Insurance 2.0 : The Way Forward - Rationale, Strategy, Methodology

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What's Insurance 2.0? Why Insurers need to embark on it? What to do and how to implement Insurance 2.0? These are the common questions with Insurers these days. …

What's Insurance 2.0? Why Insurers need to embark on it? What to do and how to implement Insurance 2.0? These are the common questions with Insurers these days.

In this presentation, Don shared the rationale, the strategy and the methodology on why, what and how Insurers are to move forward with Insurance 2.0.

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  • Malaysia FB = 11.3mil, LinkedIn = 500k, Twitter

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  • 1. 21 July 2011
    Private & Confidential | Copyright 2011 @ 121advisor
    INSURANCE 2.0The Way Forward
    Insurance 2.0 :
    The Rationale and The Strategy
    By Don Tan, Senior VP
    Business Consultancy
  • 2. Insurance 2.0 : The Way Forward
    21 July 2011
    Private & Confidential | Copyright 2011 @ 121advisor
    Page 2
  • 3. WHY Insurance 2.0 :The rationale
    Private & Confidential | Copyright 2011 @ 121advisor
    21 July 2011
  • 4. Web 2.0Evolving Role of Internet & World Wide Web
    • Mass Authoring
    • 5. User = Power
    Web 2.0
    Social
    Personal
    e.g. Microblogging - Facebook - Tweets … …
    Transactional
    e.g. Personalized Sites - Feeds - Blogs … …
    INTERNET
    Interactive
    e.g. E-Commerce - Online Shopping - E-payment … …
    e.g. Chat - Messaging - Forms - Games - Flash … …
    Informational
    e.g. Corporate Websites, Product Info Downloads, Banners … …
    Web 1.0
    • One Way
    • 6. Owner = Power
    21 July 2011
    Private & Confidential | Copyright 2011 @ 121advisor
    Page 4
  • 7. INSURANCE 2.0
    Insurance 2.0Evolving Role of Internet / Web for Insurance & Takaful
    Web 2.0
    Social
    Personal
    e.g. Social Network Marketing
    Friend’s Review & Feedback,
    Expert / Blogger’s Advice … …
    Transactional
    e.g. Simulators - Need Analysis - Product Advisory - Self-Service Process … …
    INTERNET
    Interactive
    e.g. E-Cover Note - E-Proposal - Online Sales … …
    e.g. Online Quotes - Games - Contests - Request Submission … …
    Informational
    e.g. Corporate Websites - Product Catalogue - Downloads … …
    Web 1.0
    21 July 2011
    Private & Confidential | Copyright 2011 @ 121advisor
    Page 5
  • 8. WHY Insurance 2.0WHY Insurers should embark on Insurance 2.0
    Consumers
    • Internet-savvy generation’s Preference for Self Serviceability
    • 9. Gen-Y fancy on Internet, Social Network & Mobility
    • 10. Trend & Choice of Communication / Information channel
    21 July 2011
    Private & Confidential | Copyright 2011 @ 121advisor
    Page 6
    Watch “Social Media in Plain English” Video at
    http://vimeo.com/groups/23930/videos/11551721
  • 11. WHY Insurance 2.0Where Consumers Are : Social Web !
    21 July 2011
    Private & Confidential | Copyright 2011 @ 121advisor
    Page 7
    11.3 mil Malaysians
    Members
    > 3 billion views per day
    (average person spent
    15 min a day on YouTube)
    726 million
    200 million
    > 200 million Blogs
    119 million
    3.7 million articles
    15 million Wikipedians
    24.5 million pages
  • 12. WHY Insurance 2.0How Consumers prefer to Interact : Where They Are !
    If insurers are serious about getting closer to their customers, they should forego conventional “channel” strategy development and instead focus on quality interactions.Based on input from more than 21,000 consumers in 20 countries, we believe insurers need to create an interaction mix that appeals to their particular target audiences. To find out what matters, insurers need to take a different approach to segmenting their customers – one based on psychographicsnot demographics.
    December 2010
    21 July 2011
    Private & Confidential | Copyright 2011 @ 121advisor
    Page 8
    IBM Institute of Business Value
  • 13. WHY Insurance 2.0How Consumers Evaluate Your Brand : Social Web !
    21 July 2011
    Private & Confidential | Copyright 2011 @ 121advisor
    Page 9
    the most credible spokesperson a company can have is a "person like me”… the share of people who trust “a person like me” more than they trust brands or organizations is increasing globally…
    Brand?
    Product?
    Service?
    global survey 2010

    agent
    bank
  • 14. WHY Insurance 2.0What Consumers Expect to have : Rich Experience and Fun !
    Games
    Simulator
    Advisors
    Characters
    21 July 2011
    Private & Confidential | Copyright 2011 @ 121advisor
    Page 10
  • 15. WHY Insurance 2.0Where Consumers Prefer to Shop Next : Online !
    21 July 2011
    Private & Confidential | Copyright 2011 @ 121advisor
    Page 11
    Growing Trends
  • 16. WHY Insurance 2.0How Consumers Talks about You : You can’t Control !
    21 July 2011
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    Page 12
    If you worry about losing control in the age of social media, stop. It has already happened — you no longer control the majority of the information that people hear or trust about your brand.
  • 17. WHY Insurance 2.0WHY Insurers should embark on Insurance 2.0
    Consumers
    Channels
    • Internet-savvy generation’s Preference for Self Serviceability
    • 18. Gen-Y fancy on Internet, Social Network & Mobility
    • 19. Trend & Choice of Communication / Information channel
    • 20. Lower Distribution Cost, More Competitive Pricing
    • 21. Lower Cost for Marketing, Larger Pool of Leads / Market
    • 22. Lead generation of younger prospects for Agency force
    21 July 2011
    Private & Confidential | Copyright 2011 @ 121advisor
    Page 13
  • 23. WHY Insurance 2.0Web Channel : More Competitive Pricing
    21 July 2011
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    Page 14
    Australia: Online Aggregators Threaten Insurers’ Premium Revenue
    An estimated A$1.8 billion (US$1.97 billion) of commercial and personal insurance premiums are at risk for Australia’s largest insurers from so-called “contestable platforms”, technology that allows brokers and customers to compare prices of products online
  • 24. WHY Insurance 2.0Marketing 2.0 : Social Network Marketing
    21 July 2011
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    Page 15
    Watch “Social Media in Plain English” Video at
    www.youtube.com/watch?v=MpIOClX1jPE
    8095 survey 2010
    Millennials taking action on behalf of Brands
    • 57% Millennials would volunteer to try new products from a preferred brand and most would post an online review of the experience
    • 30. 68% have recommended their products to friends & family and 44 % have friended/followed that brand on their social network
  • WHY Insurance 2.0Recruitment 2.0 : Hiring via Social Media
    21 July 2011
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    Page 16
    In a recent survey of 500 companies, the University of Massachusetts Dartmouth found that 53 percent of them use social media in their hiring processes. These connections start when a candidate mentions a brand or expresses desire in working for a company. In addition to be tech-savvy, these candidates tend to have done their homework: they know more about the company, and are more engaged with the company brand than candidates sourced through more traditional channels.
  • 31. WHY Insurance 2.0WHY Insurers should embark on Insurance 2.0
    Consumers
    Channels
    Competitions
    • Internet-savvy generation’s Preference for Self Serviceability
    • 32. Gen-Y fancy on Internet, Social Network & Mobility
    • 33. Trend & Choice of Communication / Information channel
    • 34. Lower Distribution Cost, More Competitive Pricing
    • 35. Lower Cost for Marketing, Larger Pool of Leads / Market
    • 36. Lead generation of younger prospects for Agency force
    • 37. Competitor’s entry to the Insurance 2.0 space
    • 38. Customer retention against Competitors and New Players
    • 39. Stay Relevant and position in Market place
    21 July 2011
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  • 40. WHY Insurance 2.0Taking Lead and Stay Ahead !
    5
    6k
    2
    167k
    59k
    4
    1
    157k
    3
    3.0m
    Updated May.2011
    21 July 2011
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    Page 18
  • 41. WHY Insurance 2.0Taking Lead and Stay Ahead !
    21 July 2011
    Private & Confidential | Copyright 2011 @ 121advisor
    Page 19
    3 millions listeners!
  • 42. WHAT TO Insurance 2.0 :the strategy
    Trends
    Private & Confidential | Copyright 2011 @ 121advisor
    21 July 2011
  • 43. Insurance 2.0Evolving Role of Internet / Web for Insurance & Takaful
    INSURANCE 2.0
    Feedback Management
    Social
    Personal
    e.g. Social Network Marketing - Feedback / Reviews - Online Advisor … …
    Customer Service & Retention
    Transactional
    e.g. Simulators - Need Analysis - Product Advisory - Self-Service Process … …
    Commodity Sales
    (also Complex Products later)
    INTERNET
    Interactive
    e.g. E-Cover Note - E-Proposal - Online Sales … …
    Marketing &
    Lead Generation
    e.g. Online Quotes - Games - Contests - Request Submission … …
    Informational
    Information Delivery
    e.g. Corporate Websites - Product Catalogue - Downloads … …
    Web 1.0
    Source : Evolving Insurance Channel Roles – 2009 & Beyond, GARTNER
    21 July 2011
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    Page 21
  • 44. Insurance 2.0 StrategyCommon Dilemma of Insurance Companies
    21 July 2011
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  • 45. Online Consumer Life CycleManaging Consumer Experience Effectively with CEM 2.0
    targets / leads
    aggressors
    advocates
    ATTRACT
    USE
    e-commerce
    suspects
    internet sales
    online sales
    customers
    e-business
    EXPERIENCE
    OWN
    opportunities
    prospects
    INVOLVE
    21 July 2011
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    Page 23
  • 46. Consumer Experience Management 2.0Connecting Conversation to Conversion
    21 July 2011
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  • 47. Consumer Experience Management 2.0Applying the Right Web 2.0 Value to the Right Audience
    21 July 2011
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    Page 25
    Contest
    Microsite
    Games
    Reminders
    Point-of-Sales
    Simulators
  • 48. Insurance 2.0 : A Webassurance ChannelComplementary and Supplementary to all Channels
    AGENCIES
    WEBASSURANCE
    BANCA
    TELEMKTG
    CYBER AGENTS
    PARTNERS
    BRANCHES
    21 July 2011
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  • 49. Insurance 2.0 : A Webassurance ChannelWhat Can be Done ?
    • Social Network Marketing
    • 50. Internet Campaigns
    • 51. Online Advertisements
    • 52. Self Services
    • 53. Online Support
    • 54. Feedback Management
    • 55. Web 2.0 Presence
    • 56. Social Community
    • 57. Information Delivery
    Contact
    Connect
    Contain
    Converse
    Convert
    21 July 2011
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  • 63. HOW TO INSURANCE 2.0THE METHODOLOGY
    Private & Confidential | Copyright 2011 @ 121advisor
    21 July 2011
  • 64. Insurance 2.0 StrategyKey Success Factors
    Marketing & Attractions
    Online Experience
    Self Serviceability
    Integrated Process
    Multi-Channel Integration
    Strategic Business Plans
    Value & Unique Propositions
    Agile & Creative
    • Easy, Fast & Stable
    • 65. Attractive Presentation
    • 66. Concise & Updated Content
    • 67. Personalized
    • 68. Clear Strategy
    • 69. S.M.A.R.T Objectives
    • 70. Feasible Model
    • 71. Pricing & Rewards
    • 72. Relevant Values
    • 73. Unique & Special Features / Fun
    • 74. Effective Attractions
    • 75. Efficient Communication
    • 76. Unique Branding
    • 77. Simple & Minimal Steps
    • 78. Guided & Online Help / Response
    • 79. Private & Secured
    • 80. Connected End-to-End Process
    • 81. Straight Through & Seamless Flow
    • 82. Authentication & Security
    • 83. Channel Conflict Managed
    • 84. Cross-Channel Collaboration
    • 85. Tracking & Monitoring
    • 86. Agile Development
    • 87. Experience-focus Design
    • 88. Customer-oriented Support
    21 July 2011
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  • 89. Webassurance Strategy ConsultancyOperationalize Webassurance as Your Insurance 2.0 Channel
    Strategize
    To analyze and assess Insurer’s Go-To-Market conditions, Sales and Offerings positions, and Implementation capabilities for Webassurance
    Analyze
    To define Market Strategy and Offerings Strategy, perform Impact Analysis, prioritize and propose an effective, realistic and long term Webassurance Strategy Plan for Insurer
    Organize
    To plan and propose the Detailed Implementation Action Plan in phases, and mobilize the Resources for the Implementation of Webassurance for Insurer upon approval
    Realize
    To execute the Detailed Implementation Action Plan to bring Webassurance live for Insurer
    Improvise
    To perform Post Implementation Reviews at the end of each phase or key milestones, assess the achievements, recommend, and fine tune the Implementation Strategy and/or Action Plan where required, continuously
    21 July 2011
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  • 90. Webassurance Strategy ConsultancyOperationalize Webassurance as Your Insurance 2.0 Channel
    Strategize
    To analyze and assess Insurer’s Go-To-Market conditions, Sales and Offerings positions, and Implementation capabilities for Webassurance
    To define Market Strategy and Offerings Strategy, perform Impact Analysis, prioritize and propose an effective, realistic and long term Webassurance Strategy Plan for Insurer
    Analyze
    To define Market Strategy and Offerings Strategy, perform Impact Analysis, prioritize and propose an effective, realistic and long term Webassurance Strategy Plan for Insurer
    To assess the Strategy defined, perform Impact Analysis, prioritize and propose an effective, realistic and long term Webassurance roadmap
    Organize
    To plan and propose the Detailed Implementation Action Plan in phases, and mobilize the Resources for the Implementation of Webassurance for Insurer upon approval
    To plan and propose the Detailed Implementation Action Plan in phases, and mobilize the Resources for the Implementation of Webassurance for Insurer upon approval
    Realize
    To execute the Detailed Implementation Action Plan to bring Webassurance live for Insurer
    To execute the Detailed Implementation Action Plan to bring Webassurance live for Insurer
    Improvise
    To perform Post Implementation Reviews at the end of each phase or key milestones, assess the achievements, recommend, and fine tune the Implementation Strategy and/or Action Plan where required, continuously
    To perform Post Implementation Reviews at the end of each phase or key milestones, assess the achievements, recommend, and fine tune the Implementation Strategy and/or Action Plan where required, continuously
    21 July 2011
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  • 91. Webassurance Strategy ConsultancyHOW to implement Insurance 2.0 effectively
    Strategize
    To brainstorm, validate and define strategy on Business model, Channel and Marketing, and Product and Service Offerings for Webassurance
    Analyze
    Includes:
    • Business Objectives
    • 92. Business Models
    • 93. Approaches / Tactics
    Business Strategy
    Organize
    Realize
    Marketing Strategy
    OfferingsStrategy
    Improvise
    Includes:
    • Marketing Strategy
    • 94. Web Channel Framework
    • 95. Operational Plan
    Includes:
    • Product Strategy
    • 96. Online Product Framework
    • 97. Services / Product Tools
    21 July 2011
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  • 98. Webassurance Strategy ConsultancyHOW to implement Insurance 2.0 effectively
    Strategize
    Analyze
    To assess the Strategy defined, perform Impact Analysis, prioritize and propose an effective, realistic and long term Webassurance roadmap
    Organize
    Assess
    Prioritize
    Propose
    Decide
    Realize
    Costs-Values-Analysis
    Improvise
    GO
    Values / Returns
    No-GO
    Costs / Risks
    21 July 2011
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  • 99. Webassurance Strategy ConsultancyHOW to implement Insurance 2.0 effectively
    Strategize
    Analyze
    Organize
    To plan and propose the Detailed Implementation Action Plan in phases, and mobilize the Resources for the Implementation of Webassurance for Insurer upon approval
    Realize
    Improvise
    21 July 2011
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  • 100. Webassurance Strategy ConsultancyHOW to implement Insurance 2.0 effectively
    Strategize
    Analyze
    Organize
    Realize
    To execute the Detailed Implementation Action Plan to bring Webassurance live for Insurer
    Improvise
    21 July 2011
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  • 101. Webassurance Strategy ConsultancyHOW to implement Insurance 2.0 effectively
    Strategize
    Analyze
    Monitor
    Manage
    Organize
    OPERATIONAL
    Realize
    Revise
    Review
    Improvise
    To perform Post Implementation Reviews at the end of each phase or key milestones, assess the achievements, recommend, and fine tune the Implementation Strategy and/or Action Plan where required, continuously
    21 July 2011
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  • 102. Use CEM 2.0Applying the Right Web 2.0 Value to the Right Audience
    21 July 2011
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    Contest
    Microsite
    Games
    Reminders
    Point-of-Sales
    Simulators
  • 103. Use CEM 2.0Internet Web 2.0 Tool Effectiveness Matrix
    Example
     Very Useful
     Useful
     May be Useful
    21 July 2011
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  • 104. Example
    • Good simulators (especially those with very sound branding, known to be fun and provide value add advisory) may attract visitors to the simulators through word of mouth, popular search results, and recommended links (e.g. on Facebooks)
    Definition
    • Simulators are Application Tools which simulate conditions, events or outcomes based on input provided by the Users with the objective to generate results that are close to reality.
    • 105. For Insurance purposes, they are usually used to trigger awareness and attention to the Users on their needs for protection, investment, and/or savings so that they will purchase Insurance policies.
    • 106. Example of Simulators are:
    Retirement Planner (What’s Your Number by Prudential)
    Health Planner (Health Planner by ICICI Prudential – already removed from official website)
    Education Planner
    • Well-design simulators (e.g. easy, fancy, fun, fast) gives visitors good hands-on experience hence visitors will stay on to the website / simulator to try and complete the simulation process
    SimulatorDefinition & Effectiveness
    • Users usually willing to input some personal data to simulate results / output as relevant and as close to the reality as possible, e.g. DOB, gender, marital status. These are useful information to understand the prospect and approach appropriately. It’s also good opportunity to capture their contact information.
    • 107. Simulators usually do not transact any sales of policies, but will lead to Point-of-Sales engine/webpage when prospect intended to purchase.
    • 108. As life progress and statuses change, users may return to the simulators to perform simulation based on their latest statuses.
    21 July 2011
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  • 109. 121advisorfor INSURANCE 2.0
    Private & Confidential | Copyright 2011 @ 121advisor
    21 July 2011
  • 110. 121advisor for Insurance 2.0Solution & Services
    Insurance 2.0
    Strategy
    Consultancy
    Solution & Services
    Insurance 2.0 Solution & Campaign
    • Design & Development
    • 111. Solution Implementation
    • 112. Outsourcing & Managed Services
    • 113. Campaign Execution
    • 114. Web Business Strategy
    • 115. IT Strategy Planning
    • 116. Requirement Elicitation
    • 117. Business Process Innovation
    21 July 2011
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    Webassurance Channel Implementation
  • 118. Web 2.0
    Portal Management
    Webassurance
    for Life & General
    Channel Management Solution
    S.a.a.S
    Solutions
    Webassurance Strategy Consultancy
    Cyberagency Strategy Consultancy
    Web Application Hosting & Management
    Social Media Outsourcing
    Services
    Social Media
    Management
    Application Processing –
    Chat Agents – Site Mgmt
    Artwork – Blog – Content – Design – E-Learning – Games
    121advisor : Complete Solution & ServicesInsurance & Takaful 2.0 Enablement
    21 July 2011
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    Setup – Monitor – Report – Engage - Manage
  • 119. More Ideas? Follow Webassurance.org!www.Webassurance.org or Facebook.com/Webassurance.org
    21 July 2011
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  • 120. THANK YOU
    Private & Confidential | Copyright 2011 @ 121advisor
    Web : www.121advisor.com | Email : mail@121advisor.com
    Tel: +60-3-7498-5212 | Fax: +60-3-7955-6363
    Follow Us : Facebook | Twitter | LinkedIn | YouTube | Webassurance.org Blog
    Address : Suite 1208, Level 12 Amcorp Tower, Amcorp Trade Centre, No. 18, Persiaran Barat, 46050 Petaling Jaya, Selangor
    21 July 2011