changing face of consumer in the life insurance industry

Companies referenced/highlighted in this presentation are not current or past clients of Edgewater Technology

Gen Y Perception of Insurance

Insurance agents always try to sell people stuff they don’t really need75%

Insurance companies don’t know or understand the real me57%

Insurance companies and agents can not be trusted53%

Insurance products don’t really make me feel protected50%

Source: Maddock Douglas Quantitative Insurance Survey: August 2012

Consumer Evolution

• Consumers have changed – dramatically– Less marriages, Less children, Less mortgages

• Less need for after death stability– More Google

• Educated, informed and self motivated– Not just Millennials

• Silver Surfers• Amazon Effect

Distribution Evolution

A once dominated Captive distribution is now led by Independent producers – they own 50% of all sales50%

The figures of individuals that are inclined to do their own research online, rather than through an agent74%

Individuals that would purchase their life insurance online Today, if available25%

P&C Direct Written business in terms of net premium (personal lines)71%

Source: Limra 2014

Life Insurance: Required Rebirth

Consumer EvolutionAccess to Advice

Comparative RatingProperty and Casualty Paradigm

Attack on traditional distribution

Access to Advice. Ex: INSWEB

Comparative Pricing

Cavendishonline.co.uk Comparethemarket.com

Moneysupermarket.com

Evolution

The Evolving definition of customer portal

ProspectSales

ApplicationQuote

Underwriting

Policy Holder ServicesRenewal

Claims

Customer Portal

• Without an integrated Enterprise a portal is a mere façade

– Without Enterprise integration a modern portal will fail to impress

• Modern portals must be functional– Access to key data and transactions– Ability to real-time process meaningful

transactions– Research

• Agents require real time BI and drill down to data

Increasing Expectations: Amazon Zone

• Easy to use• Addresses MY NEEDS, helps me

decide• Seamless shopping experience• Available anytime, anywhere• From any device• Portal that allows me complete

access and control over my policies, benefits, etc

• No need to talk with customer service!

Insurance Web Communication and Collaboration Landscape

Consumer Enablement Maturity Curve

4

2

3

1

Customer Section in site• Public Information• Start a quote • Phone based

service• Claim forms

Simple Customer Self Service Portal• Secure Login• Policy information• Planning tools• Forms to print• Update address• Update contact• Pay bill – set EFT• Improved Customer

Service Technologies:

• IVR• Chat

Customer Self Service - Advanced• Update beneficiaries• Add Products • Manage financial

information• Loan request• Payment history• Improved Customer

Service Technologies:• Mobile sites• Screen Sharing• Social Service• Mobile

Applications• E-delivery of

disclosures and bills

Integrative Experience• Simple profile with quote

request / application• Collaborative Workspace

through medical and underwriting

• eForms / E-signatures• Full Policyholder services

online• Claims management

online• Upsell / Cross sell• View policies across

business lines• Business Process

Automation technologies• Building a community

Simple, Friendly……..

30% of all internet traffic is Mobile based and climbing

Google adjusted mobile search algorithm to include mobile site readiness scoring

Reality

Distribution Enablement Maturity Curve

4

2

3

1

Agent Section in site• Public Information• Marketing

Materials• Phone based

service

Simple Agent Communications & Self Service Portal• Secure Login• Enter new Policy• Policy search &

information• Policy status• Planning tools for use

with prospects• Forms to print• Pay bill – set EFT• Commissions• Messages

Agent Self Service - Advanced• CRM: View all customers

and be able to communicate with them

• Ability to do a policy and submit for approval in one sitting

• E-forms,E-signatures• View policy status and

manage interactions with Prospect

• View claims and status• Proactive alerts• Simple mobile tools –

Education and Planning• Lead management

Integrative end to end Experience• Full Agent services online• Collaborative Workspace• Integration with external

data such as Funeral Homes

• Business Process Automation technologies

• Advanced mobile applications with offline mode. Ability to complete a policy and submit from customer home.

• Location based services• Lead sharing and Agent

interaction• Full CRM and marketing

functionality• Agent websites

Multisite Integrative Approach

Business Applications, Data, Content, People

Public Policy Holders Agents Employees

Information Management Content Mgmt. Targeting Doc. Mgmt Security &

Access Collaboration

Enterprise Search

Web Analytics

Quoting Policy Admin Claims Billing Commission

Education and Planning

19

Perception

Beyond Portals

Beyond Portals

• Education and Customer Life-stage/ Need focused site• E-commerce flow and analytics• E-applications, tablets for agents/ nurses, co-browsing

for CSR’s• Collaborative workspace Customer interactions and

service through medical and underwriting• Social and mobile customer service channels• Value added services and content to encourage retention• Marketing programs driven by Customer Intelligence

Social CRM

Consumers, Bloggers, Dieticians• Questions• Problems• Positive feedback• Dietician

interactions

CRM Generates• Email responses • Coupons• Refunds• Follow-up

reminders

Questions?