This document discusses how life insurance companies will need to adapt to changing consumer preferences and technological advances. Specifically:
- Life insurers will need to shift from solely product-focused selling to providing holistic financial planning based on clients' actual needs and requirements.
- Younger generations will research recommendations online and compare options virtually, requiring insurers to provide advice tailored to clients' specific needs rather than just pushing products.
- Insurers will have to conduct more in-depth financial needs analyses and offer customized product offerings and services to attract and retain customers in the increasingly digital landscape.
The rise of the ‘empowered consumer’, coupled with the push towards digital distribution models, is fundamentally reshaping the insurance products of today, according to panelists from FST Media’s 9th Annual Technology and Innovation – The Future of Insurance conference.
Peter Brittliff, Senior Product Marketing Manager at Fuji-Xerox, outlined the vital importance of utilising data to drive product development.
For more information download this SlideShare presentation for a copy of the whitepaper or visit our website www.fujixerox.com.au
Life insurers are missing out on a big opportunity by failing to properly address the 18-24 year old segment of the market. These customers are low risk, they offer high life-time value, and they are open to interacting through digital channels.
Amid a drastically changed industry landscape characterized by choosier customers and tightening regulations, insurance companies are scrambling to sustain growth and profits.
Single View of Customer for Insurance Company | CandelaLabsGAVarun
The Single View Of Customer (SVOC) is a consolidated view, of all internal and external information available to an insurer, mapped on to a single interface.
https://www.candelalabs.io/single-view-of-customer/
The rise of the ‘empowered consumer’, coupled with the push towards digital distribution models, is fundamentally reshaping the insurance products of today, according to panelists from FST Media’s 9th Annual Technology and Innovation – The Future of Insurance conference.
Peter Brittliff, Senior Product Marketing Manager at Fuji-Xerox, outlined the vital importance of utilising data to drive product development.
For more information download this SlideShare presentation for a copy of the whitepaper or visit our website www.fujixerox.com.au
Life insurers are missing out on a big opportunity by failing to properly address the 18-24 year old segment of the market. These customers are low risk, they offer high life-time value, and they are open to interacting through digital channels.
Amid a drastically changed industry landscape characterized by choosier customers and tightening regulations, insurance companies are scrambling to sustain growth and profits.
Single View of Customer for Insurance Company | CandelaLabsGAVarun
The Single View Of Customer (SVOC) is a consolidated view, of all internal and external information available to an insurer, mapped on to a single interface.
https://www.candelalabs.io/single-view-of-customer/
In this issue of Horizon, we have included insightful articles that address several topics of interest to our issuers. George Fiegle, chief operating office of ICUL Service Corporation, does an in-depth interview with us concerning the challenges of card growth in the credit union marketplace. Mark Arnold, CCUE and president of On the Mark Strategies, shares his thoughts on generational marketing and how credit unions can use generational characteristics to improve results. For more info: www.nafcu.org/discover
Employing Analytics to Automate and Optimize Insurance DistributionCognizant
Today's insurers have the opportunity to employ advanced analytics to automate and optimize distribution, analyze and track customer patterns, enhance marketing campaigns, better manage agents and deliver more value to the business and its customers.
GreenBiz 22: Tutorial - Finding the Story in Your ESG NumbersGreenBiz Group
You probably already “get it” that telling your ESG story can help your company build market preference, drive sales, attract investors and retain employees. But how? What are the right things to be doing — and saying — to drive those outcomes? This workshop will:
Go through the ABC’s of ESG — what you need to know about the terminology and standards, the reporting frameworks and the ratings agency game.
Make you aware of the watch-outs — the gaps that must be filled and the commitments that must be made to appease ratings agencies and investors, as well as employees and consumers.
Help you understand how to bake sustainability into your brand platform and frame your ESG story at different levels so you can speak to several different audiences in a way they can each understand, while staying consistent — including via your ESG reporting.
Give you time to interact with your peers and nail down several key takeaways, like which ESG ratings agencies matter most for your company, the most important “watch-outs” and story elements for your situation, and landing on a lead ESG message that resonates.
Insurance companies are great at acquisition but bad at retention. Jack Morton offers our unique POV and 5 ways insurance brands can keep more customers.
The #Newtonians guide to #Excellent #ServiceFaris Gammoh
A guide for fellow #Newtonians developed by our own Newtonian Ammar Khalifeh, as we developed the brand based on Clarity, Continuity and Community
#Momentum on your side... Looking forward to making this a Global Reality. If interested in learning more or joining the movement, email me at faris@newtoninsurance.com
Social Media Marketing for Health InsuranceSocial Samosa
Health Insurance marketing has always been perceived as a challenging subject. The key players in the Health insurance industry have been dealing with the key issues for consumer trust and category education.
The Future of Contact Centers Artificial IntelligenceJim Iyoob
It is not possible to have your company everywhere all the time, right? But today’s customers want it fast, they want it good and they want it their way. Your customer will leave you if it’s not their way; you can expect up to 95% of them to tell their friends, family and co-workers about their bad experience. Matt Rocco and I have put in a lot of work together to write “The Future of Contact Centers”.
Today’s customers are more and more self supporting, deciding for themselves when, where and how to interact with the insurer or agents/brokers. They value multi-channel integration and expect all interactions to be fully harmonized. Delivering high-quality service across all customer channels requires a new working model between agents and brokers and the insurer, in response to the changing environment. Ignoring this market demand may lead to profitability challenges; a coordinated, comprehensive response is needed. A better multi-channel strategy includes the direct and online as well as offline channels—agents and brokers and prevents potential channel conflicts.
Understanding financial consumersretail banking, digital banking, omni-channe...CGI
More than 70% of consumers would consider switching banks for better reward services and 81% of consumers cite it as their top want. How can banks meet this demand? Read CGI’s recommendations in our bank consumer survey report http://bit.ly/1nvlQ6N
Welcome to the customer revolution - how insurers can drive profitability and...EY
EY's customer centricity presentation shows how insurers can drive profitability and market leadership through better customer relationships and a focus on innovation.
For more information on the journey insurer's are taking towards customer centricity including results of EY's Global Consumer Insurance Survey 2012 report "Voice of the Customer", visit: http://www.ey.com/GL/en/Industries/Financial-Services/Insurance/The-journey-toward-greater-customer-centricity
In this issue of Horizon, we have included insightful articles that address several topics of interest to our issuers. George Fiegle, chief operating office of ICUL Service Corporation, does an in-depth interview with us concerning the challenges of card growth in the credit union marketplace. Mark Arnold, CCUE and president of On the Mark Strategies, shares his thoughts on generational marketing and how credit unions can use generational characteristics to improve results. For more info: www.nafcu.org/discover
Employing Analytics to Automate and Optimize Insurance DistributionCognizant
Today's insurers have the opportunity to employ advanced analytics to automate and optimize distribution, analyze and track customer patterns, enhance marketing campaigns, better manage agents and deliver more value to the business and its customers.
GreenBiz 22: Tutorial - Finding the Story in Your ESG NumbersGreenBiz Group
You probably already “get it” that telling your ESG story can help your company build market preference, drive sales, attract investors and retain employees. But how? What are the right things to be doing — and saying — to drive those outcomes? This workshop will:
Go through the ABC’s of ESG — what you need to know about the terminology and standards, the reporting frameworks and the ratings agency game.
Make you aware of the watch-outs — the gaps that must be filled and the commitments that must be made to appease ratings agencies and investors, as well as employees and consumers.
Help you understand how to bake sustainability into your brand platform and frame your ESG story at different levels so you can speak to several different audiences in a way they can each understand, while staying consistent — including via your ESG reporting.
Give you time to interact with your peers and nail down several key takeaways, like which ESG ratings agencies matter most for your company, the most important “watch-outs” and story elements for your situation, and landing on a lead ESG message that resonates.
Insurance companies are great at acquisition but bad at retention. Jack Morton offers our unique POV and 5 ways insurance brands can keep more customers.
The #Newtonians guide to #Excellent #ServiceFaris Gammoh
A guide for fellow #Newtonians developed by our own Newtonian Ammar Khalifeh, as we developed the brand based on Clarity, Continuity and Community
#Momentum on your side... Looking forward to making this a Global Reality. If interested in learning more or joining the movement, email me at faris@newtoninsurance.com
Social Media Marketing for Health InsuranceSocial Samosa
Health Insurance marketing has always been perceived as a challenging subject. The key players in the Health insurance industry have been dealing with the key issues for consumer trust and category education.
The Future of Contact Centers Artificial IntelligenceJim Iyoob
It is not possible to have your company everywhere all the time, right? But today’s customers want it fast, they want it good and they want it their way. Your customer will leave you if it’s not their way; you can expect up to 95% of them to tell their friends, family and co-workers about their bad experience. Matt Rocco and I have put in a lot of work together to write “The Future of Contact Centers”.
Today’s customers are more and more self supporting, deciding for themselves when, where and how to interact with the insurer or agents/brokers. They value multi-channel integration and expect all interactions to be fully harmonized. Delivering high-quality service across all customer channels requires a new working model between agents and brokers and the insurer, in response to the changing environment. Ignoring this market demand may lead to profitability challenges; a coordinated, comprehensive response is needed. A better multi-channel strategy includes the direct and online as well as offline channels—agents and brokers and prevents potential channel conflicts.
Understanding financial consumersretail banking, digital banking, omni-channe...CGI
More than 70% of consumers would consider switching banks for better reward services and 81% of consumers cite it as their top want. How can banks meet this demand? Read CGI’s recommendations in our bank consumer survey report http://bit.ly/1nvlQ6N
Welcome to the customer revolution - how insurers can drive profitability and...EY
EY's customer centricity presentation shows how insurers can drive profitability and market leadership through better customer relationships and a focus on innovation.
For more information on the journey insurer's are taking towards customer centricity including results of EY's Global Consumer Insurance Survey 2012 report "Voice of the Customer", visit: http://www.ey.com/GL/en/Industries/Financial-Services/Insurance/The-journey-toward-greater-customer-centricity
This is a project suggesting an idea that was to reduce our food waste.
This project was done by 4 people taking online course for Design Thinking from IDEO (design consultancy) in Sydney, Australia. Our team members were from different industries like program, graphic design and human research and also different nationalities like English, Korean, Australian and Russian.
InsideView Sales and Marketing Alignment - InsideView DriveInsideView
The ultimate, some might say only, goal of sales and marketing leaders is to grow revenue.
Whether you are talking about generating bigger and better pipeline, crushing your quota, or driving better lead- to-close rates...the end goal is always MORE REVENUE.
In diesem Webinar zeigen wir Ihnen die Vorteile der Palettentechnik in der Bewehrung. Lernen Sie die Paletten „Stab- und Mattenform“, „Kreisförmige Bewehrung“ und „Verlegung“ kennen.
Übersicht der einzelnen Themen:
- Definition der Biege- oder Mattenformen über Paletten
- Das Ändern von Parametern wird in einer dynamischen Vorschau sofort angezeigt
- Einfaches Verlegen und Beschriften über Paletten
- Stabform: Zusammenführen von "Eingeben" und "FF-Bewehren" in einer Funktion
Das kostenlose Webinar-Video finden Sie hier:
https://www.allplan.com/de/webinare/bewehren-mit-der-stabform.html
Accenture research reveals how transforming to a living business enables insurance companies to achieve sustainable growth through hyper-relevance. To learn more visit: https://www.accenture.com/us-en/insights/insurance/living-business
Afinium.com Big Data Big Sales White Paper 2014 Afinium
Customer centricy drives sales, and real time data analytics allows creation of uniquely personalized buyer experiences to convert even casual browsers into loyal customers.
Growing your insurance business through a period of uncertaintyVicky Bradford
As the insurance industry undergoes a period of dramatic change, how are successful businesses dealing with the biggest disruptors and readying themselves for the future? Here, five insiders share their views.
Please find here our first Insurance Review on Digital Disruption of the Insurance sector. We've put together the best, most shared and liked articles on this topic. All articles have been published before on our Financial Services blog
Please find here our first Insurance Review on Digital Disruption of the Insurance sector. We've put together the best, most shared and liked articles on this topic. All articles have been published before on our Financial Services blog
Etude PwC "Insurance 2020" : dommage et digital (2014)PwC France
http://bit.ly/AssuranceEnLigne
Pour les compagnies d’assurance, multiplier les échanges numériques avec les clients est un élément essentiel pour les fidéliser et se différencier des concurrents. C’est ce que révèle le rapport de PwC "Insurance 2020: The digital prize – Taking customer connection to a new level". Le cabinet d’audit et de conseil a interrogé plus de 9 000 consommateurs dans le monde, dont 500 français.
How Life & Annuity Companies Can Embrace Modern Platforms to Boost Direct-to-...Cognizant
Life and annuity (L&A) insurers seeking to enhance their direct-to-consumer reach should first simplify operations using modern, hosted, rules-based platforms, and deploy the panoply of digital tools and services and work with insurtechs when suitable.
Future-Proofing Insurance: Deepening Insights, Reinventing Processes and Resh...Cognizant
Insurance carriers face an imminent sea change in how their mission-critical processes remain efficient, agile and innovative. Ensuring relevance in the future requires redefined business models fueled by heightened productivity across fibusiness as usualfl activities.
1Running head WRITTEN COMMUNICATION6WRITTEN COMMUNICATION.docxaulasnilda
1
Running head: WRITTEN COMMUNICATION
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WRITTEN COMMUNICATION
Assignment 2 – Written Communication
Chet L. Walker
Strayer University
Professor Deborah Busby
COM 510 – Business Communications
2 December 2019
FROM: Insurance Policy Desk
TO: All Insurance Stakeholders
DATE: 2 December 2019
SUBJECT: Comprehensive Insurance Policy on Goods on Consignment
A Comprehensive Insurance Policy for Goods that are on Consignment
Introducing this premium policy insurance coverage will be a great opportunity for our esteemed customers and company as well. Remember, it is for the first time that our company is introducing a premium policy coverage on goods under transit. The policy is comprehensively written to address the need. After thorough research on policy formulating, I am glad to inform you that all the gaps were outlined and then policy was formulated to bridge these gaps at the same time generate profit to the company. The insurance policy desk is comprised of a team of experts in writing policies. I am so glad to be part of the team and so should you as well.
Taking this opportunity to introduce this premiere coverage amid the insurance crisis faced by many insurance companies. This moment will be most suitable for an introduction. I hereby call every stakeholder to be part of the team to launch the coverage that will solve many challenges and restore smiles into the faces of our clients.
The policy is cost effective sensitive and realist. Formulated in a manner to safeguard the client’s money and that of the company too. After the findings on the research survey, the panel of insurance policy desk sat and took every finding about the policy into consideration as they formulated this coverage, which means that the policy considers the many factors that makeup insurance.
Most of the governmental organization which normally source products outside the borders of the country find it safe using insurance firms from within its nation. Have it with use now will create an avenue for transacting business with the governmental organization. Though there should be a massive creation of awareness just after policy introduction and hence the need to do with haste so as to prevent further delays.
Our clients, on the other hand, have always not benefited effectively from the many policies issued by many insurance companies. This premium policy will then mark the end of lamentations. Based on experience and prior understanding of our clients, this is an advanced improvement in this modern policy that focuses not only on making sales but also addressing and least on clients but surprisingly the policy has attained both at the same time enabling us to kill two birds with a similar stone.
Online marketers recently complained about delays in good deliveries. This issue is well captured by the policy. Though there is a need to partner with other swift modes of transporting good especially light agent ones. It captured in the plan ...
The trends in insurance. This book covers: peer 2 peer insurance, new business models, customer intimacy and why disruption cannot be achieved with technology alone.
What the hotel industry can teach insurance companies about creating brand loyalty.
For more white papers and webinars, go to http://www.sldesignlounge.com
Or visit us at http://www.sld.com
The future of insurance distribution: New models for a digital customerAccenture Insurance
This report argues that incumbents need to embrace digital disruption, form partnerships and adopt innovative technologies to improve customer engagement and create new opportunities for growth. It introduces five new distribution models that insurers should consider, as well as six ‘lenses’ through which they can be evaluated.
Your insurance clients know that far-sighted players are already confronting the future of insurance distribution. Use this report to help them assess their options.
1. A quantum leap to more
appropriate advice
With the emergence of
the global village and a high
dependence on information
derived from the Internet,
life insurance companies
will have to start making
provision for a more ho-
listic approach to financial
planning. Importantly, the
financial services sector will
have to begin adjusting their
value proposition from that
of product selling to one of
appropriate advice, based on a client’s actual needs and contingency
requirements.
Furthermore, the digital age and specifically the X, Y and Millennium
generations will augment what they hear with what they see, read and
importantly what they are exposed to virtually.
In all probability the same generations mentioned above will ac-
tively compare each product house’s recommendation via some form
of virtual platform or portal, with this emerging consumer inclination,
life insurance companies will have to ensure that the advice given is
not solely focused on the product but more on the actual needs of the
client.
This quantum shift will obligate life insurance companies to do more
financial-needs analysis-based selling and less product push backed by
limited advice. This type of selling will in fact enhance retention because
the product in question will sell well.
Aligned to a deep understanding of the client’s financial needs.
Further complicating this race for market share aligned to the digi-
tal age is the fact that life insurance companies will have to gear them-
selves to accommodate business in a more efficient and automated
manner.
Today’s market place dictates that unlike in the 1980s, 1990s or post
year 2000, business accumulation will be entirely influenced by the speed
at which life insurance companies convert proposed business into poli-
cies, rather than by the capacity they have to convert business in a tra-
ditional sense. A classic example of the fast eating the slow, not the big
eating the small.
Another fundamental within this digital revolution will require that
life insurance companies will in the future have to differentiate them-
selves through high levels of service and support of advice given. New
generation consumers will not only expect more appropriate advice
but will also demand that same advice be underpinned with service
excellence, robust product support and customer-centered under-
standing.
Forming the basis of this transition will be client intelligence and a fun-
damental understanding of their financial resources, how their money is
used and were the inherent opportunities lie for the company involved
to increase those funds. The virtual age not only provides for this type of
intelligence but to a large degree facilitates it.
Life insurance companies will have to learn to predict consumer
spending via business intelligence and other predictive modeling plat-
forms. This build up of intelligence will importantly allow for a much
richer ability to segment and individualize financial service product
offerings.
So in summary, here are some basic steps to ensure you receive
the most appropriate advice regarding your specific financial
needs.
Having the correct advice is not only extremely important but the ad-
vice needs to be relevant to your specific needs. While many insurance
products may look the same on paper or proposal, in reality they can be
definitively different.
There are certain features and variations within similar insurance
products that you need to properly evaluate before making a decision.
New-generation consumers must not mistakenly focus only on the pres-
ent, but they need to look to the future. Insurance is a product based
purely on future benefit. Paying attention to all the relevant details pays
dividends over time.
The complex nature of life insurance is always present and that is why
life insurance advice has to be carefully understood before decisions are
made. Most appropriate advice advocates a move away from a vested in-
terest by the agent and/or advisor in the particular product he is attempt-
ing to sell you, so ensure your agent is selling you the right product for the
right reasons rather than some more self-interested incentive. Without
appropriate advice, ordinary consumers may fail to address their finan-
cial needs appropriately.
Life insurance involves a specific choice
With the appropriate life insurance advice, you can make a spe-
cific choice regarding the insurance product that is most suitable for
your particular circumstances. With the sheer variety of products
available, selection may not only become convoluted but sometimes
confusing.
As a consumer you may want to ask the following questions:
1. Do I need term-life insurance?
2. If so, which type of life insurance is needed?
3. Do I need whole-life insurance?
4. If whole life, why and why not term-life insurance?
5. What is the cost implications of my preferred product type?
While the answers may be many, you need appropriate advice to
wade through all the possible answers that result in you making the
right decision for the right reasons. Every person has unique fiscal
needs and appropriate advice can greatly help in identifying these
specific needs and, very importantly, at the right price and peripheral
benefit.
Lastly, how important is appropriate life insurance advice? With the
appropriate financial advice, you will be on the right path to making an
informed choice regarding what type of life insurance product you re-
quire, how much cover and what additional features you will need to in-
clude in your insurance policy.
With proper and appropriate advice, you will not be wasting your time
and fiscal resources on something that won’t benefit you at the time when
you need it most.
The writers are co-founder & managing partners of Avatar Global
Consult Limited.
Garth Ibbetson Eddy K A Berutu
Avatar Global Ltd is a financial services consulting and advisory entity,
with the implementation intent of creating massive strategic advantages
for clients being part of its fundamental strengths.
Keeping up with technology and
not losing ground
Eddy KA. Berutu
“Beware of upstarts putting in-
surers out of business”
This was the glaring headline on
the Oct.30 edition of the e-daily,
Asia Insurance Review, the official
media partner of the 26th
Pacific
Insurance Conference (PIC) held
from Oct. 28-30 in Hong Kong.
The idea of the PIC was mooted
at an informal gathering in Tokyo in
1958. The first PIC was held at the
University of Hawaii in 1963, and
attended by 47 life insurance execu-
tives and university professors from
six countries. The PIC mission is to
share the free exchange of ideas and
experiences concerning manage-
ment, marketing and customer ser-
vice in a spirit of international broth-
erhood in the insurance industry.
Many issues were raised during
the proceedings, which I attended
representing Avatar Global Con-
sult. However, the one that grabbed
my attention most was the above
statement. Something that I believe
ought to be seriously addressed in
our own backyard.
To some, this may have been a
shocking statement, to others per-
haps a wake-up call. It was the result
of a panel discussion on the second
day of the conference on the topic of
“Responding to Change”.
Maria Ferrante-Schepis, man-
aging principal of insurance and
financial services at Maddock
Douglas Inc., brought up the
question: “In what would be a
‘Napster Moment’ for the indus-
try, insurers could be removed
from their own turf by others
who are able to reinvent their
business to better meet the needs
of today’s customers”.
She reiterated that the reason
the industry continued to face the
same problems was due to its lack
of relevance to customers.
What is actually happening?
Harry Beckwith, in his book Sell-
ing the Invisible, stated that tech-
nology created the adopter age. The
adopter became more proficient
sooner and quickly recognized the
benefits that newer and more ad-
vanced technology brings to busi-
nesses and industries. But the real
adapters learn even more quickly
and apply it to their own competi-
tive advantage.
Today, dozens of service com-
panies are sleeping. But smart
marketers early in the game have
already recognized the many ways
that technology can be applied to
create customer service excellence
in many competitive landscapes.
Every service company should
embrace technology to their own
competitive advantage. In addi-
tion, management should continu-
ally ask questions on how newer
and more advanced technology
can be used to improve their ser-
vices and grow their businesses,
by making technology a key com-
ponent of their marketing strategy
and business model.
As mobile technology, smart-
phone apps and social media have
not only dramatically changed the
way we interact, but how products
and services are being marketed,
social networking applications, and
their seemingly unlimited usage will
continue to skyrocket in the foresee-
able future. Furthermore, the phe-
nomena have also changed the way
people make buying decisions.
What are industry leaders and
practitioners’ perceptions and
thoughts on this phenomenon?
Jason Sadler, president of Cigna
Global Individual, said that the
digital age was truly changing the
playing field for the business and it
was something that had to be con-
sidered extremely seriously. It is
providing a new level of customer
empowerment, where customers
can have access to real-time unfil-
tered opinions and recommenda-
tions on brands and products. “It is
not just the digital age, it is also the
age of transparency.”
NirmalaMenon,headofdesignat-
ed markets and health Asia, MetLife
Asia Pacific, who chaired the panel,
quoted Sir Winston Churchill as
saying: “ ‘To improve is to change, to
be perfect is to change often’. So let’s
all go out and try to get closer to per-
fection as we go about our business,”
she concluded.
Embracing new technology is
the key for life insurers to succeed
in the future, be it in marketing or
product distribution. Key trends
identified as imperatives for suc-
cess included social media, huge
data and analytics, as well as mobile
and multiple customer touch points
– all of which contribute to creating
new ways of engaging and profiling
customers.
Ross Mayne, CEO of Munich Re
Automation Solutions, said there
was a global move toward automat-
ing new business and the value pro-
cess in life companies. The primary
driver is usually the need to increase
sales in the face of competition; a
secondary driver is when an insurer
wants to grow its business without
having the proportional increase in
operating overheads. And automa-
tion had become the key enabler to-
ward that objective, he added.
“As consumers become more af-
fluent and sophisticated, simply
selling product will not win their
business and their hearts. Insur-
ance companies need to be more
customer-centric, be able to un-
derstand their customers’ needs
and provide personalized solutions.
Distributors have to be knowledge-
able and resourceful to provide
tailor-made advice. To succeed, we
are also required to invest heavily
in technology and staff training so
that customers can have a wonder-
ful experience when they interact
with us”, said Michael Huddart,
EVP & general manager of Manu-
life, Greater China.
RonaldArculli,chairmanof FWD
Group, said that Consumers were
much more connected than before,
and they would increasingly use
multiple sources that they can trust
to receive information, without the
pressures of being sold. Studies have
shown that customers’ trust is shift-
ing toward Internet sources (from
22 percent in 2011 to 28 percent in
2012), and social media (almost dou-
bling from 9 percent in 2011 to 17
percent in 2012).
Itwasamyththatinsurancecould
not be sold online, he said. While the
actual touch-points by buyers of in-
surance are 32 percent agents, 20
percent independent financial ad-
visers (IFAs), and 17 percent online;
the preferred touch-points were 43
percent agents, 35 percent IFAs and
45 percent online. So key to a com-
pany’s success will include answer-
ing the questions: How well do we
understand the next generation, and
how do you leverage technology and
touch-points to impress customers?
“We need to embrace a digital
mind, in order to catch up and make
a great impression on the customers
of the next generation” he said.
The writer is co-founder &
managing partners of Avatar
Global Consult Limited
More parents aware of need to invest in
child education policy
Hanna Nabila
THE JAKARTA POST/JAKARTA
Even though insurance penetra-
tion remains low in Indonesia, more
discerning parents are aware of the
need to invest in their child’s educa-
tion, which has prompted banks and
insurance companies to aggressively
market their products.
“I have bought an education in-
surance policy for my six-year-old.
It assures me of the certainty of her
education, not only today but also
for college-entry level. I plan to send
her to study overseas,” said Erni
Liswati, a housewife.
She said that apart from educa-
tion coverage, she had also pur-
chased health coverage.
Marco Ciabatti, another policy
holder, said that he had benefited
from an insurance product that cov-
ered education and health.
Initially, he purchased a product,
with only education coverage, but
“accepted an offer from an insur-
ance company for a package that in-
cluded a health plan, especially after
my son was hospitalized some time
ago,” he said.
“The health plan is valid in many
hospitals. Besides, it is flexible in
terms of payment,” he said.
Erni and Marco are among the
many parents who wish to do their
best for their children by purchasing
insurance policies for education and
health.
Indonesia’s penetration for gross
written premiums account for only
1.3 percent of Indonesia’s GDP in
2012, compared to 3.90 percent for
Malaysia and more than 4.30 per-
cent for Singapore.
According to the Indonesian Life
Insurance Association (AAJI) chair-
man Hendrisman Rahim, there was a
large untapped market in Indonesia.
Based on AAJI data, the number
of individuals with life insurance is
43.7 million people or 18 percent of
the total population, of which only
11 million have individual life insur-
ance or 4.5 percent of the total popu-
lation.
Meanwhile, banks and insurance
companies acknowledged the in-
creased awareness of insurance edu-
cation among discerning parents.
“They want to feel secure. Now,
more parents are planning to invest
to pay for education abroad,” said
HSBC Indonesia’s senior vice presi-
dent and the bank’s wealth manage-
ment head.
“Almost every parent in Indone-
sia wants to provide their children
with the best education,”
Allianz Life Indonesia vice presi-
dent Handojo Kusuma said more
parents purchased child education
policies because they were aware of
the increased cost of higher educa-
tion, which was due to inflation or
other economic factors.
“The increasing cost can result in
financial strains when children be-
gin higher education,” he said, add-
ing “This is the reason why more
discerning parents try to plan early.”
With customers now depending
on smartphones and other digital
tools, banks and insurance compa-
nies have also taken advantage of
telecommunication technology.
Insured students studying abroad
can reap benefits from the advance
technology applied by banks that
have overseas networks. “Education
needs such as fees and living costs
can be easily controlled through In-
ternet banking,” said an executive at
a bank.
“Besides, Internet banking can
facilitate the withdrawal of money
in an emergency situation, such as a
lost credit card,” he said, adding that
a new card could be supplied within
two days.
WEDNESDAY November 20, 2013 | Supplement 9
LIFE INSURANCE