Managing P&C Distribution with Salesforce.com

September 18, 2007

Lisa Lawrence – Liberty Northwest

Yutaka Hashiramoto – Sompo Japan

Sal Caruso – salesforce.com

Thank You to Our Partners!!!

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Agenda

Welcome & Introductions

Liberty Northwest Case Study

Sompo Japan Case Study

Salesforce.com Insurance Agency

Management Edition

Q & A

Salesforce.com for the Insurance Industry

Standard front office desktop in the Insurance

Industry

Tailored to the Insurance Industry without on

premises cost, risk and delays

Insurance Operating Model

Sales/OpportunityManagement

Underwriting

AgencyManagement

CustomerService

-Agents/Customers

Claims

PolicyManagement

ClaimsManagement

Brokers Front Office Middle Office

Carriers

New Business Submission

Customers

ClaimsSubmission

Status

Product Information

Campaign & LeadManagement

OpportunityManagement

Agents (captive / independent)

Campaign & LeadManagement

OpportunityManagement

Placement

Customer Success in Insurance

Lisa Lawrence

Sales Resources Manager

lisa.lawrence@libertynorthwest.com

Liberty Northwest Insurance (LNW) Member of Liberty Mutual Group HQ in Portland, Oregon Offer Business & Consumer Insurance

Commercial Auto, Property & Liability (PAL) Personal Lines Workers’ Compensation

Multi-tiered Distribution: Direct Write & Agency Channels

• INDUSTRY: Insurance

• EMPLOYEES: 1,000

• GEOGRAPHY: Northwest Region (AK, ID, MT, OR & WA)

• # USERS: 80 Users, 86% Login rate

• PRODUCT(S) USED: Enterprise Edition, SFA, 11 Custom Objects, 11

Custom Tabs, Applications Downloaded – Exact Target

• SALESFORCE USER GROUP LEADER: Portland

Prior Challenge: Captive Direct Write Model

Issues

Inadequate reporting

No uniform lead qualification

No documented client activity or selling methodology

Paper transmittal sales tracking system

Solution

Implemented Salesforce

Customized to fit Liberty’s business processes and needs

Results

Increased visibility

Increased productivity

Better decision making

Salesforce helped enable more effective direct sales

New Challenge: Multi-tiered Distribution Model

Issues

Organize agency & client

information in one solution

Increase visibility into

relationships with agents and

brokers

Manage agency pipeline

Improve opportunities for cross-

selling existing customers

Adapt Salesforce to improve agency management and visibility

Solution – Adapt Salesforce for Agency Management

Hierarchy•Track master & sub agent relationships

•Use hierarchy for reporting

Hierarchy•Track master & sub agent relationships

•Use hierarchy for reporting

Agency Meetings

•Log past visits and plan for follow-ups

Agency Meetings

•Log past visits and plan for follow-ups

Activity History•Track and convey consistent messages to agent

Activity History•Track and convey consistent messages to agent

Gather & organize data

Streamline processes

Increase visibility

Liberty Northwest needed an agency management system to help…

Internal Communication

•Auto alerts on large sales, losses, etc.

Internal Communication

•Auto alerts on large sales, losses, etc.

Renewal Pipeline

•Capture and manage renewals

Renewal Pipeline

•Capture and manage renewals

New Business Pipeline

•Auto workflow to manage submissions

New Business Pipeline

•Auto workflow to manage submissions

Reporting•Able to access and leverage all the information in the system

•Increase value to agency visits

Reporting•Able to access and leverage all the information in the system

•Increase value to agency visits

Dashboards•Key metrics easy to review and react to

•See trends and new developments at a glance

Dashboards•Key metrics easy to review and react to

•See trends and new developments at a glance

Agency Desktop•Single source for all agency info

•Custom links to speed retrieval

Agency Desktop•Single source for all agency info

•Custom links to speed retrieval

…leading to improved agency performance

Organizing Client and Agency Information

• Continue to use the Client record layout – to enter details about the client.

To adapt Salesforce from a direct write to a multi-tiered model:

1

2

• When an opportunity is entered, it can be associated with both the agent, as a partner, and the client.

3

1

2

Under the captive direct write model; the Sales Rep owned and managed Opportunities associated to Client records in Salesforce.

• Created a new Agency record layout– to enter details about the agency.

3

Agency & Producer Records

• Agency record layout – to track agency details.

1

2

• Contacts – to track interactions with individual producers at the agency.

3

A single source for all agency information.

• Service teams for agency are set up.

2

1

4 • Hierarchy – to track master & sub agent relationships.

3

4

Managing Agency Relations

• Agency Meeting Object -to log results of the meeting, outline appropriate action plans and set follow up tasks.

1

2

• Dashboards – to view # of visits and agency trends.

3

After meeting with the agent, log the visit and plan for follow-ups.

• Auto email alert – to keep key stakeholders informed.

1

2

33

• Email templates – to convey consistent status messaging to agents.

Submission Clearance

1

2

• Opportunity Stage History – to track submission as it moves along.

3

Using Salesforce to track status of agency submissions and manage workflow.

Enter each submission as an Opportunity –associate the agent record and update the opportunity stage as it moves along.

1

• Activity History – to track interactions with agency.

2

3

• Dashboard – to track status and address workflow delays.

Submission Pipeline

1

2 • Auto alerts – to notify key stakeholders of large sales or losses.

Using Salesforce to track what’s in the submission pipeline.

1

2

Individual Agency Results

• Using Links Section on the Agency record layout – to speed retrieval of results.

1

a

b

c • History of Agency Meetings – to get an overview of past meetings.

• Submission Pipeline – to view win/loss history, quote, written, hit ratios.

• YTD Production – view performance against plan.

1

Quick access to past activity and performance metrics yields better insight into agency’s state of business, trends, and new developments.

a

b

c

Multi-tiered Distribution Results

• Dashboard – to view agency channel results

1

2

Review analytics and dash-boards for both direct write and agency channels in one system.

• Dashboard – to view direct write channel results

1

2

Liberty Northwest: Best Practices

Create a centralized agency view

Custom links –to view agency pipeline, production and activity

Custom objects – to view key touch points

Map the connections between the agency, insured and carrier

Define key metrics to determine field types and record layouts

Implement monitoring tools to manage agency business processes

Dashboards - to monitor workflow delays and exceptions

Auto alerts – instant notifications of key events or changes

Auto tasks – automate internal workflow

Create tools to support agency management initiatives

Email templates – to reinforce processes with agent partners

Custom objects - creates user discipline (how to guide) to record data

Reports – to monitor completion of initiatives

Begin with the end in mind!

Yutaka HashiramotoManager, IT Strategy and PlanningYHashiramoto@sompo-japan.co.jp

Corporate Overview

・ Founded: 　　 October 1888

・ Capital: 　 70 billion yen ($700 million)

・ Assets: 　 6.03 trillion yen ( $6030 billion)

・ Employees: 14,906

・ Agents: 　 57,475 agent store

・ Sales Branches: 　 516 branches (Domestic) 　　　　　　　　 　 41 branches (Foreign)

・ Insurance Service Network: 　 233 networks

Major Goals of our Corporate Strategy

Providing best products and best services to each segmented customers

Promoting cross-sell

Strengthening direct sales and hybrid sales through co-working with our agents

Building new business model to penetrate into mid-small sized company market

Implementing system to support ”new business model at retail area”

The best solution is to use Salesforce ！

Why Salesforce?

Time to Market, TCO 　

New business was launched in 3 months (including requirement definition)

Implementation completed in 2 weeks at other division

No initial costs required for system infrastructure (only subscription fee)

Pilot test -> Service-in; Best solution for scalable business

Flexibility

Easy to customize; Power users can customize

Trial & Error for deployment

Channel Integration 　 Easy to share information among call center, sales dept, and sales agents

State of the Art System

System with the latest technology can be used with low cost

Business Model Subscribers Marketing ＳＦＡService &

Support

Others

(Platform)

Managing re-agreement for Policy 1698 ○

New Sales Scheme (Agent + Call Center) 1223 ○ ○ ○

SFA for SMB Market 735 ○

Help Desk for Agency (administration) 530 ○

Help Desk for Agency (System) 110 ○

Org Integration Project 100 ○ ○ ○ ○

Customer Support for overseas travel insurance

(Call Center)85 ○ ○

Outbound Call Center for SMB Market 85 ○ ○

Outbound Call Center for consumer 50 ○ ○

SFA for 401K sales 34 ○

Help Desk for Car dealer 33 ○

Help Desk for Car Lease company 30 ○

Help Desk for Fire insurance 25 ○

Help Desk for one of Bank 24 ○

Help Desk for sales 22 ○

Total 15 Org. 4784

Which Business Functions does Salesforce Support?

Salesforce System Overview

SalesforceAgents

Customers Corporate HPAgent HP etc

BrochureInquiry etc

Sales Branch

Call Center

Tel 、 Email（ Brochure 、 Inquiry etc. ）

Leads information, Process Mgmt Process Management

Contact information, Process Mgmt, FAQ etc.

# of Orgs: 　 15# of Subscribers: 4,784

Selling Model with Salesforce

Salesforce

Contact

・ Receiving brochure through Tel, HP, and Call Center・ Passing information to agents or answer by call center agents・ Sending out brochures from call center

CustomersCorporate HP

Agent HP etc

Agents

Call Center

Tel 、 Email

BrochureInquiry etc

Leads information, Process Mgmt

Contact information, Process Mgmt, FAQ etc.

Tasks for more scalable usage of Salesforce (completed ）

Strengthening the development team Organizing Salesforce dedicated team

Receiving Salesforce consultant certification

Tasks for quality improvement Forming a joint project team between SJ and Salesforce for stable service

System test environment (Sandbox)

Setting up a hotline between SJ and Salesforce for system outage

Testing system before version-up

Remaining tasks Consolidating organization (DB)

Using Salesforce as the core system for call center

Data integration with other systems such as agent management system

Utilizing Salesforce more by taking advantage of AppExchange

Requests to Salesforce.com Working on continuous quality improvement and disclosing the status

Implementing more tight surveillance system

Japan Data Center

Informing more timely information on system outage (status of investigation,

recovery time etc) 　 Automatic configuration from Sandbox to Production instance

Tasks for more scalable usage of Salesforce (plan ）

Salesforce.com Insurance Agency Management Edition

Sal Caruso

Principal Solution Consultant

scaruso@salesforce.com

Basic Industry Value Chain

ConsumersConsumers

BusinessesBusinesses

BrokersAgents

BrokersAgents

CarriersCarriers

MarketingMarketing

Relationship Managers

Relationship Managers

UnderwritersUnderwriters

Home PageRelationship Manager logs into Salesforce to review key metrics and upcoming tasks & activities

1

2

Dashboard summarizes• Agency Pipeline• Agency plans• Agent recruitment

statistics

At a glance, sees upcoming tasks & meetings

1

2

Agency and Producer Records

Detailed profiles for each producer at the agency

1

2

Detailed agency profile

Coverage teams for producers

3

3

2

1

4

4 Track agency ratios – e.g. # submissions, # quoted, # written

Agency Plans

Track Plan against each agency

1

Define plan objectives, both quantitative and qualitative

2

Each objective has a target date, a measurement of success, and a tracking mechanism

3

3

2

1

Opportunities

Track opportunities against both agency and client

1

2 • Opportunity associates with both the agent, as a partner, and the client

• Track critical opportunity information – deal stage, etc.

1

2

Reports

Set of standard Agency reports assisting the relationship manager in preparing for agency meetings:

• Win/loss history• Quote, written, hit

ratios• Meeting frequency

1

1

Business Review Dashboards

As part of a regular review of the business, the Relationship Manager checks in on key metrics. He can look at both agency specific and client specific metrics

The Relationship Manager needs to review key statistics of his pipeline

• RM studies the dashboard, looking at:

• Pipeline by opportunity stage

• Key opportunities• Progress against

agency plans• Allocation of agency

visits

1

1

a

b

c

d

a b

c

d

Greater Success for Insurance Carriers

By supporting key activities of the relationship manager, the Insurance Agency Management Edition brings greater agency management success to insurance carriers

http://www.salesforce.com/industries/financial-services/insurance/

• Many agents, with multiple touchpoints across the organization

• Poor pipeline visibility

• Difficult reporting / insight into relationships

• Missed upsell and cross-sell opportunities

CarriersCarriers

MarketingMarketing

Relationship Managers

Relationship Managers

UnderwritersUnderwriters

Problems insurance carriers faceInsurance Agency Management Edition

• Shared contact management, with better reporting and coordination

• Pipeline development tools with advanced analytics

• Easy to use reporting and dashboards

• Improved ability for coordination across all functions of the carriers

Question & Answer

Lisa Lawrence – Liberty Northwest

Yutaka Hashiramoto – Sompo Japan

Sal Caruso – salesforce.com

Don’t miss these Activities:

Visit our Financial Services Expo13 Partner Solutions Financial Services DemosMeet 700 Financial Services

AttendeesEnjoy a Latte and Network in our

Industries Lounge

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