Successful integration of
the Internet into your
Insurance distribution
model
Roberto Hortal
Head of eBusiness
MORE TH>N

Agenda
> Designing the e-process, e-subscription, e-
management, e-marketing and effective after-sales
service
> Managing the relationship between an insurance
company and a client via the Internet
> Utilising the power of the Internet to drive your
business forward
> Benefitting from a cost-effective Internet business
model
> CRM perspective: needs and expectations of online
customers
> Reduce costs using online distribution channels

Designing the e-process, e-
subscription, e-management, e-
marketing and effective after-
sales service

Visitor behavior and Usability
> People “forage” information that leads them to their
goal
> Jakob’s law
– Users spend most of their time on other sites
> The Page paradigm
– On any given Web page, users will either click something
that appears to take them closer to the fulfillment of their
goal, or click the Back button on their Web browser
> A 2006 study by Akamai on 1000 users found
– If a shopping web site took longer than 4 seconds to load,
75% of the participants would not return to the site.
– 30% of the user's formed a negative perception about
organizations with poorly designed web sites
(poor navigation, long checkout process)

Accessibility
> Legally enforceable
– UK: Section3 of the DDA (October 1999)
– EU Council and Parliament (2002) and Commission (2003)
– http://www.w3.org/WAI/Policy/
> Unlimited fines
> The business case for Accessibility - Legal & General
– 50% increase in natural search engine listings
– Number of visitors receiving quotes doubled in 3 months
– Conversion rates increased by 300%
– Site maintenance costs down by 66%

Process Design - Persuasion
Architecture
> Usability no longer enough
> The buying decision and the sales process must work in
tandem
– Don’t help the business sell better, help the customer buy
better
> There is no average user
– Building persuasion scenarios around personas
> Getting more value from existing investment
– Acquisition costs go down
– Retention rates go up
– Lifetime value goes up

Process Design - Persuasion
Architecture
> Uncovery
– Identify business objectives, value of business to
prospects, sales process buying process
– Merge sales and buying process
– Identify strategies, keywords and phrases, define personas
and narratives
> Wireframing
– Identify responsibility of each persuasion entity, entry and
exit points for PE
– Establish scenarios
– Identify calls to action, points of resolution

Process Design - Persuasion
Architecture
> Storyboarding
– Conceptualize copy, identify and prioritize design
elements, select images, develop layout (grayscale, colour,
HTML)
> Prototyping
– Iterate through user testing
> Developing
– Technology as enabler
> Optimizing
– Test, measure, do it again!

Managing the relationship
between an insurance company
and a client via the Internet

First contact – the initial sale
> Persuasion
– Address objections
– Identify differentiation
– Reinforce positives
> Direct – reinforce the brand
> After sales
– Acknowledge transaction details at once
• Receipt
• Contact channels
– Strive to fulfill instantly
• Online documentation
• Immediate access to customers’ area

A growing relationship
> Remain top of mind
– Contact schedule
– Add value – offers, tips, community
> Maximize business
– Customer hub model
– Intertwine servicing and sales
> Take the long view
– Flexible segmentation
– Lifetime contact model

Time of need – claim experience
> Maximum flexibility
– Allow customers to select channel
– Let them move across channels
– Gently push towards online as claim progresses
> Claim initiation and follow-up online
– Mobile opportunities
> Proactive works best
– Still in progress better than no progress at all
> Integrated experience for maximum business
opportunity
– Back to the customer hub

Utilising the power of the
Internet to drive your business
forward

Unlimited reach
> Online = instant worldwide/nationwide reach
> White label capability
– Multiple direct brands at the tips of your fingers
– Even more brands through partnerships
> Standards available
– Lowest barriers to entry ever
Growing retention
> Personalization and collaborative filtering
– The right message at the right time, all the time

Benefitting from a cost-effective
Internet business model

Internet - really cost-effective?
> Possible pitfalls – when the Net becomes expensive
– Cannibalization
– Duplication of efforts
– Churn
– Intermediation and commoditization
> Cost-effective opportunities
– Online-only products and brands
– Personalization and high-value offerings

Online-only products and brands
> Real cost savings
– Online-only sales – lower cost of sales
– 100% self service – lower cost to serve
– Selection, low bundling, low retention
Personalization and higher value
> The new Internet standard in retail
> Same cost, higher value
> Positive selection, high bundling, high retention

CRM perspective: needs and
expectations of online customers

Demanding online customers
> Customer service 24x7
> All interactions available online
> Transactions take effect immediately
> Competition is only a click away
> No compromise on price or quality
> The online high street: you’re next to Tesco, Amazon,
Google

Reduce costs using online
distribution channels

Online distribution channels
> Search – the battle’s on
> Affiliates
> Aggregators
> Partnerships and sponsorships

Roberto Hortal
Head of eBusiness
roberto.hortal@uk.royalsun.com