km - icici prudential life - india

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

1/22

October 2007

Knowledge Management

Perspective from a continuouschanging organisation


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2

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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3

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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4

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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5

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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8

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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16

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 KitDecision based on information available in data base

Preparing Letter - Required Template providedDecision Criteria

Quotation Preparation

Decision CriteriaActioning in CRMDispatching the Kit Process completed

Process - Annuity

km - icici prudential life - india

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