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business models, today. www.the-digital-insurer.com 2
3. Presentation focus
Is on individual
Presentation Flow consumers
1. Bancassurance “as usual” – a legacy
model?
2. Digital is an opportunity .. and a
threat
3. Digital changes business models –
but not the fundamentals
4. The “Digital Advisor” model is the
likely future of bancassurance
5. .. But there is more than one route
to success
www.the-digital-insurer.com 3
4. Bancassurance Audit:
Where are we now? x
Strengths Challenges
• Leverage customer banking • Fee driven models: customer centric
relationships models have not evolved
• Utilise physical • After sales service limited to basics
infrastructure transactions – where is the cross-sell
• Insurance is a logical opportunity?
product extension to bank • How well do RM‘s really know their
products customers? Or are they product
pushers?
Result : high productivity and • “Traditional” Tele-marketing –
higher quality business than regulatory tightening to continue
agency distribution • Product driven by banks product bias –
short term and investment focused
…. and what happens when we factor in digital trends?
www.the-digital-insurer.com 4
5. The Digital Revolution:
it will not be televised
Digital Digital Digital
Convenience Connectivity Expectations
• Always on • Access to • Data “on demand”
• Always there information • Desire for clarity &
• Universal (Google) simplicity
• Almost free • Access to each • Dialogue not
other (Facebook) monologue
• Access through • Easy to promote a
devices (Apple) product .. and
• Location-agnostic complain
(cloud services)
Change, Change, Change….
www.the-digital-insurer.com 5
6. Two digital “Mega” trends : forces beyond
anyone’s control
1. Changing consumer
behaviour – they are
demanding and seeking a
different experience
2. Technology is cheaper and
easier to implement than
ever – it is the fulcrum to
meet consumer needs,
reduce operating costs and
to change your culture
www.the-digital-insurer.com 6
7. Welcome to Digital Customers : they are
“Hybrid”
Online
The hybrid customer is
• Better informed
• More demanding
Face • “multi-channel” for both
The Hybrid
To sales & services
Customer Face • Will jump channels at
any point – catch them if
you can!
Phone
www.the-digital-insurer.com 7
8. Digital customers are going to research more
before they buy
Source ; Ernst & Young Voice of the Insurance Customer – Asia Pacific 2012 www.the-digital-insurer.com 8
9. Multi-channel is here…
Customer are already hybrid
Source ; Ernst & Young Voice of the Insurance Customer – Asia Pacific 2012
www.the-digital-insurer.com 9
10. There Is demand for online services .. And more
personal service
Demand for more direct and self service channels
www.the-digital-insurer.com 10
11. Demand is across all age groups
Demand is across all age groups
Source : MetLife employee benefits trends study (1,400 employee interviews)
Gen Y :<31,Gen X :32-47,Younger Boomers: 48-56,Older Boomers 57-66
www.the-digital-insurer.com 11
12. Anchored to basics : Digital Bancassurance
strategies need to leverage insurance fundamentals
Current Bancassurance Digital impacts
Paradigm
Rely on Bank brand As customer research on-line trust
will need to be developed and
Trust is at the Relationship managers leverage leveraged on-line
heart of trust already placed in the bank
insurance Trust must be earned and reinforced
in every interaction
Bank RM’s ≠ insurance When customers research online they
advisors. RM’s have natural bias will research their advisors as well .
Great towards investment products Less time face-to-face – but no less
insurance
advisors - For mass market not really a important
always in personal relationship – order Insurance advisors need to be more
demand taking and closing the sale mobile (digitally & physically)
Little emphasis on customer Mobile technology provides
service after the sale is closed opportunities for cost effective
Customer Back office is back office customer service differentiation
service matters Customer will expect this – a
hygiene factor very soon
www.the-digital-insurer.com 12
14. 1. Managing the Sales Funnel
• Co-partnership models for lead generation
• Apps to generate leads from the “digital
cafes”
• Analytics has a big role to play
• Get the lead to the right person
• Lead management systems to manage
multiple leads , measure ROI and promote
better practices
Business outcome:
- More leads
- Better quality leads
www.the-digital-insurer.com 14
15. 2. Build a “digital eco-system” around
legacy policy system to treat customers
-- like customers
• Customer portals/apps : an on-line
marketing capability for customer
engagement leading to cross sell / upsell
opportunities
• Customer experience centre : multi
channel customer support to connect
customer interactions – a digitally
Customer Experience Centre
assisted customer service revolution (the
engine room for converting “big” data Policy Record Systems
into business)
• Advisor portals: customer data and
advisor performance
Business outcome:
- Building deeper, richer and better
relationships with customers and advisors
- Facilitate and co-partners the advisors to
better meet customer needs
- Allow “farming” as well as “hunting” www.the-digital-insurer.com 15
16. Cross Sell Opportunities: Do bancassurance
models really cater for moments of truth?
1. Signing up for a mortgage?
2. Opening a joint account?
3. Other transactional data
Can banks overcome their
traditional reluctance to use
data to professionally provide
customers more options and Success factors
• Data analysis & a range of “push”
better services?
based actions (hybrid)
The digital competition can, • Pro-active customer experience
should and will… centre
• Timely and appropriate handover to
professional insurance advisors
There are “orphan” customers
all over the world www.the-digital-insurer.com 16
18. Tablet sales toolkits : will be “business as
usual” in most markets within 5 years
Tablet Functionality:
Should be Focused on The customer
1. Identify needs
2. Produce quotes and help
to close
3. Allow faster, easier and
more accurate proposal
Key Success factors submission
• Must be Designed for Advisors
• Easy to use with a “wow” factor that encourages use with
clients
• Great usability is critical: engage/delight customers &
advisors www.the-digital-insurer.com 18
19. Usability Example : Life insurance quote on a
tablet
Data entry: non-linear data capture
process supported by traffic light system
Screenshot: courtesy & copyright of Mobile Insurance Solutions www.the-digital-insurer.com 19
20. Usability Example : Life insurance quote on a
tablet Output: Graphical display option with
premium iteration to facilitate closing
Screenshot:courtesy & copyright of Mobile Insurance Solutions www.the-digital-insurer.com 20
21. Reality check: In practice Digital Advisor
models for bancassurance are complicated
1. Who builds & controls the technology?
2. How long-term are the relationships? How closely are the bank and
insurer aligned?
3. Who does the selling?
4. How many insurance partners does the bank have– best in class / “open
architecture”, tied or broker model?
5. Can you navigate the security & governance maze?
A common template cannot be applied – each opportunity is unique
www.the-digital-insurer.com 21
22. Digital Advisor : Making the business case
The Digital Difference
Digitally enhanced and developed
“trust”
More leads Better lead sourcing – high quality
and higher volume
More consistent
More engaging
Better sales Better match to customer needs
process More digital – yet also more
personal
Paperless policy issuance
Improved Automated customer service
operational requests
efficiency
www.the-digital-insurer.com 22
23. Concluding thoughts
Be radical : Now is the time to embrace change
and start building digital models
Be Cautious : you don’t need to “bet the bank”.
Learn from fast and strategically well thought
our pilot projects
Beware : If you don’t utilise digital thinking
plenty of others will
www.the-digital-insurer.com