PegaWorld 2014 Presentation: AEGON Revolutionizes the Policyholder Experience, While Reducing Costs

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AEGON is a leader in helping customers secure their financial future. To bolster their market leadership, AEGON UK launched a Customer Service Transformation initiative with the objective to reduce operation costs through increased efficiency and broaden its market share by improving the customer experience.

These slides were used as part of a live presentation. Watch the complete presentation (with full video) at: http://www.pega.com/resources/pw-2014-video-aegon-revolutionizes-the-policyholder-experience-while-reducing-costs‘?utm_source=ss’

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PegaWorld 2014 Presentation: AEGON Revolutionizes the Policyholder Experience, While Reducing Costs

  1. 1. © 2013, Confidential, Pegasystems Inc. TM
  2. 2. 22 © 2014, Confidential, Pegasystems Inc. AEGON Revolutionizes the Customer Experience and Reduces Costs David Beattie – Customer Service Director Iain MacKenzie – IT & Change Director
  3. 3. 33 © 2014, Confidential, Pegasystems Inc. 3 Over 26,500 EMPLOYEES1 EUR 1.9 billion Underlying earnings before tax in 2013 EUR 20 billion Paid out in claims and benefits in 2013 Revenue-generating investments EUR 475 billion1 AA- financial strength rating 1) As per December 31, 2013 Aegon at a glance Over 150 years of history Life insurance, pensions & asset management Present in more than 25 markets throughout the Americas, Europe and Asia
  4. 4. 44 © 2014, Confidential, Pegasystems Inc. 4 Around 2,400 EMPLOYEES1 £42 billion Assets Under Administration Lead Partner of British Tennis 1) As per December 31, 2013 Aegon UK at a glance Retirement, Workplace Savings & Protection Founded in 1831 Award Winning Platform
  5. 5. 55 © 2014, Confidential, Pegasystems Inc. 5 1) As per December 31, 2013 Scotland at a glance Around 5.5M PEOPLE1
  6. 6. 66 © 2014, Confidential, Pegasystems Inc. Introduction to Aegon UK Significant scale as a consistent Top 3 player Combined with best in breed partners 22,000 employers  800 FTEs servicing 150 person contact center  1 million calls p.a. 1.85 million customers   1.3 million paper transactions 150 Subject matter experts  Business Processes Voice Platform Print & Distribution Platform Technology PEGA Supply Partner Strategic IT Partner Digital Consultancy
  7. 7. 77 © 2014, Confidential, Pegasystems Inc. Agenda Why Bother? Approach Results Where Next?
  8. 8. 88 © 2014, Confidential, Pegasystems Inc. Customer Services Targets Our People Our Shareholders Our Customers Better Quality Customer Service Higher Returns, Lower Cost Agile and Responsive Compliant and Low Risk Rewarding Careers
  9. 9. 99 © 2014, Confidential, Pegasystems Inc. Why Bother? Customer Services Challenges Independent functions, individually managed in Silo’s Same Processes, different procedures Handoffs between areas Limited Cross Functional planning or resource sharing Slow and inconsistent Customer Experience Operational Costs too high Low Level of Staff Engagement
  10. 10. 1010 © 2014, Confidential, Pegasystems Inc. Customer Services 2014 Single CS Management Team Cross Functional Planning and Resource Sharing Standardised Processes, Multiskilling Reduced Handoffs +10% Staff Engagement 7-10% Cost Reduction Improved Customer Experience +20 NPS positive increase
  11. 11. 1111 © 2014, Confidential, Pegasystems Inc. Why Bother? Approach Results Where Next?
  12. 12. 1212 © 2014, Confidential, Pegasystems Inc. Business Process Management
  13. 13. 1313 © 2014, Confidential, Pegasystems Inc. BPM Delivery Centre Built a Foundation Initially supplier led General work Single project PEGA’s methodology Internal Capability Continuity of supplier resources Inclusion of internal team Integrated with Aegon methodology Multiple Pega Projects Delivery Center Experts in technology Roadmap creation Responsible for all projects and BAU Supports business / delegated rules Creating new best practice principles and methodology
  14. 14. 1414 © 2014, Confidential, Pegasystems Inc. New Needs and Thinking Drivers Approach
  15. 15. 1515 © 2014, Confidential, Pegasystems Inc. Evolving Approach to Automation Change of Address • Aimed for 100% STP • 12 months+ delivery • Achieved semi automation Upgrade Claim Process • Targeted partial automation • 9 month delivery • 60% unit time saving achieved Allocate Payroll Payment • 50% automation target • 3 month Delivery • 70% process fulfilment achieved
  16. 16. 1616 © 2014, Confidential, Pegasystems Inc. Business Empowerment Increased Business Agility and Reduced IT Costs Delegated Rules Business Configuration 175 Delegated Rules Implemented….and Counting Regular Releases, outside of IT cycles No additional IT spend Business Configuration Work Prioritisation Checklist and Procedure Updates User Skill and License Updates
  17. 17. 1717 © 2014, Confidential, Pegasystems Inc. Approach to PEGA Objectives Processes Structure Culture Delivery Customisation versus “out of the box” Clear Vision, Well Communicated, Set Expectations Embed into future business planning Do you understand them, will you reengineer? Define your TOM, build for agility, BAU support? Design this, don’t just evolve, how to measure? Core Team, Decide on Methodology, Performance Test against current infrastructure
  18. 18. 1818 © 2014, Confidential, Pegasystems Inc.
  19. 19. 1919 © 2014, Confidential, Pegasystems Inc. Why Bother? Approach Results Where Next?
  20. 20. 2020 © 2014, Confidential, Pegasystems Inc. Current Pega Scope 10 Million Transactions 1000 Back Office CS Users 100 Pega Cloud Installation Users 12500 PEGA Project Days 150 Contact Centre Users (CPM) Retire Ready D2C Launched April 14
  21. 21. 2121 © 2014, Confidential, Pegasystems Inc. Claims Processes Servicing Processes New Business Processes Policy Query Switch Policy Change Premium Change Annual Review Valuation Increments Letters of Authority Retirement Quote Internal Transfer Controls Transfers In Annuitant Certificate Surrender Bankruptcy Quick Hits Transfer Quotes Refund Quotes Transfer Settlements Retirement Quotes Retirement Settlements Death Quotes Death Settlements PSO Quotes PSO Settlements Refund Settlements Divorce Quotes Divorce Settlements Enquiries CA Forms Policy Alterations Surrender Quote New Member New Policy Transfer In Increments Handoffs Premium Change Controls New Entrant New Scheme Allocate Payroll Payment Policy Query Policy Change Packaged Business Platform BusinessUpgrade Coach (Next Best Action) Customer Process Manager Renewals Reconciliations Leavers Policy Alterations Controls Bankruptcy Multi-Channel Services Old World New World
  22. 22. 2222 © 2014, Confidential, Pegasystems Inc. • Pension reform • Contact centre implementation • D2C – rules engine • Automated upgrade process • Cloud installation • Customer DB • Foundation build • Transformation roadmap discovered • BPM workflow engine established “Top of the T” • Automated quality model • Get next work • Quote System (Client- facing UI) • CS roll out complete • Change of address straight through process • Resilience programme • RDR • Automate policy upgrade • Extending Pega platform to business • Process automation for customer service • CPM knowledge management BPM Way Forward 2010 2011 2012 2013 2014 Beyond • Contact center optimization • Pega version upgrade • Extending Pega work flow to business units • Built “General Work” basic capability and delivered quickly across CS • Gave Aegon a platform to build upon and move into automation • Established an internal Delivery Center to drive Aegon forward through future projects Roadmap
  23. 23. 2323 © 2014, Confidential, Pegasystems Inc. PEGA has Enabled - For Our Customers Better Quality Customer Service NPS increase from -18 to +20 First Call resolution increased from 50% to 80% Improved, consistent experience through standardised processes Service differentiation for large employee benefits consultants Move from policy to customer level processing
  24. 24. 2424 © 2014, Confidential, Pegasystems Inc. Evidence of Continuing Improvement 2014 Employee Feedback Customer Feedback • Engagement Score • 49 (+10 from 2012) • Enablement Score • 52 (+7 from 2012) • NPS • +20 (2014) • -17 (2013) • -25 (2012)
  25. 25. 2525 © 2014, Confidential, Pegasystems Inc. PEGA has Enabled - For Our Shareholders Higher Returns, Lower Cost Average call times reduced from 8 mins to 6:30 mins 60-70% Unit time savings through Process Automation Trading efficiencies improved Improved Customer Level Data Reduced Time to Market for new services Compliant and Low Risk Successful Sox Auditing through Quality Automation Robust Regulatory Solutions Improved Operational Intelligence
  26. 26. 2626 © 2014, Confidential, Pegasystems Inc. Claim Process Automation (Unit Time Reduction) • 24.7 minutesFull Process (pre-automation) • 12 minutesAutomated Flow • 10 minutesAuto Claim Health Checks • 4 minIntegrated Work Creation 84% Unit Time Reduction
  27. 27. 2727 © 2014, Confidential, Pegasystems Inc. PEGA has Enabled - For Our People Agile and Responsive Cross functional planning / sharing resources Easy business configuration changes without IT development Rapid development cycles (process automation, cloud installation) Training simplification and reduction in effort Managers focusing on staff development (get next work) Improved communication (newsfeed) Enhanced usability
  28. 28. 2828 © 2014, Confidential, Pegasystems Inc. Case Studies 2 28
  29. 29. 2929 © 2014, Confidential, Pegasystems Inc. Why Bother? Approach Results Where Next?
  30. 30. 3030 © 2014, Confidential, Pegasystems Inc. 30 Getting the UK ready for retirement Digital Service Experience A retail comparable, mobile first experience that gives you access to an intuitive interface to manage retirement planning Simple Products, Pricing and Investments Products and pricing that are transparent and simple to understand with access to a range of funds that are designed to provide choice while meeting risk attitude of our target audience Support and Guidance An engaging user experience that encourages and supports self service through interactive tools and our ‘Coach’ functionality A Proposition Summary Ongoing Engagement Straight talking but nurturing communications across a number of different media channels including UX interface, social, email and film
  31. 31. 3131 © 2014, Confidential, Pegasystems Inc. Add John Mac Video
  32. 32. 3232 © 2014, Confidential, Pegasystems Inc. Where Next?  PEGA is central to all ongoing Aegon development and strategy… Contact Centre Efficiency Increase Digital Presence / Direct to Customer Increased Self Service More Process Automation PEGA Upgrade
  33. 33. 3333 © 2014, Confidential, Pegasystems Inc. QUESTIONS & ANSWERS

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