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Accessing Hidden Value

Through Customer Insights

Michael Browne

Swiss Re

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Inforce value levers

MANAGE LIABILITIES &

IMPROVE CUSTOMER

MANAGE ASSETS

OPTIMISE CAPITAL

INCREASE OPERATIONAL

EFFICIENCY

Overall in-force management steering

MANAGE LIABILITIES

MANAGE ASSETS

OPTIMISE CAPITAL

INCREASE OPERATIONAL

EFFICIENCY

IMPROVE CUSTOMER EXPERIENCE

Q’s to

0447 569 173

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The value in retaining customers

Customer acquisition cost is 7 times more than servicing costs.

A 1% improvement in actual lapse rate is

roughly a 5% increase in embedded value/profit

Deepens client relationships for

upsell- cross sell to drive further

growth

Keeps people insured, making

society more resilient and

helping to close the protection

gap

Why this is a priority?

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0447 569 173

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Lapse Risk

Q’s to

0447 569 173

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10.0%

12.0%

14.0%

16.0%

18.0%

20.0%

Mar

-00

Oct

-00

May

-01

Dec

-01

Jul-

02

Feb

-03

Sep

-03

Ap

r-0

4

No

v-0

4

Jun

-05

Jan

-06

Au

g-0

6

Mar

-07

Oct

-07

May

-08

Dec

-08

Jul-

09

Feb

-10

Sep

-10

Ap

r-1

1

No

v-1

1

Jun

-12

Jan

-13

Au

g-1

3

Mar

-14

Oct

-14

Lump Sum Income

Retail life

discontinuances

GFCDotcom bubble

Source: Plan for Life

Q’s to

0447 569 173

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What’s holding us back?

Customer wants to leave, it’s intrusive to stop them

Customer made an informed and rational decision to cancel

Lapses are within the assumptions…..it’s not a problem

The adviser owns the customer, not us

Higher lapses aren’t all bad, we can release reserves!

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0447 569 173

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We know facts about the experience…….

Products per customer

Take up rates

Customer survey data

Length of call

Service process times

Lapse rates

…….but we don’t understand WHY

Net promoter scores

Data insights for customer

experience

In order to improve the experience, we must understand the WHY behind the WHAT

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Seek holistic

human insights

Capture empathy data

Observe customers

Listen to customers

Targeted interviews

Customer journey

maps

Ethnography UXresearch

Design thinking

Gain qualitative insight to understand customers’ emotions and actions across the full customer journey

Q’s to

0447 569 173

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1. The behaviour equation

1.Values

2.Attitudes

3.Behaviours

• Way live and work• Priorities and measures• Alignment feels good

• Result from applying general values

• Attractive or not

• Positive= support, engage and enhance it

• Negative= avoid, oppose or hinder it

So to sustainably change 3...it’s perhaps better to first start revisiting and influencing change with 1 then 2…than to jump and rebut the negative behaviour

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BehaviouralEconomics is the study of the psychological, social, cognitive and emotional effects on the economic decision making of individuals and institutions

2. Decision makingQ’s to

0447 569 173

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3. The value equation and

mental accounting

Product benefit less Cost = Net value

Cost ≤ Net value then we generally buy/retain

Perceived and actual

Customers

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Leveraging emotional

intelligence

5/23/2018

Listen to customer feedback

Embrace customer pain points

Transform customer journeys and experience

Q’s to

0447 569 173

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3 Levels to unlock value

1. Reactive and transactional

2. Pro-active and attentive

3. Differentiating and delighting

$

Q’s to

0447 569 173

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1. Reactive and transactional

2. Proactive and attentive 3. Differentiating and delighting

• Perform diagnostic to benchmark against best practice

• Lapse cycle process reengineering

• Guidance on building a Save Team capability

• Optimising customer communications and planning for digital

• Strategy input using global and local insights

• Voice of customer monitoring/feedback design

• End to end customer experience mapping and touchpoint redesign

• Vulnerability point analysis and predictive approaches

• Design of low cost SMS, digital, and pre-recorded voice messaging

• Developing inforce campaigns and customer care programs

• Retention dashboard design and governance advice

• Input into strategy using global and local insights

• Advice on channel management, controls and sanctions

• Integrating lapse risk into the Risk Management Strategy

• Input into strategy using global and local insights

• Call centre consultant training on advanced retention techniques

• Customer experience training for ops team to improve service proposition

• Persistency management training for sales support teams and BDMs

• Data analytics and insights into lapse propensity

• Introducing experiential marketing programs iewellbeing/wearables

HOWSWISS RE

HELPSCLIENTS

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Questions

Accessing Hidden Value Through Customer Insights

Q’s to

0447 569 173

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