He will talk about, we will disrupt you our AI, blockchain IOT, a blessing or cures for an insurance company. So I think you managed to have all the important passwords side of identity in your title. So stage yours. Thanks Marcus.
One.
I try to keep the bullshit bingo level low. So there are two challenges for you for this talk. One challenge. When I came here, I read a book of Daniel pink. It's called when, and it's BA basically it is in neuro signs of how are you performing over the day? And actually the worst time your brain is performing is between 2 45 and three 15 in the afternoon. So thanks for the time slot to Martin and York, but you are with me in that time slot. And the second challenge is I'm not going to talk about technology and identity management as well, but I'm more connecting to the question, one of your race in the former talk like, okay, how can we, how can we motivate? How can we move E and managers by the way, and leadership to really face the challenges of the new technologies, because I think there's somehow an elephant in the room.
It's when I talk to people about insurance and insurance business, while it seems to be a conception like the Amazon's Facebook, Googles, and apples and startups of the world are eating all the big insurance players that exist out there. And I'd like to give you some, some background and, and thought of that. But before I do that, since you probably already have your smartphone in your hand and, and already doing some stuff there, maybe you want to vote. So from your perspective, our artificial intelligence, blockchain, and internet of things, the blessing or curse for an insurance company. And while you do that, I'll, I'll give you briefly the, the concept of my, of my talk. So I, I want with a low bullshit, bingo factor, give you some sorts and some, some backgrounds to challenge your assumptions on the perception of the industry and the technology and why I, I strongly believe that by challenging your assumption, it will help and support you in the transformation either of your company or to understand your clients better. So with that concept, maybe we can already see some results of your poll.
Okay? So 60% believe it's, it's a blessing. Technologies are a blessing for the, for the industry, 27%, little bit undecided and roughly 10% it's course. Okay. For me, that's surprising. They know what you thought. I thought it would be more match between chorus and blessing and more pessimistic. But speaking speaks for you as being obviously technology driven, that there are a lot of challenges and we go into that. So with that, how to start, let's go back. Let's go back many, many years. When, when did assurance actually arises? What, what is insurance? Basically, insurance is a contract of one party with another one, predicting an event that might happen and helping the other party financially to overcome the burden of an event that might happen. And the first occurrence actually is roughly 4,000 years ago. It's written in the code of Harabi, where there was some sorts about, okay, if, if the, how will not be as expected due to floods or whatever, when you, you get back money or don't have to pay your loan.
And that was 4,000 years ago. And, and please forgive the, the drawing. So I, I draw on my own. So, and then insurance really became popular in when the Greek empire and the Roman empire were strong. And then there was a decay with the Roman empire and came back in the medieval times. And the first written insurance policy we have in our archives is actually from 1,347 in quinoa, where there was a first written policy for Marine transportation. So you ensure your transport overseas by ship. So basically what we have is 4,000 years of experience with customer in insurance. Wow. So how does a customer journey look like after 4,000 years of experience? And I don't know about your experience. This is my, my private statement here, basically. Well, you see over time, your development of happiness, and if you want a fancy word, you can call it net promoter score, but let's stick to how happy are you at the upfront?
You have to pay money when you get the big bunch of paper called the policy where you probably understand or do not understand what exactly is insured. Then you're a bit happy because you're insured now. Then over time, you have to pay more money and maybe you get an update of your policy and you're sure what is insured or not. And then, then something bad happens. Maybe your iPhone got stolen or your smartphone brokes or whatever, and then starts the claim process, which is visualized here on the right hand side. And it's not exactly clear what's happening in the claim closes, but your policy is obviously part of it. And if your experience is either good or bad, depends on well, your insurer and the specific circumstances, et cetera. But at the end, you eventually get your money. So that's on where we are in, in many customer journeys, in an insurance after 4,000 years.
And if you need to tell your management this in a more, in a, in a more managerial scale, I made a PowerPoint slide with some boxes around it, but it's the same messages. Insurance insurance is today, basically a payer for claims. So the only interaction you have as an insurer with your people, with your customers is if you pay claims and it's basically risk socializing across collective. And if you look into an insurance company, it's basically driven by regulation. So be it solvency, be it GDPR, be it low interest rate, but the whole, the whole culture. And this goes back to the question on the, on the speech before is internally focused, how to comply and how to manage the risk. And the mindset is basically on achieving, achieving KPIs, achieving regulations. And now does that fit to the, to the situation, to the present and the future we are facing is that still where we want to be and where we need to be. And if we look, what is the unpredictable? Well, it is a predictable future for insurance companies.
This is not science fiction. These are just examples of the industry and of our lives that we are facing. So we are facing a lifespan of 100 years. We are facing climate change and insurance. One, one big part of business to business insurance is ensuring companies about climate risk, hailstorm, floods, et cetera. So if we are facing a century with a lot of climate change, what does it mean for the insurance? We, we still have worldwide military conflicts. We have the, the thread of terrorism. We have cyber attacks. You, you know, it far better than me when it comes to security and cyber, we have facing new interactions with customer. I don't know who have seen the Google IO conference of last week, where Google introduced, we Googled du blacks, basically an imitation of a person who calls the restaurant to reserve a table. And, and these things are not science fiction.
They are basically life and available. So you will have more and more intelligence devices, be it, your wallpaper, be it your mirror that tells you in the morning that you need to live a healthier life. Cetera, cetera, you have tremendous advantages and progress in medicine like 3d printed organs, like genetic manipulations, et cetera, et cetera. And you have a society beyond privacy, whether we like it or not like it. And this is as of today, the challenges for an insurance company, because this has a huge impact on risk management, huge impact on the industry itself. So let's look for the second part on where do we go from here? So until now, basically this where the situation and, and facts and analysis let's look to the future. And this is obviously a hypothesis of myself and I, I think a big change that needs to happen.
And here comes everything we discuss about identity and blockchain and technology is we need to go for future tomorrow insurance product, to a product that uses real time data and is predictive. So you need to have a product that is very specialized for me personally, predicting my immediate future based on real time data. I don't want the policy 10 years ago with some standards. I want to know from my company that as an example, the situation I'm facing or the heart rate that my watch is currently telling me this is, might be an indicator that I have some serious health problem. And I better go to the doctor and led that check to avoid that. I get ill to avoid that the company that the insurance company has to pay some claims in health insurance. So I have the win because I have a trusted partner that cares about me and the insurance company has a win because it's far cheaper to work as a partner during the life spend, before the claim happens, then afterwards.
And then there's the second thing for, for standard insurance. Probably I heard about function as a service. So after platform, as a service software, as a service, there's an X big wave function as a service. So companies who are offering functions through the market and everything can connect to them, we are an API and why not an insurance function as a service. So if you go to your favorite platform like Amazon and you buy a new apple watch and you want an insurance for that, so why do there need to be any manual interference behind it? Why couldn't it be a simple function call from the Porwal like the insurance function as to service, I'd want an insurance from you. Item description, apple watch version X insurance starts from 7th of March. And I want to protection theft purely, automatically API driven insurance. And the only thing I get back as a customer is, Hey Ralph, please choose your insurance. 1, 2, 3, completely without intervention of any human here. So that might be a possibility for the future. And you can think about what does it mean for identity? What does it mean for security and for blockchain technology, obviously?
So I showed you the 4,000 year old customer journey. Here's an alternative to that, and it's much more driven by prediction. So if we have I UT, and if we have billions of connected devices, and if those devices and my water system at my home knows and transmit permanently data. So it is possible to predict that the water system at home will broke in a month or so. And why not send me a message to my phone and telling, listen, Ralph, based on the data we have and the IOT data we are having, there's a high probability that you need to fix your, your water system in your home. So your seller doesn't get flooded. So why not give predictive information about my health? If I'm willing to share it with a, with a trusted partner to tell me, well, based on the health data, you are, you are giving to us, please see a doctor and check if that's a serious issue or, or not, which we hope it is not.
But if then you stay healthy and why not go to a much more partner and predictive customer journey, opposed to just solving claims when the, the bad thing happened. And that means I'm convinced that the insurance company of the future will probably face this situation we have on the one hand side, voice and speech as an input and a smartphone. So definitely not letters or anything anymore. You will have billions of I T devices that are connected to your core system, delivering new 24 7 realtime data. You will have what I called insurance function as a service. So some automated insurance function that I just called to your core system. And obviously based on, on somehow a distributed ledger, probably on blockchain, whichever kind of suits here. And this goes then to a core of an AI enabled core system. And if I would paint, let's say the picture of a, of insurance company of the future, it would somehow look like this, and this has a food for sort.
So again, to show this in a more material way, with some boxes on a PowerPoint slide, same message. I strongly believe that the future of the insurance product are individual and situational product, not standard product, one size fits all, but really, really customized to person, to you as a customer real time and predictive product. So not handling claims backwards, but predict what's going to happen and help me that the risk does not occur, which is complete opposite when it was in the past. And obviously this is based on, on big data infrastructure, on security infrastructure, on security capabilities and big data capabilities. And this is all based well on a different mindset and an culture as well. Because here we are talking about a customer-centric culture, which is a huge shift. When I look to the past end of now a customer-centric culture and an exploitation mindset where people are willing to exploit things, to try it out, to experiment and to try new things.
So let me finish with a, with a, what to do or call for action for either you or your customer first to check your customer journey. Is it, is it more the, let's say 4,000 years best practice, or is it more looking into prediction and protection for the future where I think the future lies, secondly, do protect your customer data and privacy. So if you look at disruption theory, et cetera, then it's, it's very clear that your core customer are your real assets. And here we have a connection to GDPR and all the thing about technology or discussing here, I deeply believe that protecting your customer data and acting with them in a careful manner can be a real advantage for the business of I, the insurer or your, your customer here. So that means you need to develop a learning culture and a culture with exploitation mindset, where people are free to experiment and try out and last, not least to invest than people that embrace technology because much more will be based on technology as it was in the past.
So thank you very much for your keynote. I directly want to ask also your Kuba seats to the stage, cause we will make sort of a little bit of soft transition to the next keynote. Now maybe we move a little bit more to the center to not be fallout here, fall down here, and now the questions or the police. I think we have a couple of interesting questions and given that we have someone from insurance, someone from banking, it might be interesting to look at some of these questions together and talk a little bit in the remaining three minutes about disruption insurance and finance industry. I think you already touched a lot of these points. And so I, I like that first question. Maybe you wanna give me sure. Your perspective or do you think it'll be possible to get an insurance in the future without a self-driving?
So I guess the question is will, will you even get insured if you're manually driving? And I, I would say yes for a long time, but it probably will, will be a time where you pay a premium for that. So I I'm, I'm convinced we will live in a time where self-driving is normal and that we, where we cannot explain our children, that we were self-driving our cars with 260 over the German auto ban, probably after a glass of Prosecco. And if you want to do it, you probably can do it, but you will pay a premium for that.
Okay. So, so do yours belief also for banking that we will such sort of heart changes, heart disruptions, where all of our life will be very different than it is today.
Well, I don't think there's a big difference with today in one way. I'm from a cyber security background and life is nothing but risk management also when you're in a self driving car. So higher risk means more expenses and yeah, there's always a balance between your risk appetite and the chance to do better business or to be faster. So
It's the same for all it's
Business.
And, and so I think the other question, number four, from the top, what happens to professional risk assessment when everybody's in a position to know everything or close enough. So I think it also affects, I think both of your businesses, if I take loans, if I take insurances, it's basically the same question.
Yeah. I think it's predictive, predictive analytics. That's what we already do, of course. And I think that will be more precise and more fine grained instead of after the fact.
