The Digital Insurer speaks at AIA's inaugral bancassurance seminar
8 likes4,528 views
The document discusses the transformation of bancassurance businesses in the digital age, highlighting the need for banks and insurers to adapt to changing consumer behavior and technological advancements. It emphasizes the importance of building a digital advisor model that enhances customer engagement, generates leads, and improves service through mobile technology and analytics. Additionally, it outlines the challenges and necessary partnerships required to successfully implement these digital strategies in the financial services sector.
The Digital Insurer speaks at AIA's inaugral bancassurance seminar
- 1. Think Digital: Transform your Bancassurance Business
- 2. Discussion Agenda Strategic context Digital – it is a revolution The Digital Advisor …. The new “face” of life insurance sales Getting into the details Tablets point of sales toolkits are pivotal for success Bancassurance transformation challenges Q&A Session
- 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) Change, Change, Change…. Digital Expectations • Data “on demand” • Desire for clarity & simplicity • Dialogue not monologue • Easy to promote a product .. and complain
- 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 seek a different experience
- 5. 5
- 6. Welcome to Digital Customers: “They are hybrid” Myth #1: Digital is a new distribution channel Reality : Digital enables customer (& distributor) engagement Online The Hybrid Customer Face To Face Phone 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!
- 7. Bancassurance Audit: x Where are we now? Strengths • • • Leverage customer banking relationships Utilise physical infrastructure Insurance is a logical product extension to bank products The Customer Centricity Challenge • • • • Result : higher productivity & generally higher quality business than life agency distribution • Fee driven models: are the norm. After sales service limited to basics transactions – where is the cross-sell opportunity? How well do RM‘s really know their customers? Or are they product pushers? “Traditional” Tele-marketing – regulatory tightening to continue Insurance Product can be driven by wealth managers product bias – short term and investment focused …. and what happens when we factor in digital trends?
- 8. Anchored to basics : Digital Bancassurance strategies need to leverage insurance fundamentals Current Bancassurance Paradigm Trust is at the heart of insurance Rely on Bank brand Relationship managers leverage trust already placed in the bank Digital Impacts As customers research on-line trust will need to be developed and leveraged on-line Trust must be earned and reinforced in every interaction Great insurance advisors always in demand Bank RM’s ≠ insurance advisors. RM’s have natural bias towards investment products For mass market not really a personal relationship – order taking and closing the sale When customers research online they will research their advisors as well…. Less time face-to-face – but no less important Insurance advisors need to be more mobile (digitally & physically) Customer service matters Little emphasis on customer service after the sale is closed Back office is … back office Mobile technology provides opportunities for cost effective customer service differentiation Customer will expect this – a hygiene factor very soon
- 9. Digital Bancassurance: 3 Opportunities 1. Generate more leads 2. Improve customer service & engagement 3. Improve face-to-face sales processes Combining all three = The “Digital Advisor” Business Model
- 10. The Digital Advisor Business Model Customer Portal / App Sales Opportunities Policy Systems Tablet Lead / Prospect Management Advisor Portal
- 11. 1. More Leads Fewer and fewer customers will go to the bank branch • • Sales Opportunities • • • Co-partnership Customer lead models for generation Portal / App Apps to generate leads from the “digital cafes” Analytics has an enormous role to play Get the lead to the right person at the right time Policy systems to Lead management Systems manage multiple leads , measure ROI and promote better practices Business outcome: - More leads Tablet - Better quality leads Lead / Prospect Management Advisor Portal
- 12. 2. BUILD A “DIGITAL ECO-SYSTEM” AROUND LEGACY POLICY SYSTEM TO TREAT CUSTOMERS LIKE CUSTOMERS 2. Better Service • Customer portal/app: An on-line marketing capability for customer engagement leading to cross sell / up sell opportunities Customer Portal / App • Customer experience centre: Multi channel customer support to connect Advisor Generated customer interactions – a digitally assisted Leads customer service revolution (the engine room for converting “data into business”) Customer Experience Centre • Policy Systems Advisor portal: Customer data and advisor performance at your finger tips Business outcome: - Building deeper, richer and better relationships with customers and advisors Lead Generator / Facilitate and co-partners the advisors to Prospect Management better meet customer needs Allow “farming” as well as “hunting” Advisor Portal
- 13. 3. Improved Selling Customer Portal / App Sales Opportunities 3. “connecting the eco system” Policy Systems Tablet Lead / Prospect Management Advisor Portal
- 14. Tablet sales toolkits : Will be “business as usual” in most markets within 5 3 years Tablet Functionality: Should be focused on the customer 1. 2. 3. 4. Present credentials (materials) Identify needs Produce quotes and help to close Easy proposal submission Usability is the Key Success Factor • • • Must be designed for advisors to connect with customers Easy to use with a “wow” factor that encourages use with clients Great usability is critical: engage/delight customers & advisors
- 15. Usability = function plus form Quote Output: graphical display option with premium iteration to facilitate closing Easy iteration on premium to help sales closing
- 16. POS Tablet sales toolkit : Easy business case OTHER BENEFITS AFTER SUCCESS PRIMARY BENEFIT Improved Sales effectiveness through a better customer experience 1. 2. Enable lead analytics / Predictive analysis Improved compliance to sales best practice (& regulatory requirements) 3. Back office productivity from digital proposals More efficient Faster & more accurate (clean policies in a day) MEASURED BY : High tablet usage from Advisors Increased sales productivity per month 4. 5. Reduced overheads: premises & technology costs Business intelligence Benchmarking data Usage data “Bigger” data 6. 7. Recruitment training (and hiring) tool Platform for more automated underwriting
- 17. Independent Case Study: AIA Point of Sales Tablet Toolkit iPoS Interactive Point of Sales Video interview (to insert movie file here)
- 18. 3 Key success factors Broad POS functionality delivered with offline regional platform 1. Off-line model 2. Broad set of Functionality • 100% availability • “Any time, Anywhere” • Advisor “digital briefcase” 3. AIA’s Regional Journey 1. Year 2012: Initial Rollout in Singapore 2. End of 2013: Rollout in 9 countries (2 to go) • Singapore, Malaysia, Indonesia, Thailand, Philippines, Sri Lanka, Vietnam, Hong Kong, Taiwan 3. 2014 first bank partner moves to 100% tablet sales
- 19. Usability = function plus form “The Dial” Easy, fast, fun & professional needs analysis
- 20. Initial results: Results exceeding expectations High Usage If AIA could do it again % of Advisors actively using iPoS 100% 75% Country A Country B Country C Country D 50% 25% 0% Oct 12 Jan 13 Apr 13 Jul 13 Increased Productivity Average increase in ANP* Country B +16% Country C +54% Country D +64% *iPoS advisor versus non-iPoS advisor “I would not do much differently. iPoS is very successful in the way we manage it, continuously improve it and roll it out. However, we were initially overwhelmed by the success of iPoS and didn’t have enough scale and capacity to roll it out to the countries. Next time I would react quicker and be more decisive on adding manpower to such a program.” AIA Director leading the development
- 21. Reality check: In practice, Digital Advisor models for bancassurance are complicated 1. Who builds & controls the technology? 2. How long-term is the bank/insurer relationships? How closely are the bank and insurer aligned? 3. Who does the selling? Wealth Manager or dedicated insurance advisor? (Latter is easier to transform) 4. How many insurance partners does the bank have– best in class / “open architecture”, tied or broker model? 5. Can you navigate the security & governance maze - X2 (bank + insurer)? Easiest starting point for digital transformation : exclusive relationship using dedicated Insurance specialists with technology provided by the insurer
- 22. Are you ready? 3 Pre-conditions for Success 1. Willing to mine and share data – “Provide access with due care” 2. Co-operative & long term partnership where both bank and insurer compromise and learn from each other – and both invest for success 3. Prepare for hard work: No easy paths when it comes to technology implementation • No “one size” fits all • No magic wand 22
- 23. Concluding: “Business as usual” is a dangerous path for bancassurance operations Be radical Now is the time to embrace change and start building digital models. Be Cautious You don’t need to “bet the bank”. Learn from fast and strategically well thought our pilot projects (e.g. POS tablets and lead analytics). Find people with the skills to transform Beware If you don’t utilise digital thinking, plenty of others will.