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2014 U.S.

/North American Insurance


Sales Team Enablement
Peter Ku
Sr. Director, Global Industry Marketing
pku@informatica.com
Ph 1-650-385-5131

Agenda

Top Business Imperatives in Insurance


Technology Investments and Informatica
Opportunities
Informatica Footprint in Insurance
Upcoming Marketing Activities and Investments

Top Business Imperatives (Concerns?)


Improve
Customer
Experience

CEO

Grow
Revenue

Improve
profit
margins
Comply with
industry
regulations

Top CEO Priorities and Technology Investments


CEO Priorities
Improve Customer
Experience

Grow Revenue
Improve Profit
Margins

Comply with
industry regulations

Top CEO Priorities and CIO Investments


CEO Priorities

CIO Priorities

Improve Customer
Experience

Core Insurance Legacy Modernization


Mobile and Digital Investments
Cloud/SaaS Adoption

Grow Revenue

Business Intelligence
Predictive Analytics
Big Data Processing

Improve Profit
Margins

Cloud/SaaS Adoption
IT Consolidation
IT Automation

Comply with
industry regulations

Data Warehousing
Business Intelligence
Modernize Risk and Compliance
Applications

IT Investment Predictions by Insurance Carriers

IT budgets to grow at 6.5


percent CAGR (compound
average growth rate), for a
total IT spend of over $108
billion, by 2017
(Source: OVUM)

IT Investment Predictions by Insurance Carriers

IT spend in the life-insurance


market will grow at 7.6 percent
CAGR to reach a value of $49
billion by 2017, with the P&C
industry growing at 5.7
percent to reach a total market
size of $60 billion by 2017

IT Investment Predictions by Insurance Carriers

Gartner Research
forecasts worldwide IT
spending to grow by 3.6
percent in 2014
(compared to last year)

Improve Customer Experience


Why is this important?
Changing customer
demands in todays
Digital-era of insurance
(mobile, social)
Customer Facing
Technology is a
differentiator!
Data/ Tech. Challenges
Timely completion of
legacy modernization
investments
Improved customer
information across
channels and business
lines

Key Investments
Core Insurance Legacy
Modernization
Mobile and Digital
Investments
Cloud/SaaS Adoption

Informatica Solutions
Data Migration Solutions
Test Data Management
MDM for Single View of
Customer
Cloud DI & MDM

Why is customer acquisition and retention so


important to financial institutions?

The cost of losing one customer is 4x


higher than obtaining that same
customer

Satisfying and retaining current


customers is 3 to 10 times cheaper
than acquiring new customers

A typical company receives around 65


percent of its business from existing
customers.

A 5% reduction in the customer


defection rate can increase profits by
25% to 80%

Single View of Customer


On Premise

Cloud

Call Center

Campaign Mgmt

Agent/Broker

How Did Informatica HelP?

Business Challenge

Growing adoption in SFDC


resulted in too many data
silos across regions & BUs
impacting Metlifes ability to
deliver rich customer
experience to grow their
business

Manage trusted customer data


across SFDC for agents and brokers
Manage and govern business data
across on-premise and cloud
solutions Integrate and exchange
data from 3rd party systems and
providers for improve customer
service and selling

Grow Revenue
Why is this important?

Key Investments

Avg. Product Per


Relationship at historical
lows
More expensive to acquire
new customers vs.
growing revenue from
existing ones

Analytics and Business


Intelligence
Hadoop, Modernize DW
Platforms

Data/ Tech. Challenges

Informatica Solutions

Incomplete, Invalid data


for predictive modeling
Integration of unstructured
data (e.g. social, call logs,
machine data)

Data Integration and


Quality for BI/Analytics
MDM for Policyholder
Cloud DI, MDM
Big Data Integration

Grow Revenue

CFO

Marketing

Sales

How Did Informatica HelP?

Business Challenge

Double revenue in 5 yrs, achieve


12% RoE
Improve profitability and customer
service across all channels
Too many sources of the truth,
inconsistent customer data, lack
of insight into customer
interactions

Single view of policyholder with MDM


with detailed relationship views
across the business
Cleansed data quality issues for
downstream business applications
Monitor and alert when issues arise
with critical business data

Improve Profit Margins


Why is this important?
Low interest rates
severely impacting
reinvestment revenue
streams
Legacy systems require
manual processes too
support = too expensive

Key Investments
Legacy Modernization
(Underwriting, Claims,
etc.)
Business Process
Automation Technology

Data/ Tech. Challenges

Informatica Solutions

Timely completion of
legacy modernization
investments
Need to automate
processes across systems

Data Migration Solutions


(DI, DQ, TDM, DVO, ILM
Archive)
Active End Points

Legacy Modernization Survey

(Source: Celent 2013)

Legacy Modernization
Analyst &
Data Steward

CFO
Developer &
Architect

Business Challenge

CFO and Chief Accounting Officer


were at risk of not realizing
quantifiable business value from
new Oracle Financials Application
Investment due to ongoing data
quality errors from IT systems

How Did Informatica Help?

Automated a sustainable data


governance process, enabling business
and data stewards to identify, fix, and
monitor the quality of their data in their
new Financial Management system
Improve close of book processes, 50%
savings managing data quality

Regulatory Compliance
Why is this important?

Increasing transparency into


enterprise risk management
by State and Federal
regulators
Growing legal and regulatory
fines for non-compliance with
new and existing laws

Data/ Tech. Challenges


Timely completion of
legacy modernization
investments
Incomplete, Invalid data
for risk mgmt
Lack of a single view of
risk

Key Investments
Analytics and Business
Intelligence
Modernize Risk and
Compliance Systems
Enterprise Risk Data
Warehouse
Informatica Solutions
Data Integration and
Quality for BI/Analytics
Data Migration Solutions
(DI, DQ, TDM, DVO, ILM
Data Services

Insurance Death Master Compliance


Policy Admin, Claims,
U/W, CRM

Compliance
DW
CCO

Death
File

Developer &
Architect

Analyst &
Data Steward

Business Challenge

CFO and Chief Accounting Officer


were at risk of not realizing
quantifiable business value from
new Oracle Financials Application
Investment due to ongoing data
quality errors from IT systems

How Can Informatica Help?

Discover and manage data quality


errors
Identify and match against SSN DMF
Relate customers with policies,
beneficiaries, and employees

INFA Penetration: Top 50 U.S. Insurance (as of Q3-2013)


Market Penetration
INFA
customers
22
15
37

Top 25
26-50
Total

Non-customers
3
10
13

Total
25
25
50

Penetration %
88%
60%
74%

Total Lifetime revenue top 50 US Insurance: $87.7M

Top 25 Insurance

26-50 Insurance Companies

Total Lifetime Revenue: $73M (as of Q3-2013)

Total Lifetime REvenue: $14.6M (as of Q3-2013)

$4,018,094

$1,106,906

$2,042,468

$526,745
$0 $0

$5,926,118
$2,051,448

$12,118,889
$59,985,459

DI/DQ Actual

MDM Actual

B2B/UM/CEP Actual

All Else Actual

ILM Actual

DI/DQ Actual

MDM Actual

ILM Actual19

Data as of Q3-2013. SEE APPENDIX FOR DETAILS


19

INFA Penetration: Top 50 U.S. Insurance (as of Q3-2013)


Market Penetration

Top 25
26-50
Total

INFA
customers
22
15
37

Non-customers
3
10
13

Total
25
25
50

Penetration %
88%
60%
74%

Total Lifetime revenue top 50 US Insurance: $87.7M

20

Data as of Q3-2013. SEE APPENDIX FOR DETAILS


20

Total Opptys and TAM: US. Insurance

Analysis of Spend vs. TAM vs. IT Budget, vs.


Prop2 Spend Banks vs. Insurance
How to read this?
100% = highly correlated vs. 0% is not.

2014 Marketing Investments


Marketing Content and Sales Tools
eBook on Improving Revenue and Customer Relationships
Solution Whitepapers: Death Master, MDM for Insurance,

Realizing the Value of Big Data


Customer Success Stories
Sales Playbook

Marketing Programs & Events


5th Annual FSI Executive Summit (March 5)
IDMA Event (April)
Informatica World

New Hire
Insurance/FS Solution Marketing Director

Questions?

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