The document provides an overview of design thinking and how it can be applied to transform organizations, specifically insurance companies. It discusses moving from a policy-centric approach to one focused on customer needs through the design thinking process of empathy, defining problems, ideating solutions, and validating ideas with customers. The document outlines challenges of change but argues design thinking can start small and grow to transform a company's culture by increasing risk appetite, collaboration, and a test-and-learn mindset.

1. Design Thinking:
Product Design Roadmap to
Organization Transformation
SVIA – Silicon Valley Insurance Accelerator
Insuretech Innovation, SMB Insurance
PALO ALTO, CA — SEPTEMBER 25, 2018

2. 2
jlevine@cakeandarrow.com
@neatpace
Hello. I’m Josh
• Founder & CEO of Cake & Arrow
• Small Business Owner
• 20+ years in UX & Design
• Designer by trade
• I love insurance

3. 3
• Commercial Strategy & Market Definition
• Digital Product & Service Design
• New Product Innovation
www.cakeandarrow.com
We help businesses in the insurance industry
create meaningful and innovative products,
services, and experiences.

4. 4
• Products
• Pricing
• Communication
Retailers owned all aspects of the customer
relationship:
• Channels
• Customer
• Margin
Today’s relationship between Insurance
companies and their customers is very
similar where Retail was 10+ years ago.

5. POLICY-CENTRIC
APPROACH TO DESIGN
Since the beginning of time,
Insurance product design
has started with a focus on
risk and regulations.
5

6. CARRIERS DESIGN
PRODUCTS AROUND
ACCEPTABLE RISKS
THEY ARE WILLING TO
UNDERWRITE
6

7. FROM THERE THEY
PRODUCTIZE &
MARKET THEM
7

8. THEN DISTRIBUTE
8

9. “I buy business insurance
because I have to”
BY NOT FACTORING IN THE CUSTOMER,
THE INDUSTRY HAS CREATED A COMMODITIZED PRODUCT
9

10. 10
BUSINESS
NEEDS
The Insurance
industry needs
to shift its focus

11. 11
CUSTOMER
NEEDS
Good design and
innovation starts
with real life
human problems
DESIGN THINKING

12. 12
Good design and
innovation starts
with real life
human problems
DESIGN THINKING
CUSTOMER
NEEDS
EMPATHY
IMMERSION

13. 13
CUSTOMER
NEEDS
TECH
FEASIBILITY
BUSINESS
VIABILITY

14. 14
CUSTOMER
NEEDS
TECH
FEASIBILITY
BUSINESS
VIABILITY
Meaningful experiences that create
customer value and market opportunity

15. 15

16. But, does all of this
apply to SMB Insurance?
16

17. 17
You bet your BOP it does.

18. 18
• As human & emotional as it gets
• Fragmented journey creates
demand for new channels
• Products not specific to actual needs
• Being sold solutions for risk
allocation instead of risk mitigation
• Aware of emerging risks, yet unaware
that solutions exist
• Lack of trust
Unmet SMB
customer needs
reveal untapped
opportunity

19. SMB buyers made decisions
based on quality, rather
than price?
What if…
The market was driven by
delivering value beyond a
transaction?
Agents were empowered
to focus on the customer’s
hopes and needs?
The conversation changed
from risk allocation to risk
mitigation?
19

20. 20
The purpose of a business is
to create and keep a customer.
— PETER DRUC KER
TIME TO REFOCUS ON WHAT MATTERS
Photo Source: Edgar Chaparro on Unsplash

21. O1
Build
Empathy
Define the
Problem
Ideate
& Explore
Design
& Validate
Explore behavior-led
research to understand
who we’re designing for
and why.
Synthesize customer
insights and develop
a POV on what to
focus on.
Quickly generate a
lot of ideas through
collaborative and
cross-functional
work sessions.
Prototype solutions,
validate with actual
users, and then iterate
based on their feedback.
02 03 04
THE DESIGN THINKING APPROACH
21

22. 22
Create multiple
possible solutions
DIVERGENT THINKING

23. 23
CONVERGENT THINKING
Narrow down
to singular idea

24. 24
O1
Build
Empathy
Define the
Problem
Ideate
& Explore
Design
& Validate
02 03 04

25. 25
O1
Build
Empathy
Explore behavior-led
research to understand
who we’re designing
for and why.

26. 26
We did ethnographic
research and prototype
testing in 5 cities across
Japan.
Shadowed agents and
customers and came to
understand the experience.
METLIFE JAPAN
SALES PLATFORM

27. 27
“ I don’t think my insurance
would cover me if they
knew I was driving for
Lyft or Uber.”
C&A USER RESEARCH 2017-2018
GIG ECONOMY
INSURANCE PROTOTYPE
Highlights from
1-on-1 interviews
and field research
with Gig Economy
workers

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“ I have a broker, he’s my
guy! But I didn’t buy the
insurance he suggested
for my gig work.
The app didn’t say that
I needed it.”
C&A USER RESEARCH 2017-2018
GIG ECONOMY
INSURANCE PROTOTYPE
Apps & websites are
“trusted advisors“
to Gig Workers.

29. 29
go.cakeandarrow.com/
Insurance-in-the-Age-of-the-Gig-Economy
DOWNLOAD OUR FREE WHITEPAPER
Insurance in the Age
of the Gig Economy
What happens to insurance when
business gets personal?
By Author One, Author Two, Author Three
Insurance
in theAge ofthe
Gig Economy
What happens to insurance when business gets personal?

30. 30
02
Define the
Problem
Synthesize customer
insights and develop
a POV on what to
focus on.

31. 31
Telematics device sends instant notification to MetLife.
Customer can configure their coverage and automatic
notification settings to meet their needs.
All parties in the trusted network are notified right away.
Customers can start claims process while on scene. Users can share their insurance details electronically.

32. 32
Do I need to call
the police?
ACCIDENT
Emotional
State
Oh no! It’s late?
Yay!
DOCUMENTATION FNOL REPAIR RETURN
What details do I
need to capture?
Do I really need an
ambulance?
How do I get a copy of
the policy report?
Will my photos be good
enough for an estimate?
Do I record the witness
statements, too?
Whose insurance do
I call and when?
What other info will
I need to know?
How do I do this right
the first time?
Is the repair shop
reputable?
How long will it take?
How much will it
cost me?
How do I return my
rental car?
When do I pick up
my vehicle?
What if I’m not happy
with the repairs?
DTC AUTO CLAIMS CUSTOMER JOURNEY
Vulnerable points along customer journeys are opportunities to build trust.

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We discovered that immediate
support is required at the most
vulnerable point—when people
need reassurance and knowledge.

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03
Ideate &
Explore
Quickly generate a
lot of ideas through
collaborative and
cross-functional
work sessions.

35. CLIENT IDEATION
WORKSHOP
Bringing together a
cross-functional group
of participants into a
facilitated session can
rapidly generate
multiple ideas and
healthy dialogue.
35

36. 36
04
Design &
Validate
Prototype solutions,
validate with actual
users, and then
iterate based on
their feedback.

37. 37
Share working
prototypes to clarify
scope of MVP and
its solution.
PROTOTYPE TESTING
ON IPAD
METLIFE JAPAN
SALES PLATFORM

38. 38PROTOTYPE TESTING
ON IPAD
“I’m only 25. Life
insurance isn’t
something that I’m
really thinking
about. I’m concerned
about having money
now, not saving
money for later.”
Validate what the
digital experience
would be like if it
“behaved” like a
trusted advisor.
NEA MEMBER
BENEFITS

39. 39
What does it
take to become
truly customer
focused?
CUSTOMER
NEEDS
EMPATHY
IMMERSION

40. 40
CHANGE IS HARD
Especially in a risk averse
industry where asking the
question “What if…?” goes
against pre-existing biases
rooted in data and logic.

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Well, that’s the way
we’ve always done it”
“
SO EXPECT PUSHBACK

42. 42Client Design Thinking Workshop
Go into this expecting soreness.
These are muscles people never used before.
• Conduct research by getting in the field and
listening to customers needs
• Use design thinking principles to solve
problems; you can’t continue ‘business as usual’
STEPS TO FOLLOW:
• Make sure ALL members of your
organization participate, not just a
special CX group
• Start making sooner and test & learn
over time

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Effective change
starts small and
then grows inside
an organization
authentically
THE LEARNING MODEL

44. 4 4
Using McKinsey’s 5 attributes of Digital Culture, our
learning model aims to:
In order for transformation
to take foot, organizations
must be thoughtful and
intentional about how they
go about instituting change.
• Increase the organization’s appetite
for risk
• Improve agility within the organization,
ie. their ability to change midstream and
execute changes quickly
• Institute a test-and-learn approach to
product and service development across
the organization
• Improve the organization’s willingness
to collaborate internally and externally
Goals of The
Learning Model

45. 45
Auditory
Hear process described
Kinesthetic
Performing tasks
TEACHING METHODS:
See process visualized, step by step
Visual
TEACHING METHODS:
Dialogue within
a lecture
Traditional
Lectures
Playback recording
of lectures
TEACHING METHODS:
Secondarily: exposure
to visual and/or
auditory methods
Project based
learning
Trial and
error
Written
instructions
Video
demonstrations
In-person
demonstrations
Three types of learning styles to consider

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DESIGN THINKING
METHODS Systematic
Brainstorming
Techniques
Affinity
Mapping
Design
Studio
USER EXPERIENCE
METHODS
SERVICE DESIGN
METHODS
FACILITATION
METHODS Stakeholder
Management
Customer Feedback
Gathering
Business Model
Validation
Lecture Coaching
User Research
and Testing
Personas
User Journey
Workshops
Persona Role
Playing & Improv
Sensory
Brainstorming
User
Insights
Information
Architecture
Cross-functional
Team Facilitation
Methods
Our learning model makes use of proven methodologies and approaches from across the fields of
service design, user experience, design thinking, and business administration.

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Participatory Learning
Participatory Learning is ultimately about facilitating a process of collective analysis, learning, and problem
solving amongst a group of people. When implemented well, participatory learning increases collaboration,
subverts hierarchies, encourages agility, and rapidly increases skill acquisition.
1.INVESTIGATION 2.PARTICIPATION
3.
CLASSROOM
LEARNING
4.
PRACTICE &
COACHING
Team interviews align goals and identify relevant subject matter
and techniques
INVESTIGATION
STEP 1
Hands on participation in a sample workshops builds practice,
empathy and excitement
PARTICIPATION
STEP 2
Theory and techniques are taught in a seminar environment,
driving participation, understanding and skills
CLASSROOM LEARNING
STEP 3
Practice skills under the tutelage of instructors, for trial and
error learning. Cements understanding and building a culture of
shared experience
PRACTICE AND COACHING
STEP 4

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• Choose an innovation partner to seed
the approach
• Start small and be targeted
• Nurture advocates through ongoing
coaching
• Institutionalize the learning model
• Stick it out when things get tough
Scalability
and Ongoing
Development
Not every organization is
ready to adopt a fully self-
driven learning program.

49. 49
We’d love to discuss with you
go.cakeandarrow.com/Transforming-Digital-
Culture-Insurance-Financial-Services
Interested in learning more about how a human-
centered approach could transform your organization?
212-598-2800
newbiz@cakeandarrow.com
A Transformation from Within
LET’S CHAT DOWNLOAD WHITEPAPER
A guide for Insurance companies to
Transforming digital culture and
becoming truly customer focus

50. 50
Nabil Rahman
Head of Product Strategy
nrahman@cakeandarrow.com
LETS SEE IT IN ACTION
MEET YOUR FACILITATOR
Workshop

51. 51
Ideate on potential
solutions and success
criteria
Workshop Goals
Build some empathy
and identify consumer
challenges
Create a hypothesis
that can lead to a
testable concept

52. 52
Tammy [Arnold] Campbell
Challenge: Support Tammy as she competes against corporate chains
Tammy is the president and owner of a
family-owned retail grocery store called
Arnold’s in Fishers, Indiana - a suburb of
Indianapolis. Tammy is 48 years old, married,
and the mother of 3 children. She has a
degree in business from Indiana University,
Fort Wayne and moved home after college to
help run the family business, which she took
over in 2010.
Over the last several years Arnold’s has been
losing business to Trader Joe’s, which opened
less than a mile away. As a part of a larger
plan to revamp their business, Over the next
several months, Tammy plans to expand
their organic food and produce sections to
compete with Trader Joe’s, and will be
updating all her store’s point of sales
machines by January of 2019.

53. 53
Jeremy Prince
Challenge: Support Jeremy as he quickly scales his business to land a major contract
Jeremy Prince is 39 years old and lives in
Seattle. He moved from Dallas to Seattle after
high school in 1998 to live with his uncle,
who at the time was building houses in the
north Seattle suburbs. Jeremy worked
construction for a few years with his uncle
and eventually began flipping houses. He was
fairly successful until the financial crisis in
2008, after which he was forced to foreclose
on several of his properties and file for
bankruptcy. He took this as an opportunity to
get his degree. He received his BA in
construction management in 2012. By this
time, the economy had recovered and Jeremy
got his contractor’s license and started his
own company–Prince General Contracting,
now with 40 full time employees. Jeremy’s
company has been successful, benefitting
from the housing boom created by Amazon.
He is now in the process of negotiating his
largest contract to date - a new residential
tower in the Queen Anne area being built to
accommodate another wave of Amazon
employees expected to be hired in the next
two years. Whether or not he wins the
business will depend upon his ability to
successfully bid out the work to enough
subcontractors, such as electricians,
plumbers, and sheetrockers to be able to
complete the building within the developer’s
timeline.

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George and Diane Demos
George and Diane are in their early 60s and
preparing for retirement. For the last 40
years they have run an auto repair business
in Sound Beach, Long Island. Diane does the
books, the hiring, and manages
appointments and payments and George
works in the shop and oversees a team of 5
mechanics. The Demos’s have 2 sons and a
daughter. Their middle son, Gus, now in his
early 30s has been working at his parents
shop since high school.
George and Diane just put their house up for
sale and have already bought a house in
Pennsylvania, where they plan on moving
when they retire. They will be transferring
ownership of the business over to Gus by the
end of the year.
Challenge: Support the Demoses as they pass down their family business and
prepare for retirement

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Jason Goldstein
Challenge: Support Jason as he determines the next big move for his firm
Jason Goldstein is 43 years old and the
founder of a New York City digital agency. He
grew up in Long Island, New York, he’s
married with two kids and lives in
Manhattan. He has been working in New
York City agencies for nearly 20 years.
Over the last six months, his agency has
undergone significant growth with the
addition of 3 new enterprise-level clients,
and they are anticipating even greater growth
in Q4 of 2018.
By the end of Q3 Jason would like to move his
company into a new office space to
accommodate their growth, but not knowing
what 2019 will look like (will they continue to
grow at the same pace, or will they level
out?), he’s hesitant to commit to anything
long term.

56. 56
Workshop
Agenda
1
2
3
Success measurement
Form a hypothesis
Problem-solving brainstorm
40 minutes
20 min
10 min
10 min

57. 57
TRIZ - Inverted Problem Solving
EXERCISE #1

58. 58
• Read your team’s assigned persona background and jump into their shoes
• Consider the negative end-results your persona can face, and write each
outcome on its own post-it note
• [ INDIVIDUALLY ] - Come up with as many as you can. Remember, one post-it
per bad outcome (3 min)
• [ TEAM ] - Share your post-it notes within your team and group like post-its
into themes or categories. Label each grouping/theme (5 min)
• [ TEAM ] - Select the most compelling problem-space/theme for the next
exercise (2 min)
What would be the worst outcomes for your persona?

59. 59
• [ INDIVIDUALLY ] - Jot down as many solutions as you can think of to solve
for your selected problem-space. One solution per post-it (3 min)
• [ TEAM ] - Share your post-it notes with the group (5 min)
• Each group member will now vote for two (2) solutions by marking the ones
they like best with a circle sticker. Select the three solutions with the most
votes. (2 min)
Now, let’s fix the problem we selected

60. 60
EXERCISE #2
Measuring Outcomes

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• [ TEAM ] - Organize your work space so the main problem-space you are
solving for and the top solution ideas are side-by-side.
• [ INDIVIDUALLY ] - look at each solution and write out a measurable outcome
that would indicate that the solution was a success. (e.g. If I’m trying to
improve employee performance, ___ program would improve peer review
scores by 20%) (5 min)
• [ TEAM ] - Share and place outcomes against solutions (2 min)
How can we measure that we’re successful?

62. Form a Hypothesis
62
EXERCISE #3

63. 63
[ ] is a [ ] who is
trying to do [ ]. One of the issues she/he
is running into is [ ].
If we [ ], then we will be able to help
[ ] achieve [ ].
Now with your post-it notes, you have a problem area, potential solutions, and outcomes to measure success.
As a team, fill out the following hypothesis template:
Construct your hypothesis
PERSONA NAME BUSINESS DESCRIPTION
TASK
PROBLEM YOU ARE SOLVING FOR
TEAM SOLUTION
THESE OUTCOMESPERSONA NAME

64. Team Presentations
64

65. 65
Share our hypotheses
OUR PERSONAS
As groups share out, ask yourself:
• How does this match your own
group’s results?
• How would you iterate on the
thinking each group is presenting?
• Would you alter your ideas after
hearing what others came up with?
TAMMY
Fort Wayne, IL Grocery Store
JEREMY
Seattle, WA
Construction
GEORGE & DIANE
Long Island, NY
Auto Repair
JASON
New York, NY Consulting Group

66. Thank you!
Josh Levine
Founder, CEO
jlevine@cakeandarrow.com
@neatpace
Nabil Rahman
Head of Product Strategy
nrahman@cakeandarrow.com
A Guide to Human
Centered Design
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go.cakeandarrow.com/human-centered-design
Learn how to innovate new products
and services that address customer
needs with human-centered design.