Edgewater Consulting presentation to the Life Insurers Council and at life insurance forums on the purchasing habits of Gen Y, and what insurance carriers need to do to stay relevant

1. Companies referenced/highlighted in this presentation are not current or past clients of Edgewater Technology

2. Gen Y Perception of Insurance
Insurance agents always try to sell people stuff they
don’t really need75%
Insurance companies don’t know or understand
the real me57%
Insurance companies and agents can not be trusted53%
Insurance products don’t really make me feel protected50%
Source: Maddock Douglas Quantitative Insurance Survey: August 2012

3. Consumer Evolution
• Consumers have changed – dramatically
– Less marriages, Less children, Less
mortgages
• Less need for after death stability
– More Google
• Educated, informed and self motivated
– Not just Millennials
• Silver Surfers
• Amazon Effect

4. Distribution Evolution
A once dominated Captive distribution is now led by
Independent producers – they own 50% of all sales50%
The figures of individuals that are inclined to do their own
research online, rather than through an agent74%
Individuals that would purchase their life insurance online
Today, if available25%
P&C Direct Written business in terms of net premium
(personal lines)71%
Source: Limra 2014

5. Life Insurance: Required Rebirth
Consumer Evolution
Access to Advice
Comparative Rating
Property and Casualty Paradigm

6. Attack on traditional distribution

7. Access to Advice. Ex: INSWEB

8. Comparative Pricing
Cavendishonline.co.ukComparethemarket.com
Moneysupermarket.com

9. Evolution

10. The Evolving definition of customer portal
Prospect
Sales
Application
Quote
Underwriting
Policy Holder
Services
Renewal
Claims
Customer
Portal
• Without an integrated Enterprise a
portal is a mere façade
– Without Enterprise integration a
modern portal will fail to impress
• Modern portals must be functional
– Access to key data and transactions
– Ability to real-time process meaningful
transactions
– Research
• Agents require real time BI and
drill down to data

11. Increasing Expectations: Amazon Zone
• Easy to use
• Addresses MY NEEDS, helps me
decide
• Seamless shopping experience
• Available anytime, anywhere
• From any device
• Portal that allows me complete
access and control over my
policies, benefits, etc
• No need to talk with customer
service!

12. Insurance Web Communication and
Collaboration Landscape

13. Consumer Enablement Maturity Curve
4
2
3
1
Customer
Section in site
• Public Information
• Start a quote
• Phone based
service
• Claim forms
Simple Customer
Self Service Portal
• Secure Login
• Policy information
• Planning tools
• Forms to print
• Update address
• Update contact
• Pay bill – set EFT
• Improved Customer
Service
Technologies:
• IVR
• Chat
Customer Self Service
- Advanced
• Update beneficiaries
• Add Products
• Manage financial
information
• Loan request
• Payment history
• Improved Customer
Service Technologies:
• Mobile sites
• Screen Sharing
• Social Service
• Mobile
Applications
• E-delivery of
disclosures and bills
Integrative Experience
• Simple profile with quote
request / application
• Collaborative Workspace
through medical and
underwriting
• eForms / E-signatures
• Full Policyholder services
online
• Claims management
online
• Upsell / Cross sell
• View policies across
business lines
• Business Process
Automation technologies
• Building a community

14. Simple, Friendly……..

15. 30% of all internet traffic is Mobile based
and climbing
Google adjusted mobile search algorithm to
include mobile site readiness scoring
Reality

16. Distribution Enablement Maturity Curve
4
2
3
1
Agent Section in
site
• Public Information
• Marketing
Materials
• Phone based
service
Simple Agent
Communications &
Self Service Portal
• Secure Login
• Enter new Policy
• Policy search &
information
• Policy status
• Planning tools for use
with prospects
• Forms to print
• Pay bill – set EFT
• Commissions
• Messages
Agent Self Service -
Advanced
• CRM: View all customers
and be able to
communicate with them
• Ability to do a policy and
submit for approval in one
sitting
• E-forms,E-signatures
• View policy status and
manage interactions with
Prospect
• View claims and status
• Proactive alerts
• Simple mobile tools –
Education and Planning
• Lead management
Integrative end to end
Experience
• Full Agent services online
• Collaborative Workspace
• Integration with external
data such as Funeral
Homes
• Business Process
Automation technologies
• Advanced mobile
applications with offline
mode. Ability to complete a
policy and submit from
customer home.
• Location based services
• Lead sharing and Agent
interaction
• Full CRM and marketing
functionality
• Agent websites

17. Multisite Integrative Approach
Business Applications, Data, Content, People
Public Policy Holders Agents Employees
Information Management
Content
Mgmt.
Targeting Doc. Mgmt
Security &
Access
Collaboration
Quoting
Policy
Admin
Claims Billing Commission

18. Education and Planning

19. 19

20. Perception

21. Beyond Portals

22. Beyond Portals
• Education and Customer Life-stage/ Need focused site
• E-commerce flow and analytics
• E-applications, tablets for agents/ nurses, co-browsing
for CSR’s
• Collaborative workspace Customer interactions and
service through medical and underwriting
• Social and mobile customer service channels
• Value added services and content to encourage
retention
• Marketing programs driven by Customer Intelligence

23. Social CRM
Consumers,
Bloggers, Dieticians
• Questions
• Problems
• Positive feedback
• Dietician
interactions
CRM Generates
• Email responses
• Coupons
• Refunds
• Follow-up
reminders

24. Questions?