Digital thinking to transform the underwriting process


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The Digital insurer was pleased to present at IQPC claims & underrwriting conference in Singapore in September 2013. The presentation aimed to stress the important of tablet POS toolkits as a tool to transform agency distribution. In that context the opportuntiy for digital underwriting is then clarified.

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Digital thinking to transform the underwriting process

  1. 1. Think Digital: Transform your underwriting process
  2. 2. Four Themes / Areas for discussion 1. Digital will transform face-to-face advisory channels 2. Tablets point of sales toolkits are pivotal 3. Underwriting will also be transformed - twice 4. How to avoid the roadblocks 2 Life Insurance as focus For today’s discussion
  3. 3. 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…. 3
  4. 4. 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 demanding and seeking a different experience 4
  5. 5. 4 digital Insurance business opportunities (& threats) Create New Models 1. Pilot New Digital models : Partner with companies with digital assets to create new models 2. Digital Worksite Marketing: unlocking the hidden value in your employee benefits business Transform Existing Models 3. Transform Life insurance Advisory Businesses : The Digital Advisor 4. Digital Cross Selling: personal lines, asset management, banking 5 Focus for Today
  6. 6. Welcome to Digital Customers : they are “Hybrid” The hybrid customer is… • Better informed • More demanding • “Multi-channel” for both sales & services • Will jump channels at any point – catch them if you can! The Hybrid Customer Face To Face Online Phone 6 Myth #1: Digital is a new distribution channel Reality : Digital enables customer engagement
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  8. 8. Tablet sales toolkits : a pivotal tool in the transformation process 1. Access sales aids/ brochures 2. Identify needs 3. Produce quotes and help to close 4. faster, easier and more accurate proposal submissionKey Success factors • 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 8 Tablet Functionality: Focus on the parts of the sales process that engage with customer
  9. 9. 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. Back office productivity from digital proposals More efficient Faster & more accurate (clean policies in a day) 2. Reduced agency overheads : premises & technology costs 3. Business intelligence Benchmarking data Usage data “Bigger” data 4. Improved compliance to sales best practice (& regulatory requirements) 5. Recruitment training tool 6. Platform for more automated underwriting
  10. 10. AIA Case study: a tablet success story 10 Full AIA case study available on-line AIA’s Journey 1. Initial Pilot in Taiwan (end 2011) 2. Rollout in 3 countries completed (Singapore, Indonesia and Malaysia) 3. Further 6 countries to complete in 2013 (6-9 months per country) Compete set of functionality “The adoption of iPoS goes beyond our expectations. In one country more than 80% of the new business is coming in through iPoS within 12 months of launch and in another country it was more than 30% after 3 months. The agents just love iPoS. All other indicators such as productivity, activity or case size are equally positive and better than expected.” AIA Executive leading the development Results exceeding expectations
  11. 11. Tablet Underwriting : 3 phases of the first evolution Deliverable Benefits 1. Digital Application Make the application form digital Collect additional info e.g. ID, proof of address Improve Accuracy & completeness Easy to submit 2. Digital Issuance Allow immediate issuance of clean non medical policies Collect first premium by credit card Next day policy issuance for majority of policies (clean and non medical) 3. Digital Underwriting Workflow engine for outstanding medical requirements Increased use of underwriting engines Supplementary questionnaires completed immediately 11 Streamlined management of non clean and / or large cases
  12. 12. Just over the Horizon : The second digital underwriting revolution 1. Big data = more info LinkedIn Facebook Underwriting questions digitised 2. Wearable devices are coming Fitness statistics Personal medical data (heart rate, blood pressure) 3. Digital Medical records Can provide access to insurers With more data available Risks can be more quickly & more accurately priced
  13. 13. Tips for successful digital transformation Strategic Alignment Digital as a transformation opportunity The importance of Tablet POS toolkits Comprehensive business case approved Resources dedicated New Implementation approach Customer centric (outside in) Prototype (AGILE) Explicit change management Distribution owned Launched like a product
  14. 14. Objectives Accomplished? 1. Digital will transform face-to-face advisory channels 2. Tablets point of sales toolkits are pivotal 3. Underwriting will also be transformed - twice 4. How to avoid the roadblocks 14
  15. 15. A Forum for Digital Insurance in Asia – Articles on digital insurance – Free subscription to the Quarterly digest & magazine Subscribe for free, and be the first to know Articles: – The Digital Advisor – Customer & Advisor portals – tablet sales toolkits – Implementation Tips – Worksite marketing Building tomorrow’s digital insurance business models, today. Hugh Terry 15 Sponsored by Insight Consulting: – Strategic Digital roadmaps – Implementation services – Digital ventures