Digital Insurance Enterprise: The Nest Case Study


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An overview of how digital is transforming the Insurance Industry. With a case study from Nest, the UK Government's pension auto enrolment scheme on how they are embracing digital and innovation to attain strategic objectives.

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Digital Insurance Enterprise: The Nest Case Study

  1. 1. Digital Insurance Enterprise NEST Case Study – A Digital Start-up Start- Vinod Kachroo Helen Dean CTO & Global Head – Industry Solutions Managing Directore Insurance & Healthcare NEST Corporation Copyright © 2011 Tata Consultancy Services Limited 1
  2. 2. Evolution of Business Objectives Social Influencers Physical to Digital Footprint Realize Rapidly Extend Portfolio Reach Everyone Sense Demand Business Objectives as the Enterprise Evolves Yesterday Today & Tomorrow Traditional Enterprise Digital Enterprise 2
  3. 3. Insurers Must Evolve into Digital Insurers Social media Four generations co-existing Multi-channel experiences Global reach Evolving technology Customer centricity Next gen genomics, autonomous vehicles, internet of things & intelligent cities Market drivers forcing evolution Yesterday Today & Tomorrow Traditional Insurer Digital Insurer 3
  4. 4. Shift to “Systems of Engagement” Top executives Decision Support Systems of Engagement External Stakeholders Consumer technology Mobile face SOR Integration Middle of the Organization Context Public Cloud Systems of Record Transactional workers 4
  5. 5. Digital Forces Are Transforming The Business Mobility & Pervasive Computing Channels Cloud AI & Robotics Business Processes Five Digital Forces Big Data Analytics Business Models Products & Services Customer Segments Social Media Workplaces 5
  6. 6. Creating Innovation Assets… Making the Digital Journey Real iAgent Virtual Assistant Insurance Quickpass Telematics CubuZZ Social CRM Quotation & Illustratio n Fraud Analytics & Data Mining GIS Integration Executive Dashboard Knowledge Mgmt & Collaboration Platform Real Time Integrated Platform for Services & Analytics 6
  7. 7. The Digital Enterprise Creates New Outcomes Characteristics of the Digital Enterprise New Business Models Omni-Channel Experience Customer Centric Innovative Products & Services Insight Driven Next Gen Efficiency Simplified Processes Improved Effectiveness Digitization of Workplaces Growth Improved Compliance New Business Outcomes 7
  8. 8. NEST: A major corporate start up Embracing innovation and digital Helen Dean MD Product and Operations © NEST Corporation 2012
  9. 9. NEST is… Part of a UK Government programme of auto enrolment, aimed at getting the population saving for retirement A trust-based statutory occupational pension scheme overseen by a Trustee Corporation which is also a non-departmental public body A high quality scheme designed for the ‘mass market’ including those unserved by traditional providers Obliged to accept any employer at a single price Not-for-profit Priced 1.8% on contributions, 0.3%amc Self-funding in the longer-term, loan from Government in the shorter-term Unprecedented take on challenge A digital enterprise out of necessity and sustainability © NEST Corporation 2012 9
  10. 10. Product Innovation - Online by default Decided to make a virtue of the absence of legacy business Redrew the line between the provider and customer – Key administrative tasks sit with the customer Customers (either employers or members) are guided towards the online option. For employers it is the only option. SCALE Millions of members – never been done on this scale before Traditional paper based model will struggle with scale © NEST Corporation 2012 COST Successful e-businesses leverage high quality self service capabilities to enable scale and drive down cost Achieving low cost will require straight through processing Simple charging structure means we can’t charge for extra’s QUALITY of experience Must be easy to use Available outside of core hours High quality web experience mitigates channel risk 10
  11. 11. Product Innovation: the evolution of delegated access Third party access to the product to allow ad hoc translation © NEST Corporation 2012 Different levels of product access for different customer business units Full third party product administration access for advisers and intermediaries 11
  12. 12. Customer engagement driving innovation Aim to be an intelligent user of quantitative and qualitative research Early design: – – – – understanding market for auto-enrolment – the “unpensioned” & their specific needs bringing the product to the market –brand, communication and engagement strategy Research-based communications approach makes pension saving easily understood Qualitative research into attitudes to pensions, investment risk and loss. Investment strategy is tied directly to research findings – Extensive product usability testing Now focused on: – tracking member’s and employers experiences of the scheme and NEST – tracking behaviour of NEST members over time – making fund choices, engagement with NEST communications, ceasing contributions etc – evaluating impact of engagement strategies on member behaviour All including continuing use of insights from behavioural economics © NEST Corporation 2012 12
  13. 13. Affordability message targets procrastination bias © NEST Corporation 2012 13
  14. 14. Wording targets loss aversion © NEST Corporation 2012 14
  15. 15. Future innovation - NEST’s data should tell the story of automatic enrolment Collecting a mass of data through MI – basic analysis underway – more advanced work to come – Main question for us is how to use it in the interests of the membership and in the context of widespread academic interest Very difficult to encourage engagement with the product – and hence capture more sophisticated information – Only 4 per cent register online – Key question for NEST is how to exploit that in the context of a product predicated on inert consumers © NEST Corporation 2012 15
  16. 16. Start with “USER”: Unify, Simplify, Engage & Respond Unify: Ability to provide a consistent customer experience across brands, products, and channels • Omni channel customer experience • Matching & mapping of enterprise customer & social persona into SocialCRM Simplify: Ability to achieve operational excellence in both business and IT • Process simplification • Application portfolio simplification E R Engage: Ability to create and sustain customer engagement • • • • • • Improved stickiness Advocacy Collaboration Rewards Value added productivity tools Gamification Respond: Ability to sense and react to customers timely • Anytime anywhere • Real-time systems integration • Insight driven next best action recommendations Engage S U Respond Simplify Unify 16
  17. 17. Think Holistic, Plan Incremental Holistic Digital Strategy Integrated insurance digital experience platform vision Business prioritization Single executive sponsor / owner Small projects with continuous business value delivery • • • • Web / portal redesign & consolidation Web content migration & management Insurance forms modernization Multi-channel analytics & Voice of customer • • • • Social data leverage & big data analytics Backend service & data integration Incremental legacy modernization Infrastructure & availability optimization 17
  18. 18. Common myths about being a digital insurer: Myth Direct to consumers only Customer segment of one “It’s all about big data” Myth Buster • Omni-channel • Flexibility for customer to use preferred channel • Ability to switch between channels without losing context • It will never be for “1” • Better customer insight for finer segmentation • Contextualized offers & next best action recommendation • Use both structured & un-structured data • Use externally available data wherever it makes sense • Use data from social to complement internal CRM data 18
  19. 19. Thank You 19