Presentation by Chris Samuel featuring two case studies - Beagle Street (UK) and Teachers Life (Canada), discussing how their approach from selling online is different from rest of the market and how they are making an impact.

1. Around
the
Globe
CHRIS
SAMUEL
KEVIN
PLEDGE
FIA,
FSA
13
Oct
2015
Session
115

2. 2010
“We
can’t
issue
our
business
fast
enough
– can
you
help
us?”
2

3. Where
is
the
UK
with
Online
distribution?
3
“The future is here,
it’s just not very
evenly distributed”

4. Online
Life
Insurance
Beagle
Street
Case
Study
4
Chris
Samuel
TCP
LifeSystems

5. 5
UK
New
entrant
– not
really
an
insurance
company
Not
encumbered
by
existing
distribution
Online
only
No
advertising
for
first
two
years

6. The
Traditional
Approach
6
Indicative Quote zApply
Underwrite
IssueOfferAdd’l Q’s
Modify Application
Underwrite
evidence
Further Questions

7. The
Beagle
Street
Approach
7
Indicative Quote
Buy
Apply
and UW
Fully Underwritten
No fluids or additional evidence
Cover up to £750k
Better lapse experience
Ave issue time 12 minutes
• 5,000x
faster
• 1/10
of
the
cost
• ∞
scalable
(85%
of
the
time)

8. Accelerate
existing
processes
8

9. What
about
barriers
to
entry?
• Not
an
insurance
company
• Focus
on
distribution
• Partnerships
– Reinsurer,
Traditional
Insurer,
Software
• No
complex
systems
• Focus
on
distribution
– outsource
the
rest
• Fresh
approach
to
branding…
9

10. 10

11. 11
www.acceptiv.com/SOA2015

12. Can
the
lessons
from
Beagle
Street
be
applied
here?
12
Kevin
Pledge
FIA,
FSA
Acceptiv

13. Market
research
13
“Almost half of participants
found the value proposition
[to buy directly online] very
appealing (rating of 8 or more
out of 10); these results are
encouraging.
Years ago, when evaluating
consumer interest in the ING
Direct value proposition, our goal was to find interest
in only half as many target group members (who we
defined as innovators).”

14. 14
Term, CI, Joint and Single Life Term, single life only
Coverage up to 1.5m Coverage up to $500k
10 – 50 Yr Term 10 – 40 Yr Term (originally 10 - 30)
Coverage age range 18 -70 Coverage age range 18 -70
Fully underwritten Fully underwritten
No medical evidence referrals No medical evidence referrals
On cover in 15 minutes or less On cover in 15 minutes or less
Online, with offline support if
needed
Online, with agent support if
needed
Full UW + Lower cost = Lower premium

15. T10 - $13.42
T20 - $21.08
Online Quote, Application and Buy
Automated underwriting
immediate decision including
rating if applicable
T10 - $18.65
T20 - $24.80
Online Quote and Application
Simplified and Manual
Underwriting
T10 - $20.00
T20 - $26.04
Online Quote and Application
Basic auto and Manual
Underwriting
T10 - $20.10
Online Quote and Application
Basic auto and Manual
Underwriting
T10 - $20.30
T20 - $30.69
Online Quote
Manual Application and
Underwriting
Where
did
this
put
Teachers
Life?
Insurance

16. Turn
Key
Solution
for
Canadian
Fraternals
A
Complete
Solution:
Full
go
to
market
solution
for
online
fulfillment
Administration
support
Product
and
underwriting
designed
for
online
sales
Faster,
less
costly,
more
agile:
Fast,
economical
solution
Benefit
from
Teachers
Life
experience
Pay
for
results

17. Final
Thought…

18. 18

19. www.acceptiv.com/SOA2015

20. Thank
You
&
Discussion
20
Kevin
Pledge
Acceptiv
www.acceptiv.com/soa2015