9th Asian Insurance CEO Summit Mar09pdf

David PiesseGlobal Head of InsuranceSun Microsystems, Inc.

Hong Kong

Monetizing and Marketing Insurance

through Virtual Worlds

9th CEO Asian Insurance Summit

Hong Kong March 25th 2009

Claus NehmzowManaging Director

ALCUS International Ltd.Hong Kong

1Friday, 27 March 2009

© Alcus International Ltd. 2009

3D “Virtual Worlds” and Insurance

• Challenges for Insurance CEOs

• Virtual Worlds

- What are virtual worlds

- Applications of virtual worlds in business & education

• Application to Insurance

- Potential across insurance applications

- “A day in the life of an insurance sales person”

- “A day in the life of an insurance customer”



Challenges for Asian Insurance CEOs

• Doing more with the same or less marketing budget

• Greater outreach on product launches

• Connecting with “Generation Y”, both as customer and employee

• Reducing fraud and mis-selling

• Improved compliance

• New channels for addressing micro finance and islamic finance

• Concern about more disasters: e.g., pandemic

• No bricks and mortar bancAssurance



Data,Activity

People

Me

Web 1.0Standard Web Focus

Web 2.0Productivity Focus

Next Generation Internet



1

Generation Y: “Screenagers”

Screenagers

Source: IDC


http://www.gearyi.com/fresh/wp-content/uploads/2007/05/facebook1.jpg

http://www.gearyi.com/fresh/wp-content/uploads/2007/05/facebook1.jpg


Multi Channel Distribution

Best of Breed Insurers

Affinities / Retailers

Virtual

Worlds

Telco's/Rural/

Semi-Urban

Banks/Post

Offices

Global Insurance

Service

Agents and Brokers

Connecting brands and their customers with insurance products

and underwriting capacity.

Connecting insurers with niche distribution channels and brand

loyal customer segments.


VIRTUAL WORLDS



Virtual worlds continue to attract investment and a growing number of users

• Virtual worlds today have more than 300 million users

- ... with 70% younger than 18

- 1 billion users predicted for 2012

• $919 million invested in virtual world companies for 12 month prior Oct ’08

- $1 billion prior to Oct ‘07 (Virtual Worlds Management)

• Virtual goods represent a $1.5 billion market

- ... $60 million per month virtual goods traded in Second Life alone

Source: KZero, July 2008, Park Associates: Oct ’08, Strategic Analysis, Oct ’08, Virtual Worlds Management, In-Stat, Nov ’08, Virtual Greats



Virtual world: a real-time, shared experience

InteractiveAnonymous

Co-PresencePresence

Spatial



Age 8Age 30+

StardollMeez

Second Life15m

Mycosm

FootballSuperstars

LEGO Universe

Cars

IMVU

20m

vSide

vMTV 3mThere

Near

Robot Galaxy

Franktown

Club PonyPals

sMeet

Vizwoz

Habbo100m

Gaia

13m

Kaneva

Action Allstars

7m

goSupermodel

Whyville 3m

Home

PoptropicaWebcarzz

My Animal Family

Cyber Town

Moshi Monsters

Chapatiz

Webkinz

Handipoints1m

Club Penguin

45m

Twinity

19m

2m

Utherverse 2m

Black Mamba

Hello Kitty

HiPiHi GeoSimPhilly Amazing

Worlds

Xivio

Vivaty

Whirled

Barbie Girls

Chobots

Empire of Sports

Kiwi Heroes

6m

Frenzoo

Woogiworld

Jumpstart

Konstruction Zone

2m Buildabearville

20m

15m

SportsBLOX

My Mini Life

ERepublic

1m

Activeworlds 1m

Chugginton

SmallWorlds

Kidstudio

Live or open beta

In development/private betaCopyright K Zero 2008

Permission required prior to republishing

Launched in

vLES

Onverse

iheartland

Medikidz

Interzone

Kidscom

Lively

1.5m

No data shown for worlds under 1m registered accounts. Includes estimates.

www.kzero.co.uk21m

KooDooZ

SceneCaster 2m

Virtual Tweens

Planet CazmoGrockit

Digital DollhouseNeopets

Massively Me

10Vox

Oddcast

Green

Spineworld

MinyanLand

ClubCooee

1m

EGO

Visitoons

1.5mWeblin

24mWeeWorld Taatu

Muxlim

Rocketon

Age 5

2009

2008

2007

2006

2005

Yoggurt

Ourworld

Faketown

Closed/closing

Age 20

Age 25 2009 2008 2007 2006 2005

2005

2006

2007

2008

Age 15

2009

Age 13

Age 102005 2006 2007 2008 2009Dizzywood

Coke Studio

Virtual Worlds Registered Accounts Q4 2008


http://www.kzero.co.uk

http://www.kzero.co.uk


Private and public sector organizations are using virtual worlds for serious business

•recruiting•training

•developer partner network management

•b2b marketing

•internal collaboration

•IT training

•Internal sales conferences

•collaboration

•surgeon training, operating theatre

•conferences

•design collaboration

•academic education•conferences

•consumer marketing

•cruise missile launch training

•recruiting•training

•health care seminars

•Recruiting•b2b marketing, conferences



L’Oreal has experimented with “experience marketing” in virtual worlds

• Consumer marketing in Second Life• Playing with scale and experience



Cigna has launched a virtual healthcare pilot, integrating web...

• Custom brand experience

• Registration easy and simple

• Consistent branding, visual language, graphic design

• Circular, extensible design

• Emphasis on human interaction



... virtual seminar, social community, interactive learning, and games

Source: Cigna, vielife



Lenovo is piloting a 3D training and sales environment

• planning to train 15% to 20% of its sales force to interact with customers and prospects via Lenovo eLounge

• expect 40-50% conversion rate (compared to 25-30% on phone)

• built on Nortel’s “web.alive”

Source: Nortel, ThinkBalm


http://web.alive

http://web.alive


Sony Electronics conducted virtual trade show

• staged trade show for professional broadcasting equipment

• attracted thousands of visitors

• replaced conventional 15 city (with 200-400 attendees each)

• estimated 50% cost savings

• used InXpo’s virtual event platform

Source: VentureBeat, January 2009



IBM: “fifth of cost / no jet lag” -- ROI of $320,000 on $80k investment

• meeting with >200 participants, held in late 2008

• specifically designed meeting place for keynotes, breakouts, 3D server & green data center illustrations

• starting with one annual event, laying the base for ongoing meetings

• IBM’s “Virtual Community Group” has 6,100 members

• used stand-alone, behind firewall Linden Lab version of SL

Source: IBM/Linden Lab case study, March 2009



Retailers are starting to experiment with “talking heads” to connect to customers

• “talking head” avatars give more sense of reality to interactions

• applications include customer services and sales

• some talking heads front Artificial Intelligence engines...

• ... others have human operators behind them

Source: USA Today, Asia Risk Technologies



Microfinance (lending, insurance) are starting to experiment with virtual worlds

• Peer-to-peer micro lending provider Kiva has a small “presence” in Second Life

• Barnett has created a place in Second Life for villages to display their programs by building replicas of their projects.

• Both seem currently a bit like “web pages in 3D” but might come to live with presence of people and live events

Source: visit to Second Life



Wells Fargo’s “Stage Coach Island” virtual world - fun and education

• A social space, not just a game

• Games, socializing, Bingo, virtual currency, quests

• Education on money management, budgeting, students loans, credit cards

• Integrated with Facebook

Source: We$s Fargo website, stagecoachisland.com, Facebook


VIRTUAL WORLDS AND INSURANCE



3D virtual worlds can yield benefits across many parts of the insurance life cycle

Product Definition/Assembly

Sales Force Training

Product Launch

SalesCustomer Service / Claims

• brainstorming• partner

communications• internal

communication

• communication• interactive

seminars• role-play• help with PR

• pre-launch meetings

• sponsor/embed with relevant partners (e.g., household ins & greener living)

• edutainment

• “experience marketing”

• compliance• “risk island”• interactive

education• public, small

group and private sessions

• customer service centers

• use waiting time to cross sell

• customer self-help

• travel/time savings• more open,

creative ideas

• broader reach (age, location)

• better accessibility, inclusion

• travel/time savings

• time-to-market• better explanation

of complex or controversial products

• overcome “insurance sales man” syndrome

• easier to education complex products

• anonymous allows simulated claims reducing fraud

• improved customer experience

App

licat

ion

Ben

efits



Bank Assurance: another opportunity using a virtual world channel

• A virtual world is uniquely positioned to integrate and link different offerings

• Environments and locations can be dynamically changed and adapted

• The spatial character allows more subtle integration than a flat link on a web page



Benefits from using immersive environments include cost, time, and customer orientation

• Immersive environments and real-time dialogue better suited for complex products and training

• Better compliance (consumers / audit, and internal training)

• Time and cost savings through reduced travel

• Mitigation against impact of potential pandemic on conventional communication

• Avatar allows to shield cultural differences and reservations against direct sales contact

• Medium equally well suited (but for different reasons) for younger and older audiences



Willy Wong, head of sales, presents a new microfinance product to his sales force

• Willy logs on from his home computer, presenting the new product to the global sales force

• People around the world, regardless of location or physical limitations, attend the conference

• Muslim women join from their local community center’s computer

• After the main conference, participants break out into smaller work groups

• The seminar space allows frequent sessions to accommodate various time zones

The fo$owing video i$ustrates a possible virtual world scenario



Yuki (21) chemistry student from Japan, attends a career planning seminar

• Yuki researches career planning, joins a Facebook group, learns there about a career event, with several Pharma companies present

• Joined by two friends from different cities and a cousin from New York, she attends the career fair

• As the event is sponsored by the insurance company, the stumbles into an virtual info booth during the break and talks to the representative

• After the fair, she teleports to a private consultant on health insurance



A virtual world channel should be integrated into the wider “Web 2.0” - on PC & mobile

Insurance Virtual World



Broadband penetration and propensity for virtual worlds: huge potential of Asia

75

8

66 USA

Canada

13

##: broadband subscribers (millions) ##: minutes/broadband user/month

9.6

North America Latin America Europe Asia

15

4.87.4 Brazil

Mexico11.0

Argentina3

currently no significant usage: Potential

Chile

2.23.9

16

Source: Linden Lab, OECD, Wikipedia, Alcus analysis

84

17.4 Germany 12.7

10.1

20

U.K.14.4

8.1France14.3

8.8Italy9.38.3Spain7.5

15.6Netherlands7.54.1Poland3.04.1Sweden2.68.5Belgium2.57.3Switzerland2.36.4Denmark1.9

12.6Portugal1.56.8Austria1.5

RussiaTurkeyRomaniaIsraelFinlandNorwayCzech RHungaryIrelandGreece

32

27.1 Japan 4.8

9.6Australia4.7

China66.5

Korea

SingaporeIndonesia

95++

Taiwan

Hong HongVietnam

India

New ZealandMacao

14.4

12.9

Broadband penetration and virtual world usage (example: Second Life)



There are multiple technical platforms out there to support business virtual worlds

• Second Life by Linden Lab

• Olive by Forterra

• Wonderland by Sun (Industry analyst Nic Wilson: “we consider it to be one of the most exciting, and potentially game changing virtual world applications currently in development.”)

• Open Sim(by mid 2009), open source

• Protosphere

• Qwak

• others


9th Asian Insurance CEO Summit Mar09pdf

Technology

Transcript of 9th Asian Insurance CEO Summit Mar09pdf