LMAbridged

Understanding Intangible Value

Amy Batchu

Marilee Bowles-Carey

Preethi Lakshminarayanan

Amanda McKown

Shilpa Rao

Nallieli Santamaria

Gauri Verma

Nanqian Xu

Everyone needs insurance. . .

Everyone needs insurance. . . so why does no one care about it?

Everyone wants personalized service. . .

Everyone wants personalized service. . . so why does no one see value in their agent?

How much of this can traditional insurance cover?

Certainty & Controlsafety

monetary stabilityawareness of risk

security

Significance & Connection

Self-expression & Individuality

Ability & Enablement

Efficiency & Manageability

Scarcity & Preciousness

Credibility & Legitamacy

Stimulation & Variety



security










security








Today, insurance doesn’t have strong customer appeal because it doesn’t insure what people actually care about.

Liberty Mutual has the opportunity to redefine the industry. . .

Liberty Mutual has the opportunity to redefine the industry. . .

. . . by viewing customers holistically.

It’s not just about possessions. . .

It’s not just about possessions. . .

and it’s not just about loss. . .

It’s about knowledge, growth, goals, enjoyment and recovery.

$$$$$ assessment $$$$$ compensation

LOSS

GAIN LOSS

Guiding them through

loss.

GAIN LOSS


loss.Revealing their valueto them.

GAIN LOSS

Supporting their growth.



GAIN LOSS




Sharing their risk.

GAIN LOSS

Celebrating all of their values.




Sharing their risk.

GAIN LOSS

Celebrating all of their values.




Sharing their risk.

We’ve seen the model work. Now let’s . . .


Dive into each opportunity area.



Experience future scenarios.



Experience future scenarios.

Map Liberty Mutual’s strategic plan.

Opportunity areas

Revealing value.

Supporting growth.

Celebrating value.

Sharing risk.

Guiding through loss.

Strategic Roadmap

We see the future world characterized by:• Continualbenefit• Specificandnotgeneric• Integrated

User expectations: Empathetic and human.

As insurance shifts to deeper values the consumer will see continual benefits from engaging with their insurance. As a result, they will expect a more human and personal inteaction.

Resulting channel:Demand for strong AGENTS.


Certainty &

Control

Self-actualization &

Contribution

Individuality &

Self-expression


Credibility &

Legitimacy

Scar

city

&

Prec

ious

ness

Stimulation &

Variety


Mon

etar

y Val

ue

The Future

After the recent acquisition, Liberty Mutual and Safeco have a combined 15,000 agents.

The current world is characterized by:• Pricedifferentiationand• Convenience

User expectations: Fast and cheap.

The benefits of insurance are so far in the future and sometimes never felt that customers have no motivation to engage in a involved insurance process.

Resulting channel:Desire for DIRECT sales.

NowNow


Certainty &

Control

Self-actualization &

Contribution

Individuality &

Self-expression


Credibility &

Legitimacy

Scar

city

&

Prec

ious

ness

Stimulation &

Variety


Mon

etar

y Val

ue

The current model pulls customers’ expectations towards a world of monetary value.

Independent agents are trying to provide humanistic service during a time when fast and cheap is all customers expect from the insurance industry.

Liberty Mutual brings data, reach, and brand recognition.

Safeco OpenSeas brings customer focus and innovative process.

With resources and process we can empower 15,000 agents. This, in combination with a holistic insurance model, will shift customers expectations of the insurance industry.

Agent Customer

In order to change expectations, we will need to overcome agent and customer current mindsets by encouraging dialogue.

Difficulty confusion

Mis-perceptionDoubt

trusttrust

priDepresence

fearinsignificance

Respond Guiding them through loss.

Measure Revealing their value to them.

Protect Supporting their growth.

Assess risk Sharing their risk.

Enhance Celebrating all their values.

The future

Now


The future

Now










The future

Now

Fear How can I help you in a way that direct cannot?

InsignificantI don’t care about insurance. Help me when help is really needed, cre-ate an emotional connection.

Agent Customer

fearinsignificance

fearinsignificance






The future

Now

Now Loss Profile Future Rapid Response

Next Steps Select Users: Customers who have been through the claims experience.

Aggregate Data: Customers’ previous track record of losses.

Create: Design a symbol that the customer can publicly display.

Temperature Check: Customer Loyalty Do customers feel that we honor and accept their losses?

Future Steps Investment: Current claims and CSR process.

Train: Agents/employees to be responsive and prepared.

Collect Data: Prepare databases of local referral information to utilize for customer during loss.

Agent Factor: Are agents able to immediately provide relevant, empathetic service to their customers in times of need?



The future

Now









The future

Now

Difficulty confusion

Agent Customer

I don’t understand insurance.

Display my information about possessions, values, protection policy, assist me in decision making.

How can I help you see your information?

How can I better educate myself to guide your decision making process?






The future

Now

Now Why I Am Lucky Future Decision Tree Tool

Next Steps Select Users: Customers who have umbrella policies.

Aggregate Data: Customers’ previous track record of loss and success stories.

Create: A small message and display for customers about their successes.

Temperature Check: Customer Awareness Are customers surprised to see their success, enjoy seeing personal success?










The future

Now






The future

Now

Mis-perceptionDoubt

Agent Customer

I don’t think you can handle my unique situation now or in the future.

Assure me that you welcome my unique situation.How can I reshape our relationship

now and take care of your network in the future?






The future

Now

Now Pre-insurance Future Agent’s List

Next Steps Select Users: Customers who have umbrella policies.

Aggregate Data: Customers’ previous track record of loss and success stories.

Create: A small message and display for customers about their successes.

Temperature Check: Customer Awareness Are customers surprised to see their success, enjoy seeing personal success?









The future

Now






The future

Now


trusttrust

Agent Customer

I don’t feel like you trust me.

Lead me in the right direction, and stand by me when others may not. How can you show me your local

context to accurately represent your personal opportunities and risks?





The future

Now


Now Stay Current Checklist Future Global Identity

Next Steps Select Users: Small business owners.

Research: Local and national trends.

Create: A periodic display of the trends relevant to customers.

Temperature Check: Customer Acceptance Do customers avoid local risks after becoming more aware?

Future Steps Select Users: Gen X, international students.

Aggregate Data: To initially select which customers to represent.

Augment Brand: To ensure that LM credibility is apparent globally.

Test Factor: Do external people in customers lives trust LM as a credible source?






The future

Now






The future

Now

priDepresence

Agent Customer

I don’t feel or see my insurance company.

Revel with me, in the good times.How can I support the positive

experiences in your life?






The future

Now

Now Libby Community Capsule Future Lock Box

Next Steps Select Users: Baby Boomers.

Create: a website similar to the Responsibility Project.

Message: introduce new offering in locations relevant to customers.

Temperature Check: Customer Appeal Do customers contribute, and take actions to further protect meaningful possessions?

Future Steps Select Users: Gen Y.

Research: standard components that make an identity.

Create: a product that agents offer customers to safely store pieces of their identity.

Agent Factor: Do agents display interest in protecting or storing their customers meaningful possessions?

Thank you.

Documents

LMAbridged