Innovative Trend of Digital Insurance

1 March 28, 2018 Innovative Trend of Digital InsuranceeBaoTech Presentation at Thailand Insurance Symposium 2018 Outline Digital Insurance now means too many things. Where should we focus immediately? Connectivity: Digital Insurance is connected Insurance Dramatic reduction of cost of connectivity enabling Insurance to be connected to various other businesses and people of all levels of incomes Potential action plans? While keeping insurers core competencies in risk and investment management, Insurance industry can learn many things from the best internet companies Think of an Insurance company as an App company: Connect to users digitally: real time, fully automated Start from top users: policyholders; agents/brokers Then add more and more affinity partners and experiment new products and new models One big challenge for this immediate opportunity is legacy core system.

2 Insurance Middle Office is a solution for massively connected Insurance eBaoTech is keen to become a strategic partner of Digital Insurance in Thailand and ASEAN eBao Software for core systems eBaoCloud InsureMO for massively connected Insurance 2018 eBaoTech Corporation. All rights Actions and Real Examples23eBaoTech Brief IntroductionDigital Insurance Trend1 Digital Insurance TrendsDigital Insurance : Immediate Opportunities Digital Insurance : Too broad; too big; too hard to act on Technologies: internet; cloud; artificial intelligence; block train; internet of things New products: new risks; new ways of pricing; new ways of funding; new ways of servicing New sales channels: internet New business models: P2P, and so on What are real and immediate opportunities and proven?

3 Connect Insurance to everywhere, digitally Then plus AI and big data And then some others? 2018 eBaoTech Corporation. All rights Insurance : Opportunities and Challenges Digital Insurance is connected Insurance Insurance to be embedded in numerous affinity businesses Supporting other businesses and life events of people of all income levels 2018 eBaoTech Corporation. All rights Opportunities Big growth potential Less commodity competition Huge room for differentiations and data driven strategy Challenges Very difficult to connect Insurance to other businesses Complex products and processes Conservative regulatory framework Culture of slow action and risk aversion Outdated systems in almost all insurersEmbed Insurance in numerous affinity businessesLong Tail (Inclusive) Insurance Made Possible7To the right (yellow) is the long tail; to the left (green) are the few that dominate.

4 In this example, the areas of both regions are equal. Insurance has been dominated by few top channels and limited product offerings Cost of connectivity and transaction too high in the past Can Digital enable long tail and inclusive Insurance ? Insurance everywhere needed? 2018 eBaoTech Corporation. All rights Drop of Connectivity Cost Leading to Long Tail Economy8 2018 eBaoTech Corporation. All rights reserved. SKU (stock keeping unit) numbers in retail industry Small stores: hundreds Department stores: thousands WalMart: Tens of thousands and Alibaba: around 1 billions Video channels of different eras Radio broadcast era: a few dozens Cable TV era: hundreds YouTube and similar internet based broadcast: hundreds of millions Micro video apps: everyone is broadcasterConnectivity of Various Companies9 2018 eBaoTech Corporation.

5 All rights 100 Million10 Million1 MillionUser NumberFrequencyWeChatUser: 1 BillionsTaobaoUsers: 500 MFacebookUsers: 2 BillionsInsurer A in China Users: 130 MillionsUberUser: 300 MillionsBubble color:Red = low conversion rateGreen = high Yellow = mediumBlue = potentially highTypical Insurance CompaniesHow Insurers Can Learn from Internet Companies?10 Insurance basics still fundamental and advantages of Insurance companies Rick management Capital management Learn from internet companies on how to connect to their users Lower cost of connectivity Improve user experience Increase frequency of interactions User groups of Insurance companies Policyholders Agent/brokers Bank clerks Car dealer shop clerks Travel agency clerks Wealth advisors Broad users of many internets with potential affinity for Insurance 2018 eBaoTech Corporation.

6 All rights for Insurance Industry11 2018 eBaoTech Corporation. All rights reserved. Low user numbers Very slow and difficult to grow customer base Focusing on selling big premium policies Low frequency interactions Mostly annual interactions Extremely high unit cost of interaction with customers Too much manual work Everything is so slow Decision making is mostly human judgment instead of data driven Core system today not designed for massive external connectivity: Need of Insurance middle office12 Channel/AffinityCore SystemsInsureMOBasic Elements of Digital Insurance InsureMO: Insurance Middle Office 2018 eBaoTech Corporation. All rights Plan & Real ExamplesPotential Immediate connectivity to top user groups: Policyholders Agents/brokers (maybe banks?)

7 Connectivity to many other user types Offline Online Mixed new products and new models14 2018 eBaoTech Corporation. All rights Approaches at Leading Insurers in China 2018 eBaoTech Corporation. All rights reserved. Use WeChat official accounts to enable policyholder self services Almost all basic services done in real time with full automation Use Apps to enable tied agents and key brokers to work in real time Sales Services on behalf of policyholders Claims reporting and continuous communications Use API integration to enable bank channels to issue policy and conduct basic services in real time and fully automated Try to add more and more!15 Policyholder Self Service on WeChat AccountInsurance MarketE-CounterClaim Services 2018 eBaoTech Corporation.

8 All rights Services on WeChat AccountE-Counter: Support policy services to policy holder 2018 eBaoTech Corporation. All rights via WeChat AccountE Counter Policy Holders Surrender(1/2)Support policy holder self surrender the policy and withdraw the premium18 2018 eBaoTech Corporation. All rights reservedQueries of All Status via WeChat Account19 2018 eBaoTech Corporation. All rights reservedClaim Reporting via WeChat Account20 2018 eBaoTech Corporation. All rights reservedSmall Claims Done Online via WeChat Account21 2018 eBaoTech Corporation. All rights reservedAgent App: More Powerful and RicherSupport all products list and search by category22 2018 eBaoTech Corporation. All rights reservedAgent App: Creating Proposal23 Support online proposals creation Agent App: Benefit illustration24 Support benefit illustration and share to social APP 2018 eBaoTech Corporation.

9 All rights reservedAgent App: Premium calculation and policy issuing25 Support online issue and calculating premium automatically 2018 eBaoTech Corporation. All rights reservedAgent App: Including Electronic Signing26Re-check the orders and request the electronic signature with safety control 2018 eBaoTech Corporation. All rights reservedAgent App: Task Management27 Agent query on own proposals, orders and policies 2018 eBaoTech Corporation. All rights reservedConnected Carriers28 Datong (Top Life Broker in China): All Sales via AppKey figures of Datong in 2016 Partner with more than 100 insurers. Products: more than1,000 Insurance products, including Life, General and Health. Users: more than 30,000 agents and 300,000 other users.

10 Revenue: USD 373 million, at a growth rate of 111% (YoY).eBaoCloud Middle OfficePowered by Launched on October 8, 2016 Use case: social marketing platform, real time quotation, benefit illustration, and while-you-wait policy issuance, assembly done via just a mobile phone. Variety: support diversified product types from multi-number of insurers. Velocity: On average, 100+ new products go-live on a monthly basis. Volume: Currently having 33000+ agentsand300,000+ registered users. API calledmore than 3 million times every Quick Insurance Mobile AppWeChatMobile App 2018 eBaoTech Corporation. All rights Carriers29 Traditional Channel: China Grand Auto, #1 Car DealerKey numbers of China Grand Auto in 2016 Number of car dealership stores: 670 Revenue: USD billion Number of cars sold: 825,000 units Number of auto Insurance policies sold: millions with total premium of USD by eBaoCloudGuang DongSi ChuanJiang Grand Auto Cloud PlatformSalesServiceClaimCRMR eportPICCTai PingFu DeDu BangChina ContinentFirst major car dealer company using own platform for Insurance sales, powered by eBaoCloudeBaoCloud Launched early 2017 and now in national roll out Customer-Centralized Cloud Platform.