Think Digital : Transform your life insurance agency model in Asia

www.the-digital-insurer.com

Enhancing the Agency

Network – The Digital Advisor

Hugh Terry

Editor & Principal

The Digital Insurer


Think Digital: Transform your

Agency insurance businessPresentation is online


Four Discussion Objectives

1. Digital – it is a revolution

2. Digital will transform face-to-face advisory channels

3. Tablets point of sales toolkits are pivotal

4. How to Transform?

3

Life Insurance as focus

For today’s discussion

If there is time…


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….

4


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 seeking a

different experience

5


4 digital Insurance business

opportunities (& threats)

Create New Models

1. Pilot New Digital models : Partner

with companies with digital assets

to create new models

2. Digital Worksite Marketing:

unlocking the hidden value in your

employee benefits business

Transform Existing Models

3. Transform Life insurance Advisory

Businesses : The Digital Advisor

4. Digital Cross Selling: personal

lines, asset management, banking

6

Focus for Today


Welcome to Digital Customers : they are

“Hybrid”

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

7

Myth #1: Digital is a new distribution channel

Reality : Digital enables customer engagement


Anchored to basics : Digital Advisor strategies need

to leverage insurance fundamentalsDigital impacts

Trust is at the heart of insurance

� As customer research on-line trust will need to be

developed and leveraged on-line

� Trust must be earned and reinforced in every

interaction

Great insurance advisors -always in demand

� 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)

Customer service matters

� Mobile technology provides opportunities for cost

effective customer service differentiation. Customers

will expect this – a hygiene factor very soon

� Cannot transform customer service with current “back

“office

8

www.the-digital-insurer.com 9

/App


1. Managing the Sales Funnel

• Co-partnership models for lead generation

• Apps to generate leads from the “digital

cafes”

• Analytics has a big role to play

• Get the lead to the right person

• Lead management systems to manage

multiple leads , measure ROI and promote

better practices

Business outcome:

- More leads

- Better quality leads

10

1. LEADS


Policy Record Systems

11

Customer Experience Centre

2. Build a “digital eco-system” around

legacy policy system to treat customers

like customers

• Customer portals/apps : an on-line

marketing capability for customer

engagement leading to cross sell / upsell

opportunities

• Customer experience centre : multi

channel customer support to connect

customer interactions – a digitally

assisted customer service revolution (the

engine room for converting “big” data

into business)

• Advisor portals: customer data and

advisor performance

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. SERVICE

/App


3. “connecting the

eco system”

12

3. SALES


Tablet sales toolkits : a pivotal tool in the

transformation process

1. Access sales aids/ brochures

2. Identify needs

3. Produce quotes and help to

close

4. faster, easier and more accurate

proposal submissionKey Success factors

• Must be Designed for Advisors

• Easy to use with a “wow” factor that encourages use with

clients

• Great usability is critical: engage/delight customers &

advisors13

Tablet Functionality:

Focus on the parts of the sales

process that engage with customer


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. Back office productivity from

digital proposals� More efficient

� Faster & more accurate (clean policies in a

day)

2. Reduced agency overheads :

premises & technology costs

3. Business intelligence� Benchmarking data

� Usage data

� “Bigger” data

4. Improved compliance to sales best

practice (& regulatory

requirements)

5. Recruitment training tool

6. Platform for more automated

underwriting


AIA Case study: a tablet success story

15Full AIA case study available on-line

AIA’s Journey

1. Initial Pilot in Taiwan (end 2011)

2. Rollout in 3 countries completed (Singapore, Indonesia and Malaysia)

3. Further 6 countries to complete in 2013 (6-9 months per country)

Compete set of functionality

“The adoption of iPoS goes beyond our

expectations. In one country more than

80% of the new business is coming in

through iPoS within 12 months of launch

and in another country it was more than

30% after 3 months. The agents just love

iPoS. All other indicators such as

productivity, activity or case size are equally

positive and better than expected.”

AIA Executive leading the development

Results exceeding expectations


The Digital Advisor : Where should you be 5 years

from now?Agency KPI’s for 2018

Leads

� 50% of leads from digital

engagement activities

� Twice as many leads per advisor

insurance advisors

� At least 2-3 times more

productive

� 50% fewer advisors

� 100% tablet usage for all new

advisors – core tool for sales

Customer service matters

� 50% reduction in back office

staff

� But at least a corresponding

increase in customer facing staff

supporting digital service, sales

and lead processes

16

Digital will transform

Agency operating

models


Tips for successful digital transformation

Strategic Alignment

� Digital as a transformation opportunity

� The importance of Tablet POS toolkits

� Comprehensive business case

approved

� Resources dedicated

New Implementation approach

� Customer centric (outside in)

� Fast pilot (AGILE)

� Explicit change management

� Distribution owned

� Launched like a product

Advice : think about Tablet POS toolkits as the “pivot” for your change

strategy

Reality : Digital will challenge, and transform, your organisational

structure


Mission accomplished?

1. Digital – it is a revolution

2. Digital will transform face-to-face advisory channels

3. Tablets point of sales toolkits are pivotal

4. How to Transform?

18



A Forum for Digital Insurance

in Asia

– Articles on digital insurance

– Free subscription to the

Quarterly digest & magazine

Subscribe for free, and be the first to

know

Articles:

– The Digital Advisor

– Customer & Advisor portals

– tablet sales toolkits

– Implementation Tips

– Worksite marketing

Building tomorrow’s digital

insurance business models, today.

Hugh Terry

19

Sponsored by Insight Consulting:

– Strategic Digital roadmaps

– Implementation services

– Digital ventures