# Infosys Whitepaper
Title: Testing IoT Applications - A Perspective
Author: Infosys Limited
Format: PDF 1.7

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 VIEW POINT TESTING IOT APPLICATIONS   - A PERSPECTIVE - Manjunatha Gurulingaiah Kukkuru,   Principal Research Analyst

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 Introduction The Internet of Things (IoT) is a network of physical objects (devices, vehicles, buildings, and other items) that are embedded with electronics,  software, sensors, and network connectivity to collect and exchange data.<|endoftext|>According to a recent report by McKinsey, around 30 billion objects may be connected through IoT by 2020.  Enterprises are adopting IoT solutions for the benefits they offer; such as, optimization in operations, reduction in costs, and improvement  in efficiency. The development and adoption of IoT is being driven by multiple factors, including easily available low-cost sensors, increase  in bandwidth and processing power, wide-spread usage of smartphones, availability of big data analysis tools, and scalability of internet  protocol version 6. Organizations are now starting to focus on external benefits such as generating revenues from IoT-enabled products,  services, and customer experiences.<|endoftext|>IoT: A web of interconnected layers The following figure indicates a reference architecture for IoT, comprising of multiple layers built on top of each other to create industry- specific solutions. The components in each layer include devices, protocols, and modules that need to work in sync in order to effectively  convert data to information, and subsequently to insights.  Resource Efceincy Device management Policy LLRP MODBUS Zigbee BACNet ZPL SNMP Location Provisioning Remote Mgmt Access mgmt Activation Diagnostics Report Complex Event Processor Data Transformation Wi-Fi LAN WAN Satellite Cellular Que Listner Protocol Adapter Cmd Interpreter Data Mangement Ticketing Workfow Maps Command Center Communication Presence Analtics and Machine Learning Big Data Storage Database Location /  Geo Fence User Mgmt Machine Learning Analytics Class of Applications Data Processing Layer Domains Base Stations / Readers Data Ingest & Transfromation Layer Devices Tracking & Tracing Site & Employee  Safety Remote Monitoring Remote Visualization eTraceability Process Visibility & Automation Predictive Analtics Risk, Fraud & Warranty Analytics Smart Grid Manufacturing Logistics Agriculture Buildings Healthcare Retail Residences Oil Mining Pharma Connected Machines Barcode Sensors RFID Smart Phone Actuators Drones GPS Wearables Smart Meters •  Device layer: Consists of various devices  like sensors, wearables, smart meters,  radio frequency identification (RFID)  tags, smartphones, drones, etc. With  such a diverse set of devices, a huge set  of standard and custom communication  protocols — including ZigBee, BACnet,  LLRP, and Modbus — are implemented.  •  Data ingestion and transformation  layer: Data from the device layer is  transformed through different protocols  to a standard format for further  processing by the data processing  layer. This data could be from sensors,  actuators, wearables, RFID, etc., received  via TCP/IP socket communication or  messaging queues like MQTT, AMQP,  CoAP, DDS, Kafka, and HTTP / HTTPS over  Rest API.  •  Data processing layer: With data  available from millions of devices,  performing image, preventive, and  predictive analytics on batch-data  provides meaningful insights. Modules  like a ‘complex event processor’ enable  the analysis of transformed data by  performing real-time streaming analytics  — such as filtering, correlation, pattern- matching, etc. Additionally, multiple  APIs for geo-maps, reporting, ticketing,  device provisioning, communication,  and various other modules aid in quick  creation of dashboards.  •  Applications layer: With the availability  of such rich datasets from a multitude  of devices, a gamut of applications can  be developed for resource efficiency,  tracking and tracing, remote monitoring,  predictive analytics, process visibility and  automation, etc. and can also be applied  to different industries and segments.<|endoftext|>External Document © 2018 Infosys Limited

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 Unique characteristics and  requirements of IoT systems Compared to other applications, IoT  applications are characterized by several  unique factors, such as: •  Combination of hardware, sensors,  connectors, gateways, and  application software in a single  system •  Real-time stream analytics / complex  event processing •  Support for data volume, velocity,  variety, and veracity •  Visualization of large-scale data  Challenges that thwart IoT  testing These characteristics consequently present  a unique set of challenges when it comes  to testing IoT applications. The primary  challenges include: •  Dynamic environment: Unlike  application testing performed in a  defined environment, IoT has a very  dynamic environment with millions  of sensors and different devices in  conjunction with intelligent software •  Real-time complexity: IoT applications  can have multiple, real-time scenarios  and its use cases are extremely complex •  Scalability of the system: Creating a  test environment to assess functionality  along with scalability and reliability is  challenging Apart from the above challenges,  there exist several factors that present  operational challenges: •  Related subsystems and components  owned by third-party units •  Complex set of use cases to create test  cases and data •  Hardware quality and accuracy •  Security and privacy issues •  Safety concerns Types of IoT testing The complex architecture of IoT systems  and their unique characteristics mandate  various types of tests across all system  components. In order to ensure that the  scalability, performance, and security of  IoT applications is up to the mark, the  following types of tests are recommended: Edge testing Several emerging, industrial IoT  applications require coordinated, real- time analytics at the ’edge’ of a network,  using algorithms that require a scale of  computation and data volume / velocity.  However, the networks connecting these  edge devices often fail to provide sufficient  capability, bandwidth, and reliability. Thus,  edge testing is very essential for any IoT  application.  Protocol and device interoperability  testing IoT communication protocol and device  interoperability testing involves assessing  the ability to seamlessly interoperate  protocols and devices across different  standards and specifications.  Security and privacy testing This includes security aspects like data  protection, device identity authentication,  encryption / decryption, and trust in cloud  computing.  Network impact testing Network impact testing involves  measuring the qualitative and quantitative  performance of a deployed IoT application  in real network conditions. This can include  testing IoT devices for a combination of  network size, topology, and environment  conditions.  Performance and real-time testing This covers complex aspects like timing  analysis, load testing, real-time stream  analytics, and time-bound outputs, under  the extremes of data volume, velocity,  variety, and veracity.  End user application testing Includes the testing of all functional  and non-functional use cases of an IoT  application, which also includes user  experience and usability testing.  External Document © 2018 Infosys Limited

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 Infosys IoT Validation solution Infosys has developed a comprehensive  quality assurance (QA) strategy to handle  the unique requirements and challenges  associated with validating IoT applications.  The Infosys IoT Validation solution enables  testing with a combination of actual  devices, tools, and frameworks. In addition,  the Infosys IoT Test Framework provides  all the capabilities required to perform  functional validation, load simulation, and  security verification. It can easily integrate  with various IoT protocols and platforms,  thus providing interoperability. This is just  a glimpse of our capabilities, as we have  various tools and solutions that can be  leveraged to perform end-to-end testing  of IoT solutions. To find out more about  our IoT services, download the IoT testing  flyer here.   © 2018 Infosys Limited, Bengaluru, India. All Rights Reserved. Infosys believes the information in this document is accurate as of its publication date; such information is subject to change without notice. Infosys  acknowledges the proprietary rights of other companies to the trademarks, product names and such other intellectual property rights mentioned in this document. Except as expressly permitted, neither this  documentation nor any part of it may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, printing, photocopying, recording or otherwise, without the  prior permission of Infosys Limited and/ or any named intellectual property rights holders under this document.  For more information, contact askus@infosys.com Infosys.com | NYSE: INFY Stay Connected

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# Infosys POV
Title: PowerPoint Presentation
Author: Chloe Hibbert
Format: PDF 1.7

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 An Infosys Consulting Perspective Led by Olu Adegoke Consulting@Infosys.com | InfosysConsultingInsights.com The Future of Telco a four-part series

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 Beyond connectivity | © 2023 Infosys Consulting THE FUTURE OF  TELCO In this series, experts outline the four key  trends influencing and driving telecom  companies to the future.  Contents Part 1: Beyond connectivity: How  communication service providers can  monetize emerging B2B growth opportunities By Ravi Jayanthi  Ravi Jayanthi explains how telcos can best  monetize emerging growth opportunities in the  enterprise segment to remain competitive.  Part 2: The new telecom operating model:  Exponential growth opportunities By Alastair Birt Alastair Birt outlines why telecom companies  need to creatively dismantle the old ways and rise  from the ashes stronger, wise, and ready to seize  the future within their grasp.  Part 3: Telecoms: Why talent is the next  frontier for competitive advantage By Mick Burn and Stanislava Gaspar (née  Stoyanova) Mick Burn and Stanislava Gaspar explain how  radical transformation will affect HR strategy and  why betting on people is essential for success.  Part 4: Getting value from AI&A in the telecom  industry By James Thornhill It’s clear that the digital future will be driven by  Artificial Intelligence and Automation (AI&A) – especially in the telecom industry. James  Thornhill outlines AI&A opportunities and why  CSPs should ensure they have the right strategic  initiatives to grow.  Contributors: Olu Adegoke and Gaurav Kapoor Editor: Vica Granville 2

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 BEYOND CONNECTIVITY: HOW COMMUNICATION SERVICE  PROVIDERS CAN MONETIZE B2B GROWTH OPPORTUNITIES Beyond connectivity | © 2023 Infosys Consulting 4 Companies looking to operate normally today are facing insurmountable obstacles. High  geopolitical risks, economic uncertainty, labor shortages, and the realignment of supply chains  have forced industries to adapt and readjust almost immediately post-pandemic.<|endoftext|>The digital transformation and workforce reinvention required are reshaping demand for  information and communications technology (ICT) solutions and are utilizing the rapid evolution  of advanced technologies. According to Ericsson and Arthur D. Little, these new digitalization  opportunities are providing telecom companies with a significant opportunity in the B2B market  to capitalize on the 35% topline growth potential.  But what is needed to grow the B2B telecommunication market and what hurdles do  telcos need to overcome to grasp this potential?

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 Understanding the potential Before outlining how telcos can succeed in  the B2B market, it’s important to understand  where the opportunity is coming from.  Due to turbulent market forces, many  organizations are already at various stages  of:  • Developing new technological solutions • Improving service delivery • Increasing operational efficiency • Reducing cost • Gaining competitive advantage • Meeting rising customer expectations  Such digital transformations require ICT  solutions that provide integrated connectivity,  security for digitally connected devices, data,  and applications.  In addition, the rapid evolution of cloud,  artificial intelligence (AI), machine learning  (ML), and automation technologies are  bringing incredible value to businesses.  Companies can now aim to provide  employees and customers with secure, high  speed, reliable, low latency mobile networks  with edge computing capabilities.   However, many telecom companies are  failing to seize the opportunity presented  before them. They’re losing out to forward  thinking hyperscale cloud providers (HCP) by  relying on outdated systems, processes, and  operating models.  What hurdles will telcos need to overcome?  To ensure future growth, leaders will need to repackage the intrinsic value of the network with  innovative ways to bring extrinsic value to customers. As such, organizations must expand the  communication service providers (CSP) operating model from a network to a flexible end-to- end business platform provider. This will expand their role in the value-chain.  Beyond connectivity | © 2023 Infosys Consulting 5

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 But to do that, telecom companies will need  to must overcome several obstacles:   • The lack of industry domain knowledge that’s essential for innovation at the edge  and value-based selling • The lack of necessary relationships to  influence enterprises on their digitalization  journey. Many telcos are, therefore,  missing out on business-level (vs.  connectivity-level) conversations to create  relevancy • The absence of skills necessary to  implement and adopt use cases for  enterprises. Adoption is made more  complex as there’s a lack of subject matter  experts focused on domains and customer  ecosystems  • Many telcos aren’t replicating use cases  across enterprises, and therefore fail to  amortize the transformation investment • There’s an uneven distribution of  spectrum assets among CSPs that is  hindering large-scale deployment of 5G,  and thereby hampering use case adoption • Companies are failing to embrace open- source technologies. This prevents them  from accelerating innovation and reducing  costs • Competition from hyperscalers. Their  ability to spend the same on telecom  infrastructure services as Tier-1 CSPs has  enabled them to expand their involvement  in the telecom industry/value chain. This  includes edge computing and private  wireless networks  How can telecoms capitalize on the B2B market opportunity  and overcome these challenges?  Beyond connectivity | © 2023 Infosys Consulting To cater to new segments and opportunity areas telcos must expand their role. Organizations  must transform from simply being a network provider to becoming a service enabler and creator.  This is a complex undertaking to do alone. To be successful, CSPs need to show considerable  flexibility in how they deploy innovative business models. This includes working with HCPs and  service integrators (SIs) to secure a stake in the B2B market.  Technology works better when it’s built together with partners. Especially, when dealing with a  complex ecosystem across a gamut of customer segments, as well as growth areas with  varying business outcomes, capabilities, and systems of differentiation. Establishing a rich  partnership ecosystem will help both market leaders and aspirants to build a complete portfolio  and confidently embark on a journey of scale.<|endoftext|>6

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 Overcoming the various challenges to transform current ways of working isn’t an easy  undertaking. But there are four crucial factors that should be considered in your service  strategy and go-to-market (GTM) playbook to help. These are:  Go-to-market playbook for telecoms to capitalize on the B2B  market opportunity 7 Beyond connectivity | © 2023 Infosys Consulting B2B2X revenue Create extrinsic value with an outside-in approach  to enterpirse customers.  Innovation/GTM Build a strong partner ecosystem and focus on  value-based selling.  Adoption Simplify use cases for customer adoption and  integrate (E2E) their ecosystem within your  business.  Scale Industrialize network engineering and operations – essential to scale at large.

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 Key takeaways Telcos can no longer justify network  investments for cost efficiency and  competitive parity alone. They must  focus on creating a path for growth,  leveraging technology to shape  problems that drive innovation and  differentiation.  They need to bring what’s next to  life and start thinking outside of the  box, building a marketplace that will  serve growth. That’s the story of  scale that telecom companies need  to prioritize in partnership with SIs  and HCPs. With boots on the  ground, such partners are key to  driving growth both through GTM  and building out intellectual property.<|endoftext|>This will be a significant  undertaking. As such, it must be  executed in waves to align with  market readiness. It will require  CXOs to commit to innovation,  industry collaboration, and long-term  investments. With a growth potential  of 35% to the topline through  network enabled digitalization, the  potential returns are worth the risk.<|endoftext|>8 Beyond connectivity | © 2023 Infosys Consulting

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 THE NEW TELECOM OPERATING MODEL: EXPONENTIAL  GROWTH OPPORTUNITIES Most telecom companies claim to be well on their way to making the shift


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 from communication  service providers (CSPs) to digital service providers (DSPs). They draw attention to simplified  portfolios, improved customer experiences, a shift to digital channels, and higher NPS as  evidence of success.<|endoftext|>However, when comparing financial performance over the last decade, the telecoms sector falls  far short, as compared to the ‘double-digit’ compound growth rates of hyperscalers, OTT  players, and software-as-a-service (SAAS) platform disrupters.  New operating model | © 2023 Infosys Consulting 10

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 The case for change and the future of telco The telecom industry’s earlier period of stellar growth depended on three factors:  1. The competitive advantage of owning the underlying network.  2. Regional presence, and cultural affinity with their target customers.<|endoftext|>3. Underserved generation of customers, with limited competition.<|endoftext|>Today, it’s a very different story, as next-generation customers continue to shift spend and  loyalty to whichever brand provides the most utility, experience, and value. On the other hand,  research shows that customers are ready and willing to let telecom providers help them in many  other areas of their life.  Many of these aren’t small, insignificant  areas, nor is this list exhaustive. These are  large addressable markets, with many use  cases, and potential partners. So, why is it  proving so difficult?  Existing telco products infiltrate deeply into  customer’s lives, both work and play. The  largest operators have massive customer  and business scale, an existing platform for  billing, and service management. They also  have a real-time stream of interaction,  content, and location data to mine for  opportunities and enable personalization of  any service launched.<|endoftext|>But, when it comes to building new  businesses, telecom operators have  historically struggled to scale adjacent  business opportunities. A 2021 survey of  telco CXOs highlighted corporate culture as  the overarching problem, with any new  business hampered by:  • Cumbersome corporate processes • A lack of buy-in from senior management  • And pressure for short-term results in a  business where legacy network-margins  create an inertia to take risks Telcos now find themselves at a crossroads.  For the next decade, they can either tweak  their business and operating models to  achieve incremental gains or make the bold  choice to reinvent their value-creation  formula across a larger set of use cases,  and, if possible, over a larger addressable  market.<|endoftext|>New operating model | © 2023 Infosys Consulting 11

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 The future: An ‘ecosystem orchestrator’ and platform partner The more complex something becomes, the more important it is to simplify. Revenues flow to  those who simplify “the new”. It goes to those who are able to reduce the friction of buying and  using by guiding customers through each stage of their journey – from first recognizing a need to  becoming wedded to a service.  Hyperscalers, OTT, and SAAS players have operated on the edge of this curve for the last 10  years, delivering great value to shareholders. We believe that the next generation of telco must  emulate these traits and embark on an ambitious organizational transformation: New operating model | © 2023 Infosys Consulting 12 Telecom companies need to become the first point of contact for customers when they want  innovation, education, and excellence across a much wider set of use cases. This will require a  significant shift in organizational brain, muscle, and talent.<|endoftext|>1. Partner with a broader set of successful growth companies Leverage and combine the strengths of other partners – many outside the established telco  ecosystem. At the same time, organizations should sprinkle their own differentiation and  creativity into each of the combined solutions they market. Such partnerships provide the  manpower, experience, and laser-focus needed to succeed at a task that would otherwise  be impossible to execute alone.<|endoftext|>2. Adopt and emulate a SAAS-centric growth playbook Transform how you develop and sell products, and the way your people and digital platforms  engage with customers at every stage of the lifecycle. This means continually scanning and  embedding the most successful SAAS strategies and tactics into your operating model.<|endoftext|>3. Transform into an ‘orchestrator of value’ in the connectivity ecosystem  In other words, build the capabilities to operate above this layer of software, service  partners, and global networks. This will require developing into a bi-modal enterprise – one  which knows both when it’s best to ‘own’ the relationship with the customer, and when it’s  not, focusing on making partners successful instead.<|endoftext|>4. Optimize the use of customer and partner data...<|endoftext|>…to target, personalize, and deliver a broader set of value-add services for customers.  Forget “quad-play” and 30+ segments, the future is ‘mega-play’ to every single unique  customer. To achieve this, telcos need to build a scalable, partner-curated set of products  and services. They also need to hyper-personalize the offer and the delivery into the  hands/devices of every individual, household, and community.  5. Consciously reconstruct the enterprise into a use case driven organization This should be equipped with a lean core which provides the scalable, personalized digital  platform and rich database on which to build out their business. At the same time, it should  free the outer ring to aggressively chase products and service-markets which fit within their  curated partner ecosystem.<|endoftext|>

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 In recent years, we’ve seen more and more evidence that telcos can successfully incubate  new products and services, achieving healthy top line growth and M&A activity around these  new service models and business units.<|endoftext|>The future is already being created 13 New operating model | © 2023 Infosys Consulting

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 Opportunity ahead: Telco for good Emboldened by this success, we  believe that the telecoms industry is  now entering a new phase of  transformation: From DSP to  ecosystem orchestrators. As such,  there’ll be a wave of new products,  service models, and partnerships  across the entire ecosystem, fueled by broader societal change. This is  just the beginning.   Connectivity is the central nervous  system of our society. Industries will  experience unprecedented  technological change in the next 10  years, as AI, 5G, Blockchain,  AR/VR, Web3, and a convergence  of far-reaching technologies take  hold and reshape the way we all live  and work.  Market success for the telecom  industry will rely on many factors,  including the five areas of  transformation mentioned earlier in  the article. Not forgetting, attracting,  and retaining the right partnerships  and talent to transform,  unencumbered by the past.  14 New operating model | © 2023 Infosys Consulting

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 TELECOMS: WHY TALENT IS THE NEXT FRONTIER FOR  COMPETITIVE ADVANTAGE  Talent for competitive advantage | © 2023 Infosys Consulting The fundamental shift in the telecoms industry from being communication service providers  (CSPs) to becoming ecosystem orchestrators presents an interesting challenge to CHROs. It  requires them to innovate and drive a future-fit HR strategy, acting as key enablers to  successful business evolution and growth.  The ever-changing digital economy and unprecedented levels of disruption have made it  imperative for telecom companies to transform. HR has a critical role to play here, empowering  telcos to deliver the overall vision through people.  Empower growth through talented people Recent Gartner research shows that the workforce is one of the Top 3 priorities for CEOs in  2023. In fact, 50% of HR leaders expect increased talent competition over the next six  months and 46% anticipate attrition will remain high for in-demand roles in 2023.<|endoftext|>The shift to becoming ecosystem orchestrators, the need to adopt an ‘AI first’ vision, and the  drive to maximize B2B market potential have set new skills requirements for the future of  telco. The industry is becoming increasingly attractive to top talent who would like to work for  businesses that foster innovation and digital excellence. However, there is a shortage of  talent and strong market competition for critical future skills and subject matter expertise.  This raises the bar higher for HR leaders to re-imagine the employee value proposition  (EVP) and the end-to-end employee experience. They need to effectively find new ways to  attract and retain talent and harness future skills, while helping facilitate business changes.  As such, it’s essential for HR to evolve towards delivering advanced capabilities and  enhanced AI-enabled digital experiences.  16


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 1. Human-centered employee value proposition In the post-pandemic world of work, there’s been a strong shift towards ‘human-centered’ EVP  and culture, and flexible working arrangements. People are now seeking to gain emotional  value in their employment, which means to feel understood, cared for, invested in,  empowered, and valued.  Alongside commitments for sustainability, net-zero ambitions, and aspirations for green  operations, employees need to feel that the purpose of the organization they work for  resonates with them. Telcos are uniquely challenged and positioned to focus on sustainable  growth and minimize their carbon footprint. Digitization, 5G, Internet of Things (IoT), and cloud  computing are key to achieving these ambitions, and the industry has been making significant  steps to reduce the impact on the environment.  In addition, the strong business focus on diversity, equity, and inclusion is allowing companies  to harness the power of diverse talent and unleash creativity. For example, tackling the  challenge of social mobility or providing reasonable adjustments to people with disabilities will  expand talent pools and further strengthen the employer brand.<|endoftext|>Such a strong value proposition can go a long way in retaining employees, thereby addressing  some of the industry’s high attrition rates while also reducing the costs to recruit – key  challenges impacting the bottom lines for most telcos today.  2. Employee experience and digital excellence in HR In recent years, employee experience has been at the forefront of HR priorities and continues  to be critical for winning the competition for talent.  For telecom companies, customer experience is at the heart of the business. As such, they  utilize ongoing transformation activities which focus on truly personalizing the experience and  leveraging AI insights in real-time to address fundamental needs. The same approach is to be  consistently applied when re-imagining the employee experience and driving digital excellence  in HR.  17 Talent for competitive advantage | © 2023 Infosys Consulting

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 18 Talent for competitive advantage | © 2023 Infosys Consulting DIGITAL Digitizing workforce products to  exceed employee expectations  and improve productivity by  utilizing human-centered design  methodologies and best-in-class  technology.  EMOTIONAL Placing employee listening at the  core, gaining insights to provide  employees with a meaningful  purpose to work. Whilst, at the  same time, actively promoting a  cohesive emotional environment  that considers mental health and  wellbeing.  PHYSICAL Recognizing unique working  styles and collaboration demands  to promote productivity and  innovation. And transforming  office buildings to smart and  connected environments primed  for hybrid working.  Providing efficient, seamless, and appealing experiences across the employee lifecycle and the  significant employee moments are key differentiators from competitors.<|endoftext|>The three pillars of successful employee experience strategy are: Digital, emotional, and  physical.<|endoftext|>3. Skills and capabilities for the future To support the strategic business agenda for growth, HR leaders in the telecom industry have  been building foundations to define critical future skills, assess potential gaps, and develop  strategies to effectively address the talent shortages across new skills in demand.  The adoption of new AI-powered technologies has been a critical lever to accelerate the skills  transformation, leverage both external and internal talent pools, and develop in-house future-fit  skills and capabilities by re- and up-skilling the existing workforce.  AI-driven talent marketplaces help embrace agile talent mobility, breaking down barriers to  internal moves and career progression. AI-assisted learning provides consumer-grade  personalized learning experiences, while targeting organizational skills gaps. It also helps  employees discover new learning opportunities that support career progression whilst helping  build internal talent pipelines.<|endoftext|>The in-house training capabilities, targeted talent pools, and ongoing lifelong learning  opportunities optimize the re- and up-skilling process. As such, it saves money in the long- term and futureproofs both people and companies.

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 4. Smart AI can empower and complement frontline workers Whether it’s a technician on their way to a customer or a call center rep dealing with a  complaint, there are many factors that AI can help telcos track and streamline to improve  employee wellbeing.  These smart tools use AI and machine learning to improve shift allocation, optimally  determining who is needed when and for how long. This makes work flexible and fits into  today’s desired hybrid working model, as well as adjusting staff misalignment in real-time.  It can also identify what caused delays, helping telcos keep their customers promptly  informed and implement required steps for improvement.  In addition, AI-based smart coaching can provide training pre- and post-work, creating  daily and weekly team reports for training and recognition. Such systems have improved  workforce management by 90%, reducing complaints and creating an agile and  encouraging work environment.  The future of smart AI in the telco space is immense and has the potential to significantly  enrich frontline workers and drive operational efficiencies for those that embrace emerging  tech opportunities to the fullest.<|endoftext|>19 Talent for competitive advantage | © 2023 Infosys Consulting

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 Key takeaways The telecoms industry is on a  disruptive and creative growth  trajectory, and CHROs have the  leading role to empower the  transformation by focusing on the  following strategic areas: • Foster consumer-grade employee  experience and well-being, and  support diverse workforce • Become an employer of choice  and magnet for critical talent • Ensure availability of future-fit  skills and develop strong internal  talent pools • Digitize HR and adopt agile ways  of working  • Facilitate change and help shape  the right business operating  model We believe that the human element  is the true differentiator for success.  By drawing employees together to  tackle problems in new ways, it’s  possible to transform organizations  from the inside out, creating tangible  change for a more sustainable  future.  20 Talent for competitive advantage | © 2023 Infosys Consulting

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 GETTING VALUE FROM AI&A IN THE TELECOM INDUSTRY In this series we’ve already mentioned the difficulties the telecom industry has had in remaining  competitive. We explained how historic poor customer service, complex business operations,  and financial pressure have negatively impacted the industry’s ability to compete. This is  especially true when looking at the track record of communication service providers (CSPs) in  comparison with hyperscalers and over-the-top providers who excel in the experience they offer.  The good news is that Artificial Intelligence and Automation (AI&A) can play a significant role in  helping telcos gain the competitive edge they’ve been seeking. This is something that many  telecom companies have already understood, as the global AI market size in the industry is  projected to reach 14.9 billion US dollars by 2027.  The problem is investing for investment’s sake, risking a poor return on investment (ROI) and  losing the competitive potential AI&A opportunities promise. So how can CSPs invest wisely  to best utilize AI&A for future growth? How can AI&A improve CSP operations?  Before answering how best to invest, it’s important to understand how AI&A can help telcos  overcome the challenges they currently face. There are four key opportunity areas where AI&A  can be applied: 1. Digital customer engagement: AI&A can improve the customer experience through direct  engagement, e.g., chat. It can also drive hyper-personalization, targeting each customer  directly and effectively.  2. Network transformation: Network operations and AIOps can be optimized from process  automation, machine learning, and reasoning to zero-touch predictive maintenance/self- healing. These technologies can also support network rollout and field force optimization.  3. Lean telco operations: Multiple AI&A use cases can be used in lead-to-cash and service  assurance. Business and operations support systems (BSS/OSS), as well as supply chain  management can also be augmented.  4. Revenue growth: B2B services are optimized due to real-time data insights and other  advanced technologies. Overall, sales and services are also optimized.<|endoftext|>22 Value from AI&A | © 2023 Infosys Consulting

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 Clearly, each opportunity area presents many applications for AI&A, but where does a CSP  place its bets? There are several factors that make this tricky.<|endoftext|>On the one hand, most CSP value streams will yield benefits – for example, both customer- facing lead-to-cash and operational record-to-analyze offer happy hunting grounds. Within  each value stream there are a range of addressable opportunities, both straightforward and  complex with differing ROIs, from simple data entry to complex back-office virtual agents.  On the other hand, a wide variety of new and established technologies are


Continue # Infosys POV
 crowding the  market, which can be applied individually or in concert. For example, workflow, decision  management, and robotic process automation, through to emerging Generative AI.  Moreover, stakeholders have differing levels of enthusiasm ranging from outright resistance  and box ticking to strong advocates – possibly depending on certain technology types or  vendors. This makes it difficult for CSPs to understand which technologies would best suit  their operations and business goals.<|endoftext|>AI&A maturity and governance models also abound, often themselves siloed, and which are  required to contend with new ethical AI regulation. Some applications of AI may seem  appealing but expose the enterprise to risks like recruiting or the management of critical  network infrastructure.  The benefits that some of these technologies provide will only be felt in the long-term. For  instance, curating quality data is essential to most higher value AI use cases but can be highly  complex, taking years.  Finally, acquiring, developing, and retaining AI skills will remain challenging for the  foreseeable future. Finding the right North Star, organization, and roles to help identify, rollout  and operate AI&A is also a challenge.<|endoftext|>It’s therefore hard to have visibility and make informed decisions. Investment can be applied in  an ad hoc fashion, the easy opportunities missed or held up, and the more difficult but  interesting overserved. By over-strategizing and governing, you can risk accumulating high  overheads, with local enthusiasm and innovation stifled. Too little planning and control leads  to losing precious budget and focusing on a plethora of local initiatives and technologies,  driven by the enthusiastic, with unknown returns.  Why is it difficult to know how best to invest?  23 Value from AI&A | © 2023 Infosys Consulting

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 CSPs can start to improve their ROI by focusing on the following areas:  Where do CSPs spend to get the most return on investment?  1. Make an inventory of your investments by value stream Depending on the model used (e.g., TM Forum, APQC) there are around 25-30 value streams  in a CSP, more if separated by market segments. Most should see a measure of investment,  however, attention should be focused on business-critical value streams where AI&A can add  most value.  CSP strategies vary but most customer-facing value streams such as lead-to-cash should be  high-focus, as well as key operational areas such as service and network planning,  assurance, and lifecycle management.  Opinions on relative levels of investment may also vary, but there should be visibility and  direction. Targeted improvements to value stream business outcomes in the form of business  critical KPIs can provide achievable North Stars for programs.  24 Value from AI&A | © 2023 Infosys Consulting

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 2. Use a range of technology There’s no single killer technology, each macro pain point will have a subset of AI&A  technologies that can be considered. If potential is being address, the organization should see: • A range of simple to complex challenges being addressed across most value streams • The highest business impact from the biggest investment in the value stream • A range of established and new technologies being used  25 Value from AI&A | © 2023 Infosys Consulting 3. Check pain points In CSPs, each value stream has relatively well-known macro pain points where AI&A can be  applied, some straightforward – e.g., automation of swivel chair data entry between and  within BSS and OSS systems – others higher value but more complex to address. The latter  include recommending an optimum price point or guiding back-office staff through  labyrinthian business rules for complex B2B products.

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 4. Direct the investment Taking this AI&A portfolio view can provide a framework to direct investment to the most  appropriate areas for a CSP in the early stages of exploiting AI&A, or to augment more mature  strategies and governance.  To do this successfully, ask yourself the following questions: 26 Value from AI&A | © 2023 Infosys Consulting If AI&A is being exploited well, then a CSP should expect to see initiatives in certain areas, as well  as a range of tactical and strategic endeavors. For example, in lead-to-cash a range of  investments should be seen across all areas of the value stream.<|endoftext|>Are we addressing the low hanging fruit?  Is investment being skewed toward an area where the enthusiasts are,  as opposed to where most value can be gained? Are we avoiding the difficult areas that are strategically important? Are we ignoring certain technology types, or applying others where there  are better options?  Are we chasing too many fads or ignoring great innovations?

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 27 Value from AI&A | © 2023 Infosys Consulting This can also be further developed to construct an end-to-end view of AI&A initiatives and their  aggregated impacts on a value stream performance. This then raises further questions: Are initiatives creating siloed improvements but not impacting key end- to-end metrics, or are the overall impacts unknown? Has the aggregated customer and employee experience been  considered to create value? Are we consolidating efforts (data, process, tools) at least within or  across related value streams e.g., lead-to-cash, request-to-change,  service assurance? What is the balance between creating quality data architectures vs.  speed of execution and business benefit, especially for ‘low hanging  fruit’? CSPs should expect their internal capabilities or external partners in AI&A to proactively seek to  create such views. They can also expect these stakeholders to come to the table with points of  view on where investment should be made – basing investment on generic discovery phases  where consultants or internal AI&A subject matter experts learn their industry is questionable.

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 Key takeaways Prioritize, manage, and track activity  through a value stream lens  applying widely understood  knowledge of pain points. This will  ensure appropriate coverage using  a range of established and emerging  technology to manage risk and  achieve ROI.  28 Value from AI&A | © 2023 Infosys Consulting

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 MEET THE EXPERTS “The  lines  betw een  digita l and  physi cal  retail  will  conti nue  to  blur” MICK BURN Partner, Head of T&O EMEA Michael_Burn@infosys.com RAVI JAYANTHI Associate Partner, CMT Ravi.Jayanthi@infosys.com 29 ALASTAIR BIRT Associate Partner, CMT Alastair_Birt@infosys.com JAMES THORNHILL Associate Partner, CMT James.Thornhill@infosys.com GAURAV KAPOOR Associate Partner, CMT Gaurav_Kapoor01@infosys.com STANISLAVA GASPAR (née Stoyanova) Principal, T&O Stanislava.Gaspar@infosys.com OLU ADEGOKE Partner, Global Practice Head, CMT Olu.Adegoke@infosys.com

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 consulting@Infosys.com InfosysConsultingInsights.com LinkedIn: /company/infosysconsulting Twitter: @infosysconsltng About Infosys Consulting  Infosys Consulting is a global management consulting firm helping some of the world’s most recognizable brands  transform and innovate. Our consultants are industry experts that lead complex change agendas driven by disruptive  technology. With offices in 20 countries and backed by the power of the global Infosys brand, our teams help the C- suite navigate today’s digital landscape to win market share and create shareholder value for lasting competitive  advantage. To see our ideas in action, or to join a new type of consulting firm, visit us at  www.InfosysConsultingInsights.com.  For more information, contact consulting@infosys.com  © 2022 Infosys Limited, Bengaluru, India. All Rights Reserved. Infosys believes the information in this document is  accurate as of its publication date; such information is subject to change without notice. Infosys acknowledges the  proprietary rights of other companies to the trademarks, product names, and other such intellectual property rights  mentioned in this document. Except as expressly permitted, neither this document nor any part of it may be  reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, printed,  photocopied, recorded or otherwise, without the prior permission of Infosys Limited and/or any named intellectual  property rights holders under this document.

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# Infosys POV
Title: The synergy between AI and cloud transformation
Author: Infosys Consulting
Format: PDF 1.6

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 An Infosys Consulting Perspective By Wahid Sattar & Ross Oldbury Consulting@Infosys.com | InfosysConsultingInsights.com The synergy between AI  and cloud transformation How prepared are you for the future of work and  innovation?

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 The synergy between AI and cloud transformation | © 2023 Infosys Consulting 2 Introduction The exponential growth of data and the increasing complexity of business  operations have necessitated the adoption of cloud computing as a critical  enabler of digital transformation with spending on-end user cloud computing  services hitting a staggering $600 billion in 2023. In parallel, artificial intelligence  (AI) has emerged as a game-changer in the technology landscape with  spending in 2023 expected to hit between $160 billion to $400 billion and with it  transforming the way businesses operate and driving innovation across various  domains. This paper explores the relationship between AI and cloud  transformation, highlighting the synergies, strategies and benefits of their  integration, along with the key technologies that underpin their relationship.<|endoftext|>Joint spent on cloud computing  and AI could reach up to   $1 trillion by end of 2023.

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 The synergy between AI and cloud transformation | © 2023 Infosys Consulting 3 The emergence of AI and cloud computing AI and cloud computing have emerged as two of the most disruptive  technologies in recent years. While AI is transforming the way we process  data and automate tasks, cloud computing is enabling organizations to scale  and optimize their operations. The convergence of these two technologies has  created new possibilities for businesses to leverage data and gain insights,  streamline processes, and drive innovation.<|endoftext|>1.<|endoftext|>Natural Language Processing (NLP) and Chatbots: NLP is an AI  technology that allows machines to understand and interpret human  language. Chatbots are AI-powered applications that use NLP to interact  with users in a conversational manner. Together, NLP and chatbots are  enabling businesses to provide more personalized and efficient customer  service, while reducing the workload on human customer service  representatives. Think of Mondly: a chatbot transforming how people  learn languages combining innovative NLP, Chatbot and NPC (non- playable character) features. In April 2023, OpenAI, the creator behind  the much-publicized ChatGPT, recently closed a $300 million share sale,  valuing the company at nearly $30 billion.<|endoftext|>2.<|endoftext|>AIOps, or Artificial Intelligence for IT Operations, is an emerging  technology that uses machine learning algorithms and advanced analytics  to automate and improve IT operations. This technology is gaining  popularity among companies as it enables them to proactively detect and  resolve issues before they impact business operations. Deploying AIOps  involves several steps. Firstly, companies need to collect large volumes  of IT infrastructure data, including logs, metrics, and events, from their  monitoring tools. Next, this data is processed and analyzed using  machine learning algorithms that can recognize patterns and identify  anomalies.<|endoftext|>

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 These insights are then used to detect and isolate problems in real-time and  provide proactive defense against. A major player in this area is Broadcom,  who completed their acquisition of VMWare, the largest cloud computing  and virtualization acquisition to-date.<|endoftext|>3. Edge-to-cloud: Edge Computing is a cloud computing technology that  enables data processing and analysis to be done at the edge of the network  or closer to the source of the data such as SmartMeters. By leveraging  edge computing, businesses can reduce latency and improve the  performance of cloud-based applications, while also improving data security  and reducing bandwidth costs. The market is expected to grow to over $50  billion (TechTarget) 4. Cloud-based IoT platforms: Cloud-based Internet of Things (IoT) platforms  are enabling businesses to connect and manage IoT devices and sensors  from a centralized location. By leveraging the power of cloud computing  and AI, these platforms are enabling businesses to gain insights into IoT  data and automate IoT-based tasks, such as predictive maintenance.<|endoftext|>5. Cloud-based collaboration: Cloud-based collaboration tools, such as  Microsoft Teams and Slack, are enabling businesses to improve  communication and teamwork across the organization. By providing a  centralized platform for communication and collaboration, these tools are  helping to streamline business operations and improve productivity.  Microsoft are currently testing their flagship AI collaboration offering MS Co- pilot which is built open OpenAi’s GPT4 Large Language Model (LLM) – sure to be game-changer.<|endoftext|>The synergy between AI and cloud transformation | © 2023 Infosys Consulting 4

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 Examples of AI and cloud transformation in various industries The synergy between AI and cloud transformation | © 2023 Infosys Consulting 5 Healthcare The healthcare industry has been leveraging the synergy between AI  and cloud transformation to improve patient outcomes and reduce  costs. AI-enabled cloud services are being used to develop predictive  models to identify patients who are at risk of developing chronic  diseases, detect diseases at an early stage, and develop personalized  treatment plans. Cloud computing is also enabling healthcare providers  to store, manage and analyze large volumes of patient data, making it  easier to identify patterns and trends, and make informed decisions.  The global healthcare cloud infrastructure spend is expected to reach  over $60 Billion by end of 2023 and analysts estimating the industry  could save ~$200 Billion from further AI investment.  Manufacturing  The manufacturing industry has been using AI-enabled cloud services  to improve operational efficiency, reduce downtime and improve  product quality, spending is expected to increase to over $350 billion  on cloud infrastructure with AI expected to hit ~$15 billion. AI  algorithms are being used to analyze large volumes of production data  to identify patterns and anomalies, enabling manufacturers to predict  machine failures and schedule maintenance proactively. Cloud  computing is also being used to store and manage production data,  making it easier to analyze and optimize operations, and enable  predictive maintenance.<|endoftext|>

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 The synergy between AI and cloud transformation | © 2023 Infosys Consulting 6 Financial services The financial services industry is using AI and cloud  computing to improve risk management, reduce fraud, and  improve customer experience. AI-enabled services are  being used to develop predictive models to identify potential  fraud, detect anomalies, and improve fraud prevention – it is  estimated banks saved over 860 Million Hours with use of  chatbots (Forbes, DataBank). Cloud computing is also  being used to store and manage transaction data, making it  easier to analyze customer behavior and provide  personalized recommendations.  Retail  The retail industry is leveraging the synergy between AI  and cloud computing to improve customer experience and  optimize operations. AI-enabled services are being used to  develop personalized recommendations, enable visual  search, and optimize supply chain management. Cloud  computing is also being used to store and manage  customer data, making it easier to analyze behavior and  provide personalized recommendations; expected spend to  reach over $30 Billion coupled with AI innovations in  Metaverse, personalization, ethics and delivery expected to  significantly transform the customer experience.

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 The synergy between AI and cloud transformation | © 2023 Infosys Consulting 7 Cloud strategy  with AI and innovation As businesses continue to leverage the power of cloud computing to  streamline operations, reduce costs, and drive innovation, the importance of  having a cloud strategy in place has become increasingly clear.<|endoftext|>One of the key drivers of cloud strategy is cloud innovation which refers to the  development and deployment of new and cloud-based technologies, services,  and applications that can help businesses to stay competitive and drive  growth. By leveraging the latest advances in cloud computing, businesses can  gain a competitive edge by being able to rapidly innovate, scale, and adapt to  changing market conditions.<|endoftext|>The integration of cloud computing and artificial intelligence (AI) has become  a major focus for cloud innovation in recent years. By leveraging AI  technologies such as machine learning, natural language processing, and  computer vision, businesses can gain insights and automate tasks that were  once impossible to achieve at scale. For example, by using AI-enabled cloud  services, businesses can automate routine tasks such as data entry,  processing, and analysis, freeing up valuable time and resources that can be  used to focus on higher-value activities.<|endoftext|>Cloud innovation is also driving the development of new and cloud-based  services and applications that can help businesses to drive growth and stay  competitive. For example, cloud-based analytics services are helping  businesses to gain insights into customer behavior, while cloud-based  collaboration tools are improving communication and teamwork across the  organization. Cloud-based services are also helping businesses to streamline  their operations,


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 reduce costs, and improve efficiency.<|endoftext|>

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 The synergy between AI and cloud transformation | © 2023 Infosys Consulting 8 However, as businesses continue to embrace cloud innovation, they must also  be aware of the risks and challenges associated with cloud adoption. These  can include issues such as data privacy and security, vendor lock-in, and the  need for skilled personnel to manage cloud operations but in the absence of a  ready-made skilled workforce, organizations will need to put the right platforms  and processes in to develop and train their workforce to manage these  technologies effectively. To mitigate these risks, businesses need to develop a  comprehensive cloud strategy that addresses these challenges and ensures  that they are well-equipped to handle them.<|endoftext|>What’s next? The synergy between AI and cloud transformation is transforming the way  businesses operate and drive innovation across various domains. The key  technologies that underpin this relationship, including machine learning,  natural language processing, cloud infrastructure, and edge computing, are  enabling businesses to leverage data and gain insights, streamline processes,  and drive innovation. AI-enabled cloud services are helping businesses to  extract insights and automate tasks, making it easier to scale operations and  drive innovation.   By leveraging the latest advances in cloud computing and AI, businesses can  gain a competitive edge by being able to rapidly innovate, scale, and adapt to  changing market conditions. However, to succeed in the cloud era, businesses  must also develop a comprehensive cloud strategy that addresses the risks,  challenges, regulatory and geographical requirements associated with cloud  adoption and ensures that they are well-positioned to achieve their goals and  objectives.<|endoftext|>At Infosys Consulting, we help our clients navigate the world of AI  and Cloud transformation, let us help you Navigate Your Next.<|endoftext|>

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 MEET THE EXPERTS Ross Oldbury Associate Partner – CIO Advisory Practice.  Ross has over 25 years of Enterprise IT experience. He started with roles  in Engineering and Infrastructure, then moved into Strategic Cloud  Consultancy on Azure and AWS. More recently, Ross has focused on  complex cloud transformations and Alliances Partner Networks.<|endoftext|>Ross.Oldbury@infosysconsulting.com Wahid Sattar Senior Principal – CIO Advisory Practice With over 15 years’ experience, Wahid is  pragmatic business  transformation and technology enablement specialist who delivers across  the CIO, CTO and Digital spectrum.<|endoftext|>Wahid.Sattar@infosysconsulting.com The synergy between AI and cloud transformation | © 2023 Infosys Consulting 9

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 consulting@Infosys.com InfosysConsultingInsights.com LinkedIn: /company/infosysconsulting Twitter: @infosysconsltng About Infosys Consulting  Infosys Consulting is a global management consulting firm helping some of the world’s most recognizable brands  transform and innovate. Our consultants are industry experts that lead complex change agendas driven by disruptive  technology. With offices in 20 countries and backed by the power of the global Infosys brand, our teams help the C- suite navigate today’s digital landscape to win market share and create shareholder value for lasting competitive  advantage. To see our ideas in action, or to join a new type of consulting firm, visit us at  www.InfosysConsultingInsights.com.  For more information, contact consulting@infosys.com  © 2023 Infosys Limited, Bengaluru, India. All Rights Reserved. Infosys believes the information in this document is  accurate as of its publication date; such information is subject to change without notice. Infosys acknowledges the  proprietary rights of other companies to the trademarks, product names, and other such intellectual property rights  mentioned in this document. Except as expressly permitted, neither this document nor any part of it may be  reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, printed,  photocopied, recorded or otherwise, without the prior permission of Infosys Limited and/or any named intellectual  property rights holders under this document.

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# Infosys POV
Title: Thriving in the Post-Covid Insurance Growth
Author: Infosys Consulting
Format: PDF 1.7

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 An Infosys Consulting Perspective By Aaro Kauppinen, Sagar Roongta, and Jitin Sharma Consulting@Infosys.com | InfosysConsultingInsights.com THRIVING IN THE  POST-COVID  INSURANCE  GROWTH Insurance in Emerging South-East Asia

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 CONTENTS 2 1.<|endoftext|>Introduction 2.<|endoftext|>Operating Environment Changes 3.<|endoftext|>Changed Consumer Preferences 4.<|endoftext|>Succeeding in the Next Normal 5.<|endoftext|>Recommendations for Insurers Thriving in the Post-Covid Insurance Growth © 2023 Infosys Consulting

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 Successful insurers gain market share through CX  and personalization Emerging South-East Asian markets are seeing  tremendous growth in insurance. We expect  +9-11% Gross Written Premiums (GWP) growth  year-on-year until 2025 across the region,  contributing to incremental 34-40 billion USD  in GWP. This is much welcomed after the  COVID induced setback. Despite COVID and  other regionally impacting headwinds like  China’s extended economic slowdown or war in  Ukraine, several insurers have been able to  grow their premium income through this  tumultuous period.<|endoftext|>Our analysis of the success stories in the region  highlights three high-impact opportunities for  insurers to grow at a market-beating rate:  personalized customer experience, distribution,  and the ecosystem, and lastly, product  innovation. In addition to the three high-impact  opportunities, we identified several other  opportunities to improve their market position.<|endoftext|>INTRODUCTION 1 2 3 Personalized Customer  Experience Distribution and Ecosystem Product Innovation Other Opportunities ✓ Scenario-based Business Planning ✓ Growth Market Investments ✓ Tailored Pricing and Commercial Excellence ✓ Product Portfolio Rationalization ✓ Operational Efficiency ✓ AI and Analytical Customer Models ✓ Wearables and the Internet of Things Thriving in the Post-Covid  Insurance Growth © 2023 Infosys Consulting 3 What should insurers in South-East Asia do  to reap benefits from the  post-COVID growth momentum?

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 INTRODUCTION This point of view is structured into 4 chapters. First, we explore the macro-level operating  environment impacts of COVID to insurance and apply a driver-based model to forecast insurance  growth in the region. Second, we summarize the changed consumer preferences towards  insurance. Third, we highlight key success stories of insurers that were able to beat the market  throughout this tumultuous period. And in our Fourth chapter, we summarize all the key learnings  how insurers could accelerate their growth in the post-COVID economy.<|endoftext|>Product innovation provided two growth opportunities for insurers:  response to market changes and increase in relevancy. The most agile  insurers were able to release new products covering COVID-related risks.  Financial and insurance literacy has not developed at the rate of digital  technology adoption; targeted, customer-friendly products have been a  success driver for insurers to penetrate the previously uninsured  segments.<|endoftext|>Distribution and sales are still largely driven using agency and broker   channels in the region. The individuals still want the personal contact to  understand the relatively complex insurance products. Supporting  agents and brokers with digital tools and training, and therefore enabling  the digital customer experience through an intermediary is a major  growth driver.  Ecosystem participation, including bancassurance, is prevalent through  the region. Providing the right offers and tools for the right partners and  through the right ecosystems is the key for growth.<|endoftext|>Personalized customer experience is a digital and analytics- driven approach to increase the insurance income, GWP, customer  satisfaction, and cost-to-income ratio. Targeted and tailored messaging  from marketing, through sales, underwriting, claims and the rest of the  customer journey has proven its value in the region. Emerging South- East Asia is generally favorable in sharing their data for personalized  experiences and they have adopted mobile and digital technologies to  match or even beat the developed APAC.<|endoftext|>Thriving in the Post-Covid Insurance Growth © 2023 Infosys Consulting 4

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 COVID-induced drop in economy was succeeded  with accelerated growth The immediate impact of COVID was the  restrictive government policies and reduction  of economic activity. The GDP for the emerging  South-East Asia dropped by 4.3% in 2020 from  2019 levels and recovered only the next year  2021. Despite the recovery with accelerated  GDP growth at 8.0%, the GDP will not reach  the pre-COVID growth trajectory before 2025.1 China has been the principal driver for  economic growth in Asia and its restrictive  COVID policies extended the depressed  economic growth. The sudden loosening of  China’s restrictions has resulted in a mixed  immediate response. We expect that eventually  the loosened policies will re-accelerate its  economic engine bringing growth for the entire  region. Furthermore, the war in Ukraine and  resulting sanctions has led to further reduction  of growth prospects; South-East Asia is  geographically relatively far away from the war,  but the impacts to trade, food and energy have  extended to the region.2 OPERATING ENVIRONMENT CHANGES 1,289 535 402 434 414 2,497 2,668 2,849 2,727 2,942 3,178 3,441 3,698 3,995 0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000 2017 2018 2019 2020 2021 2022 2023 2024 2025 Emerging South-East Asia GDP by country  Vietnam Malaysia Philippines Thailand Indonesia B USD +6.8% +8.0% +7.9% -4.3% The others include Myanmar, Cambodia and Laos.<|endoftext|>KEY ACTIONS FOR INSURERS ✓ Prepare for growth: SEA economies will  exceed pre-pandemic growth rates.<|endoftext|>✓ Use scenario-based business planning:  Discrete world events dramatically impact  the macro-economic environment.<|endoftext|>Thriving in the Post-Covid  Insurance Growth © 2023 Infosys Consulting 5

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 Out of the South-East Asian markets, we  analyzed Indonesia, Thailand, Malaysia,  Vietnam, and the Philippines which constitute  97% of the region’s GDP. The COVID-induced  financial hardship led to an overall reduced  spending on insurance. Pre-COVID, from 2016  to 2019, the total GWP had grown 7.1%  annually (in USD). From 2019 to 2020 it shrank  by 1.1%. Post-COVID, in 2021, the insurance  spending increased by 6.8%.3, 4, 5, 6, 7 We are forecasting the GWP to grow 9-11%  year-over-year until 2025 aligned with the  elevated GDP growth. Especially Vietnam and  Indonesia are expected to be the growth  drivers contributing ~50% of the total growth  of the 5 countries.  OPERATING ENVIRONMENT CHANGES KEY ACTIONS FOR INSURERS ✓ Focus on growth markets: Especially  Vietnam and Indonesia.<|endoftext|>✓ Proactive pricing: Inflation-driven growth  needs active management of policy prices;  adjust policy price review cadence to  match the increased claim costs and  market requirements.<|endoftext|>✓ Differentiated product adjustments:  Increase prices for premium products  which are less price-sensitive; reduce the  coverage and therefore the exposure of  basic products to alleviate price increase  pressure of highly price-sensitive customer  groups.<|endoftext|>16.9 19.1 18.6 19.4 17.5 17.3 14.0 14.1 15.6 16.6 16.8 17.9 5.1 5.2 5.6 5.8 6.0 8.3 22.1 24.4 26.7 27.7 27.1 27.7 3.9 4.7 5.8 6.9 8.1 9.5 27.6 25.1 10.2 34.9 18.7 0 5 10 15 20 25 30 35 40 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 GWP in SEA emerging markets Vietnam Malaysia Philippines Thailand Indonesia B USD Thriving in the Post-Covid  Insurance Growth © 2023 Infosys Consulting 6

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 OPERATING ENVIRONMENT CHANGES The 2020 dip in GWP resulted in higher  insurance penetration as the GDP declined  faster than the GWP. We forecast mild  insurance penetration development in all  countries except for Vietnam. Vietnam’s  insurance penetration is expected to grow by  30% by 2025 driven by current low baseline,  strong economic recovery, legalization of  online insurance, urbanization, growing middle  class population, and easier access to insurance  especially through the bancassurance channel.8 GWP growth trend and forecast Annual GWP Growth Value-add B USD  (22-25) Country 2016-2019 2019-2020 2020-2021 Forecast 22-25 Indonesia 4.5% -9.7% -1.1% 9% – 12% 8.7 – 10.4 Malaysia 5.8% 1.2% 6.6% 8% – 9% 7.2 – 8.0 Philippines 4.2% 4.0% 36.7% 6% – 10% 1.9 – 3.4 Thailand 7.8% -1.9% 2.1% ~6% 7.2 – 8.0 Vietnam 20.9% 17.0% 18.0% 18% – 20% 9.1 – 10.1 Total 7.1% -1.1% 6.8% 9% – 11% 34 – 40 Insurance penetration  (GWP / GDP) Country 2019 2021 2025 FC Thailand 5.08% 5.39% 5.4% Malaysia 4.53% 4.52% 4.6% Vietnam 2.10% 2.60% 3.3% Philippines 1.54% 2.10% 2.1% Indonesia 1.73% 1.46% 1.7% Insurance penetration forecast Thriving in the Post-Covid  Insurance Growth © 2023 Infosys Consulting 7 GWP forecast model Macroeconomic drivers • GDP (USD) • Population • GDP / capita (USD) • Inflation • Unemployment Insurance market • Gross Written  Premium • Insurance  Penetration Driver-Based Model Forecast • 2 macro-economic  driver models:  insurance penetration  and insurance density • Models based on  2015-2021, excluding  2020 (COVID year) • P-value for both  models <0.005 • GWP model is a  weighted average of  both models for best  fit against actuals • GWP forecast based  on the driver-based  model applied on  IMF’s macro- economic forecast  (October 2022) • Insurance penetration  and density  calculated based on  forecast GWP against  IMF’s relevant macro  drivers, GDP and  population

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 OPERATING ENVIRONMENT CHANGES Our model suggests that the insurance density  continues to develop largely at pre-COVID  rates. Vietnam is the only country in our model  that is expected to see significant take-off from  its peers, Indonesia, and the Philippines.  The population who are insured will depend on  insurance types and countries. For example, in  Thailand, 75% of the population are covered by  health insurance and the rest are covered by  national healthcare systems. In the Philippines  and Vietnam, circa 90% of the population are  covered by national health insurance. In  Malaysia and Indonesia on the other hand, over  50% and 35% of the population do not have  health coverage, respectively.9, 10, 11, 12, 13 In summary, while COVID induced a bump in  the road, we forecast that the future growth is  40% faster compared to pre-COVID. The  growth is driven by increased digital adoption  promoting easier access, urbanization and the  growth of middle class generating more  demand, increased interest towards health and  life insurance due to the pandemic.<|endoftext|>66 73 71 442 440 482 509 514 546 53 54 56 320 352 384 397 389 396 42 51 71 83 64 98 732 88 496 97 184 0 100 200 300 400 500 600 700 800 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Insurance density in SEA emerging markets (GWP / person) USD Vietnam Malaysia Philippines Thailand Indonesia KEY ACTIONS FOR INSURERS ✓ Reap the growth now, as the pandemic is  still fresh in memory.<|endoftext|>✓ Seize the opportunity in growth markets  especially in growing urban middle class.<|endoftext|>✓ Focus on reach and easy-to-understand  offerings in underinsured markets.<|endoftext|>Thriving in the Post-Covid  Insurance Growth © 2023 Infosys Consulting 8

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 Three years of digitalization in three months CHANGED CONSUMER PREFERENCES Overall, COVID increased the attention to  insurance, especially health and life products.  The persistence of COVID, with its several  waves and increasing number of variants, has  kept health topics, including insurance, in the  public discourse. Not all news has been positive  though, e.g., regarding the insurers’ inability to  pay the claims, or rehabilitation of insurers  facing bankruptcy. Despite the controversies,  we see that the demand for insurance has  grown in the region.<|endoftext|>Firstly, COVID deeply changed the way how  people behave and what they expect. In  general, it forced everyone to adopt digital  channels one way or another. Secondly, the  impacts of COVID were very personal in nature;  we see different response between user groups  depending on how they were impacted by  COVID. In the next sub-chapters, we address  both effects and then summarize the best  practices for insurers.<|endoftext|>Thriving in the Post-Covid Insurance Growth © 2023 Infosys Consulting 9

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 COVID doubled digital channel adoption in a  single year CHANGED CONSUMER PREFERENCES Working from home and social distancing  measures led consumers to adopt digital  technologies much faster than anticipated pre- COVID. In many aspects, the emerging APAC  markets have surpassed the developed APAC  markets in digital adoption. For example, in  2022, 43% of people in the emerging markets  managed their policies digitally, when only 23%  in the developed markets do so.  In financial  services in the emerging Asia-Pacific, digital  banking usage nearly doubled from 55% to  88% of the population from 2017 to 2021. While  many respondents to surveys say that they are  interested in buying insurance through an  online channel, only 25% of those willing to buy  the insurance online actually do so. The  blockers include limited online channel, and  difficulties to use the channel.14, 15, 16 Digital insurance adoption may have been  inhibited by the regulatory restrictions, e.g., in  Thailand and Vietnam online insurance sales  has been limited by the regulator. Philippines  on the other hand has seen doubling of the  online channel preference as the principal  interaction channel from under 30% to more  than 60% from pre- to post-COVID.17 In emerging South-East Asia, the digital  channel effectively means the mobile channel.  Due to limitations of public infrastructure, the  smartphone is the principal tool to access the  Internet and online services in both urban and  rural areas. The digital channel is not limited to  direct channel; consumers are expecting digital  interactions embedded with the human  interaction with an agent or a broker. Nearly  half of the people in the region say that they  would want at least some human interaction  when they are purchasing new policies.   Omnichannel interactions where one part of  the customer’s journey is digital, and another  part is handled through traditional channels are  even more important during the transitioning  and resetting into the post-COVID World.18 55% 20% 16% 18% 28% 60% 1% 2% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Pre-covid Post-covid Philippines insurance customers'  channel preference In person By phone Digitally Other KEY ACTIONS FOR INSURERS ✓ Double down efforts on digital channels,  especially mobile.<|endoftext|>✓ Extend digitalization through the agent and  broker channels.<|endoftext|>✓ Build omnichannel capabilities for seamless  customer journeys across the digital


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


Continue # Infosys POV
 markets.  Insurer Country Segment CAGR (2017-2021) Company  growth  relative to  segment Growth Drivers Company Segment Personalized  CX New Product  Innovation Distribution &  Ecosystem Prudential Thailand Life 7.5% 0.2% 47x ✓ ✓ AIA Thailand Life 4.4% 0.2% 28x ✓ ✓ ✓ Etiqa Malaysia Non-Life 7.3% 0.5% 13x ✓ ✓ ✓ Allianz Malaysia Non-Life 3.1% 0.5% 5.8x ✓ ✓ ✓ Malayan Philippines Non-Life 12.7% 2.7% 4.8x ✓ ✓ Allianz Philippines Life 54.9% 11.8% 4.7x ✓ ✓ ✓ FWD Philippines Life 43.4% 11.8% 3.7x ✓ ✓ ✓ Pioneer Philippines Non-Life 9.5% 2.7% 3.6x ✓ ✓ Bangkok Thailand Non-Life 10.5% 4.7% 2.2x ✓ ✓ Dhipaya Thailand Non-Life 10.0% 4.7% 2.1x ✓ ✓ Etiqa Malaysia Life 13.9% 7.0% 2.0x ✓ ✓ Allianz Malaysia Life 11.7% 7.0% 1.7x ✓ ✓ ✓ Prudential Malaysia Life 8.7% 7.0% 1.3x ✓ ✓ Thriving in the Post-Covid Insurance Growth © 2023 Infosys Consulting 15 The insurers presented in the table have significant size in their market and market-beating growth rate. It will  therefore leave fast-growing companies out that are comparatively small in the market. Information is collated from  each country’s official insurance statistics and may differ from companies’ own annual reports.<|endoftext|>

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 3.8  4.0  4.1  4.2  4.5  17.9  18.7  18.1  17.7  18.0  0 2 4 6 8 10 12 14 16 18 20 2017 2018 2019 2020 2021 Thailand Life Insurers GWP Success Story – AIA, Thailand SUCCEEDING IN THE NEXT NORMAL Thailand is the largest insurance market in  ASEAN. Its insurance penetration reached  5.4% in 2021, highest among its peer countries.  Its GWP has grown at a CAGR of 2.9% from  2017 to 2021.  The life insurance segment in Thailand  contributes close to 75% of the overall GWP in  Thailand.  However, the progress of the life  segment has been tumultuous with 0.1%  CAGR. 2021 showed 2.0% GWP growth after  two consecutive years of decline.<|endoftext|>The largest insurer in the industry, AIA  Thailand, was also the fastest growing during  the period. Its GWP grew at 3.5% CAGR,  increasing its market share from 21% to 25%.<|endoftext|>AIA Thailand’s success can be attributed to  three key strategic initiatives: shift towards  higher margin products, tech-driven agency  development programs and digitalized  customer experience.  AIA made a strategic shift towards selling higher margin products such as unit-linked  and long-term protection products which  became more popular due to pandemic. As a  result, in 2021, AIA Thailand’s profitability from  the life segment improved by 19 percentage  points compared to the previous year, from  71% to 90%. AIA also shrewdly used bundling  strategies to gain additional revenue. It  generated 20 M USD additional revenue by  cross-selling its protection products to the  17,000+ customers looking for COVID vaccine  side-effect protection.22 Others B USD 4.4% -0.1% 2.6%* -8.5% 0.1% CAGR Thailand 2.4% 4.4% * - FWD Thailand acquired Siam City Insurance in 2019.  -5.9% -5.6% 7.5% Thriving in the Post-Covid Insurance Growth © 2023 Infosys Consulting 16

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 SUCCEEDING IN THE NEXT NORMAL AIA deployed digital solutions for agency  productivity and quality improvements. Its  agency talent development program embeds  analytics throughout the agency's  development lifecycle. Its award-winning talent  development program, provides a one-stop  solution with a digitalized and seamless  experience from prospecting, candidate  assessment and selection, to personalized  coaching and developmental programs.  Through this, they can identify high-potential  agents early and create customized support for  their retention and continuous development.23 AIA strives to become Thailand’s first digital  insurer with an omnichannel digital customer  experiences to serve new and existing  customers. Besides telehealth and  telemedicine program, it launched ALive, a  personal assistant app for underserved young  families (18-34 years old) segment. Also  available for non-AIA customers, its users have  access to a wide range of services and  community for parenting. The app had over a  million downloads with a rating of 4.5/5.0 on  Play Store. The app generated 20% online to  offline leads and reactivated dormant  customers to drive sales.24 AIA iService App has also brought substantial  operational efficiencies. Through the iService  app, customers can manage their own policies  and make claims. AIA was able to resolve 76%  of the minor health claims within the same day  as of 2021.25, 22 KEY ACTIONS FOR INSURERS ✓ Identify underserved customer segments to  create outcome-based offerings with a pull- based sales model ✓ Employ HR analytics to identify high- potential talent and handhold them with AI- powered learning paths for sustained agent  productivity ✓ Use agency management platforms for  agency differentiation, to drive higher  productivity and improved agent retention Thriving in the Post-Covid Insurance Growth © 2023 Infosys Consulting 17

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 SUCCESS STORY – FWD, Philippines SUCCEEDING IN THE NEXT NORMAL The Philippines’ insurance penetration has  hovered around the 1.6%. However, the  pandemic caused a step-change in insurance  purchases leading to insurance penetration  increasing to 2.1% in 2021. The step-change  included; life insurance growth averaged 11.8%  CAGR.   FWD life insurance’s GWP has grown close to  four times faster than the market, at 43.4%  CAGR, increasing its market share from 2% in  2016 to 6% in 2021. It has become the 6th  largest life insurer in the Philippines. This  remarkable, continuous growth was built on  three key pillars: creating innovative holistic  product solutions, increasing accessibility  through ecosystems and partnerships, and  utilizing digital technologies for superior  customer experience.  Thriving in the Post-Covid  Insurance Growth © 2023 Infosys Consulting 18 0.09 0.15 0.18 0.28 0.38 4.0 4.4 4.5 5.0 6.3 0 1 2 3 4 5 6 7 2017 2018 2019 2020 2021 Philippines Life Insurance GWP B USD 43.4% 17.3% CAGR 54.9% -3.7% 19.2% 11.0% 9.9% 7.5% 11.8% Others Philippines Success Story – FWD, Philippines

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 SUCCEEDING IN THE NEXT NORMAL Thriving in the Post-Covid Insurance Growth © 2023 Infosys Consulting 19 In 2021, FWD introduced new holistic product  solutions like ‘Babyproof’, ‘Family Hero’,  ‘Manifest’, and ‘Health and Wellbeing’ that  catered to end-to-end consumer needs. These  products targeted the young adults and  families and were promoted extensively on  digital channels to increase their accessibility  during the pandemic. These tailored products  targeted consumers who were relatively new in  their insurance journey and provided guidance  on how to build and secure long term wealth.26 FWD built multiple partnerships to increase  product distribution. For example, the  partnered with a pawnshop chain to make  affordable insurance plans and digital solutions  available to the pawnshop’s 30 million  customers across its 2,500 branches  nationwide. In another partnership with  insurance aggregator Kwik


Continue # Infosys POV
.Insure, FWD  introduced a chatbot, “Fi”, in its customer  servicing processes. The chatbot can handle  customer product enquiries, product  recommendation, agent appointments, and  claims activities. The chatbot received a  customer rating of 4.9/5 and increased  operational efficiency by freeing agents to  focus on more complex tasks.26 KEY ACTIONS FOR INSURERS ✓ Take advantage of bundling and unbundling  products to create targeted and tailored  offerings ✓ Forge partnerships to increase sales beyond  traditional channels ✓ Use self-help tools, like chatbots and AI, to  improve customer experiences while also  realizing operational efficiencies

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 0.51  0.57  0.64  0.70  0.80  7.1 7.5 8.1 8.6 9.3 0 1 2 3 4 5 6 7 8 9 10 2017 2018 2019 2020 2021 Malaysia Life Insurers GWP Success Story – Allianz Life, Malaysia SUCCEEDING IN THE NEXT NORMAL Malaysia Malaysia is the second largest insurance  market in the ASEAN region after Thailand.  Close to 70%  of the total 18.3 B USD GWP in  2021 is Life insurance with CAGR of 5.5%.  Malaysian life insurance growth was driven by  increased demand during COVID and ability of  insurers to sell and provide services digitally.  Among the biggest 5 life insurers, Allianz was  the fastest growing insurer with a CAGR of  9.2% from 2017 to 2021, roughly twice faster  than the market. Its market share improved  from 7% to 9% in the same period.27 There were three major drivers contributing to  its outperformance: launch of new innovative  offerings, digitalization of processes, and a  variety of agency development programs.<|endoftext|>Innovative new offerings were launched by  Allianz that targeted the evolving customer  needs and contained minimal negative  surprises. In 2021, they launched the  ‘PreciousCover’ and ‘BabyCover’ that provided  coverage for mother and child through pre- and post-natal period with added benefits such  as mental health coverage, hospitalization  benefits and juvenile critical illness. It also  launched endowment products that had  simplified underwriting and guaranteed  acceptance rules to address customer  hesitance during the pandemic. Allianz also  participated in a government-endorsed micro- insurance program, Perlindungan Tenang,  which increased penetration in the bottom  40% households primarily via digital channels.27 Others B USD 4.8% 13.9% 1.4% 11.6% 5.7% 8.7% 6.9% 7.0% CAGR Thriving in the Post-Covid  Insurance Growth © 2023 Infosys Consulting 20

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 SUCCEEDING IN THE NEXT NORMAL Digitalization of processes was also critical,  especially during the COVID, where Allianz  could quickly pivot to digital distribution and  policy admin. It enabled end-to-end digital  claims experience from submission to  reimbursement through its MyAllianz customer  portal and mobile app. Customers could also  access their medical cards and guarantee  letters at any time via the mobile app. It  incorporated OCR, facial recognition and video  call option in its KYC processes which allowed  their agents to remotely perform an end-to- end customer onboarding in just five minutes  for non-complex cases.27 This digitalization initiative was extended to its  agency development programs. Agency  partners contributed 70+% of the written  premiums for Allianz. The insurer launched a  series of online training sessions on remote  sales, product training, digital marketing, use of  digital tools, and soft skills to uplift agent  productivity. Their agency partners valued the  trainings with average attendance of 800  agents per session. To make the agency partner  growth more sustainable, Allianz Life also  launched a 24-month “C.E.O Program” in 2019  for its agency partners to build a quality talent  pipeline and enhance their capabilities.28 KEY ACTIONS FOR INSURERS ✓ Use needs-based analysis to design new  product offerings ✓ Address customer hesitance for online  purchases by simplifying product offerings  and removing negative surprises ✓ Use automation & AI-based tools for routine  tasks to reduce turnaround times  ✓ Actively engage agency partners and new  partnership models to enhance productivity  and product accessibility Thriving in the Post-Covid  Insurance Growth © 2023 Infosys Consulting 21

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 We recommend a customer-experience driven  strategy The best way for insurers to achieve market- beating growth in emerging South-East Asian  markets is to double down on personalized  customer experience, digital omnichannel  across the E2E customer journey and  customer-friendly product innovation. The  success stories highlighted further concretize  the recommendation justified by the global  and regional trends. There are 6 key areas for  insurers to embark on this journey.  We have witnessed massive growth for insurers  who have implemented all or parts of the  above actions. The requirements and  prioritization depend on the insurer, market,  and most importantly, leadership ambition.  Infosys Consulting is the partner of choice for  insurers seeking transformations, whether  laser-focused interventions or enterprise-wide  step-changes.<|endoftext|>1 2 3 Define a customer-experience- led growth strategy Design the to-be customer  experience Lead ecosystems for growth 4 5 6 Implement product innovation  at scale Define the to-be technologies  needed Design the to-be processes and  operating model RECOMMENDATIONS FOR INSURERS Thriving in the Post-Covid Insurance Growth © 2023 Infosys Consulting 22

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 Infosys Consulting approach to customer-experience driven strategy Strategy Customer experience Target customer segments… Persona modelling (who) Goals Needs Expectations Preferences Operating model Culture Technology & Data Organization & Roles Talent Ways of Working Processes Governance KPIs & Control Engaging with the insurer along their journey… Omnichannel journey design …at touchpoints, across channels Not exhaustive Direct Agent Broker Portal 3rd pty I discover I compare & decide I onboard I claim I manage I pay I sign up for more I advocate I stop Web Wearables App Phone call Video call Mail API In person Social 1 Define a customer-experience-led  growth strategy Articulate the leadership ambition for  customer experience vision relative to your  market competition for each customer  segment. Set concrete goals for growth,  market share, NPS, customers’ brand  perception and ecosystem participation.  Prepare the growth-focused business case to  justify investments needed for the customer  experience uplift. Define a concrete roadmap  ahead.<|endoftext|>2 Design the to-be customer  experience Define the to-be end-to-end customer journeys  across the touchpoints that would realize the  customer experience vision. Define levels of  personalization and contextualization expected  for every interaction from marketing to  processes, products, and pricing. Do not  overlook the enterprise and SME customer  journeys. Prioritize growth-driving customer  experience of marketing, sales, and  distribution. To-be customer experience sets  requirements for the insurers’ operations  especially around technology, data, processes,  and people. Prioritize the requirements based  on the overall customer experience uplift  potential against the strategic growth goals.<|endoftext|>RECOMMENDATIONS FOR INSURERS Thriving in the Post-Covid Insurance Growth © 2023 Infosys Consulting 23

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 RECOMMENDATIONS FOR INSURERS 3 Lead ecosystems for growth Identify the ecosystem vision articulating the  two sided of ecosystem strategy: what is the  insurance company centric ecosystem, and, on  the other hand, what roles the insurer takes in  ecosystems of others. Define the experience  for agents, brokers, banks, healthcare, repair  shops, and any other relevant partners in the  ecosystem. Focus the strategy on growth  drivers, especially around marketing presence,  distribution channels, customer experience,  and product mix. When creating an insurance- centric ecosystem, define the business model  for partnering. Define the technology platform  required to realize the ecosystem ambition.<|endoftext|>5 Define the to-be technologies  needed Technology and data changes are the concrete  steps in the customer-experience driven  transformation. The technology and data  architecture need to be designed to fulfil the  customer experience requirements. Especially  the personalization, product innovation, and  omnichannel requirements will likely require  legacy technology uplifts. Data will be the key  enabler for the personalized experiences; data  supply chains from sources to databases to  analysis and usage will be crucial for realizing  the growth. Define the data requirements;  design the data engineering and data science  practices and systems required.<|endoftext|>4 Implement product