Driving a traditional insurer online - Digital Insurance in Africa

Driving Online Insurance Business

Presented by: Lunga Siyo

Aug 2015

Content

• Introduction

• Digital Insurance Trends

• Strategy Considerations

• Omni Channel impact

• Building and selling the business

case

Introduction

Online platforms have to be more than just a

pretty face,

they have to impact on business results for companies,

Digital channel should not just compliment brick and mortar but become

business channels themselves.

Introduction

Large traditional ST Insurance companies

• Are build on the intermediary business

• With multi products lines from general insurance to specialist products

• With a Direct Channel through phone, digital, referral, cross sell and upsell

opportunity exploitation

• With Significant Legacy Systems

Online Platforms

They are usual build to;

Reduce Distribution costs (Self Service Platforms),

Market (Digital Marketing) and

Sell products (eCommerce).

Digital Insurance Thrends

• Disruptive New Entrants and Innovative Incumbents

• Digital will become a boardroom topic (increased need for savvy senior

managers and eBusiness professionals)

• The gap will widen to those sleeping (Some companies have multitudes

of people designing implementing and operating digital customer touch

points)

• Digital will become much more transformational

Digital Insurance Thrends

• Internet is being used to create better online experiences through real

time provision of information

• Digital is being used to prospect, engage, convert/capture, retain clients

between purchasing and claim

• It provides freedom, interaction and share opportunities

• Smarter Devices will create cross sell and upsell opportunities (impacting

the role of agents and brokers)

Strategic Considerations

Commercial Strategy Structure & Process

Commercial Strategy Structure & Process

External Market Place

Online Platforms

Internal Processes

Traffic: Quality & Volume

Leads to Sales & Data

Customer touch point;

User experience,

Services & Products offered,

(quoting, get assistance, risk management tools, claims, etc )

Features that assist in decision making,(acquisition or a retention feature),

Features that assist in their daily lives (lifestyle),

Integration to your internal processes (speed),

Performance of your Platform,

Intelligence Gathering Capability

Things to consider for your Strategy

Things to consider for your Strategy

Technology implications;

An App to Support Fixed Internet Platfrom,

Compatibility with operating systems , iOS, Blackberry, Android, feature phones,

Mobile or tablets,

Emerging technology like responsive design,

Where your customers are and or future customers??

Decision matrix tree essential based on your objectives

Go to Market enablers • Brand relevance & Online consumer advocacy,

• Integrated and call to action/engagement marketing activities

• Good quality traffic at a viable cost,

• Community/lifestyle platforms that integrates other market place enablers such as social media based on shared lifestyle interests with consumers,

• An ecommerce platform that resembles the best in the world and ensure that customer purchase intent is fulfilled based on superior user experience

Go to Market enablers • Human centred design that focuses on;

– Client

– Most advanced yet acceptable design

– Needs focused, responsive, audience needs (Amazon suggest a book to buy)

– Simplicity

– Connect with customers emotionally

• Excellent customer experience at execution (from prospecting, engaging to conversion)

• Integrity of management information that ensures that management makes informed decisions

Benefits • No self competition • High usability • High search rankings

(SEO) • Quality leads • Centrally coordinated

efforts • Cost efficiency • Cross sell/upsell

Online Platform strategy

Omni-Channel Future

Building the buss case

A robust business case requires;

Mechanism to collaborate,

Decision to be based on real business priorities & needs,

Your framework should start with the CUSTOMER and not technology

One can use Forrester’s POST

Forrester's POST framework;

People

Strategy

Technology

Objectives

Analyze customer needs

Barriers

And get Stakeholder buy in

Determine your

approach to

meet objectives

Choose the

technology that will

enable you to

implement you’re

your strategy

Choose the

technology that will

enable you to

implement you’re

your strategy

Buss Case Framework

How will you deliver

Project Plans,

People, Tech & Process impact,

Skills gaps

Buss support processes

Crystalize Benefits

• Heavy impact on buss objectives

• Easy to do, risk, effort &

complexity

• Investment required and benefits

(ROI) (Growth) (Savings)

Vision (Market, Acq & Retention fstrategy

Desired end state,

What it means for the Org, BU and its impact on buss strategy,

Anticipate failure or avoid the ff

Lack of measurement

Establish clear metric to gauge

success

Ill defined objectives

This can result in wasted resources

Mobile

Customer Mismatch (smart phone vs. dump phone)

Fear of making wrong decisions

Lead to no decision or indecision

which will result in slow to market

Putting technology first