Digital Thinking in Health Insurance
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Digital Thinking in Health Insurance

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The Digital Insurer presented at this conference on 18th June 2014. ...

The Digital Insurer presented at this conference on 18th June 2014.

The aim of the presentation was to look at the digital trends that are impacting health insurance and to explore how digital thinking can transform face-to-face sales of health insurance in Asia as well as develop new business models.

Visit the-digital-insurer.com for more information on digital insurance in Asia

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Digital Thinking in Health Insurance Presentation Transcript

  • 1. 8th Annual Health Insurance Conference Asia 2014 18th June 2014 , Singapore Using Digital Thinking to Transform Individual Health Insurance Change Picture
  • 2. 2 About The Digital Insurer Reports on Digital Insurance Content production Insurance library (9 articles reviewed each month) 2-3 new articles a quarter Thought leaders :2-4 articles a quarter Quarterly Digest insurance library (9 articles reviewed each month) Bespoke sponsored reports Speaking Engagements Digital Consulting & Digital Ventures Join more than 3,000 other insurance professionals @ the-digital-insurer.com
  • 3. 3 4 Discussion Points It is a digital revolution Digital = customer centricity POS Tablet Toolkit to start a revolution? 3 other digital innovation opportunities? 1 2 3 4 Slides @the-digital-insurer.com/8th-annual-health-insurance-asia-singapore/
  • 4. 1. It is a digital revolution 8th Annual Health Insurance Conference Asia 2014 18th June 2014 , Singapore It is a digital revolution Digital = customer centricity POS Tablet Toolkit to start a revolution? 3 other digital innovation opportunities? 1 2 3 4
  • 5. 5 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 .
  • 6. 6 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 more demanding and looking for a different experience
  • 7. 7 Asia: Moving rapidly to a smartphone majority Source: www.our,mobileplanet.com Smartphone Penetration 2013 ““It is worth noting September 2013 as a significant milestone, as it is the month when sales penetration reached the halfway mark: when one in every two mobile handsets purchased in the region is now a smartphone.” Gerard Tan Account Director Gfk Asia
  • 8. 2. Digital = customer centricity 8th Annual Health Insurance Conference Asia 2014 18th June 2014 , Singapore It is a digital revolution Digital = customer centricity POS Tablet Toolkit to start a revolution? 3 other digital innovation opportunities? 1 2 3 4
  • 9. 9 3 changes in customer behaviour 1 2 3 4 5 1 Research on-line and purchase anywhere 2. Multi- channel service 3. Less Trust in Financial Services brands
  • 10. 10 #1: consumers research on-line & purchase anywhere Source : www.consumerbarometer2013.com . Around the world 69% of the online population researches on-line before purchasing a product or service 46% research online /purchase offline23% research online / purchase online
  • 11. 11 Is Financial Services different? Not really For Finance and Real Estate it is 67% around the world Source : www.consumerbarometer2013.com .
  • 12. 12 Is Asia different? Not really In India it is 65% and in China it is 74% for Finance and Real Estate. However, a higher % of purchases are currently made offline (reflecting face-to-face channel dominance). Source: www.consumerbarometer2013.com .
  • 13. 13 The hybrid customer is • Better informed • More demanding • “Multi-channel” for both sales & services • Will jump service channels at any point – catch them if you can! The Hybrid Customer Face To Face Online Phone Myth #1: Digital is a new distribution channel Reality : Digital enables customer (& distributor) engagement #2: welcome to Digital Customers: “They are hybrid” (or omni-channel)
  • 14. 14 Multiple source of information – “mono” communication channels no longer exist Extracted from Swiss Re Sigma 06/13
  • 15. 15 #3:Trust is at the heart of financial services. But 15 Source : Edelman 2014 Trust barometer WE HAVE A TRUST CHALLENGE 71% would rather go to the dentist than listen to what their banks are saying to them Source: survey by Viacom
  • 16. 16 3 Core “Digital Thinking” Strategies 1. Manage existing models for profit 2. Transform existing face-to- face models so they are more customer centric 3. Create or participate in new customer centric models 16
  • 17. 3. POS Tablet Toolkit to start a revolution? 8th Annual Health Insurance Conference Asia 2014 18th June 2014 , Singapore It is a digital revolution Digital = customer centricity POS Tablet Toolkit to start a revolution? 3 other digital innovation opportunities? 1 2 3 4
  • 18. 18 Anchored to basics: Digital Advisor strategies need to leverage insurance fundamentals Current Agency Paradigm Digital impacts Trust is at the heart of insurance Rely on agent relationships Insurance brand is a hygiene factor in the sales process As customer research on-line trust will need to be developed and leveraged on-line Trust must be earned & reinforced at every interaction/touch point 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 (probably more so) Insurance advisors need to be more mobile (digitally & physically) Digital will transform & standardise key management processes Lack of standardisation in training, performance management & coaching Result : variable quality of advice and low productivity resulting in high agent turnover, low policy persistency Customer service matters Nearly 100% reliant on the advisor Back office is back office Mobile technology provides opportunities for cost effective customer service differentiation Push based communications can be used to reconnect with customers 18 Myth #2: Digital changes the way insurance is sold Reality: Digital strategies must incorporate the fundamentals
  • 19. Lead / Prospect Management Sales Opportunities Tablet Advisor Portal Policy Systems The Digital Advisor Business Model Customer Portal / App Digital Advisor business model: www.the-digital-insurer.com/digital-insurance-the-digital-advisor-business-model/
  • 20. Lead / Prospect Management Sales Opportunities Tablet Advisor Portal Policy Systems The Digital Advisor Business Model Customer Portal / App Digital Advisor business model: www.the-digital-insurer.com/digital-insurance-the-digital-advisor-business-model/ 1. Transform Leads 2. Transform Service 3. Transform Sales
  • 21. 21 Advisor Portal Policy Systems“connecting the eco system” Tablet toolkits Sales Opportunities Lead / Prospect Management Tablet Customer Portal / App
  • 22. 22 Tablets: a new communication medium
  • 23. 23 Tablet sales toolkits: will be “business as usual” in most markets within 5 3 years 1. Present credentials (materials) 2. Identify needs 3. Produce quotes and help to close 4. Easy proposal submission 5. For health : renewal and claim services Tablet Functionality: Should be focused on the customer • Must be designed for advisors to connect with customers • Easy to use with a “wow” factor that encourages use with clients • Great usability is critical: engage/delight customers & advisors Usability is the Key Success Factor
  • 24. 24 POS 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. Enable lead analytics / predictive analysis 2. Improved compliance to sales best practice (& regulatory requirements) 3. Back office productivity from digital proposals More efficient Faster & more accurate (clean policies in a day) 4. Reduced overheads: premises & technology costs 5. Business intelligence Benchmarking data Usage data “Bigger” data 6. Recruitment training (and hiring) tool 7. Platform for more automated underwriting
  • 25. 25 Usability = function plus form “The Dial” Easy, fast, fun & professional needs analysis High Usage % of Advisors actively using iPoS 0% 25% 50% 75% 100% Oct 12 Jan 13 Apr 13 Jul 13 Country A Country B Country C Country D AIA Case study available on-line
  • 26. 26 Phase 1 (6 months) Phase 2 (6-12 months) Phase 3 (12 months+) Implement in Phases 1. Present Credentials 2. Needs identification 3. Quote / Close 4. Digital Proposal Submission 5. Renewal and claims servicing Execution Risks 1. Present Credentials 2. Needs identification 3. Quote / Close 4. Digital Proposal Submission 5. Renewal and claims servicing Execution Risks Functional Area High risk Low riskMedium risk 26 The Health Insurance Tablet Toolkit for advisors • Resource Centre /Document repository • Basic Presentation • Interactive Quote • Comparison quotes • Quote to proposal • Data capture • Digital signature & submission • Integrate to Resource Centre • Annual renewal (if required) • Claims resource • Interactive needs tools including sales scripts Selling - decision Selling - execution Customer service
  • 27. 4. Three other opportunities for digital Innovation 8th Annual Health Insurance Conference Asia 2014 18th June 2014 , Singapore It is a digital revolution Digital = customer centricity POS Tablet Toolkit to start a revolution? 3 other digital innovation opportunities? 1 2 3 4
  • 28. 28 Digital Innovation in Individual Health Insurance Wearable Devices Content, Wellbeing & Rewards Digital Brokers 1 2 3
  • 29. 29 Wearables: A game for the giants? Samsung Simband – Open architecture Google Glass: eyes on the future? Fitbit – David vs Goliath’s? Nike Fuelband – still in the running? 2012 June 2014 2013 (beta) May2014 2013 Apple enters – health toolkit
  • 30. 30 Digestibles are already here Ingestion Event Marker – FDA approved The Password Pill – A ‘super power’June 2012 2013 Amazon has a wearable tech store
  • 31. 31 Wearables: impact on Health &Life Insurance Increased longevity Better quality of life Changes in nature of healthcare expensesThe nature of the risk Marketing of health insurance Measurement of risk Trend towards selection continues (unless gov’t intervene) More dynamic pricing. end state: “telematics” of health insurance? Will a healthcare app become the ‘Uber” app that controls access to health insurance Products designed for different segments Will data privacy concerns become a roadblock?
  • 32. 32 Digital Innovation in Individual Health Insurance Wearable Devices Content, Wellbeing & Rewards Digital Brokers 1 2 3
  • 33. 33 The case for content Source : Executive Board (http://www.executiveboard.com/exbd/sales-service/challenger/new-decision-timeline/index.page Is there any reason why insurance will buck this trend?
  • 34. 34 Case for content: we all like it http://www.bazaarvoice.com/ - the conscious consumer
  • 35. 35 Content, rewards & wellbeing Awareness Education Information Execution / Fulfilment What is on-line selling? Health – designed for digital engagement High demand Higher engagement – more tangible Opens the door to broader lifestyle content 1
  • 36. 36 Blank Great Eastern is a leading regional life insurer – homegrown in Singapore Alexa Ranking: 164,285 Global ; 1,638 Singapore 3.1 pages per visit, 4 mins average per visit
  • 37. 37 Blank 37 Dedicated microsite >60,000 Facebook users Multi– year commitment – content is additive around broad theme “live great” Mobile enabled Engaging – Guides , health apps, tips , rewards Applied across the region
  • 38. 38 Did you know ? Great Eastern started its content journey more than 2 years ago Asian Insurance Review’s Life insurance company of the year 2013 “We are honoured to be named Life Insurance Company of the Year. At Great Eastern, we embrace a simple yet powerful corporate purpose - to not just be a life insurance company, but to be a LIFE company. We have made it our purpose to help our customers to live longer, healthier and better, and over the last two years we have been building our Live Great programme, . This award is a strong affirmation and validation of our multi-faceted customer engagement strategy across the region.“ Chris Wei , Group CEO (Source: Great Easter press release 6/11/2013)
  • 39. 39 Blank
  • 40. 40 Getting started: Top 3 content recommendations 1. Create a modern content “factory” - agile with a dedicated leader, external recruits and third party support 2. Invest in content distribution in parallel with content production 3. Co-opt staff and salesforce to support both content production & distribution Stating the obvious A multi-year budget commitment is required
  • 41. 41 Digital Innovation in Individual Health Insurance Wearable Devices Content, Wellbeing & Rewards Digital Brokers 1 2 3
  • 42. 42 Would a new entrant set-up a distribution centric model? Incumbents have scale Operations are complex and inefficient Models don’t deliver value to the consumer on the investment component Part-time sellers – very hard to manage Low productivity Product range is too narrow Agency Channel Bancassurance Has a lot of advantages but . Banks have consistently chosen $$ over customer centricity Lacks the personal touch on servicing Technology hard to deploy in banking environment Existing models are ripe for disruption Agency is a cash cow that needs renewal Bancassurance is an increasingly expensive game A personal view for the life insurance industry
  • 43. 43 There are untapped opportunities Extracted from Swiss Re Sigma 06/13 Can digital strategies change the paradigm that “life insurance is sold not bought”?
  • 44. 44 Digital brokers Customer centricity demands choice Brokers provide that choice The trend to choice The new digital brokers How to react? Own an IFA Own an aggregator (digital venture capital) New Affinities Choice – lead the change or react to it? IFA platforms – with digital enhancements Aggregator models Affinity Models 3
  • 45. 45 Digital brokers come in many flavours Digital Choice – life only Managing agent models Aggregator models
  • 46. 46 Digital health insurance in Asia Broker comparison models for health Managing agent models
  • 47. 47 Digital affinity People trust brands Non financial service brands can sell financial services Affinities by definition are more customer centric The Power of affinity New digital models How to react? Digital Worksite – needs a large employee benefits base Digital Brands – Perhaps a Joint venture mentality providing preferred access Digital Orphans – leads for digital advisors? Digital worksite marketing Digital brands: partner with brands with digital connectivity – create a financial services proposition (a new frontier) e.g. airlines, telcos Digital orphans
  • 48. 48 Digital affinity – brand or workplace? Digital brand affinity e.g. airline Digital employer affinity
  • 49. 49 Is health insurance enough in a digital world? High Engagement Personal Relevance Profit Margin? Health insurance Non - life Banking (reverse bancassurance) Credit cards Savings Loans Smaller ticket -first to go on-line Customer acquisition Customer cross sell Customers don’t think about industry structures when they buy on-line Low engagement High margin Becoming easier to sell on-line Life Insurance
  • 50. 50 Concluding: “Business as usual” is the most dangerous path Be radical Now is the time to embrace change and start building digital models. Be Cautious You don’t need to “bet the bank”. Learn from fast and strategically well thought our pilot projects (e.g. POS tablet toolkits. Find people with the skills to transform. B e w a r e If you don’t utilise digital thinking, plenty of others will continue to do so.