Copyright © OpenText Corporation. All rights reserved.
From Speed Bumps to Flight Ramps:
Accelerating Life Sales with Smarter Process Technology
Sam StuckalResearch Director, InsuranceCEB TowerGroup
Gerard GibneySenior Strategist, Financial ServicesOpenText
3© 2012 The Corporate Executive Board Company. All Rights Reserved.
CEB TOWERGROUP INSURANCE
ROAD MAP FOR THE PRESENTATION
Adaptive
AnswersGreat
ExpectationsFewer Agents
Fewer Sales
Less Efficiency
Less Satisfaction
4© 2012 The Corporate Executive Board Company. All Rights Reserved.
1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 20100
100,000
200,000
300,000
400,000
500,000
CEB TOWERGROUP INSURANCE
By Year, 1960 - 2010
FEWER AGENTS FOR SALES AND SERVICE…..
US Life Insurance Agent Population
Sources: ACLI and Limra
5© 2012 The Corporate Executive Board Company. All Rights Reserved.
CEB TOWERGROUP INSURANCE
By Year, 1960 - 2010
DECLINING US LIFE INSURANCE OWNERSHIP
Individual US Life Insurance Ownership
Sources: ACLI and Limra
6© 2012 The Corporate Executive Board Company. All Rights Reserved.
CEB TOWERGROUP INSURANCE
By Income Class, 2011
BUT POSSIBILITIES….ESPECIALLY HIGH NET WORTH
Life Insurance Purchase Likelihood by US Household Income
Source: Limra
Purchase Likelihood
26%
28% 28%
Low Income Middle Income High Income
7© 2012 The Corporate Executive Board Company. All Rights Reserved.
CEB TOWERGROUP INSURANCE
ROAD MAP FOR THE PRESENTATION
Adaptive
AnswersGreat
ExpectationsFewer Agents
Fewer Sales
Less Efficiency
Less Satisfaction
8© 2012 The Corporate Executive Board Company. All Rights Reserved.
Cost pressure/efficiency
Client Demands
Technology obsolescence
New regulations
Product changes
Availability of innovative technology
International expansion
M&A activity/ restructuring
Existing regulations
45%
30%
26%
20%
19%
15%
10%
10%
7%
CEB TOWERGROUP INSURANCE
By Issue Type, 2011
FOCUSING ON EFFICIENCY AND CLIENT SERVICE
Insurance IT Investment Priorities
Sources: CEB TowerGroup
9© 2012 The Corporate Executive Board Company. All Rights Reserved.
By Sales Phase, 2008
NOT IN GOOD ORDER (NIGO) – AN EFFICIENCY LEAK
Tasks to Issue a Life and Annuity Policy
CEB TOWERGROUP INSURANCESource: NAVA
10© 2012 The Corporate Executive Board Company. All Rights Reserved.
CEB TOWERGROUP INSURANCE
By Sale Type, 2012
THE CASE FOR EXCEPTION-HANDLING EXCELLENCE
Causes of a NIGO (Not In Good Order) Policy
New Purchases Problems
Incomplete information about the insured including supplemental answers.
Incorrect Beneficiary designations
Missing agent or insured signatures
Financial details are incomplete including bank and routing information
Policy rider forms are missing or lack signatures
Replacement Errors
Missing or unsigned new coverage disclosures
Prior insurer name or policy details incorrect
Inconsistent financial information between the replacement policy form and the original policy
Missing agent or insured signatures and all new forms
Incomplete or adjusted beneficiary designations
Source: CEB TowerGroup
11© 2012 The Corporate Executive Board Company. All Rights Reserved.
CEB TOWERGROUP INSURANCE
By Region, 2012
A GRADE ‘C’ FOR SATISFACTION
Insurance Customer SatisfactionTh
e Am
eric
a's
Euro
pe
Asia
-Pac
ific
Indi
a
Japa
n
0
1
2
3
4
5
6
7
8
9
10
Source: ERNST & Young
12© 2012 The Corporate Executive Board Company. All Rights Reserved.
CEB TOWERGROUP INSURANCE
ROAD MAP FOR THE PRESENTATION
Adaptive
Answers
Great
Expectations
Fewer Agents
Fewer Sales
Less Efficiency
Less Satisfaction
13© 2012 The Corporate Executive Board Company. All Rights Reserved.
CEB TOWERGROUP INSURANCE
By Priority, 2012
WHAT MATTERS DURING THE PURCHASE…..
Key Factors in Choosing an Insurer
Source: Accenture
Product Price Product Fit Call Center Online Access Brand Reputation
70%
64%
57%
45% 45%
14© 2012 The Corporate Executive Board Company. All Rights Reserved.
Service Trust Price Ease Confidence
45%
37%
32%
28%
22%
CEB TOWERGROUP INSURANCE
By Priority, 2012
CHANGES AT RENEWAL AND IN CROSS-SELL/UP-SELL
Key Reasons for Staying with an Insurer
Source: ERNST & Young
15© 2012 The Corporate Executive Board Company. All Rights Reserved.
CEB TOWERGROUP INSURANCE
ROAD MAP FOR THE PRESENTATION
Adaptive
Answers
Great
Expectations
Fewer Agents
Fewer Sales
Less Efficiency
Less Satisfaction
16© 2012 The Corporate Executive Board Company. All Rights Reserved.
Customer
Ease
Channels
Adaptability
Speed
Availability
Value
CEB TOWERGROUP INSURANCE
SO CUSTOMER CENTRICITY IS THE GOAL….
Source: CEB TowerGroup, 2012
By Factor, 2012The Customer Centric Roadmap
17© 2012 The Corporate Executive Board Company. All Rights Reserved.
….ACROSS MANY CHANNELS….
Insurance Channels, Functions and ProductsBy Customer and Distributor, 2011
InvestmentsPersonal Property
HealthPensions LifeWorkers Comp
Personal Auto
Commercial Lines
Specialty Lines
Marine
Functions
ProductSystems
DeliveryChannels
Policy Administration
Sales
ProposalGeneration
Underwriting Actuary
CustomerSupport
Claims Processing
Billing
DATA
DATA
DATA
SOCIAL MEDIA
CALL
CENTER
PAPER
INTERNET
WEB
PORTAL
MOBILE
Rating
Compliance
CONSUMERS DISTRIBUTORS
FINANCIAL SERVICES PRACTICE, CEB TOWERGROUP INSURANCE
18© 2012 The Corporate Executive Board Company. All Rights Reserved.
CEB TOWERGROUP INSURANCE
….AND MANY TYPES OF CONTENT
Source: CEB TowerGroup
Policy Approvals and Claims Payments
Video
Instant Messages
Adjuster/Underwriter Notes
Medical, Inspection
Reports
Social Media
Photos
By Type, 2012Insurance Sales and Service ‘Documents’
19© 2012 The Corporate Executive Board Company. All Rights Reserved.
CEB TOWERGROUP INSURANCE
What Makes Insurance Knowledge Work Hard?
• There Are Two Customers (Agent and Policy Holder)
• Customer Needs Change Over Time
• Customers Require Solutions Yesterday
• Outside Factors Cannot be Predicted or Controlled (Catastrophes, Economics, Government Policy)
• Employee Turnover and Knowledge Retention
By Challenge, 2012The Case for Adaptive Case Management
ADAPTABILITY IS REQUIRED….
Source: CEB TowerGroup
20© 2012 The Corporate Executive Board Company. All Rights Reserved.
CEB TOWERGROUP INSURANCESource: CEB TowerGroup
ECM BPM EIM
Do
Don’t
Standardize Forms across Products and
Channels
Ignore Key NIGO Causes
Treat Variations as
Stored Customizations
Expect Process to be
Set in Stone
Look at the Customer
Experience across
Processes
Fail to Continuously
Improve
TO MOVE FROM INFORMATION TO INTELLIGENCE
Thank you
Sam Stuckal
Research Director
Insurance Practice
CEB TowerGroup
617.488-1985
Website: https://insurance.tg.executiveboard.com
21
Major US Insurance Company
Life, Annuities, Retirement Plans, Group Employee Benefits, Stop Loss
2 million customers
20,000 agents
1,200 employees
$21 billion in Assets
Hired four people for every 100 new applications
After Deploying OpenText ACM, there were more applications but no increase in staff
Through attrition staff declined 14.5%
Cases handled +30% increase
Underwriters +20% increase in capacity
Life & Investment Group can now handle 67% more work
Agents get the answer in real-time while on the phone
Developed a NEW channel to sell Term Life through other Financial Institutions
What are Insurance Companies doing with ACM?
Trying to simplify while adding value
People live in a world of relationships that go on for decades, HOW do you monetize this?
ACM can provide a more complete or useful “view” of a customer
All interactions can be linked to a “case” which lives on.
This improved view can be acted on: improve customer service market new products to people more likely to buy process a claim cheaper and faster
25
Electronically sent back to/through channel
STPStraight Through
Processing
Case Management increases New Business agility and efficiency to drive profitable growth
Call Center
Website
Agent/Broker
Customer
Application
Submission/Order Entry
Data ValidationBase Rate
Quote& Bind
RiskAssessment
Loss Adjustment
Analysis
Price
External DataDistribution
Channel
Policy Underwriting/Enrollment/ New Business
Source: SMA/OpenText
How does ACM help my business?
Leverages the experience of knowledge workers as they know what to do, and can add or delete processes, to get the application processed quickly and correctly, a quicker time to revenue!
ACM- the data is central: the “case” may belong to a process, it may initiate a process and can exist for 50 years, which you can use to improve sales
ACM is the same fundamental business process for ALL work types and business processes for the entire firm.
Case includes: Ad hoc tasks Checklists Case notes Discussions Audit trails, etc.
How does ACM help my business? cont’d
Case has Persona based UI’s
We put the customer at the center of everything!
Single view via a Master Folder The customer Policies Advisers Documents, emails, letters,
proposals Links to all investors, brokers,
fund managers, etc. folders
AIA Insurance
Was AIG in Asia
23 million policies
Second largest Insurer in Australia, insures 20% of the population
Uses ACM with OpenText New Business Underwriting Policy Administration
Questions?
Download your complimentary report:Breaking with Tradition in the Insurance Industry:Strategies to Insure Operational Efficiency and Future Growth
You can view the report at: http://bps.opentext.com/resources/ot-bps-insurance-execbrief.pdf
Learn more: www.opentext.com/insurance
Thank you
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