LAUNCHING A NEW INSURER IN A NEW MARKET:

IMPLEMENTATION INSIGHTS

Bruce Sahd

7th Insurance Distribution & Insurtech Conference, 1 September 2017, Cape Town

CASEJOHNSON IS AN INNOVATION PARTNER

§ How we helpo Strategy & Implementationo 3P approach – Plan, Pilot, Profit

§ What we specialise ino 3D strategies - Data, Direct, Digitalo Emerging markets - Africa & ME

§ Where we have workedo SA, Ghana, Nigeriao UAE, Lebanono India, Sri Lanka

§ text Setting the scene..

Are insurers good innovators?

§ KPMG’s global survey* notes that “almost seven-in-ten respondents say that they believe partnerships, not in-house efforts, will characterize the future of innovation for their organization. Fifty-nine percent of respondents say they already work with external advisors and consultants to drive innovation.”

§ “too many in the insurance world are focused on operational innovation rather than strategic growth-oriented innovation”

§ “The potent combination of data and digital is driving increased innovation within the sector”

§ “Respondents from the Property & Casualty (P&C) sector reported being more focused on innovation-led growth than their Life & Health peers”

* Source: www.kpmg.com/CN/en/IssuesAndInsights/ArticlesPublications/Documents/A-New-World-of-Opportunity-insurance-innovation-O-201509.pdf

INSURERS ARE USING PARTNERS TO INNOVATE

§ EY in their digital insurance survey* notes that Insurers ambitions are high, but are constrained by digital capabilities and by traditional culture

§ Insurers want more direct control and better customer experience, but are faced with channel conflict

§ Data analytics is critical to future digital success

DIGITAL INSURANCE IS STILL IN EARLY DAYS

* Source: EY "Insurance in a digital world: the time is now"

EXISTING TEAM IS OFTEN LEAST PREFERRED

Source: The Digital Insurer, Poll 2015

§ text CASE STUDIES:

1- Launching a new STRATEGY

…which is very different from

2- Launching a new INSURER

§ text

Case Study No. 1

Launching a new STRATEGY

LAUNCHING A NEW STRATEGY

§ First ever tele-bancassurance project in Ghana launched in early 2017

§ Responsible to plan strategy and steer implementation of the pilot campaign

§ Selling a simple life product to bank customers over the phone

§ Regulators approved electronic signature but with strict conditions

§ Outsourced sales to a local contact centre

C A S E S T U D Y 1

LAUNCHING A NEW STRATEGY

§ Local experience was lacking§ Learning curves were steep§ Tactical interventions were needed!

C A S E S T U D Y 1

§ Target was achieved !

In my experience, failure is because of…

§ Vision: Not a clear enough vision nor commitment to see it though§ Strategy: Launched on the wrong strategy§ Structure: Run by existing team not by a separate accountable business unit§ Priority: Under-prioritised and derailed by core business priorities§ Skills: Unable to secure the right specialist skills who’ve done it before§ Urgency: Lack of urgency without clear goals and deadlines”§ Planning: Badly planned, poorly budgeted, unrealistic timelines§ Risk management: Faces risks that were never identified in planning§ Resources: No devoted resources, focus & leadership

W H Y SU C H IN N O VAT IO N PR O JEC T S O F T EN FA IL

§ text

Case Study No. 2

Launching a new INSURER

LAUNCHING A NEW INSURER

§ Doozy Insurance created in May 2017 § First direct insurance brand in

Lebanon (possibly ME)§ Lebanon is a small market but a

leader in the ME region§ Quest Global is the key driver &

manages operations§ Arope Insurance is brand owner,

underwriter and key partner

C A S E S T U D Y 2

LAUNCHING A NEW INSURERC A S E S T U D Y 2

o planned the strategyo built the technologyo designs the productso provides the call centreo administers the policieso operates the venture

o owns the brando underwrites the productso pays the claimso funds the venture

A DIRECT INSURANCE BUSINESS BY AROPE, OPERATED BY QUEST

LAUNCHING A NEW INSURERC A S E S T U D Y 2

LAUNCHING A NEW INSURERC A S E S T U D Y 2

TPCompulsory Only

(bodily)

TPLiability

(bodily & material)

ComprehensiveAll Risk

$ 65 $ 120 $ 800

TPGRGuaranteed

Recovery

COLARCollision All Risk

CMP50Comprehensive

50% adv bonus

$ 600$ 350$ 200

300 k 600 k 300k

12k30k60k

= 1.2m total

15k

10% 5% 2% 5%

= 117k sales

§ Started with Motor lines of insurance§ Market has a big gap between upper end & lower end§ New products were designed to fill the affordability gap§ Distribution strategy is also to target the better risks§ Aims to grow the market & take a share

data

data

data

data

data

data

data

data

data

LAUNCHING A NEW INSURER

LEAD SOURCING SALES CONVERSION

A 3-D strategy is underpinned by DATA, DIGITAL & DIRECT

C A S E S T U D Y 2

LAUNCHING A NEW INSURER

“Every insurer should have a data strategy first, and a digital strategy second, even if they don’t necessarily have a direct strategy”

Over H. Eard

C A S E S T U D Y 2

§ text

Implementation Insights

Innovation is easy to talk about

but difficult to do!

Insight No. 1

Data, Direct & Digital are implemented together

we saw obvious synergies between the 3D’s

Insight No. 2

Data is always at the core

we launched with data-driven technology platforms

Insight No. 3

Direct delivers quickly

we set up a small telesales team to bring in some early sales

Insight No. 4

Digital is a journey

we started patiently using SEM & Facebook

Insight No. 5

Choose your partners carefully

we sold the strategy to an insurer with vision & courage

Insight No. 6

Lean on an old brand to build a new one

we leveraged our partners brand at every turn

Insight No. 7

Don’t launch new ventures with old cultures

we agreed on the need to operate separately from our partner

Insight No. 8

Navigate carefully around regulation

we leaned heavily on our local insurance partner

Insight No. 9

Don’t skimp on planning

we involved the core team and wrote it all down

Insight No. 10

Manage every campaign as a project

we used a strict project management approach to track & learn

Insight No. 11

The project manager rules

we appointed one person to be the central driver

Insight No. 12

Be guided by specialist advisors

we sourced a multinational panel of experts who’d done it before

Insight No. 13

Embrace startup culture

we hired a team that is comfortable with uncertainty

Insight No. 14

Piloting is about testing & learning only

we kept reinforcing that making money is not the initial goal

Insight No. 15

Technology must remain a tool of strategy

we didn't allow the techies to take over

Insight No. 16

Find a media agency that loves science

we insisted on only buying media if ROI is measurable

Insight No. 17

Don’t aggravate intermediaries

we only point out that distribution economics will change

Insight No. 18

Make a splash with an innovative product

we launched with a flagship product that had instant appeal

Insight No. 19

Reporting must be real-time

we covered the walls with dashboard screens

Insight No. 20

§ text

Thank You &

Good Luck!