Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Kyobo Life Planet Innovation Award Presentation


Published on

Nominee for The Digital Insurer's Asian Insurance Innovation Award

Published in: Economy & Finance
  • Be the first to comment

Kyobo Life Planet Innovation Award Presentation

  1. 1. KYOBO Lifeplanet September 2016
  2. 2. 2 Lifeplanet at a Glance  Oct. 2012 Initiated internet-based life insurance IT system  Sep. 2013 Signed joint venture agreement with Lifenet  Oct. 2013 Obtained an official approval of insurance business  Dec. 2013 Commencement of business operation Launched term /whole life, annuity/tax-favored annuity insurance  Sep. 2014 Introduced child care and education insurance  Jan. 2015 Introduced savings insurance  May. 2015 Introduced mobile subscription system for the first time in Korea  Jan. 2016 Initiated online bancassurance Launched cancer/adult disease insurance  Apr. 2016 Launched accident insurance Governing Structure Kyobo Lifeplanet Kyobo Life Insurance Lifenet Insurance 91.32% 8.68% Established in 2013, Lifeplanet is the first independent online-based life insurer in Korea. Company History Board Members John Haksang Lee, CEO Daisuke Iwase, Non-standing Director Jin Il Lee, Outside Director Sang Shik Ahn, Outside Director · Head of product development & support division/ e-business officer of Kyobo Life Insurance · Experienced in product development, risk management, M&A and e-business in US and Korea over 20 years (Milliman, Fidelity & Guaranty Life, AXA) · Co-founder & current COO of Lifenet in Japan · Expertise in strategic consulting(BCG) and private equity fund(Ripplewood) · Young global leader of World Economic Forum · Vice president of EMC(cloud computing company, S&P 500) · Head of e-business of Kyobo Life Insurance · Initiated Kyobo-AXA online car insurance, the first online property and casualty insurer in Korea · CEO of Real Estate Trust, the first private real estate trust in Korea established by Kyobo Life Insurance and Samsung Life Insurance · Head of corporate strategy division of Kyobo Life Insurance
  3. 3. 3 Performance Initial Premium/New Business Policy in Force/Gross Premium Lifeplanet has grown steadily with 32% in market share as the No.1 online life insurer in 2015 (thousand USD) (# of policies) 48 436 444 2,070 - 1,250 2,500 - 50 100 150 200 250 300 350 400 450 '13.12 '14.01 '14.02 '14.03 '14.04 '14.05 '14.06 '14.07 '14.08 '14.09 '14.10 '14.11 '14.12 '15.01 '15.02 '15.03 '15.04 '15.05 '15.06 '15.07 '15.08 '15.09 '15.10 '15.11 '15.12 '16.01 '16.02 '16.03 Initial Premium New Business Annual Growth Rate of 2014 - 2015 - New Business: 154 % - Initial premium: 338 % (thousand USD) (# of policies) 66 1,959 444 14,577 - 4,000 8,000 12,000 16,000 - 200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000 '13.12 '14.01 '14.02 '14.03 '14.04 '14.05 '14.06 '14.07 '14.08 '14.09 '14.10 '14.11 '14.12 '15.01 '15.02 '15.03 '15.04 '15.05 '15.06 '15.07 '15.08 '15.09 '15.10 '15.11 '15.12 '16.01 '16.02 '16.03 Gross Premium Policy in Force Monthly Growth Rate - Policy in force: 13.80% - Gross premium: 13.37%
  4. 4. 4 Product Line-up Starting from the basic benefit of life insurance, (e.g. death and retirement protection), Lifeplanet gradually develops new product line to meet client needs and to set up a balanced product portfolio Death Retirement Health Investment 1st year 2nd year 3rd year  Term life  Whole life  Annuity  Tax savings annuity 4th year~ Protection & Needs  Child protection  Child education  Savings  Cancer  Adult disease  Accident insurance  Traveller’s insurance  Variable  Medical indemnity  Others Products Line-up 24/7 Accessibility Pace-maker My real planner Assistance from call center Services  Easily accessible platform - Exhaustive service from subscription to claim through internet  Real-time simulation of target annuity - Exclusive right by Korean Life Insurance Association  Automatically quote and recommend appropriate products - Utilization of robo advisor function  Provide professional services by well- educated, qualified customer managers - Phone/mail/mobile messenger/chatting Launched Planned
  5. 5. 5 Price Competitiveness Lifeplanet provides life insurance product of reasonable price that maximize customers’ benefits More Attractive Returns for Consumer1) 1) Annuity: 30-year-old male, premium KRW 500k/mth, 10 years payment period, annuity benefit guaranteed for 10 years, preservation age 60 [Monthly premium and premium loading] [Expected annuity receipts and total premium loading] • Lifeplanet can reduce fixed cost and attain competitive price by operating with minimum number of experts • Off-line Insurers are usually large-sized in order to manage the sales channels, which causes higher fixed cost and less price competitiveness. Efficient and Effective Operation Highly Ranked at the Domestic Insurance Supermarket Website [Lifeplanet’s rank in insurance supermarket, Mar 3rd 2016] 1) Term Life: 30-year-old male, coverage KRW 100 mil, expiration: 60 years old, premium payment period: 10 years, pure protections Price Competitive and Cost Efficient Products1) Insurer No. of products Product/Actuary headcount Lifeplanet(*) 24 10 A 25 24 B 24 23 (*) Business Plan 2016 Product Category Ranking Adult disease Lowest premium No. 1 Cancer Lowest premium No. 2 Whole life Lowest premium No. 1 Term life Lowest premium No. 2 Child protection Lowest premium No. 3 Child education Highest rate of surrender value over premium paid No. 2 Savings No. 1 Annuity No. 1 Tax savings annuity No. 4 Accident insurance Lowest premium No. 1 36,300 6,700 51,100 14,200 Monthly premium Premium loading Lifeplanet Off-line insurer (KRW) 6,165 4,359 4,840 8,196 Expected annuity receipts Total premium loading Lifeplanet Off-line insurer (KRW in thousand) 29% ↓ 53% ↓ 27% ↑ 47% ↓
  6. 6. 6 Pioneer of Innovative Online Life Insurance Product For the first time in the Korean life insurance industry, Lifeplanet has introduced innovative insurance products (i.e., 100% principal-guaranteed savings insurance, non-smokers discount products) which the conventional life insurers are not capable of offer. Lifeplanet expects the product innovation continues henceforth Non-smokers Discount for Health and Term Life Insurance (1st in Industry) The First 100% Principal-Guaranteed Savings Insurance in Korea e-Cancer insurance / 5 Major diseases product • In Jan 2016, Lifeplanet introduced insurance for cancer and lifestyle diseases with discount for non-smokers for the first time in industry • 40-year-old male, non-smoker premium is 7.18% cheaper in price than the smoker (coverage KRW 10 mil, expiration: 80 years old, premium payment period: 20 years, pure protections) Mortality rate segmentation for death protection product • Term life insurance that apply more detailed risk level to acquire healthy customers is to be launched in 2nd quarter in 2016. • Developing online health care service utilizing big data to calculate biological age e-Saving insurance • Premium loading is imposed based on accrued interest • By launching the product, Lifeplanet expects to switch of customer distrust in cash surrender value from withdrawing the insurance contract and reinforce of insurance product credibility. Accordingly, Lifeplanet seeks to directly compete with other financial products in the market and eventually expands on-line insurance industry • 2,200 new contracts from Jan. 2015 to Mar. 2016 accounts for 18% of total new contracts/31% of total monthly initial premium • Soon as the exclusive right term expired, the product was benchmarked by major competitors including S and H (no. 1 & 2 in the Korean life insurance market respectively)
  7. 7. 7 2% 81%17% age<25 25≦age<45 age≧45 Favorable Profit Prospect from Healthy Customer Profile Lifeplanet’s innovative product portfolio and services have successfully led to voluntary subscriptions from target customers between the ages of 25 and 44. Due to much safer customer base than the conventional life insurers, Lifeplanet is expected to be more profitable in long term perspective Safest Customers with High Mortality Margin 91 % 9% 37 % 63 % (*) Occupational Group A : 437 safest (with lowest risk level) occupations based on statistics (accident occurrence probability) while traditional insurer shows 63% [Lifeplanet] [Traditional insurers]  Occupational Group A (*)  Others (FY2015) 13th month persistency rate 25th month persistency rate Lifeplanet 93.54% 90.25%1) Others’ median 84.07% 70.74% Ideal Target Customer Acquisition [In-force policyholders by age (as of Mar. 2016)]  Lifeplanet has successfully acquired core target customers in a short period Age range from 25 to 44 takes the majority of Lifeplanet’s customers 1) As of March 2016 Higher Persistency Rate from Voluntary Subscriptions Mortality Margin of Traditional Insurers by Occupational Group of Customers Mortality margin(%) Group A Others Death 82% 54% Disease 59% 38% Surgery 33% 25%
  8. 8. 8 Lifeplanet provides simple and quick subscription process on a 24/7 basis and is compatible with any PC and mobile device with user-friendly interface and features Ubiquitous Accessibility at Anytime, Anywhere Compatibility with Any Device / OSSimple Subscription Process Personal verification Acknowledge contract terms Agree on the contract Premium payment  Customers can search, purchase and manage insurance products anytime and anywhere with PCs, tablets, and smart phones. - PC : Internet Explorer, Google Chrome, Firefox - Mobile : all major iOS and Android smartphone devices
  9. 9. 9  With user-friendly interface and features, Lifeplanet has been recognized by renowned institutions, and it leads the online life insurance trends - The 12th Web Award Korea 2015 Grand Prix in Insurance and mobile web marketing by KIPFA* - The 11th Web Award Korea 2014 Grand Prix in Insurance by KIPFA - Good Design 2014 nominee by Ministry of Trade, Industry and Energy - &Award Web Accessibility –nominee for Grand Prix by Korea Digital Company Association in 2014  One Stop Financial Planning and Multi-subscription - Launched in Feb. 2016, My Real Planner is for light users that includes a customizable policy recommendation, quotation and one-click multi-subscription service for the first time in Korea - Launch of integrated multi-insurance subscription service for necessary protection(health/retirees/death) is planned in May 2016 - The first online multi-insurance product with the customization, recommendation and subscription service Optimized UX and One-on-One Customer Service  Lifeplanet delivers satisfying experience with its products and services to customers by providing UX that promotes convenience and effectiveness and one-on-one customer assignment to consultant One-on-One Customer Service Program –Offers e-voucher on each customer’s personal anniversaries –Sending hand-written letters to new policyholders –Providing informative tips for daily life Emotional CareCustomer Support –Explain product features –Help subscription process –Handle maintenance service, eg. change of information, policy loan etc. –Receive claim settlement application Improve customer satisfaction and promote viral marketing  Provide high-quality policy maintenance service as well as ‘emotional touch’ by assigning CS managers to every customers for on-going customer care Customer Friendly UI / UX *Korea Internet Professional Association
  10. 10. 10 Market Recognition on Lifeplanet’s Initiatives As a leader of the new life insurance industry paradigm, Lifeplanet has received great customer reviews and enhanced loyalty as well as several awards and recognitions from major organizations High Customer SatisfactionExceptional Public Praise Financial product  service certified nominee by Korea Finance Consumer Federation • New e-Saving insurance (2015) • Annuity with tax deferred (2014) Superior financial product award by Financial Supervisory Service • New e-Saving insurance (2015) • Annuity with tax deferred (2014) The 19th financial product silver medal award by Maeil Economics in 2014 • Annuity with tax deferred Exclusive rights • Insurance health age service (2016.7) • New e-Saving insurance (2015.1) • Target annuity pacemaker service (2013.12) • High customer satisfaction and willingness to introduce to others “ Cost-effective! ” “ No need to meet an insurance agent! ” “ How simple and convenient Lifeplanet’s online insurance is!” “ 100% principal guaranteed savings insurance…unbelievable! ”
  11. 11. 11 The marketing plan against the internet life insurance competition is as follows : [2016 Marketing Plan] Leading Internet Life Insurance Market Continuous Product/Service InnovationObtaining Large Scale Traffic 1 2  Strategic alliance with internet companies who have the large scale business platform - Kakao, Naver, Social commerce, Open market, etc.  Strategic alliance with the companies who have the massive customer base - Telecom, Credit card, home shopping company, etc. Establish successful business model & strengthen the digital marketing capabilities  Develop insurance products to attract customers  Develop innovative products  Strengthen loyalty program (i.e., Evangelist)  Activate One-on-One customer service program  Reinforce protection quotes process - Multi-quotes, Multi-subscription Improve brand awareness & Strengthen the interaction with customer Intensification of mobile platformReinforcement of B2B marketing 3 4  Obtain B2B customer  Expand online bancassurance  Solidify customer relationship through mobile  Analyze customers’ activities on mobile  Provide mobile-only services and items Propel the change of regulation 5  Continuously raise suggestions to authorities and lead regulation change for favorable environment to online- insurance