1. Think Digital: Transform your Bancassurance Business

2. Discussion Agenda Strategic context Digital it is a revolution The Digital Advisor . The new face of life insurance sales Getting into the details Tablets point of sales toolkits are pivotal for success Bancassurance transformation challenges Q&A Session 3. The Digital Revolution: It will not be televised Digital Convenience Always on Always there Universal Almost freeDigital Connectivity Access to information (Google) Access to each other (Facebook) Access through devices (Apple) Location-agnostic (cloud services)Change, Change, Change.Digital Expectations Data on demand Desire for clarity & simplicity Dialogue not monologue Easy to promote a product .. and complain 4. Two digital Mega trends : Forces beyond anyones control 1. 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 2. Changing consumer behaviour they are demanding and seek a different experience 5. 5 6. Welcome to Digital Customers: They are hybrid Myth #1: Digital is a new distribution channel Reality : Digital enables customer (& distributor) engagement OnlineThe Hybrid CustomerFace To FacePhoneThe hybrid customer is Better informed More demanding Multi-channel for both sales & services Will jump channels at any point catch them if you can! 7. Bancassurance Audit:xWhere are we now? Strengths Leverage customer banking relationships Utilise physical infrastructure Insurance is a logical product extension to bank productsThe Customer Centricity Challenge Result : higher productivity & generally higher quality business than life agency distributionFee driven models: are the norm. After sales service limited to basics transactions where is the cross-sell opportunity? How well do RMs really know their customers? Or are they product pushers? Traditional Tele-marketing regulatory tightening to continue Insurance Product can be driven by wealth managers product bias short term and investment focused. and what happens when we factor in digital trends? 8. Anchored to basics : Digital Bancassurance strategies need to leverage insurance fundamentals Current Bancassurance Paradigm Trust is at the heart of insuranceRely on Bank brand Relationship managers leverage trust already placed in the bankDigital Impacts As customers research on-line trust will need to be developed and leveraged on-line Trust must be earned and reinforced in every interactionGreat insurance advisors always in demandBank RMs insurance advisors. RMs have natural bias towards investment products For mass market not really a personal relationship order taking and closing the saleWhen customers research online they will research their advisors as well. Less time face-to-face but no less important Insurance advisors need to be more mobile (digitally & physically)Customer service mattersLittle emphasis on customer service after the sale is closed Back office is back officeMobile technology provides opportunities for cost effective customer service differentiation Customer will expect this a hygiene factor very soon 9. Digital Bancassurance: 3 Opportunities1. Generate more leads 2. Improve customer service & engagement 3. Improve face-to-face sales processes Combining all three = The Digital Advisor Business Model 10. The Digital Advisor Business Model Customer Portal / AppSales Opportunities Policy SystemsTablet Lead / Prospect ManagementAdvisor Portal 11. 1. More Leads Fewer and fewer customers will go to the bank branch Sales Opportunities Co-partnership Customer lead models for generation Portal / App Apps to generate leads from the digital cafes Analytics has an enormous role to play Get the lead to the right person at the right time Policy systems to Lead management Systems manage multiple leads , measure ROI and promote better practicesBusiness outcome: - More leads Tablet - Better quality leadsLead / Prospect ManagementAdvisor Portal 12. 2. BUILD A DIGITAL ECO-SYSTEM AROUND LEGACY POLICY SYSTEM TO TREAT CUSTOMERS LIKE CUSTOMERS2. Better ServiceCustomer portal/app: An on-line marketing capability for customer engagement leading to cross sell / up sell opportunitiesCustomer Portal / AppCustomer experience centre: Multi channel customer support to connect Advisor Generated customer interactions a digitally assisted Leads customer service revolution (the engine room for converting data into business)Customer Experience CentrePolicy SystemsAdvisor portal: Customer data and advisor performance at your finger tipsBusiness outcome: -Building deeper, richer and better relationships with customers and advisors Lead Generator / Facilitate and co-partners the advisors to Prospect Management better meet customer needs Allow farming as well as huntingAdvisor Portal 13. 3. Improved Selling Customer Portal / AppSales Opportunities 3. connecting the eco systemPolicy SystemsTablet Lead / Prospect ManagementAdvisor Portal 14. Tablet sales toolkits : Will be business as usual in most markets within 5 3 years Tablet Functionality: Should be focused on the customer1. 2. 3. 4.Present credentials (materials) Identify needs Produce quotes and help to close Easy proposal submissionUsability is the Key Success Factor Must be designed for advisors to connect with customers Easy to use with a wow factor that encourages use with clients Great usability is critical: engage/delight customers & advisors 15. Usability = function plus form Quote Output: graphical display option with premium iteration to facilitate closing Easy iteration on premium to help sales closing 16. POS Tablet sales toolkit : Easy business case OTHER BENEFITS AFTER SUCCESS PRIMARY BENEFIT Improved Sales effectiveness through a better customer experience1. 2.Enable lead analytics / Predictive analysis Improved compliance to sales best practice (& regulatory requirements)3.Back office productivity from digital proposals More efficient Faster & more accurate (clean policies in a day)MEASURED BY : High tablet usage from Advisors Increased sales productivity per month4. 5.Reduced overheads: premises & technology costs Business intelligence Benchmarking data Usage data Bigger data6. 7.Recruitment training (and hiring) tool Platform for more automated underwriting 17. Independent Case Study: AIA Point of Sales Tablet Toolkit iPoS Interactive Point of SalesVideo interview (to insert movie file here) 18. 3 Key success factors Broad POS functionality delivered with offline regional platform 1. Off-line model2. Broad set of Functionality 100% availability Any time, Anywhere Advisor digital briefcase3. AIAs Regional Journey 1. Year 2012: Initial Rollout in Singapore 2. End of 2013: Rollout in 9 countries (2 to go) Singapore, Malaysia, Indonesia, Thailand, Philippines, Sri Lanka, Vietnam, Hong Kong, Taiwan 3. 2014 first bank partner moves to 100% tablet sales 19. Usability = function plus form The Dial Easy, fast, fun & professional needs analysis 20. Initial results: Results exceeding expectations High UsageIf AIA could do it again% of Advisors actively using iPoS 100%75% Country A Country B Country C Country D50%25%0% Oct 12Jan 13Apr 13Jul 13Increased Productivity Average increase in ANP* Country B+16%Country C+54%Country D+64%*iPoS advisor versus non-iPoS advisorI would not do much differently. iPoS is very successful in the way we manage it, continuously improve it and roll it out. However, we were initially overwhelmed by the success of iPoS and didnt have enough scale and capacity to roll it out to the countries. Next time I would react quicker and be more decisive on adding manpower to such a program. AIA Director leading the development 21. Reality check: In practice, Digital Advisor models for bancassurance are complicated 1.Who builds & controls the technology?2.How long-term is the bank/insurer relationships? How closely are the bank and insurer aligned?3.Who does the selling? Wealth Manager or dedicated insurance advisor? (Latter is easier to transform)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 - X2 (bank + insurer)?Easiest starting point for digital transformation : exclusive relationship using dedicated Insurance specialists with technology provided by the insurer 22. Are you ready? 3 Pre-conditions for Success 1. Willing to mine and share data Provide access with due care 2. Co-operative & long term partnership where both bank and insurer compromise and learn from each other and both invest for success 3. Prepare for hard work: No easy paths when it comes to technology implementation No one size fits all No magic wand22 23. Concluding: Business as usual is a dangerous path for bancassurance operations Be radical Now is the time to embrace change and start building digital models.Be Cautious You dont need to bet the bank. Learn from fast and strategically well thought our pilot projects (e.g. POS tablets and lead analytics). Find people with the skills to transformBeware If you dont utilise digital thinking, plenty of others will.