The Digital Insurer speaks at AIA's inaugral bancassurance seminar
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21-Oct-2014 -
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Transcript of The Digital Insurer speaks at AIA's inaugral bancassurance seminar
Think Digital: Transform your Bancassurance Business
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
Discussion Agenda
The Digital Revolution: “It will not be televised”
Digital Convenience
• Always on
• Always there
• Universal
• Almost free
Digital Connectivity
• Access to information (Google)
• Access to each other (Facebook)
• Access through devices (Apple)
• Location-agnostic (cloud services)
Digital Expectations
• Data “on demand”
• Desire for clarity & simplicity
• Dialogue not monologue
• Easy to promote a product .. and complain
Change, Change, Change….
Two digital “Mega” trends : Forces beyond anyone’s 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
The hybrid customer is…
• Better informed
• More demanding
• “Multi-channel” for both sales &
services
• Will jump channels at any point –
catch them if you can!
The Hybrid
Customer
Face
To
Face
Online
Phone
Myth #1: Digital is a new distribution channel
Reality : Digital enables customer (& distributor) engagement
Welcome to Digital Customers: “They are hybrid”
Bancassurance Audit: Where are we now?
…. and what happens when we factor in digital trends?
x
• Leverage customer
banking relationships
• Utilise physical
infrastructure
• Insurance is a logical
product extension to bank
products
Result : higher productivity &
generally higher quality
business than life agency
distribution
Strengths
• Fee driven models: are the norm.
• After sales service limited to basics
transactions – where is the cross-sell
opportunity?
• How well do RM‘s 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
The Customer Centricity Challenge
Anchored to basics : Digital Bancassurance
strategies need to leverage insurance fundamentals
Trust is at the heart of insurance
Great insurance advisors -always in demand
Customer service matters
Current Bancassurance
ParadigmDigital Impacts
� Rely on Bank brand
� Relationship managers
leverage trust already placed in
the bank
� As customers research on-line
trust will need to be developed
and leveraged on-line
� Trust must be earned and
reinforced in every interaction
� When 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)
� Bank RM’s ≠ insurance
advisors. RM’s have natural
bias towards investment
products
� For mass market not really a
personal relationship – order
taking and closing the sale
� Little emphasis on customer
service after the sale is closed
� Back office is … back office
� Mobile technology provides
opportunities for cost effective
customer service differentiation
� Customer will expect this – a
hygiene factor very soon
Digital Bancassurance: 3 Opportunities
1. Generate more leads
2. Improve customer service &
engagement
3. Improve face-to-face sales
processes
Combining all three = The “Digital Advisor” Business Model
Lead / Prospect Management
Sales
Opportunities
Tablet
Advisor
Portal
Policy Systems
The Digital Advisor
Business Model
CustomerPortal / App
Tablet
Advisor
Portal
Policy Systems
Customer
Portal / App
1. More Leads
• Co-partnership models for lead
generation
• 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
• Lead management systems to manage
multiple leads , measure ROI and
promote better practices
Business outcome:
- More leads
- Better quality leads
Fewer and fewer customers will go to the bank branch
Lead / Prospect Management
Sales
Opportunities
Lead Generator /
Prospect Management
Advisor Generated
Leads
Advisor
Portal
Policy Systems
CustomerPortal / App
2. BUILD A “DIGITAL ECO-SYSTEM”
AROUND LEGACY POLICY SYSTEM TO
TREAT CUSTOMERS LIKE CUSTOMERS
• Customer portal/app: An on-line
marketing capability for customer
engagement leading to cross sell / up sell
opportunities
• Customer experience centre: Multi
channel customer support to connect
customer interactions – a digitally assisted
customer service revolution (the engine
room for converting “data into business”)
• Advisor portal: Customer data and
advisor performance at your finger tips
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”
2. Better Service
Customer Experience Centre
Advisor
Portal
Policy Systems3. “connecting the eco system”
3. Improved Selling
Sales
Opportunities
Lead / Prospect Management
Tablet
CustomerPortal / App
Tablet sales toolkits : Will be “business as
usual” in most markets within 5 3 years
1. Present credentials (materials)
2. Identify needs
3. Produce quotes and help to close
4. Easy proposal submission
Tablet Functionality:
Should be focused on the customer
• 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
Usability is the Key Success Factor
Usability = function plus form
Quote Output: graphical display option with
premium iteration to facilitate closing
Easy iteration on
premium to
help sales closing
POS Tablet sales toolkit : Easy business case
PRIMARY BENEFIT
Improved Sales
effectiveness through
a better customer
experience
MEASURED BY :
� High tablet usage from
Advisors
� Increased sales
productivity per month
OTHER BENEFITS AFTER SUCCESS
1. Enable lead analytics / Predictive analysis
2. 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)
4. Reduced overheads: premises &
technology costs
5. Business intelligence� Benchmarking data
� Usage data
� “Bigger” data
6. Recruitment training (and hiring) tool
7. Platform for more automated underwriting
Video interview
(to insert movie file here)
iPoS Interactive Point of Sales
Independent Case Study: AIA Point of Sales Tablet Toolkit
1. Off-line model• 100% availability
• “Any time, Anywhere”
• Advisor “digital briefcase”
3 Key success factors -Broad POS functionality delivered with off-
line regional platform
3. AIA’s 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
2. Broad set of Functionality
Usability = function plus form
“The Dial”
Easy, fast, fun
& professional
needs analysis
� High Usage% of Advisors actively using iPoS
� Increased ProductivityAverage increase in ANP*
Country B +16%
Country C +54%
Country D +64%
“I 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
didn’t 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
If AIA could do it again
*iPoS advisor versus non-iPoS advisor
Initial results: Results exceeding expectations
0%
25%
50%
75%
100%
Oct 12 Jan 13 Apr 13 Jul 13
Country A
Country B
Country C
Country D
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
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 wand
22
Concluding: “Business as usual” is a dangerous path
for bancassurance operations
Be radicalNow is the time to embrace change and start building digital models.
Be CautiousYou don’t 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 transform
B e w a r eIf you don’t utilise digital thinking, plenty of others will.