launching a new insurer in a new market · launching a new insurer case study 2 tp compulsory only...
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LAUNCHING A NEW INSURER IN A NEW MARKET:
IMPLEMENTATION INSIGHTS
Bruce Sahd
7th Insurance Distribution & Insurtech Conference, 1 September 2017, Cape Town
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CASEJOHNSON IS AN INNOVATION PARTNER
§ How we helpo Strategy & Implementationo 3P approach – Plan, Pilot, Profit
§ What we specialise ino 3D strategies - Data, Direct, Digitalo Emerging markets - Africa & ME
§ Where we have workedo SA, Ghana, Nigeriao UAE, Lebanono India, Sri Lanka
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§ text Setting the scene..
Are insurers good innovators?
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§ KPMG’s global survey* notes that “almost seven-in-ten respondents say that they believe partnerships, not in-house efforts, will characterize the future of innovation for their organization. Fifty-nine percent of respondents say they already work with external advisors and consultants to drive innovation.”
§ “too many in the insurance world are focused on operational innovation rather than strategic growth-oriented innovation”
§ “The potent combination of data and digital is driving increased innovation within the sector”
§ “Respondents from the Property & Casualty (P&C) sector reported being more focused on innovation-led growth than their Life & Health peers”
* Source: www.kpmg.com/CN/en/IssuesAndInsights/ArticlesPublications/Documents/A-New-World-of-Opportunity-insurance-innovation-O-201509.pdf
INSURERS ARE USING PARTNERS TO INNOVATE
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§ EY in their digital insurance survey* notes that Insurers ambitions are high, but are constrained by digital capabilities and by traditional culture
§ Insurers want more direct control and better customer experience, but are faced with channel conflict
§ Data analytics is critical to future digital success
DIGITAL INSURANCE IS STILL IN EARLY DAYS
* Source: EY "Insurance in a digital world: the time is now"
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EXISTING TEAM IS OFTEN LEAST PREFERRED
Source: The Digital Insurer, Poll 2015
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§ text CASE STUDIES:
1- Launching a new STRATEGY
…which is very different from
2- Launching a new INSURER
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§ text
Case Study No. 1
Launching a new STRATEGY
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LAUNCHING A NEW STRATEGY
§ First ever tele-bancassurance project in Ghana launched in early 2017
§ Responsible to plan strategy and steer implementation of the pilot campaign
§ Selling a simple life product to bank customers over the phone
§ Regulators approved electronic signature but with strict conditions
§ Outsourced sales to a local contact centre
C A S E S T U D Y 1
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LAUNCHING A NEW STRATEGY
§ Local experience was lacking§ Learning curves were steep§ Tactical interventions were needed!
C A S E S T U D Y 1
§ Target was achieved !
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In my experience, failure is because of…
§ Vision: Not a clear enough vision nor commitment to see it though§ Strategy: Launched on the wrong strategy§ Structure: Run by existing team not by a separate accountable business unit§ Priority: Under-prioritised and derailed by core business priorities§ Skills: Unable to secure the right specialist skills who’ve done it before§ Urgency: Lack of urgency without clear goals and deadlines”§ Planning: Badly planned, poorly budgeted, unrealistic timelines§ Risk management: Faces risks that were never identified in planning§ Resources: No devoted resources, focus & leadership
W H Y SU C H IN N O VAT IO N PR O JEC T S O F T EN FA IL
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§ text
Case Study No. 2
Launching a new INSURER
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LAUNCHING A NEW INSURER
§ Doozy Insurance created in May 2017 § First direct insurance brand in
Lebanon (possibly ME)§ Lebanon is a small market but a
leader in the ME region§ Quest Global is the key driver &
manages operations§ Arope Insurance is brand owner,
underwriter and key partner
C A S E S T U D Y 2
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LAUNCHING A NEW INSURERC A S E S T U D Y 2
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o planned the strategyo built the technologyo designs the productso provides the call centreo administers the policieso operates the venture
o owns the brando underwrites the productso pays the claimso funds the venture
A DIRECT INSURANCE BUSINESS BY AROPE, OPERATED BY QUEST
LAUNCHING A NEW INSURERC A S E S T U D Y 2
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LAUNCHING A NEW INSURERC A S E S T U D Y 2
TPCompulsory Only
(bodily)
TPLiability
(bodily & material)
ComprehensiveAll Risk
$ 65 $ 120 $ 800
TPGRGuaranteed
Recovery
COLARCollision All Risk
CMP50Comprehensive
50% adv bonus
$ 600$ 350$ 200
300 k 600 k 300k
12k30k60k
= 1.2m total
15k
10% 5% 2% 5%
= 117k sales
§ Started with Motor lines of insurance§ Market has a big gap between upper end & lower end§ New products were designed to fill the affordability gap§ Distribution strategy is also to target the better risks§ Aims to grow the market & take a share
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data
data
data
data
data
data
data
data
data
LAUNCHING A NEW INSURER
LEAD SOURCING SALES CONVERSION
A 3-D strategy is underpinned by DATA, DIGITAL & DIRECT
C A S E S T U D Y 2
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LAUNCHING A NEW INSURER
“Every insurer should have a data strategy first, and a digital strategy second, even if they don’t necessarily have a direct strategy”
Over H. Eard
C A S E S T U D Y 2
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§ text
Implementation Insights
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Innovation is easy to talk about
but difficult to do!
Insight No. 1
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Data, Direct & Digital are implemented together
we saw obvious synergies between the 3D’s
Insight No. 2
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Data is always at the core
we launched with data-driven technology platforms
Insight No. 3
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Direct delivers quickly
we set up a small telesales team to bring in some early sales
Insight No. 4
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Digital is a journey
we started patiently using SEM & Facebook
Insight No. 5
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Choose your partners carefully
we sold the strategy to an insurer with vision & courage
Insight No. 6
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Lean on an old brand to build a new one
we leveraged our partners brand at every turn
Insight No. 7
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Don’t launch new ventures with old cultures
we agreed on the need to operate separately from our partner
Insight No. 8
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Navigate carefully around regulation
we leaned heavily on our local insurance partner
Insight No. 9
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Don’t skimp on planning
we involved the core team and wrote it all down
Insight No. 10
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Manage every campaign as a project
we used a strict project management approach to track & learn
Insight No. 11
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The project manager rules
we appointed one person to be the central driver
Insight No. 12
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Be guided by specialist advisors
we sourced a multinational panel of experts who’d done it before
Insight No. 13
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Embrace startup culture
we hired a team that is comfortable with uncertainty
Insight No. 14
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Piloting is about testing & learning only
we kept reinforcing that making money is not the initial goal
Insight No. 15
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Technology must remain a tool of strategy
we didn't allow the techies to take over
Insight No. 16
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Find a media agency that loves science
we insisted on only buying media if ROI is measurable
Insight No. 17
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Don’t aggravate intermediaries
we only point out that distribution economics will change
Insight No. 18
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Make a splash with an innovative product
we launched with a flagship product that had instant appeal
Insight No. 19
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Reporting must be real-time
we covered the walls with dashboard screens
Insight No. 20
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§ text
Thank You &
Good Luck!