of talent are & commerce
Strategic workforce planning and capability development of scaled agile approaches and
goals high on the CEO agenda. Creating a great place to work is a
implementation needed to create an agile
major step towards realizing those goals. Key positions in the firm are filled by the best people and learning
workforce in your company.
and development is focused on what is truly important to the firm.
(Scaled) agile ways of working The Connected insurer attracts people with capabilities that are Responsive
— Agile leadership operations
Employees are empowered and encouraged to work in required and in high demand in the market. However, choices need
multidisciplinary teams. Processes are lean and flexible enough to be to be made and strategic workforce planning methods are used to Working in an agile organization, leadership
adapted when needed, whilst leadership of Connected insurers allow make these choices. This ensures that the insurer excels in the most sets the example. We provide the coaching
their team members to take the helm when appropriate. This is important parts of the firm. and inspiration necessary to inspire and
Aligned &
achieved using various frameworks as well as by starting small, equip leaders with the support to champion empowered
gradually embedding agile ways of working throughout the the agile transformation in their organization. workforce
organization. Doing so can greatly improve productivity and make
employees feel valued. — Strategic workforce shaping
“I want to be assured that employees are well As the fast adoption of new technologies Digitally
Customer centric culture treated, safe, motivated and empowered to increasingly shifts the needed skills and
enabled
technology
A Connected insurer centers work around the customer and takes an help me” capabilities of employees, we work with
architecture
active approach to improving the customer journey. The workforce organizations to seek intelligent and strategic
responses to the question of what a future-
oriented workforce looks like. Integrated
partner &
alliance
ecosystem

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11
11
Capability 7

A digitally-enabled tech architecture

Connected insurers are digitally-enabled organizations. They are flexible and adopt new digital technologies, with the long-
Enterprise and technical
architecture
were among the most
Insight-
driven
strategies &
actions

term focus on reducing technical debt. Since the insurance industry is traditionally inundated with a plethora of regulations felt skills shortages Innovative
and policies, it has struggled to catch up with its peers in the Financial Services sector. Examples include digital banks, emphasized as a result of the products &
payments etc. And although it is great to see fledging digital insurers adopt the latest digital tools and frameworks, large key COVID-19 pandemic services
players still struggle with restructuring their digital ecosystem. Source: Harvey Nash/KPMG CIO Survey 2020

Experience-
What does good look like? Our accelerators to build this centricity
capability by design
A simplified legacy architecture to be compatible with the new institutions to prototype customers distinctly and tailor offerings
digital age accordingly.
Often the technology landscapes of insurance companies consist of — Modern delivery methodologies Seamless
legacy systems and company-specific internal software systems that Technology platforms as an enabler for business interactions
KPMG firms work with insurers to guide them
are costly to maintain and cannot scale to meet fluctuating market Technology platforms with built-in tools and frameworks can help & commerce
through the process of identifying how to
demands. Maximizing the use of standardized software with a focus insurers build applications that can analyze data and provide
make the most out of modern delivery
on customizing only when beneficial, can drive cost efficiencies and valuable insights into performances of different business segments.
methodologies. Modern delivery practices
achieve faster time-to-market. Integrating modern delivery technologies into the DevOps processes
have the potential to bring speed and agility, Responsive
within these platforms can digitize business processes faster and
ultimately empowering insurers to accelerate operations
Agility is the name of the game achieve scale in a short time span.
in their digital transformations in a cost-
Every year brings change that can drastically impact the business, effective way.
whether they are stricter new regulations or unprecedented Accelerate cloud-first and SaaS architecture with modern
circumstances like COVID-19. Adapting to such dynamic situations delivery to control costs
— Cloud automation/migration Aligned &
needs iterative, agile delivery mechanisms so insurers can continue Cloud platforms and other Software-as-a-Service (SaaS) solutions are empowered
to stay ahead of competition and retain customers. Agility is a key heavily used. They offer quick-wins in the move to a more digital KPMG firms work with insurers to identify workforce
ingredient when insurers want to innovate or test new markets infrastructure. Specifically, insurers can capitalize on modern CI/CD systems within the enterprise architecture
simultaneous to existing business. delivery mechanisms with automated testing in place. This reduces the that can be automated by moving to cloud,
need for capital intensive and long-term investments in building a unique, thus optimizing operational costs. Digitally
Embrace micro-services and open APIs to get value from personal IT infrastructure, with all the advantages of up-to-date software. enabled
sharing data technology
architecture
Today’s customers value transparent underwriting, instant claims
redressal and citizen development via mobile apps and service “Empower me. I want my insurer to equip
aggregators. An Open Insurance or API (B2B2C) approach me digitally to remain connected anytime, Integrated
partner &
demands architectural flexibility to support data sharing in a anywhere”
simple yet compliant and secure manner, with responsible alliance
ecosystem

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12
12
Capability 8

Integrated partner and alliance ecosystem

Connected insurers build trusted relationships with their partners and create a competitive edge together. No business does 43%
of Life and Annuity
insurers are
not able to perform
comprehensive
Insight-
driven
strategies &
actions

market scans for

it all by themselves and every business relies on its partners. Connected insurers successfully engage, integrate and digital disruptors and Innovative
manage third parties to increase speed to market, reduce costs, mitigate risks and supplement capability gaps to deliver the fintechs themselves.* products &
customer promise. services

What does good look like? Experience-

Our accelerators to build this centricity
A clear view on the ecosystems and relationships that drive last throughout the relationship lifecycle. A Connected insurer can capability by design
success manage this effectively to maintain a stable partner and alliance
There is a clear view on the evolving underlying ecosystems, the role ecosystem with the benefit of providing a stabilized, improved
of a company within this ecosystem and the partnerships and proposition towards the customer. — Platform strategy Seamless
relationships required to be successful (e.g. in healthcare, mobility interactions
Nurture a collaborative culture KPMG professionals can help you
etc.). Connected insurers can leverage these networks by gaining & commerce
successfully leverage digital platforms and
access to additional data or product/services to solidify their position Connected insurers are champions for breaking through functional
ecosystems to create new business models,
in the sector, ultimately serving the customer better. silos. Rather than adopting a ‘not invented here’ syndrome,
increase relevance to your clients, innovate
Connected insurers welcome disruption in their value chain,
faster and/or defend against digital Responsive
Collaborative/open innovation with ecosystem encouraging more open collaboration with start-ups and new
disruptors. operations
Connected insurers embrace an open, collaborative approach entrants in the insurance space who may offer their customers a
towards innovation. Creating and supporting an open innovation stronger value proposition.
— Business process outsourcing
effort with an entire ecosystem (including partners, vendors and
other relevant organizations such as universities or Business process outsourcing can help to
Aligned &
fintechs/insurtechs) will stimulate synergies and flourish the determine which roles your partners can take empowered
invention of new ideas. on to grow and strengthen the ecosystem. workforce
“I want my insurer to be my partner. Someone
— Alliances and partnerships
Strong ecosystem orchestration capability who is able to build the right partnerships and
Digitally
A strong orchestration capability is necessary to manage not only a alliances to help me stay protected.” KPMG firms have built a strong network of
enabled
variety of partnerships and vendors, but also to make this connection alliances with some of the world’s leading
technology
technology, data and services companies.
architecture
Offering global reach and combined abilities
to help solve your most pressing technology-
based challenges. Integrated
partner &
*Source: A commissioned study conducted by Forrester Consulting on behalf of KPMG, September 2018.
alliance
ecosystem

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entities provide no services to clients. All rights reserved.
13
13
Why KPMG?
Supported by a global network, we provide insurers with a range of support services as
they set out to become truly Connected insurers. KPMG firms take a multi-disciplinary,
holistic and hands-on approach to a range of issues facing our clients. We stand by our
clients to tackle those issues and ultimately achieve meaningful outcomes.

KPMG’s global network of professionals combines strategy, technology, risk, M&A, accounting,
implementation and regulatory management consulting expertise to provide support in a number of
areas. These services include:

Improving digital experience for customers

— Customer journey analysis and improvement
— Platform strategy
— Fintech analysis and selection of additional services
— Support in license applications to offer additional services

Powering insights and decisions with data

— Data strategy design and implementation
— Master data management business case development, assessment and optimization
— Support to establish data ethics to manage and govern data as an asset
— Advanced Analytics and Business Intelligence subject matter experts to co-create
business solutions

Rationalizing the application landscape and moving to the cloud

— Quick scans and benchmarks of the current landscape
— Integrate business, financial and IT perspectives to build holistic business cases
— Cloud spend analysis and optimization
— Application vendor selection

Transforming into future-ready Connected insurers

— Gap analysis of capability maturity model, recommendations and co-design
implementation roadmap
— Optimize portfolio management to adapt and re-prioritize quickly to change
— Support in scaling a pilot into an enterprise-wide solution supported through a wide
range of implementation services from project management support to on-the-
ground subject matter experts

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of the All rights reserved.
KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.
14
Read our latest insights
Future of Small and Make a Connection — CIO Survey 2020:
Medium Business Connected Enterprise Insurance Industry Operational Excellence
Commercial Insurance publication Insights in Insurance

Responding to consumer trends in

CEO Outlook 2020 the new reality

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of the KPMG All rights reserved.
International entities. KPMG International entities provide no services to clients. All rights reserved.
15
Pieter Herremans Stephanie Porteman
National Insurance Practice Leader Belgium Lead Connected Enterprise
E: [email protected] E: [email protected]

With special thanks to Anouk Zevenbergen, Sander van der Meijs and Ton Reijns.

home.kpmg/be/connected

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