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Digital Bancassurance Models


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Extracted slides from 2 conference speeches given in April 2013 on the topic of how digital can transform bancassurance

Published in: Economy & Finance, Business

Digital Bancassurance Models

  1. 1. Think Digital: Transformyour Bancassurance Business
  2. 2. Subscribe for free, and be the first toThe forum for Digital knowInsurance in Asia Articles: – Articles on digital insurance – The Digital Advisor – Free subscription to the – Customer & Advisor portals Quarterly digest – Pre-sales tablet toolkits – Discussion forum – Implementation Tips – Worksite marketingThe Digital Insurer providesconsulting services to insurancecompanies and banks in the AsiaPacific Region Hugh TerryBuilding tomorrow’s digital insurancebusiness models, today. 2
  3. 3. Presentation focus Is on individualPresentation Flow consumers 1. Bancassurance “as usual” – a legacy model? 2. Digital is an opportunity .. and a threat 3. Digital changes business models – but not the fundamentals 4. The “Digital Advisor” model is the likely future of bancassurance 5. .. But there is more than one route to success 3
  4. 4. Bancassurance Audit: Where are we now? x Strengths Challenges • Leverage customer banking • Fee driven models: customer centric relationships models have not evolved • Utilise physical • After sales service limited to basics infrastructure transactions – where is the cross-sell • Insurance is a logical opportunity? product extension to bank • How well do RM‘s really know their products customers? Or are they product pushers? Result : high productivity and • “Traditional” Tele-marketing – higher quality business than regulatory tightening to continue agency distribution • Product driven by banks product bias – short term and investment focused…. and what happens when we factor in digital trends? 4
  5. 5. The Digital Revolution:it will not be televised Digital Digital Digital Convenience Connectivity Expectations• Always on • Access to • Data “on demand”• Always there information • Desire for clarity &• Universal (Google) simplicity• Almost free • Access to each • Dialogue not other (Facebook) monologue • Access through • Easy to promote a devices (Apple) product .. and • Location-agnostic complain (cloud services)Change, Change, Change…. 5
  6. 6. Two digital “Mega” trends : forces beyondanyone’s control1. Changing consumer behaviour – they are demanding and seeking a different experience2. 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 6
  7. 7. Welcome to Digital Customers : they are“Hybrid” Online The hybrid customer is • Better informed • More demanding Face • “multi-channel” for both The Hybrid To sales & services Customer Face • Will jump channels at any point – catch them if you can! Phone 7
  8. 8. Digital customers are going to research morebefore they buySource ; Ernst & Young Voice of the Insurance Customer – Asia Pacific 2012 8
  9. 9. Multi-channel is here… Customer are already hybrid Source ; Ernst & Young Voice of the Insurance Customer – Asia Pacific 2012 9
  10. 10. There Is demand for online services .. And morepersonal service Demand for more direct and self service channels 10
  11. 11. Demand is across all age groups Demand is across all age groups Source : MetLife employee benefits trends study (1,400 employee interviews) Gen Y :<31,Gen X :32-47,Younger Boomers: 48-56,Older Boomers 57-66 11
  12. 12. Anchored to basics : Digital Bancassurancestrategies need to leverage insurance fundamentals Current Bancassurance Digital impacts Paradigm Rely on Bank brand As customer research on-line trust will need to be developed and Trust is at the Relationship managers leverage leveraged on-line heart of trust already placed in the bank insurance Trust must be earned and reinforced in every interaction Bank RM’s ≠ insurance When customers research online they advisors. RM’s have natural bias will research their advisors as well . Great towards investment products Less time face-to-face – but no less insurance advisors - For mass market not really a important always in personal relationship – order Insurance advisors need to be more demand taking and closing the sale mobile (digitally & physically) Little emphasis on customer Mobile technology provides service after the sale is closed opportunities for cost effective Customer Back office is back office customer service differentiation service matters Customer will expect this – a hygiene factor very soon 12
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  14. 14. 1. Managing the Sales Funnel• Co-partnership models for lead generation• Apps to generate leads from the “digital cafes”• Analytics has a big role to play• Get the lead to the right person• Lead management systems to manage multiple leads , measure ROI and promote better practicesBusiness outcome:- More leads- Better quality leads 14
  15. 15. 2. Build a “digital eco-system” aroundlegacy policy system to treat customers-- like customers• Customer portals/apps : an on-line marketing capability for customer engagement leading to cross sell / upsell opportunities• Customer experience centre : multi channel customer support to connect customer interactions – a digitally Customer Experience Centre assisted customer service revolution (the engine room for converting “big” data Policy Record Systems into business)• Advisor portals: customer data and advisor performanceBusiness outcome:- Building deeper, richer and better relationships with customers and advisors- Facilitate and co-partners the advisors to better meet customer needs- Allow “farming” as well as “hunting” 15
  16. 16. Cross Sell Opportunities: Do bancassurance models really cater for moments of truth?1. Signing up for a mortgage?2. Opening a joint account?3. Other transactional dataCan banks overcome theirtraditional reluctance to usedata to professionally providecustomers more options and Success factors • Data analysis & a range of “push”better services? based actions (hybrid)The digital competition can, • Pro-active customer experienceshould and will… centre • Timely and appropriate handover to professional insurance advisorsThere are “orphan” customersall over the world 16
  17. 17. 3. “connecting theeco system” 17
  18. 18. Tablet sales toolkits : will be “business as usual” in most markets within 5 years Tablet Functionality: Should be Focused on The customer 1. Identify needs 2. Produce quotes and help to close 3. Allow faster, easier and more accurate proposalKey Success factors submission• Must be Designed for Advisors• Easy to use with a “wow” factor that encourages use with clients• Great usability is critical: engage/delight customers & advisors 18
  19. 19. Usability Example : Life insurance quote on a tablet Data entry: non-linear data capture process supported by traffic light systemScreenshot: courtesy & copyright of Mobile Insurance Solutions 19
  20. 20. Usability Example : Life insurance quote on a tablet Output: Graphical display option with premium iteration to facilitate closingScreenshot:courtesy & copyright of Mobile Insurance Solutions 20
  21. 21. Reality check: In practice Digital Advisormodels for bancassurance are complicated1. Who builds & controls the technology?2. How long-term are the relationships? How closely are the bank and insurer aligned?3. Who does the selling?4. How many insurance partners does the bank have– best in class / “open architecture”, tied or broker model?5. Can you navigate the security & governance maze?A common template cannot be applied – each opportunity is unique 21
  22. 22. Digital Advisor : Making the business case The Digital Difference Digitally enhanced and developed “trust” More leads Better lead sourcing – high quality and higher volume More consistent More engaging Better sales Better match to customer needs process More digital – yet also more personal Paperless policy issuance Improved Automated customer service operational requests efficiency 22
  23. 23. Concluding thoughtsBe radical : Now is the time to embrace changeand start building digital modelsBe Cautious : you don’t need to “bet the bank”.Learn from fast and strategically well thoughtour pilot projectsBeware : If you don’t utilise digital thinkingplenty of others will