Commercial in Confidence © Target Group Limited 2014

Omni Channel Insurance Broker Distribution

The Customer Journey and Generational Effect

Simon Burgoyne

November 2014Commercial in Confidence

Commercial in Confidence

The Four D’s of Insurance

Digital Distribution

Dynamic Products

Data

Disruption

Commercial in Confidence

The Four D’s of Insurance

Digital Distribution

Dynamic Products

Data

Disruption

• Customer – 360 Degree view• Internal Data• External Data Sources• Big Data and Analytics

• Configuration Based• Data Driven• Proposition vs Product• Customer Lifestyle

• Omni Channel• Customer Segmentation• Sales Origination• Self Service

• New Entrants• New Models• Affinity Partner Models• Global and Regional Business

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The Four D’s of Insurance

http://www.targetgroup.com.au/whitepaper

It was to increase understanding of the changes and challenges

that Target Group commissioned thisresearch surveying attitudes

and practices in the insurance industry.

Whilst thisreport cannot cover thefull impact and range of

transformation weexpect this wave to causein thecoming years,

the research does identify threekey areas where the change islikely

to be particularly profound:

These “ThreeDs” will form alarge part of the industry’sresponse

to a “fourth D” that is aconsistent theme in thisreport:

The Four D’s

Dynamicthe growing need for dynamic products that reflect

customers’ requirements

Distributionchanging distribution patterns to reflect customer

expectations and engagement

Dataincreased use of which must be harnessed

to competitive advantages

Disruptionthe disruption new technology is bringing

to the market

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How evolved is your digital distribution channel strategy?

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Evolving Insurance Distribution

Agent/broker Retailer BankOther

intermediary (eg employer)

Agent/broker

Insurer

Customer

Insurer

Customer

Ow

n s

ale

s fo

rce

E-c

om

merc

e:

Inte

rnet,

tele

sale

s etc

.

Ow

n s

ale

s fo

rce

Traditional model Multi-channel model

Direct Intermediated

Source: Swiss Re, Sigma Digital Distribution in Insurance: A Quiet Revolution (No2/2014)

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Broker Internal Systems

Traditional Broker Channel ModelsInsurance Company #1

PAS #1

Products / Policies

PAS #2

Products / Policies

Broker OfficesInternet Channels / Affinity

PartnersMobile

Channels

Contents Website

Process Flow

Product Definition and Rules

Internal Broker Products

Process Flow

Product Definition and Rules

Insurance Company #2

PAS #2

Products / Policies

PAS #1

Products / Policies

Motor Website

Process Flow

Product Definition and Rules

Commercial Website

Process Flow

Product Definition and Rules

Broker Interconnection Networks

CRM

Customers/ Prospects

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Challenges

Traditional “Channel Model” = Website

Developed in Java, .Net

Insurance product logic and business rules embedded in website:

Product questions / workflow, rules

Typically linked to insurance provider backend

Changes of product = Redevelopment of website

Costs of channel delivery and maintenance is high

Limits rate of change / market agility

Single website fits all customer needs

No channel personalisation

No customer segmentation

Product centric vs customer centric

Typically one website per product (Life, motor, home and contents etc.)

No cross website or channel integration

Customer data ownership

Quotes and data in backend insurance company systems

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The Customer Journey

Source: Swiss Re, Sigma Digital Distribution in Insurance: A Quiet Revolution (No2/2014)

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The Generation Factor

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The Generation Factor

Source: Genworth Financial, Spotlight Series Issue 4:Generation Y - Profile of the New Generation

How do you generate business from all generations?

Channels, segmentation, personalisation to meet the needs of all

generations

Service expectations driven by Google, Facebook,

Amazon etc.

Emerging Generation Y

High disposable income

Now acquiring assets

Property – large mortgages

Influenced by peers

Support social factors and causes

Won’t tolerate slow service

Little loyalty

Demands personalised service

Generation Age

Baby Boomers 53-61

Generation Jones 43-52

Generation X 30-42

Generation Y 18-29

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Digital Sales and Marketing Platform

Supports the customer buying journey

Makes it easier for the customer to buy

Customers feel compelled to buy vs sold too

Integrated customer experience

Across all channels and lines of business

Lowers the cost of acquisition

Reduces time to market

Component based

Emerging new products

Integration

Paradigm shifting software

IF Channel

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Broker – Marketing Systems

Digital Sales and Marketing Platform

Broker Online Systems

Outbound Print, News, Email, SMS, Social, TV, Radio

AffinityChannels

Internet Channels

Call Centre Channels

MobileChannels

Website - Content Management, Personalisation and Tracking

Insurance Company #1

PAS #1

Products / Policies

PAS #2

Products / Policies

Insurance Company #2

PAS #2

Products / Policies

PAS #1

Products / Policies

Broker Office Channels

Sales OriginationSelf

ServiceBig Data Analytics

CRM

Leads / Prospects

Campaign Management

Profile and Segmentation Management

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Broker – Marketing Systems

Where does IF Channel fit?

Big Data Analytics

Broker Online Systems

CRM

Leads / Prospects

Outbound Print, News, Email, SMS, Social, TV, Radio

AffinityChannels

Internet Channels

Call Centre Channels

MobileChannels

Website - Content Management, Personalisation and Tracking

Insurance Company #1

PAS #1

Products / Policies

PAS #2

Products / Policies

Insurance Company #2

PAS #2

Products / Policies

PAS #1

Products / Policies

Broker Office Channels

iBuilderChannel

& Product Config.

IF ChannelChannels created using schemed channel product & wizard,

then combined with website content

Quotes

U/W Rating

Reporting

Docs

Sales Origination Self Service

Campaign Management

Profile and Segmentation Management

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Segmentation Strategies Traditionally one online channel per product fits all

New buying patterns require different strategies

Multiple channels per product based on customer /

prospect segmentation Channel products schemed, segmented and sold via multiple distribution channels each

with own branding, UX, rating, workflow, product questions etc.

Unique channel experience across multiple distribution interfaces

Segmentation by: Type

Generation

Group – e.g. language, specialist interest

Usage

Profile

E.g. motor: Type - car type, make, model

Owner profile

Generation

Usage and location

By car club, culture

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Channel Trends

Migration from discrete product to customer propositions

From sold too to compelling offering

Bundled lifestyle offerings

Based on profile, data insights

Generation requirements

Gen Y value experience over pricing

Baby Boomers – Australia’s NRMA Insurance over 50’s website

New products based on consumption, location,

environment and risk at point in time

Degree of channel personalisation

Learning from retailers

Privacy vs personalisation

Ultimately personalised insurance offerings

Dynamically assembled

Personalised user experience

Served via the appropriate channel based on profile

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IF Channel – At the Core Dynamic sales origination given new market dynamics

Generational effects, personalisation, big data insights

Configuration based channel products and channels

Reconfigure products – no development

Separation of product logic and ‘look and feel’

Configure complex channel products, multi risk and lifestyle

Customer segmentation and profiles

Enables A/B multivariate testing

Omni channel customer experience across multiple channels

Seamless integration with brand, website etc.

Time to market and revenue

Unlock new business opportunity – target customers

Target markets

Insurance – direct/ brokers/ aggregators, banks, investments, lending and utilities

Sales origination, self service

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Some Questions:

How will you evolve from custom web

development to rapid channel configuration? Alignment with market segmentation

Integrated across all lines of business – GI, Life, Wealth, Finance etc.

How is your channel strategy placed to meet the

needs of Gen Y and all Generations ? They are buying now

What will your digital distribution platform look

like in 2020?

How will you rapidly take advantage of new

insurance revenue opportunities that suddenly

arise ?

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www.targetgroup.com.au

Simon Burgoyne

Business Development Manager ANZ

LinkedIn: linkedin.com/in/simonburgoyne