What's Insurance 2.0? Why Insurers need to embark on it? What to do and how to implement Insurance 2.0? These are the common questions with Insurers these days.
In this presentation, Don shared the rationale, the strategy and the methodology on why, what and how Insurers are to move forward with Insurance 2.0.
Insurance 2.0 : The Way Forward - Rationale, Strategy, Methodology
1. 21 July 2011 Private & Confidential | Copyright 2011 @ 121advisor INSURANCE 2.0The Way Forward Insurance 2.0 : The Rationale and The Strategy By Don Tan, Senior VP Business Consultancy
2. Insurance 2.0 : The Way Forward 21 July 2011 Private & Confidential | Copyright 2011 @ 121advisor Page 2
7. INSURANCE 2.0 Insurance 2.0Evolving Role of Internet / Web for Insurance & Takaful Web 2.0 Social Personal e.g. Social Network Marketing Friend’s Review & Feedback, Expert / Blogger’s Advice … … Transactional e.g. Simulators - Need Analysis - Product Advisory - Self-Service Process … … INTERNET Interactive e.g. E-Cover Note - E-Proposal - Online Sales … … e.g. Online Quotes - Games - Contests - Request Submission … … Informational e.g. Corporate Websites - Product Catalogue - Downloads … … Web 1.0 21 July 2011 Private & Confidential | Copyright 2011 @ 121advisor Page 5
10. Trend & Choice of Communication / Information channel21 July 2011 Private & Confidential | Copyright 2011 @ 121advisor Page 6 Watch “Social Media in Plain English” Video at http://vimeo.com/groups/23930/videos/11551721
11. WHY Insurance 2.0Where Consumers Are : Social Web ! 21 July 2011 Private & Confidential | Copyright 2011 @ 121advisor Page 7 11.3 mil Malaysians Members > 3 billion views per day (average person spent 15 min a day on YouTube) 726 million 200 million > 200 million Blogs 119 million 3.7 million articles 15 million Wikipedians 24.5 million pages
12. WHY Insurance 2.0How Consumers prefer to Interact : Where They Are ! If insurers are serious about getting closer to their customers, they should forego conventional “channel” strategy development and instead focus on quality interactions.Based on input from more than 21,000 consumers in 20 countries, we believe insurers need to create an interaction mix that appeals to their particular target audiences. To find out what matters, insurers need to take a different approach to segmenting their customers – one based on psychographicsnot demographics. December 2010 21 July 2011 Private & Confidential | Copyright 2011 @ 121advisor Page 8 IBM Institute of Business Value
13. WHY Insurance 2.0How Consumers Evaluate Your Brand : Social Web ! 21 July 2011 Private & Confidential | Copyright 2011 @ 121advisor Page 9 the most credible spokesperson a company can have is a "person like me”… the share of people who trust “a person like me” more than they trust brands or organizations is increasing globally… Brand? Product? Service? global survey 2010 agent bank
14. WHY Insurance 2.0What Consumers Expect to have : Rich Experience and Fun ! Games Simulator Advisors Characters 21 July 2011 Private & Confidential | Copyright 2011 @ 121advisor Page 10
15. WHY Insurance 2.0Where Consumers Prefer to Shop Next : Online ! 21 July 2011 Private & Confidential | Copyright 2011 @ 121advisor Page 11 Growing Trends
16. WHY Insurance 2.0How Consumers Talks about You : You can’t Control ! 21 July 2011 Private & Confidential | Copyright 2011 @ 121advisor Page 12 If you worry about losing control in the age of social media, stop. It has already happened — you no longer control the majority of the information that people hear or trust about your brand.
22. Lead generation of younger prospects for Agency force21 July 2011 Private & Confidential | Copyright 2011 @ 121advisor Page 13
23. WHY Insurance 2.0Web Channel : More Competitive Pricing 21 July 2011 Private & Confidential | Copyright 2011 @ 121advisor Page 14 Australia: Online Aggregators Threaten Insurers’ Premium Revenue An estimated A$1.8 billion (US$1.97 billion) of commercial and personal insurance premiums are at risk for Australia’s largest insurers from so-called “contestable platforms”, technology that allows brokers and customers to compare prices of products online
47. Consumer Experience Management 2.0Applying the Right Web 2.0 Value to the Right Audience 21 July 2011 Private & Confidential | Copyright 2011 @ 121advisor Page 25 Contest Microsite Games Reminders Point-of-Sales Simulators
48. Insurance 2.0 : A Webassurance ChannelComplementary and Supplementary to all Channels AGENCIES WEBASSURANCE BANCA TELEMKTG CYBER AGENTS PARTNERS BRANCHES 21 July 2011 Private & Confidential | Copyright 2011 @ 121advisor Page 26
89. Webassurance Strategy ConsultancyOperationalize Webassurance as Your Insurance 2.0 Channel Strategize To analyze and assess Insurer’s Go-To-Market conditions, Sales and Offerings positions, and Implementation capabilities for Webassurance Analyze To define Market Strategy and Offerings Strategy, perform Impact Analysis, prioritize and propose an effective, realistic and long term Webassurance Strategy Plan for Insurer Organize To plan and propose the Detailed Implementation Action Plan in phases, and mobilize the Resources for the Implementation of Webassurance for Insurer upon approval Realize To execute the Detailed Implementation Action Plan to bring Webassurance live for Insurer Improvise To perform Post Implementation Reviews at the end of each phase or key milestones, assess the achievements, recommend, and fine tune the Implementation Strategy and/or Action Plan where required, continuously 21 July 2011 Private & Confidential | Copyright 2011 @ 121advisor Page 30
90. Webassurance Strategy ConsultancyOperationalize Webassurance as Your Insurance 2.0 Channel Strategize To analyze and assess Insurer’s Go-To-Market conditions, Sales and Offerings positions, and Implementation capabilities for Webassurance To define Market Strategy and Offerings Strategy, perform Impact Analysis, prioritize and propose an effective, realistic and long term Webassurance Strategy Plan for Insurer Analyze To define Market Strategy and Offerings Strategy, perform Impact Analysis, prioritize and propose an effective, realistic and long term Webassurance Strategy Plan for Insurer To assess the Strategy defined, perform Impact Analysis, prioritize and propose an effective, realistic and long term Webassurance roadmap Organize To plan and propose the Detailed Implementation Action Plan in phases, and mobilize the Resources for the Implementation of Webassurance for Insurer upon approval To plan and propose the Detailed Implementation Action Plan in phases, and mobilize the Resources for the Implementation of Webassurance for Insurer upon approval Realize To execute the Detailed Implementation Action Plan to bring Webassurance live for Insurer To execute the Detailed Implementation Action Plan to bring Webassurance live for Insurer Improvise To perform Post Implementation Reviews at the end of each phase or key milestones, assess the achievements, recommend, and fine tune the Implementation Strategy and/or Action Plan where required, continuously To perform Post Implementation Reviews at the end of each phase or key milestones, assess the achievements, recommend, and fine tune the Implementation Strategy and/or Action Plan where required, continuously 21 July 2011 Private & Confidential | Copyright 2011 @ 121advisor Page 31
98. Webassurance Strategy ConsultancyHOW to implement Insurance 2.0 effectively Strategize Analyze To assess the Strategy defined, perform Impact Analysis, prioritize and propose an effective, realistic and long term Webassurance roadmap Organize Assess Prioritize Propose Decide Realize Costs-Values-Analysis Improvise GO Values / Returns No-GO Costs / Risks 21 July 2011 Private & Confidential | Copyright 2011 @ 121advisor Page 33
99. Webassurance Strategy ConsultancyHOW to implement Insurance 2.0 effectively Strategize Analyze Organize To plan and propose the Detailed Implementation Action Plan in phases, and mobilize the Resources for the Implementation of Webassurance for Insurer upon approval Realize Improvise 21 July 2011 Private & Confidential | Copyright 2011 @ 121advisor Page 34
100. Webassurance Strategy ConsultancyHOW to implement Insurance 2.0 effectively Strategize Analyze Organize Realize To execute the Detailed Implementation Action Plan to bring Webassurance live for Insurer Improvise 21 July 2011 Private & Confidential | Copyright 2011 @ 121advisor Page 35
101. Webassurance Strategy ConsultancyHOW to implement Insurance 2.0 effectively Strategize Analyze Monitor Manage Organize OPERATIONAL Realize Revise Review Improvise To perform Post Implementation Reviews at the end of each phase or key milestones, assess the achievements, recommend, and fine tune the Implementation Strategy and/or Action Plan where required, continuously 21 July 2011 Private & Confidential | Copyright 2011 @ 121advisor Page 36
102. Use CEM 2.0Applying the Right Web 2.0 Value to the Right Audience 21 July 2011 Private & Confidential | Copyright 2011 @ 121advisor Page 37 Contest Microsite Games Reminders Point-of-Sales Simulators
103. Use CEM 2.0Internet Web 2.0 Tool Effectiveness Matrix Example Very Useful Useful May be Useful 21 July 2011 Private & Confidential | Copyright 2011 @ 121advisor Page 38
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105. For Insurance purposes, they are usually used to trigger awareness and attention to the Users on their needs for protection, investment, and/or savings so that they will purchase Insurance policies.
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107. Simulators usually do not transact any sales of policies, but will lead to Point-of-Sales engine/webpage when prospect intended to purchase.
108. As life progress and statuses change, users may return to the simulators to perform simulation based on their latest statuses.21 July 2011 Private & Confidential | Copyright 2011 @ 121advisor Page 39