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  • 8/7/2019 KM - ICICI Prudential Life - India

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    October 2007

    Knowledge Management

    Perspective from a continuouschanging organisation

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    Presentation - Sketch

    India Economy & Industry

    India Life Insurance Industry

    ICICI Prudential Life Insurance Market Standing

    Growth

    Challenges & Need of the hour

    Decision support system

    Impact of DSS

    Journey so far & Way forward

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    One of the fastest growing economies

    India: FY 2007, others: calendar 2006Source : International Monetary Fund, The Economist and the

    OECD

    GDP Grow th Rates (2006)

    10.7%

    9.4%

    7.9%

    6.8%5.9%

    5.0%

    3.3%2.7%

    2.2%

    0.0%

    2.0%

    4.0%

    6.0%

    8.0%

    10.0%

    12.0%

    China India Singapore Hong

    Kong

    M alaysia Korea US UK Japan

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    Services sectorgrowth

    Industrial sectormomentum

    Favourabledemographics

    Knowledge capital Rural potential

    7.5

    9.09.4 9.3

    0.0

    1.0

    2.0

    3.0

    4.0

    5.0

    6.0

    7.0

    8.0

    9.0

    10.0

    2005 2006 2007 Q1 2008 E

    GDPgrowth

    (%)

    Globalisation

    CAGRduring1990s: 5.2%

    Indian economy: Key drivers of growth

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    Life insurance penetration & per capita (2006)

    33

    1,617

    34189

    1,480

    1,790

    2,4562,829

    5,140

    13.1%

    4.1%

    8.3%

    4.0%

    9.2%

    7.9%

    3.2%

    1.7%

    5.4%

    0

    1000

    2000

    3000

    4000

    5000

    6000

    UK Japan Hong Kong US Singapore Korea M alaysia China India

    Insuranceperca

    pita(USD)

    0.0%

    2.0%

    4.0%

    6.0%

    8.0%

    10.0%

    12.0%

    14.0%

    Insurancepen

    etration

    India life insurance opportunity

    Source : Swiss Re

    Only a third of the target population of 400 mn is insured

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    India life Insurance: An overview

    Distribution through agency only;2000 offices, 0.8 mn agents

    Push sales approach: Tax saving

    objective Traditional product offerings Pensions: Small part of savings

    Pre 2000: Public monopoly Market deregulated in 2000 ICICI entered in 2000 through

    partnership with Prudential Plc, UK

    Population: 1.12 bn Insurance penetration 4.1%

    Country

    Industry

    PreLiberalization

    Era

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    Source: IRDA, Swiss Re

    Penetration (as a% of GDP)

    Insurance premium

    per capita (Rs )

    Number of players

    1.2%

    ~280

    1

    FY 00

    NB premium (Rs bn) 64.00

    Total premium (Rs bn) 270.00

    CAGR of 42%

    CAGR of 30%

    Evolution of industry since liberalisation

    4.1%

    16

    FY 07

    754.00

    ~1,510

    1,696.00

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    0.00

    50.00

    100.00

    150.00

    200.00

    250.00

    300.00350.00

    400.00

    450.00

    FY 03 FY 04 FY 05 FY 06 FY 07 5m FY 08

    Rsbn

    LIC Private

    Y-O-Y Growth 16% 17% 34% 92%

    Industry growth

    Source : IRDA, Weighted New Business Premiums for individual business

    49%

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    1

    3

    4

    5

    2

    FY 03 FY 06FY 05FY 04 FY 07 5m FY 08

    Sustained private market leadership

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    Policy base

    Rapid expansion of policy base

    0

    1

    2

    3

    4

    5

    0.00

    1.00

    2.00

    3.00

    4.00

    5.00

    M

    n

    Dec 00 Oct 04 Feb 06 Oct 06 M ar 07 Aug 07

    16 months

    8 months

    44 months

    5 months

    5 months

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    Rapid distribution ramp-up

    We continue to create a nationwide agency network,complemented by increased focus on non-agency

    distribution

    Advisors (000)

    Non agency share

    Branches

    Locations

    Mar 05 Mar 06

    74 132

    107 177

    57 72

    30% 37%

    Aug 07

    535

    717

    226

    37%

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    Growth Coupled with Challenges

    60% of frontline are freshers

    25% Attrition

    People

    45 discontinued Products

    10 new products 39 Total products

    Products

    Process

    232 processes for each

    product

    Only 138 documented

    Servicing fordiscontinued process to

    be provided

    Transaction Survey

    * Time Period Nov Dec, 06

    Impact

    * Time Period 07-08

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    Need of the hour

    A solution, which will enable us to continuouslystay competitive by:

    Store all business logic in a centralized repository

    Supporting increased complexity of the business

    Leveraging the available skills of our employees toconsistently provide superior customer experience

    Increasing the efficiencies of operations

    Thereby, all employees can

    Anticipate, understand and deliver on the

    customer promise Shift their focus externally towards their customers

    Not grapple with overwhelming and constantly

    shifting complexity

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    Objectives Decision Support System

    Support Frontline in decision making process by useof technology

    Reduce dependency on senior professionals for

    complex service requests handling Release bandwidth of specialists Bring standardization, consistency and efficiency in

    service delivery function Facilitate and accelerate the learning program Reduce the cost of training

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    Aligning Knowledge Pockets

    Process NotesLegacy Systems

    Reason Total % Cum %Med Pickup 15 33% 33%

    Additional Req 13 28% 61%

    Delivery Delay 5 11% 72%

    Cascading Delay 5 11% 83%

    Branch Delay 3 7% 89%

    Dispatch Delay 3 7% 96%

    CUW delay 1 2% 98%

    Issuance Delay 1 2% 100%

    Grand Total 46 100%

    Spreadsheets

    VendorsApplications & data

    Experts

    KnowledgeRequired

    Every single customer interaction requires interaction with multiple knowledgepockets

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    HEAT

    DSS Design Architecture

    Call Center Branch CSEEmail Team

    Service

    Points

    Simple

    Transactions

    Rules Engine + Workflow

    Learning Management System

    Lack of understanding

    of process/productComplex

    Transactions

    Online Knowledge Base

    Issues

    Resolved

    throughCase Based Reasoning Solution

    for exceptional casesChat with expert using

    Collaboration Tools

    Identification

    of the complexityof customerproblem

    DSS

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    Impact on processes

    Tools Highlights

    Process: Annuity

    Annuity Automation-Crashed Learning curve from 20 to 3 days

    - Bulk annuity kit preparation instead of individual kit

    preparationProcess: Misselling

    Misselling Diagnostictool

    -Complex process with multiple decision points

    -No dependence on seniors for decision making

    - 90 % accuracy vis--vis manual decisions

    Process: e-Mail

    Easy E-mail- Automated template management tool

    - Search module hinting at right resolution ensuringaccuracy

    Process: FundAllocation

    Unit Journal calculator

    - Accuracy is critical as high Financial impact forcustomers

    - Over 11,000 NAV calculations - 100 % accurate

    - Enabling Descaling of centralized UJ calculation

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    Tools Highlights

    Processes Relook at each process put in the system

    Process changes on the fly made possible

    Resources One central locus for all resources

    Learning tool Part of Lesson plan in induction training

    Strain on buddy training reduced

    New joinee productive in shorter span

    Policy Admin and CRM system training relevant to

    the jobJob specific Training

    Overall Impact

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    Journey so Far & Way Forward

    Journey So far

    Commenced system development

    - June 06

    System launched in centralprocessing team November 06

    Monitored success over 6 months

    Way Forward

    Initiated development for

    remaining service teams

    Branch & ContactCentre November 07

    Claims January 08

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    Thank You

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    Unit Calculator

    Financial impactAuto picked up

    P A i

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    A brief Description of the KitD

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