www.bflye.com | 1

Butterfly Effect Intelligence Contact:Stuart MaclachlanStuart@bflye.com+27 83 310 0205

International Insurance Marketing Flash

January 2017

www.bflye.com |About US 2

Butterfly Effect Intelligence™ is a full service marketing intelligence company focused on the financial services sector.

Essentially we have a network of people who identify interesting and innovative financial services marketing initiatives like distribution, innovation, marketing and communication initiatives, segmentation, new product development and company developments.

We analyse and interpret the information based on client needs (financial service focus, structure, geographical focus etc.) and deliver on a regular or ad hoc basis.

We have capabilities across the globe and our products include:

Ongoing – insight delivered from both the local and/or international market on a regular basis, through customised newsflashes or quarterly insight reviews.

Marketing insight and analysis on specific segments or companies.

Traditional qualitative research.

BUTTERFLY EFFECT INTELLIGENCE ™

www.bflye.com |

KEY TAKE-OUTS

Key Take-Outs

Rewarding Safe Driving: The more drivers break traffic regulations, the greater the odds that they will be involved in an accident. Insurers have realised that rewarding safe drivers with lower premiums can help prevent accidents, and in turn reduce their claims pay-out. In addition, by incorporating telematics into the business, insurance companies can monitor and evaluate driver behaviour and adequately price the risk.

See pages 5, 6

On-Demand Economy: Immediate access has become a daily demand and customers are increasingly using their smartphone as a intermediary between them and their daily goal. Insurance providers have recognised this need and are taking action by developing their own on-demand platforms to facilitate instant gratification.

See page 6, 8, 11

Celeb Marketing: There has been an increasing drive from insurers to feature celebrities in their campaigns. In doing so, insurers are hoping that the familiar face will attract maximum publicity and help create positive brand associations in the minds of consumers.

See pages 7, 8

Key Take-Outs 3

www.bflye.com |

KEY TAKE-OUTS

Convenience is King: Convenience has become easier to deliver on with the rise of digital platforms, and in turn there has been a greater demand for it. Insurers are embracing digital technology as a means to ease daily operations and adhere to consumers’ need for convenience.

See pages 13, 14

Artificial Intelligence: Artificial Intelligence (AI) encompasses everything from machine learning to the Internet of Things (IoT) and is now able to perform tasks that previously required human intelligence, such as visual and speech processing, decision-making and language translation. From portable health care diagnoses to streamlining daily operations, AI is rapidly evolving and finding its way into surprising daily-use cases, leading people to under-estimate how it is fundamentally transforming our world.

See pages 7, 9, 10, 12, 14, 15

Niche Segmentation: Insurance companies are seen targeting specific groups of people with specific needs, and specialising in specific industries. This is in an effort to offer products in sectors ignored by mainstream providers, enabling the brand to transcend traditional barriers and differentiate itself from the norm.

See pages 9, 10, 16

Low-cost Technology: Healthcare technological innovations generally come with a hefty price tag that the average consumer cannot afford. As a result, healthcare practitioners are focusing on developing revolutionary tools that can be accessed at a fraction of the price by the masses, and change the healthcare space as we know it. Forward-thinking health insurers will watch this space for valuable opportunities.

See pages 11

Key Take-Outs 4

www.bflye.com | 5

SHORT-TERM

Aviva partners with former Formula One driver for road safety campaign

31 December 2016 – BEI ™

Aviva partnered with former Formula One driver and road safety campaigner, David Coulthard, for its latest ‘Good Thinking’ campaign. In the safety initiative, Coulthard is disguised as a rogue taxi driver who bewilders his unsuspecting passengers with an array of appalling driving habits. Through its campaign, the company aims to draw more awareness to the fact that no one should have to pay for another’s bad driving and by using the free Aviva Drive app, safer drivers save an average of £170. The campaign is set to launch on mainstream TV channels from 1 January 2017.

Read More │ View Video

Ford app helps reduce insurance premiums

5 January 2017 – BEI™

Ford launched a new app for its Ford

SYNC® AppLink™ platform to motivate

drivers to drive safer by offering

them the opportunity to save on

their monthly vehicle insurance.

DriverScore® is a downloadable app

that measures the driving behaviour

of drivers and is tailored to each

individual, since it only works when

connected to the individual’s

car. Using the app’s DiscountZone™

feature, drivers can simultaneously

share their DriverScore with multiple

participating carriers and receive

insurance quotes based on their

score.

Read More

TREND: REWARDING SAFE DRIVING

www.bflye.com | 6

SHORT-TERM

Liberty Mutual turns safe driving into game

23 January 2017 – BEI™

U.S. insurance giant, Liberty Mutual, found a way of turning the everyday mundane task of safe driving into a competitive game for the entire family. The company launched two apps that customers can download onto their smartphones to monitor and assess users' driving habits: HighwayHero is open to non-members and tracks users as they drive, monitoring acceleration, braking, phone usage, speeding and cornering. The information is then compared to other users, and then the findings rank each user. RightTrack works on the same basis as HighwayHero, but is aimed at policyholders only and encourages safe driving by offering lower insurance premiums in return.

Read More

Car insurance for the infrequent driver

26 January 2017 – BEI™

Start-up pay-as-you-go car insurance broker, Cuvva, launched a new category of insurance aimed at car owners who use their cars infrequently. The company will offer the new service to customers for between £10 and £30. Drivers will then use an app to pay a top-up premium from £1.20 an hour when they want to drive the car. Cuvva has also sold over 130,000 hours of car insurance to drivers who want to borrow a car for as little as an hour, through its Cuvva Sharing product.

Read More

TREND: ON-DEMAND ECONOMY

www.bflye.com | 7

Exide Life Insurance launches #nomoreexcuses campaign

24 January 2017 – BEI™

Exide Life Insurance launched a #nomoreexcuses campaign motivating customers to stay faithful to their New Year’s resolutions. Attracting more than 10 000 tweets, the company’s #nomoreexcuses campaign comprises of five videos featuring stand-up comedians Anshu Mor and Amit Tando, making various excuses to get out of a healthy lifestyle. The campaign took off when the Morning Walk digital ad created by the insurer went on the YouTube masthead, scoring more than 5.3 million hits. Through the campaign, the company aims to promote its Sanjeevani Health Insurance for Heart and Cancer.

Read More │ View Video

TOMI chatbot streamlines operations

18 January 2017 – BEI™

Tokio Marine Life Insurance Singapore Ltd. (TMLS) launched a self-learning chatbot for advisors that aims to promote greater efficiency. The chatbot called TOMI, short for Tokio Marine Insurance, is available 24/7 through Facebook Messenger. Unlike traditional chatbots that rely on keywords, TOMI is powered by Deep Learning for Natural Language Processing, which allows it to answer questions quickly and accurately, regardless of how the user structures each question. While TOMI currently focuses on enhancing internal efficiency and adviser engagement, plans are underway to expand its functions to allow for customer-facing interaction.

Read More

LONG-TERM

TREND: CELEB MARKETING TREND: ARTIFICIAL INTELLIGENCE

www.bflye.com | 8

Ladder launches smart digital solution

10 January 2017 – BEI™

Digital life insurance provider, Ladder, launched its services in California allowing customers to visit its website, calculate their needs, get a quote and apply for instant coverage. Ladder is re-engineering life insurance by allowing customers to apply for coverage online in minutes. It aims to change the complicated process of deciding on life insurance, offering consumers an instant, smart, digital solution to buying life insurance they want and need. With its fully digital product, the company is eliminating barriers associated with the traditional life insurance process, which includes in-person meeting, waiting periods and physical paper work.

Read More

New Policybazaar.com campaign gets attention

15 January 2017 – BEI™

India’s largest insurance website

and comparison portal,

Policybazaar.com, launched a new

TV campaign featuring actress

Achint Kaur as a Séance medium.

The campaign aims to highlight the

importance of having a term

insurance plan. In the

ad, Policybazaar.com intends to

drive consumers’ buying decisions,

by comically illustrating the

challenges that a family would have

to face in the breadwinners’

absence, including the inability to

sustain their current lifestyle. The

TV campaign was aired on 15

January 2017, and received

1,245,036 views on YouTube.

Read More │ View Video

LONG-TERM

TREND: CELEB MARKETING TREND: ON-DEMAND ECONOMY

www.bflye.com | 9

SAVINGS & INVESTING

New Savings Bot saves customers $350 million

13 January 2017 – BEI™

Fintech company Digit launched

their new savings bot, which will

live on the Facebook’s Messenger

platform. The app works by using

an algorithm focused on the user’s

income and spending patterns to

tap off a small amount from their

checking account, and move it into

a safe savings account for later. The

company aims to ‘humanise’ the

user experience and allow for users

to feel more in control of their

savings. Future expansion includes

developing AI technology with its

‘financial goal program’, which will

allow users to set a date at which

they want to reach their personal

savings goal.

Read More

Fertility decoder gives woman the upper hand

11 January 2017 –BEI™

With the rise of woman in the corporate environment, more and more woman prefer postponing motherhood until later in life. Celmatix, a Start-up with a focus on personalised medicine for women, wants to take some of the mystery out of the science of baby-making with a new type of DNA-based fertility test called Fertilome, which looks at 49 variants in 32 genes that gives women a likelihood or not for inherited disorders. Women can now make potentially life-defining decisions about how to proactively plan for the family they want to build, and be more efficient in overcoming fertility difficulties they are experiencing using better and more personal information.

Read More

HEALTH

TREND: ARTIFICIAL INTELLIGENCE TREND: NICHE SEGMENTATION

www.bflye.com | 10

Forward modernises brick-and-mortar healthcare

19 January 2017 – BEI™

The traditional brick-and-mortar environment of doctors has not changed that much in the last few decades. That is until California-based start-up, Forward, developed a modern approach to healthcare that combines digital health applications with a physical doctor's office. Former Google AI expert, Adrian Aoun, created Forward with the intention of shifting the primary care model by gathering medical professionals under one roof where consumers can easily access them, and offering a variety of medical tests and scans to members via sensors that patients can use outside the doctor's lounge. All of this is complemented by mobile apps that provide users with their health summaries.

Read More

MoreThan launches Doggysentials campaign

19 January 2017 – BEI™

MoreThan launched a new pet insurance campaign focused on providing dog owners with information on how to keep their dog healthy and active. The campaign revolves around the launch of a tour bus designed specifically for dogs. The ‘K9’ bus tours London, showing guests local dog-friendly spots and canine-related landmarks. The aim of the campaign is to promote MoreThan’s Doggysentials’ service, which offers buyers care and protection with a monthly delivery of essential items and an activity monitor.

Read More

HEALTH

TREND: ARTIFICIAL INTELLIGENCETREND: NICHE SEGMENTATION

www.bflye.com | 11

Hand-powered centrifuge to revolutionise health care

10 January 2017 – BEI™

Manu Prakash, a Stanford bioengineer, developed a hand-powered centrifuge that costs 20 cents to produce and will transform the diagnosis of infections like malaria and HIV in remote areas. Inspired by the design of a millennia-old toy, the Paperfuge is a hand-powered centrifuge made of paper, string and plastic that can whip biological samples in circles at up to 125,000 rpm. But unlike a standard centrifuge which tops out at 15,800 rpm, the Paperfuge doesn’t need electricity, complicated machinery, expensive replacement parts, or even much money to operate.

Read More │ View Video

Doctor uses Snapchat spectacles as teaching tool

11 January 2016 – BEI™

Dr. Shafi Ahmed, surgeon and co-founder of VR and AR firm Medical Realities, used Snapchat's Spectacles to post 10-second clips of himself performing surgery. The videos were watched by more than 200 medical students and trainees from an angle never before seen, which will assist them when they become doctors. Keeping hygiene in mind, Dr Ahmed had an assistant on hand to hit record on the $130 glasses. The operation was captured in 10 second chunks that took each about half a minute to get online.

Read More

HEALTH

TREND: LOW-COST TECH TREND: ON-DEMAND ECONOMY

www.bflye.com | 12

App diagnoses up to 4000 syndromes

9 January 2017 – BEI™

Face2Gene, the company that taught Facebook algorithms to detect faces with high accuracy, developed an app that can identify health problems when traditional practices cannot. The app works by conducting millions of tiny calculations in rapid succession on a facial photo scanned into the app. It then quantifies, computes and ranks them to determine the probable syndromes associated with the facial phenotype. The application can diagnose up to 4000 known syndromes using facial patterns, however a medical professional is still required to verify the results.

Read More

Diagnostic AI healthcare in the palm of your hand

5 January 2017 – BEI™

Inspired by the ever-present device carried by Doctor McCoy in the original Star Trek TV and movie series, the Qualcomm Tricorder aims to bring health care diagnoses to the palm of your hand. The Qualcomm Foundation in partnership with the XPrize Foundation launched the $10 million competition at the Consumer Electronic Show (CES) in 2012, with the aim of harnessing cutting-edge technology in the AI field. Five years later and the competition is in its last stages with only two contenders remaining. Workable devices can now accurately monitor five vital health metrics and diagnose at least 13 health conditions.

Read More

HEALTH

TREND: ARTIFICIAL INTELLIGENCE

www.bflye.com | 13

OTHER

TREND: CONVENIENCE IS KING

Aviva partners with Tencent, Hillhouse Capital to launch Hong Kong insurer

20 January 2017 – BEI™

British insurer Aviva joined up with investment management firm Hillhouse Capital and Chinese internet services giant Tencent Holdings to start a digital insurance-focused company in Hong Kong. Aviva will merge its UK life and general insurance businesses as it focuses on offering products online. Once the deal has been completed, Aviva and Hillhouse will each hold 40 percent of Aviva Hong Kong, while Tencent will own the rest.

Read More

Zurich’s new platform streamlines advisers’ processes

3 January 2017 – BEI™

Global insurer, Zurich, launched a new protection platform that will provide faster and more streamlined experience for advisers, enabling them to apply for multiple policies in one application. Called 'ZHub’, the new platform provides advisers with a personalised dashboard where they can keep track of their entire protection business with Zurich. ZHub enables advisors to apply for up to five policies under one application with no need to re-key customer information, and electronic signatures help speed up the application process.

Read More

www.bflye.com | 15

OTHER

All State introduces new underwriting platform

24 January 2017 – BEI™

Allstate Insurance Company has launched a new underwriting platform that will automate data integration, while enhancing the quality of risk evaluation. The platform was created by Myriad Development and works on the basis of Absorptive capacity, which is to identify, assimilate, transform, and apply valuable external knowledge and technology to produce better results, better serve agency partners and provide the best service possible to the insured. The platform is designed to cater specifically to the company’s unique requirements and allows for continual process refining so it can be adapted as the insurer evolves over time.

Read More

Top Japanese insurance firm replaces 34 employees with AI

5 January 2017 – BEI™

Fukoku Mutual Life Insurance, one of Japan’s largest insurance firms, has replaced 34 employees with an AI system that can calculate insurance pay-outs. The AI platform is based on IBM Japan Ltd's Watson, which is famous for its cognitive capabilities. The firm expects to save around $1.2 Million dollars annually in salaries and productivity levels is said to increase by 30%. The system will cost the company $1.5 Million to install with an annual maintenance cost of $130 000.

Read More

TREND: ARTIFICIAL INTELLIGENCE

www.bflye.com | 14

Aviva develops a ‘skill’ into Amazon’s Echo

4 January 2017 – BEI™

Insurance giant, Aviva, is the first insurer in the UK to incorporate insurance terminology into Amazon’s Echo. Aviva developed a ‘skill’ for the voice-activated speaker that enables the user to interact with the device and ask questions about insurance-specific terminology. The firm spent 12 weeks creating the skill which provides people with more than 300 insurance terms and their definitions. The company plans to develop a more personal interaction platform on the device with plans to create policy specific ‘skills’ for individual customers. Aviva believes voice will be one of the major ways that customers engage with the company in future.

Read More | View Video

OTHER

The three second claim process

24 January 2017 – BEI™

Lemonade, a peer-to-peer (P2P) insurance company powered by AI and behavioural economics, transformed the insurance world by being the first insurance company to pay out a claim in just three seconds. The company, with help from their claims bot AI Jim, received a claim two days before Christmas, reviewed the claim, cross-referenced it, ran nearly 20 anti-fraud algorithms and approved it in just three seconds. The system then notified the client that the claim had been approved and sent instructions to the bank to transfer the claim pay-out.

Read More

www.bflye.com | 16

OTHER

Bharti Axa goes ‘beyond insurance’

27 January 2017 – BEI™

Bharti AXA Life Insurance launched its new campaign positioning the company as more than just a claim settler in the highest moment of need. The company introduced a Grief Support Program to ensure that families who have suffered a loss receive psychological support through counselling sessions with trained professionals, and it will also offer assistance in financial planning. The new campaign aims to position the company’s brand as one that goes ‘beyond insurance’ to address needs and aid the family of the deceased policyholder.

Read More | View Video

TREND: NICHE SEGMENTATION

Bought By Many expands niche insurance role

16 January 2017 – BEI™

One of the UK’s earliest insurance tech companies, Bought By Many, will now focus on addressing niche markets that are ignored by big other insurers. In partnership with leading expert on global and local risk solutions Munich Re, the company is now offering its own policies that will satisfy the unmet customer needs revealed by members and the compiled data analytics. Munich Re is proving to be a popular partner, as it also backs Trov, which provides on-demand insurance for individual items, and So-sure which provides coverage for mobile phones.

Source: Financial Times (16 January 2017)

www.bflye.com | 17

SO WHAT?

Try your hand at answering these questions:

• Do you understand how your competitors are positioning their products and services to your clients?

• What are your competitors’ value propositions?

• Do you know what the key global and local financial services marketing trends and themes are?

• Can you make accurate predictions as to what the next marketing trends and themes are?

• Are you rewarding your customers by implementing the latest technology to ensure their safety?

• How are your competitors adapting to emerging technological advances, such as artificial intelligence, self-learning chatbots, Deep Machine Learning and low cost technology to prepare for the future of insurance?