1

Our Team: Team 3

Hedda HeldalNorway

Alberto SalamoneItaly

Abhishek JainIndia

Pancho DaskalovBulgaria

Zachary Medina

United States

2

Agenda

• Challenge Statement

• Identified Issues

• Simple Life®

• Options and Personalization

• Conclusion

• Q&A

3

S

“Create innovative solutions using existing expertise or capabilities to increase the

individual life insurance business”

4

Identified Issues

Consumers are not incentivized to purchase life insurance because of perceived price

Complexity of Prudential’s product portfolio can be overwhelming to the average consumer

*100 people who do not have life insurance

5

Common Misconception

8 out of 10 potential customers fail to correctly price life insurance

People in less than perfect health situation can not get life insurance

Hard to educate the customer without a strong direct message

6

Simple Life®

One universal fixed monthly price for everyone with individually customized coverage policies

7

Customized coverage policies?

FACE VALUE

Age factor

Smoker or non-smoker

Gender

Health condition

Medical history

Drive infractions

8

1st Customer: John

35-year-old male

Non-smoker and in average shape

Married with one child

Paying off student loanCoverage $500,000

$40

9

2nd Customer: Mike

45-year-old male

Smoker and in average shape

Married with two children

Saving for retirementCoverage $50,000

$40

10

Simple Life ® Brochure

One universal fixed monthly price $40

Customized coverage policy

Available add-ons

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Customization features

Extra Coverage

For customers who want to have:

Higher coverage

For an extra price

Add-Ons

For specific needs :

Variety of customization

features

Specifically priced for each

individual

12

Extra Coverage

The face value calculated with the underwriting process is considered too low by the potential policy holder

The customer requests an increase in the face value of the policy that will have an extra cost related to his risk factor

13

Add-Ons

In order to meet the individual client’s needs, the basic policy can be accompanied by additional features and benefits

Enhanced Cash Value

Living Needs

Benefit Acciden

tal Death

Benefit

Simple Life

Basic Policy

14

2nd Customer: Mike

$40 Premium

45 Year old male

Smoker and in average shape

Married with two children

Financially stable

Mortgage

Face Value old $50,000

Face Value new $70,000

+ $15

15

Potential Market

83% say they do not purchase because of high price

Customer fail to estimate the price by a large margin

Simple Message to educate the customer 30% of households in U.S.

are uninsured

Only 44 % have individual life insurance

85% say life insurance is important

70% say they will have major problems in case of premature death

32 Million Customers

16

Current life insurance

• Misguided perception of life insurance policies – people think it is more expensive than it is

• The application process is perceived to be too complex and time consuming

• The diversity of the product portfolio makes the product perceived as hard to approach and fully understand

17

New concept of life insurance

Simple Life®

Change the way people see life insurance

Easy tool to educate customers and promote life insurance as a

product for everyone

18

Thank You

Problem:

Overestimated price perceptions

Complicated application process and product portfolio

Solution: SimpleLife®

Universal price

Customized coverage

Optional add-ons

Result: Clear price

awareness

Less complex application process

Facilitates education and promotion