To avoid commoditization, insurers must add value outside of quotes and renewals. But what is that value? Find out as we review our new Value Engagement report from Ovum. You’ll learn what customers value, how much they’re willing to pay for it and how insurers are responding to the challenge. You’ll learn how SAP Hybris Commerce can add value and how AI can be leveraged to improve the customer experience. For more from SAP Hybris, please visit us at: https://hybris.com/en/solutions/industries/insurance

1. PUBLIC
October 18th
, 2017
Stefan Mueller, SAP - Hybris
Avoid Commoditization in the Insurance Industry with Value
Engagement

2. 2PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
DISCLAIMER
The information in this document is confidential and proprietary to SAP and may not be disclosed without the permission of
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has no obligation to pursue any course of business outlined in this document or any related presentation, or to develop or
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obligation to deliver any material, code or functionality. This document is provided without a warranty of any kind, either
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All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ
materially from expectations. Readers are cautioned not to place undue reliance on these forward-looking statements, which
speak only as of their dates, and they should not be relied upon in making purchasing decisions.

3. 3PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Fundamental Question
§ What makes a good financial institution different
from a bad one?
Simple Answers
§ Good FIs deliver high value ideas to customers on
how to reach their goals
§ Good FIs make those ideas happen for their
customers quickly and simply
Market Differentiation
How can your FI stand out?

4. 4PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Agent / Advisors Role
§ Proposed Ideas (Advice & Solutions)
– Personalized, contextual
§ Made those ideas reality
– Jungle guide: applications, documentation, etc.
§ It Worked Because Agents & Advisors
– Knew their customers and their industry
– It wasn’t just about sales
The Proof is in the Past
Branch Agent / Advisor Model

5. 5PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Digitalization changed everything

6. 6PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Digital age technology to deliver Ideas
Replicating Branch/Agent Personalization

7. Insurance - What Customers Value
Beyond Sales

8. 8PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Premise:
• To avoid commoditization insurers must
engage customers with value more frequently.
Primary Research
• Customer surveys (Property & Casualty)
• Insurer Interviews in
• EMEA
• NA
• APJ
Ovum - Driving Growth Through Value Engagement

9. 9PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Factors Influencing Consumer Choice When Purchasing P&C Insurance
Findings
• Although price was by far the largest
factor, there are opportunities to add
value on a more continuous basis.

10. 10PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Relative importance of sources of Value Engagement
Findings
• Reducing customer risk is the greatest
source of Value Engagement.
• “Minimize the impact” when a claim
occurs and “Convenience & Rewards”
are other sources of Value Engagement
Source: Ovum

11. 11PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Consumers’ Willingness to Pay Increased Premiums for Value Engagement
Findings
• Customers will pay for Value
Engagement
Source: Ovum

12. 12PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Conclusion & Recommendations
Findings
• Reducing a customer’s risk should be the
focus of initial Value Engagement offerings
• Value engagement is part of a wider
repositioning strategy.
www.hybris.com/engageinsurance

13. 13PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Make Insurance smarter

14. 14PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
FSI Demo Booth D3
FSI Sessions:
FSI Demo Booth and FSI Presentations
Session Title Location Day Start End Speaker
52556 Price you products forMaximum Impact Microtheater 3 Wednesday 13:30 13:50 Stan Wandowicz
52557 Engage the Disengaged:Retail Banking in the Digital World Microtheater 5 Wednesday 14:30 14:50 Birgit Kurz
52592
Avoid Commoditizationin the Insurance Industry with Value
Engagement Microtheater 5 Wednesday 17:00 17:20 Stefan Mueller

15. Further questions? Please reach out to …
Contact information:
Stefan Mueller
Director Insurance
Financial Services Industry
SAP SE
Dietmar-Hopp-Allee 16,
69190 Walldorf, Germany
Stefan0.mueller@sap.com

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