About UsAbout You The Brand Win/Win/WinThe Competition About You The Insurance Company The...

About Us About YouThe Brand

Win/Win/Win The Competition

About YouThe

InsuranceCompany

The insLogic.com

Process

Financial

The eInsuranceMarket Place

Home

Financial

• Insurance is one of the largest consumer expenses– Larger portion of the average household budget

than any other consumable*– Avg. US household spends $4,250 which

represents 45% of financial service expenditures**

* Source: US Bureau of Census, Consumer Expenditure Survey** For households between $50,000 and $100,000 income. Comprised of Homeowners $456, Personal Auto $1,826 and Ordinary Life $1,970 (Source: A.M. Best, Bernstein Research, Federal Reserve flow-of-funds data, ICI, Survey of Consumer Finance, BCG Analysis 1999)*** Forrester Research est.

Home

Financial

• Insurance is at an earlier stage of Internet migration…– Highest growth segment on-line is property and casualty

markets• On-line transaction expected to be $18 Billion by 2005 or

10% of total market• Additionally sales influenced by on-line will $27 Billion or an

additional 15% of total market• In total 10 Million households will be researching and or

buying their insurance on-line by 2005**** Source: US Bureau of Census, Consumer Expenditure Survey** For households between $50,000 and $100,000 income. Comprised of Homeowners $456, Personal Auto $1,826 and Ordinary Life $1,970 (Source: A.M. Best, Bernstein Research, Federal Reserve flow-of-funds data, ICI, Survey of Consumer Finance, BCG Analysis 1999)*** Forrester Research est.

Home

Net Insurance Sales Will Grow Dramatically…But Winners Will Be Multi-channel

( Source: Forrester,Best BCG analysis )

0.0

10.0

20.0

30.0

40.0

50.0

60.0

1998 1999 2000 2001 2002 2003 2004 2005

Influenced Online

Sold Online

1.3

0.2

1.7

0.2

1.9

0.4

2.7

0.8

3.9

1.8 7.0

4.1

14.6

9.8

27

18

$ B

illio

ns

Financial

Home

Technology Adoption & Speed to Market

1922 1930 1938 1946 1954 1962 1970 1978 1986 1994 1999

100 mil

(Source: US Consumer Survey 1996)

Radio 75 Years

TV 50 Years

Cabl

e 25

Yea

rs

Cellu

lar 1

5 Ye

ars

Inte

rnet

5 Y

ears

Key Take Away

Speed to market is critical and accelerating

About You The Brand

# of Users

Home

Online = Lower Transaction cost forInsurance Transactions

$19

$8

$0.45$0

$5

$10

$15

$20

$25

$30

$35

$40

Agency Call Center Internet

$37

$22

$1.20$0

$5

$10

$15

$20

$25

$30

$35

$40

Agency Call Center Internet

(Source: Meridien Research Analysis)

Transaction Cost Estimatefor P/C Policy Origination

Transaction Cost Estimatefor P/C Policy Service

Financial

Home

Difficult or ComplexHigh Cost

SimpleLow Cost

InvestPlan for Unexpected

(Peace of Mind)

AD&D

Annuity

Term Life

Home

Auto

LTCHealth

Whole LifeEstate Planning

Home / Life / Auto suitable for Web and Call CenterSame time thinking about investment products

Key Take Away

Financial

Home

The POWER is shiftingThe POWER is shifting

The Wholesaler

The Manufacturer

The Retailer

The Consumer

Key Take Away

(Early 20th Century)

(Mid-20Th Century)

(Late 20th Century)

(Today)

Consumers Will Determine Which Model Will Prevail

About You The Brand There Is A Newly Empowered Consumer

Home

i.e. % Customer citing reasons for insurance purchases at financial institutions

Convenience And Trust… Cited As Primary ReasonsFor Buying Insurance Where They do

Convenient Location

Deal with people they know

Direct deduction of premium from account

Bank will lower premium

Convenience

Trust

Convenience

Price

Banks deal only with financially sound insurers

Trust

0% 20% 40% 60% 80% 100% 0% 20% 40% 60% 80% 100%

Life Insurance Auto-Homeowners Insurance

(Source: Synergistics Consumer Study, 1997 ABI Fact Book)

About You The Brand Consumers See You As Their Trusted Advisor

Key Take Away Convenience = Being Available At The Point Of NeedTrust = Your Brand Providing Choice

Home

Enhance the Trusted Advisor Role

Problems Buying insurance requires revealing

personal information.

0% 10% 20% 30% 40% 50% 60% 70% 80%

69%

51%

42%

38%

27%

16%

12%

Financial Planners

Registered Investment Advisors

Stock Brokers

Accountants

Bankers

Lawyers

Other

Your Brand as the trusted source of information

(Source: US Consumer Survey 1996)

Solutions “White-label” solution is perfect for selling insurance

% confidence by consumers as trusted advisor

Key Take Away

About You The Brand



About YouThe

InsuranceCompany

The insLogic.com

Process

Financial

Evolving eInsurance

Models

Home

B to B

B to B to C

ASP

(Applicatio

n Solution

Provider)

Cyber Intermediary

Web

Insu

ranc

e

Bro

ker

Internet

Infrastru

cture Player

Platform

Financial

B to B to B to C

Home

RecognizeNeed

Learn Products

Needs Assessment Get Quotes Compare Buy Service &

Renewal Claim

• Branded navigators who • Assist consumers through search• Transaction referred to an agent for fulfillment

Quotation Referral Systems

Fulfillment Systems • Non-branded brokers• Consumers enter buy process through “trusted” group• Transaction fulfilled offline or online

B2B• Provide engineered existing communication

between brokers, underwriters and customers• Enable greater accuracy, speed and analysis

of complex insurance products

Focus on Different Elements of Consumer Experience

• End-to-end search and fulfillment • Business model designed to avoid carrier integration challenges • Risk reinsured

Reconstructors

4 Models are Emerging…



About YouThe

InsuranceCompany

The insLogic.com

Process

Financial

HomeKey Take Away

The Best Practices of aTraditional Agent/Broker…The Best Practices of aTraditional Agent/Broker…

The Cost Structure of a Direct Dial/Writer…The Cost Structure of a Direct Dial/Writer…

…Enabled on the Web…Enabled on the Web

insLogic.com – Fulfillment ModelAbout Us

Home

The Evolution of Insurance DistributionC

ompl

exity

and

Val

ue

Pre 90’s 1990’s 1999 2000

Traditional Broker

• Access to Information Provides Choice

• Commoditization• Price Pressure

•Lack of actual results•Trusted brands

Direct Writers

Lead Referrals

Fulfillment

What’s next in insurance.

About Us

Key Take Away

Home

Aggregation & Fulfillment For Insurance Distribution

The Intelligent Middleware Between Consumers And Ins. Co’s

Aggregate information Analysis of customer needs Multi-channel gateway Multi-product fulfillment

InsuranceCompany

InsuranceCompany

InsuranceCompany

InsuranceCompany

InsuranceCompany

InsuranceCompany

Internet / Mail / Fax / Phone / Walk in

WorkPlace Home Branch

Auto ClerkRetailKiosk

HomeTV

A E FC DB

Key Take Away

IntelligentMiddleware

About Us

Home

Insurance Company WINS

Uniquely Positioned!

BrandWINS

ConsumerWINS

About Us

Sustainable Relationships Allow Everyone To Win Key Take Away

Home

Flawless Consumer Experience

Choice

Intuitive, transparent navigation

Unbiased needs assessment and advice

Execution of a binding policy in a single session

Superior Systems and Capabilities

Fully integrated e-commerce solution

High performance call center

Operational excellence CPT, COPC

3 Key Factors… Drive insLogic

The insLogic value propositionAbout Us

The Best Economic Model Will Win

Key Take Away

Enhanced Economics

Higher cross-sell rates to increase retention

Better retention to increase profits

Lower acquisition and retention cost

Increased lifetime value of customers

Increased lifetime value of customers

Home

vencapONEX

Airline Catering

Phoenix Pictures

LanticElectronics

Manufacturing

“Service engine of the new economy”

“Service engine for insurance in the new economy”

Infrastructure and e-fulfillment designed specifically for a white-label, multi-channel, multi-carrier

insurance offering.

Proven Experience & The Resources To Execute

Automotive Parts

The Onex Family - Proven Infrastructure Player

Key Take Away

About Us

Home

LAS VEGAS

TORONTO (3)BUFFALO (2)

WATFORD

CLIFTON, NJ

ALBUQUERQUE

DUBLIN LIN (2)

DOVER, DE

DALLAS

OAK RIDGE

HUNTINGTONCOLUMBIA, MD

NASHVILLE, TN

COLUMBUS

DAVIE, FL

Europe:• 9 Countries

• 10 Call Centers

• 3 Distribution Facilities

insLogic / ClientLogic Facilities

Details:Service engine of the new economy. End-to-end customer management solutions, focused on specific vertical markets.

• Focus on high-end, long-term client engagements.

• 32 Locations world wide, 7,800+ employees

About Us

Global Infrastructure ( insLogic.com / ClientLogic )Key Take Away

Home

insLogic. Adoption & Speed to Market

insLogic.com has continually migrated towards cost effective delivery of insurance & towards the way that customers want to do business

On-

line

Offe

ring

Pre 1997 1998 1999 2000

Call CenterOnly

Form BasedWeb Quote

On-line QuotesOff-line Sales

& Service

On-line Sales& Service

About Us

insLogic. Solution Enables A True On-line Offering Key Take Away

Home

TIGRES Totally Integrated Graphical Real-time E-commerce Solution

Flow-ThroughProcessing

GlobalContact

Management&

CampaignManagement

Database

InsuranceContact

Management&

CampaignManagement

Database

IntegratedServices

Link

DataMapping

APTACORD

CSIOAL3

Flat FileMSMQ

MQSeriesApplied

FTPDelphiFiMailSTMPXML

InsuranceCompany

InsuranceCompany

InsuranceCompany

DataWarehouse

LogicEngine

RatingSystem

Internet / Mail / Fax / Phone / W

alk in

About You The Insurance Company

InsuranceCompany

Home

The Connector Supports Any Format Examples of Insurance Specific

Formats Implemented. . . AL3 (over 50,000 active implementations)*

Applied (over 24,000 active implementations)*

AMS (over 15,000 active implementations)*

APT (over 1,300 active upload users)*

CSIO

Delphi

Formlink TRA

Examples of Industry Standard Formats Implemented. . . Flat File

FTP

MQ Series

MSMQ

Simple Mail API

SQL

XML

*Source – ACORD Status Report, Spring 1999

There Is No Standard

Home

Marketing Needs Analysis& Learn

Quote &Compare

Select Underwrite & Pay

Policy Change, Inquiry& Renewal

Claims

Recognize Buy Service

Recognize

The insLogic.comProcess

HomeSmart Marketing

Solutions Integration at the time of need, magic moments marketing Permission-based follow-ups and scheduled interactions

Problems Customers unaware of their needs Mass Marketing or Branded Marketing

(Source: One-to-One Marketing)

Event

Car loan/Car Purchase

Marriage

Change in ResidenceHome Purchase

Birth of a Child

Product Need

Auto Insurance

Life Insurance

Home Insurance

Life Insurance

Key Take Away

Time ofPurchase

InsuranceShoppers

At AnyGiven Time

BrandMarket

Approach

Mass

8%2% 1%

90%

0%

50%

100%

% R

esp

onse

To M

ark

eting

Recognize 1 : 1 MarketingThe insLogic.comProcess

Home

Problems• Too much information creates confusion• Not organized around customer’s needs

Solutions• Brand becomes the information source• Online intuitive tools available• No pressure or bias (intermediary)

The Brand is the Trusted Advisor

Recognize Needs AnalysisAnd Learning

BrandTraffic

CustomerUnderstandingEmpowerment

QuotationTime

Speed &Accuracyof Quote

Key Take Away


Home

Problems• Multi-Insurance Company solutions have lengthy (form-based) question set

(Time consuming to complete)

Solutions• Fast and intuitive question and response session• Access to live licensed agents

Increase Completed Quote Sessions

Buy Quote and Compare

Fast, Intuitive Quotation Process

STAGE 1

STAGE 2

STAGE 3

Thin Risk Profile

Refined Quote

Rating Complete

Quote Range

Compare

Complete

% C

usto

mer

s En

gage

d in

On-

line

Sess

ion

(Source: Forrester, Best, BCG Analysis)

0%

50%

100%

0 5 10 15 20 25 30 35 40 45

# of Minutes

Key Take Away


Home

Problems• Single Insurance Co. means no choice

or price matching risk profile

Solutions• Multi-Ins. Co. to compare/contrast/empower/trust• Multi-Ins. Co to match risk profiles • Reduce selection confusion

Risk No One Insurance Company Will Write All RisksConsumers Want Choice

Buy Quote and Compare

50%

20%10%

2%0%

50%

100%

SingleInsurance

Co.

2Insurance

Co's

3Insurance

Co's

4Insurance

Co's

(Source: U.S. Consumer Survey, 1994)

% o

f con

sum

ers

reje

cted

, not

mee

ting

thei

r nee

ds,

or c

onsu

mer

reje

ctio

n du

e to

pric

e co

mpe

titiv

enes

s

62.1%Agents offering

policies frommultiple insurance

companies

28.8%Agents offering

policies fromsingle insurance

company

9.1%Don’t Know

or No answer

Key Take Away


Home

0%

50%

100%

0 2 4 6 8 10 14 16 18 20 22

Problems• Time consuming• Single channel• Multiple separate sessions required

Solutions• Able to buy in a single session• Multi-channel (online or call center). Live contact

with a licensed agent increases consumer confidence

Close Ratio Rises With The Ability To Buy In A Single Session

12 Hours 24 Hours

(Source: Forrester, Best, BCG Analysis)

Buy Select Underwrite and Pay

Key Take Away

0

10

20

30

40

1999 2000 2001 2002 2003 2004 2005

Influenced Online

Sold Online

Share of Total Market %Sold Online 0.1 0.3 0.4 0.9 2.0 4.4 10.1

Influenced or Sold Online 1.0 1.4 2.0 2.8 5.3 11.0 24.2

0.2 0.4 0.8 1.84.1 9.8 23.5

1.7 1.9 2.7 3.9

7.0 14.6

32.9


Home

Problems• No access to policy & billing

status• Policy change or inquiry is time

consuming/inconvenient

Access To Information Leads To Customer Satisfaction

Service Policy Change – Inquiry & Renewal

55%

10%

0%

50%

100%

Access to BillingStatus

Price

% P

olic

y H

olde

rs E

xpre

sses

Dis

satis

fact

ion

(Source: Forrester)

0%

100%

100%

50%

1999 2000 2001 2002 2003 2004

Move to Unassisted

Service

Solutions• Electronic filing cabinet for all policy information

Policy declaration pages Application forms

Photographs Mortgage documents

Key Take Away


Home

Service Policy Change – Inquiry & Renewal


TraditionalInsuranceProvider

InsLogicToday

17

66

0

10

20

30

40

50

60

70

Product Line 1989 1994 1995

Auto monoline 80.4 80.5 80.9

Homeowners monoline 84.1 81.4 83.0

Other monoline 74.1 79.1 80.4

Total monoline 81.1 80.8 81.9

Bundle 88.8 90.0 90.8

Total personal accounts 81.8 84.6 85.60

50

100

150

200

250

300

TraditionalInsuranceProvider

InsLogicToday

Improved Bundling… Leads to Increased Retention… And Increased Profit…

Average Profit per Customer (Indexed)

Bundling To Increase Retention To Increase Profit

Bundling

Retention

Admin

Key Take Away

Bundling = 9% Increase in retention 9% Increase in retention = 150% increase in profitability

66% of customers todayare sold another product

Home

Billing

Fulfillm

ent

Sale

s &

Ord

ers

CustomerSupport

Technical

Support

What happened?

What worked?

What did not work?

How do we improve Acquisition,

Retention or LTV?

High

Low Time

Cus

tom

er V

alue Multiple products sold

Other needs

1st Transaction

Accountable Marketing & A Focus On LTV Of CustomersKey Take Away

Learning more about your customers is your only sustainable competitive advantage

Service Learning About Customers




About YouThe

InsuranceCompany

The insLogic.com

Process

Financial

Win / Win / Win

Home

Brands WINS:

Leverage Brand ValueNew / On-going Revenue Improved Customer Retention Improve Customer LTV Increased Learning About

Customers

Key Take Away

The BEST Economical Model WINSWin / Win / Win

Home

Insurance Company WINS:

Increase production of business

that they are interested in

Lower marketing cost

Lower data processing costs

Increased retention

Learn/exploit together - the

Internet channel

Better Economics for EveryoneKey Take Away


Home

Consumer WINS:

Fast (intuitive)Shopping experience (choice)Convenient (at the time of need)Competitively pricedFamiliar, Consistent, (Brand)Educational One Stop Shop (sales & service)Choice of channel

Consumers Value Trust & ConvenienceKey Take Away


Home

The Economics – Avoiding Drop-Off

Bra

nd V

isito

rs

Mov

e to

insu

ranc

e p

rovi

der’s

site

Com

plet

edA

pplic

atio

n

Com

pare

acc

urat

equ

otes

Get

sup

port

Lead

refe

rral

time-

lag

BU

Y!

Serv

ice

Cro

ss s

ell a

dditi

onal

insu

ranc

e pr

oduc

ts

Cro

ss s

ell

non-

insu

ranc

e p

rodu

cts

0100200300400500600700800900

1000

Visi

tors

insLogic.com

Lead Referral

The Competition

Home

insLogic OFFERS the most COMPLETE SOLUTION

Category/Criteria

Multi-Company

Multi-Product

Multi-Channel

Single Session

Scaleable / Controlled EDI

Learn About Customers

Better Economic Model

The Competition

About UsAbout You The Brand Win/Win/WinThe Competition About You The Insurance Company The...

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