Accelerate Life Sales with Smarter Process Technology

From Speed Bumps to Flight
Ramps:
Accelerating Life Sales with Smarter Process
Technology

Copyright © OpenText Corporation. All rights reserved.

Sam Stuckal
Research Director, Insurance
CEB TowerGroup

Gerard Gibney
Senior Strategist, Financial Services
OpenText

ROAD MAP FOR THE PRESENTATION

Fewer Agents Less Efficiency Great Adaptive
Fewer Sales Less Satisfaction Expectations Answers

CEB TOWERGROUP INSURANCE
3
© 2012 The Corporate Executive Board Company. All Rights Reserved.

DECLINING US LIFE INSURANCE OWNERSHIP
Individual US Life Insurance Ownership
By Year, 1960 - 2010

56%
51%
48%
38% 37%
32%

1960 1976 1984 1992 2004 2010
Sources: ACLI and Limra
5

BUT POSSIBILITIES….ESPECIALLY HIGH NET WORTH
Life Insurance Purchase Likelihood by US Household Income
By Income Class, 2011

28% 28%

26%

Purchase Likelihood

Low Income Middle Income High Income
Source: Limra
6



7

FOCUSING ON EFFICIENCY AND CLIENT SERVICE
Insurance IT Investment Priorities
By Issue Type, 2011

Cost pressure/efficiency 45%

Client Demands 30%

Technology obsolescence 26%

New regulations 20%

Product changes 19%

Availability of innovative technology 15%

International expansion 10%

M&A activity/ restructuring 10%

Existing regulations 7%
Sources: CEB TowerGroup
8

NOT IN GOOD ORDER (NIGO) – AN EFFICIENCY LEAK
Tasks to Issue a Life and Annuity Policy
By Sales Phase, 2008

Source: NAVA
9

THE CASE FOR EXCEPTION-HANDLING EXCELLENCE
Causes of a NIGO (Not In Good Order) Policy
By Sale Type, 2012

New Purchases Problems Replacement Errors
 Incomplete information about  Missing or unsigned new
the insured including coverage disclosures
supplemental answers.
 Prior insurer name or policy
 Incorrect Beneficiary details incorrect
designations
 Inconsistent financial
 Missing agent or insured information between the
signatures replacement policy form and
the original policy
 Financial details are
incomplete including bank  Missing agent or insured
and routing information signatures and all new forms
 Policy rider forms are missing  Incomplete or adjusted
or lack signatures beneficiary designations
Source: CEB TowerGroup
10

A GRADE ‘C’ FOR SATISFACTION
Insurance Customer Satisfaction
By Region, 2012

10
9
8
7
6
5
4
3
2
1
0

Source: ERNST & Young
11



12

WHAT MATTERS DURING THE PURCHASE…..
Key Factors in Choosing an Insurer
By Priority, 2012

70%

64%

57%

45% 45%

Product Price Product Fit Call Center Online Access Brand Reputation

Source: Accenture
13

CHANGES AT RENEWAL AND IN CROSS-SELL/UP-SELL
Key Reasons for Staying with an Insurer
By Priority, 2012

45%

37%

32%

28%

22%

Service Trust Price Ease Confidence
Source: ERNST & Young
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15

SO CUSTOMER CENTRICITY IS THE GOAL….
The Customer Centric Roadmap
By Factor, 2012

Ease

Value Channels

Customer

Availability Adaptability

Speed

Source: CEB TowerGroup, 2012
16

….ACROSS MANY CHANNELS….
Insurance Channels, Functions and Products
By Customer and Distributor, 2011

CONSUMERS DISTRIBUTORS

Delivery
Channels
DATA SOCIAL CALL PAPER INTERNET WEB MOBILE
MEDIA CENTER PORTAL

Policy Proposal
Underwriting Actuary Rating
Administration Generation
Functions
Customer Claims
Billing Sales Compliance
DATA Support Processing

Personal Workers
Pensions Life Health
Auto Comp Product
Personal Commercial Specialty Systems
Investments Marine
DATA Property Lines Lines

FINANCIAL SERVICES PRACTICE, CEB TOWERGROUP INSURANCE
17

….AND MANY TYPES OF CONTENT
Insurance Sales and Service ‘Documents’
By Type, 2012

Social Media

Adjuster/
Medical, Inspecti
Underwriter Notes
on Reports

Photos

18

ADAPTABILITY IS REQUIRED….
The Case for Adaptive Case Management
By Challenge, 2012

What Makes Insurance Knowledge Work Hard?
• There Are Two Customers
(Agent and Policy Holder)

• Customer Needs Change Over Time

• Customers Require Solutions Yesterday

• Outside Factors Cannot be Predicted or Controlled
(Catastrophes, Economics, Government Policy)

• Employee Turnover and Knowledge Retention
19

TO MOVE FROM INFORMATION TO INTELLIGENCE

ECM BPM EIM

Look at the
Standardize Treat Variations
Customer
Forms across as
Do Products and Stored
Experience
across
Channels Customizations
Processes

Expect Process Fail to
Don’t Ignore Key
NIGO Causes
to be Continuously
Set in Stone Improve

20

Thank you
Sam Stuckal
Research Director
Insurance Practice
CEB TowerGroup
617.488-1985
Sam.Stuckal@executiveboard.com
Website: https://insurance.tg.executiveboard.com

21

Major US Insurance Company

 Life, Annuities, Retirement Plans, Group
Employee Benefits, Stop Loss
 2 million customers
 20,000 agents
 1,200 employees
 $21 billion in Assets
 Hired four people for every 100 new
applications

After Deploying OpenText ACM, there were more
applications but no increase in staff

 Through attrition staff declined
14.5%
 Cases handled +30% increase
 Underwriters +20% increase in
capacity
 Life & Investment Group can
now handle 67% more work
 Agents get the answer in real-
time while on the phone
 Developed a NEW channel
to sell Term Life through
other Financial
Institutions

What are Insurance Companies doing with ACM?

 Trying to simplify while adding value
 People live in a world of relationships that go on for
decades, HOW do you monetize this?
 ACM can provide a more complete or useful “view” of a
customer
 All interactions can be linked to a “case” which lives on.
 This improved view can be acted on:
 improve customer service
 market new products to people more likely to buy
 process a claim cheaper and faster

Case Management increases New Business
agility and efficiency to drive profitable growth
Policy Underwriting/Enrollment/
Distribution New Business
Channel External Data
Data Risk
Validation Assessment
Application Base Rate
Submission/
Agent/Broker Order Entry
Loss
Adjustment
Analysis

Website STP
Straight Through
Customer Processing
Quote Price
& Bind
Call Center

Source: SMA/OpenText
Electronically sent back
to/through channel

25

How does ACM help my business?

 Leverages the experience of knowledge workers as they know what
to do, and can add or delete processes, to get the application
processed quickly and correctly, a quicker time to revenue!

 ACM- the data is central: the
“case” may belong to a
process, it may initiate a process
and can exist for 50 years, which
you can use to improve sales
 ACM is the same fundamental
business process for ALL work
types and business processes
for the entire firm.
 Case includes:
 Ad hoc tasks
 Checklists
 Case notes
 Discussions
 Audit trails, etc.

How does ACM help my business? cont’d

 Case has Persona based UI’s
 We put the customer at the
center of everything!
 Single view via a Master
Folder
 The customer
 Policies
 Advisers
 Documents, emails, letters, propo
sals
 Links to all
investors, brokers, fund
managers, etc. folders

AIA Insurance

 Was AIG in Asia
 23 million policies
 Second largest Insurer in Australia, insures 20% of the
population
 Uses ACM with OpenText
 New Business
 Underwriting
 Policy Administration

Questions?

Download your complimentary report:
Breaking with Tradition in the Insurance Industry:
Strategies to Insure Operational Efficiency and Future Growth

You can view the report at:
http://bps.opentext.com/resources/ot-bps-insurance-execbrief.pdf

Learn more: www.opentext.com/insurance

Thank you

Accelerate Life Sales with Smarter Process Technology

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