ORTEC: How do you tackle a major change process like digital transformation in practice?

“When I started, a.s.r. still had three IT departments spread across the organization. I decided to merge them because I believe that to really forward the digital movement, you need to have all digital skills and IT in one place. There was some resistance at first, but now everyone has come around and considers it the most important "enabler" of the movement. Our business units are autonomous when it comes to their insurance records, and you want to keep it that way, because it means they stay agile and accountable. We have, however, merged the layers that determine which application we use to chat with our customers.

ORTEC: Some insurers first run experiments more or less outside their own organization, before implementing them in the organization if they prove successful. What role does innovation play in a.s.r.'s digital strategy?

“We also had a separate team at Innovation & Digital, which started off as a lab of sorts. It proved to be incredibly useful in an initial phase, because it opens you up to novelties. At more advanced phases, companies will not automatically accept that new, fun ideas also make it to the management agenda of units that have been around for a bit longer, have become more robust and often play a vital role for the operating results. For the past 18 months, we’ve therefore said: let’s sit down with all unit heads to draw up a joint management agenda that transcends the individual agendas of those existing units, innovation and IT. Let’s define lofty goals together and decide what we need to do to accomplish them. It takes some investment, but - in my experience - setting the agenda together is the best way to ensure broad-based support.”

No congratulation without customer validation

Under De Swart, a.s.r. set off on its quest for digitization with a common goal. “There were setbacks, of course. At a certain point, it became clear that the product owners did not always know what direction to go when they were faced with choices, which is why we set up several guiding principles. ‘Winning starts with beginning’ is one of them, but so is 'No congratulation without customer validation'. Sure, you can run through the office high-fiving each other because you made a deadline, but if you then discover that customers have no interest in your latest creation, it will have little added value. We test all our new creations with customers. Our professionals have had to get used to the fact that they are no longer the ones who validate their own work and that customers decide whether it meets their needs. However, it has provided more energy and new insights, such as that you might be able to do the same with much less text and/or fewer actions.”

ORTEC: Among other things, digitization has given insurers much more and more accurate data on their customers. To what extent do data analytics play a role in customer interactions?

“We want to communicate with customers in a way that suits them best, inspired by the motto ‘High tech, high touch’. For many insurance-related matters, customers love the convenience of making arrangements in their own time, just as with banking or submitting meter readings. When it comes to more impactful matters, however, such as a severe car accident or buying a new house, you want to hear a human voice or see the person you’re talking to. That’s why we’re looking to strike the ideal balance between human interaction with real added value, the touch, and digitized convenience where possible, the tech. At a.s.r., we are currently working on ‘Ik denk vooruit’ (‘I think ahead’, a new platform that provides our pension customers with an overview of their financial options with a view to the future, ed.). Over the course of this year, more and more data will become available that customers can decide to upload in order to see if they have a pension gap and what they could do about it. Our ambition is not to provide personal financial advice; intermediaries are much better equipped to do that. We do, however, feel a responsibility to make information as accessible as possible. With overview, you gain insight; and you can then decide on your preferred view with your financial advisor, who can see the big picture.”

“At a certain point, it became clear that the product owners did not always know what direction to go when they were faced with choices, which is why we set up several guiding principles.”

Prevention for vitality

The insurance company has also developed its very own health app, called 'a.s.r. Vitality'. "Quite honestly: I was rather skeptical at first, but I have been positively surprised. People who had installed the app during the lockdowns have been demonstrably more active than the average Dutch person. And more than 45,000 members turn out to actually keep using the app, to get fitter and save up points for rewards, such as Zalando or Bol.com gift cards."

ORTEC: One consequence of having more customer data is that more work can be put in prevention. Does encouraging prevention also have implications for a.s.r.'s business model? Are insurers becoming more and more risk managers?

“It is true that prevention has become a more important topic for us. We have to move upwards in the chain and our customers expect us too. Customer demand for sustainable damage repairs, for instance, is increasing. The way society views risk management is subject to trends. We started with financial risk: any risk you cannot bear individually, you have to share. Preventing risk or managing risks differently is becoming increasingly important in what we do. Our challenge was always to invest the money entrusted to us by clients in the best way possible, but a shift is occurring and more is expected of our efforts with regard to vitality, sustainable employment, self-sufficiency and impact based on the ESG principles. We are expected to adapt our business accordingly, and I think that's right. In fact, I think it's even really great that we're being asked to do that, as it makes us more appealing in what we do, which in turn lets us bind people to the organization.”

Solidarity and claim levels

ORTEC: Artificial intelligence (AI) should be as transparent as possible, as inaccurate or biased algorithms can have unwanted side effects. Customers living in zip codes associated with an unhealthy lifestyle may accidentally be highlighted, for instance. How does a.s.r. deal with this risk?

“This is insurance companies’ core business: insuring risks that people cannot bear individually. We believe that it is important to maintain solidarity among insurance products, without disadvantaging people who are committed to reducing claim levels. The challenge is to strike a balance between preventing uninsurability and listening to our customers’ needs. In terms of AI, a.s.r. is still in the early stages of how we want to deal with algorithms. We don't want to apply them until we have very high-quality data and have thought carefully about inclusiveness and exclusivity, because we don't want to inadvertently lock in risk or exclude people."

Currently, data science models are still built primarily for analysis purposes. The current models used by a.s.r. have little direct impact on customers, but do provide additional insight into the process and how a.s.r. can improve its services. De Swart therefore definitely sees opportunities for AI. “In the long run, AI has added value for a.s.r. as an insurer, but it is important that we can explain which models we use and the insights they yield, which has the added bonus of increasing support in the organization. Our main goal is to be predictable and keep our eyes trained on the long term, focussing on the whole curve rather than on the minutiae, while remaining adaptive. Parking sensors installed on cars, for instance, are a great way to prevent damage. If that effect continues for long enough, we can start compensating customers for reduced claim levels by adjusting their payments. And that’s exactly what we do.”

“We don't want to apply algorithms until we have very high-quality data and have thought carefully about inclusiveness and exclusivity, because we don't want to inadvertently lock in risk or exclude people.”

About the interviewee

Ingrid de Swart is COO/CTO and a member of the executive board of a.s.r. Her portfolio includes IT&C, Customer Experience & Digital, Life & Pensions, Disability Insurance, Non-life, Funeral, Mortgages, Healthcare, Ditzo and Distribution

Ingrid de Swart was part of the managing board of Aegon Netherlands from 2017 to 2019 as COO Retail and was responsible for the digitization program, among other things. Prior to that, she worked at Delta Lloyd from 2001 to 2017 in various management and board positions. From 2009 to 2013 she was CEO of ABN AMRO Insurance, before becoming President of the commercial division of Delta Lloyd. From 2014 to 2017, Ingrid de Swart was a member of the Board of Directors of Delta Lloyd, in which role her responsibilities included IT, digitization and innovation.

This interview was conducted by Arjan Gras, Interviewer.