Slides from the March 10, 2016 eSignLive e-Signatures Summit for Insurance Executives. Presentation on Customer Experience in Insurance: Insurer Strategies, Plans and Progress

1. © Copyright Strategy Meets Action 2016© Copyright Strategy Meets Action 2016
Customer Experience in Insurance:
Insurer Strategies, Plans and Progress
0
March 10, 2016
Mark Breading
Partner
Strategy Meets Action
mbreading@strategymeetsaction.com
614.562.8310
Twitter @BreadingSMA

2. © Copyright Strategy Meets Action 2016
Strategy Meets Action Services NEXT-GEN INSURER
1
SMA is advising and guiding our customers…
- tap into infinite possibilities
- make wise strategic investments
- shape smooth transformations
… become NEXT-GEN INSURERS
DIGITAL
INSURER
CUSTOMER
EXPERIENCE
CORE
MODERNIZATION
BUSINESS
ANALYTICS
EMERGING
TRENDS & TECH
EVENTS
INNOVATION
RETAINER
CONSULTING
RESEARCH
Source: Strategy Meets Action 2016

3. © Copyright Strategy Meets Action 2016
4% 3% 4% 5% 4%
11%
3%
39%
33% 28% 24%
20%
20%
17%
44%
46% 51%
51%
44%
35%
33%
13%
18% 17% 20%
32% 34%
47%
2
Transforming
Growing
Sustaining
Surviving
Source: SMA Research, Insurance Ecosystem 2010, 2011, 2012, 2013, 2014, 2015, 2016
Current Company Mode: 7 Year Trends – All Insurers
2010 2011 2012 2013 2014 2015 2016

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Game Changers in Insurance
3
Source: Strategy Meets Action 2016

5. © Copyright Strategy Meets Action 2016
Top 5 Business Drivers Triggering Technology Investments
4
Source: SMA Research, Insurance Ecosystem 2016, n=116
38%
45%
47%
50%
54%Business optimization/transformation
Growth current lines/markets/geo
Customer service
Agent expectations & expanding channels
Percent of Insurers Citing
Customer expectations

6. © Copyright Strategy Meets Action 2016
Who is Your Customer?
5
Source: SMA Research, Customer Experience 2014, n=61
0%
16%
26%
26%
32%
Only agent/broker
Only policyholder
Policyholder first, agent/broker second
Agent/broker first, policyholder second
Policyholder and agent/broker equally
Percentage of Insurers Citing

7. © Copyright Strategy Meets Action 2016
Importance of Improving the Experience – Insurers
6
Source: SMA Research, Customer Experience 2014, n=61
Improving the Experience for
the Customer/Policyholder*
Improving the Experience for
the Agent/Broker*
19%
73%
6%
2%
13%
75%
6%
6%
The most important
driver of our
business strategy
Important element
along with several
other key elements
Part of the strategy
but not vital
Not part of the
business strategy
*Percentage of Insurers Citing

8. © Copyright Strategy Meets Action 2016
C-Level Role with the Primary Responsibility for Increasing Customer
Engagement/Improving Customer Experience
40%
17%
13%
11%
7%
6% 6%
0%
7
The
responsibility
is shared
between C-Level
executives
No C-Level
Executive
has primary
responsibility
Chief
Marketing
Officer
CMO)
Chief
Operations
Officer
(COO) Don’t
know/
not sure
Chief
Executive
Officer
(CEO)
Chief
Customer/
Customer
Experience
Officer
(CXO)
Other
C-level
(CIO, CFO,
CSO)
Source: SMA Research, Customer Experience 2014, n=61

9. © Copyright Strategy Meets Action 2016
Data & Analytics
Core
Customer
Products & Services
Emerging
Techs &
Trends
2016 Top Strategic Initiatives & Investments – All Insurers
8
Source: SMA Research, Insurance Ecosystem 2016, n=116
21%
17%
42%
63%
48%
44%
78%
74%
61%
70%
64%
85%
82%
Internet of Things, Wearables, Driverless Vehicles
Aerial Imagery, Drones, Geospatial, and Mapping
Outside Industry Partnerships
Innovation and R&D
Geographic Expansion
Risk Model Transformation
New Products and Services
Core System Replacement
Digital Insurer
New Customer Segments
Channel Expansion and Experience
Customer Engagement and Experience
Enterprise Data and Analytics
Percent of Insurers Citing

10. © Copyright Strategy Meets Action 2016
RELATIONSHIPS
• Personal Connection
• Agent
• Social Graph
• Multi-product
What Influences the Customer Experience?
9
Source: Strategy Meets Action 2016
COMMUNICATIONS
• Transactions
• Customer Documents
• Multi-channel Interaction
• Agent Discussions
VALUE
• Price
• Service Value
• Fit to Needs
• Product Performance
BRAND
• Reputation
• Net Promoter Scores
• Press
• Advertising
• Word of Mouth

11. © Copyright Strategy Meets Action 2016
RELATIONSHIPS
• Personal Connection
• Agent
• Social Graph
• Multi-product
What Influences the Customer Experience?
10
Source: Strategy Meets Action 2016
COMMUNICATIONS
• Transactions
• Customer Documents
• Multi-channel Interaction
• Agent Discussions
VALUE
• Price
• Service Value
• Fit to Needs
• Product Performance
BRAND
• Reputation
• Net Promoter Scores
• Press
• Advertising
• Word of Mouth

12. © Copyright Strategy Meets Action 2016
Top 5 Insurance Customer Experience Trends
11
Source: Strategy Meets Action 2016

13. © Copyright Strategy Meets Action 2016
Are You Developing and/or Executing a Strategy
for Channel Integration?* By Size
12
75%
25%
Yes
No
Source: SMA Research, Customer Experience 2014, n=61*Percentage of Insurers Citing
40%
60%
YesNo
Insurers Over $1B Insurers Under $1B

14. © Copyright Strategy Meets Action 2016
Status of Customer Journey Mapping
13
Source: SMA Research, Customer Experience 2014, n=61
6%
23%
6%
19%
21%
25%
Now
implemented into
our experience
systems
Plan
to map
Don’t know/
not sure
25%
Plan to implement
them into our
experience
systems
No current plans
to implement
No plans
to map
Customer
Journeys
Mapped
35%
Customer
Journeys
NOT Mapped
40%
Don’t know/
not sure
PercentageofInsurersCiting

15. © Copyright Strategy Meets Action 2016
Potential for Increased Electronic Input
14
61%
53%
35%
30% 29%
26% 25%
20%
Applications Attachments/
trailing
documents with
submissions
External data
for underwriting
(MVR, APS,
Property, etc.)
Premium
payments
Reports/
correspondence
from claims
providers
First notice of
loss/death
claims
Customer
letters
Regulatory
notices and
letters
2014-2016
Source: SMA Research, Paper to Digital 2012, and Insurance Documents, Correspondence and Communications 2014, n=112
Percent of Insurers Citing

16. © Copyright Strategy Meets Action 2016
Insurance Uses Cases for E-Signature
15
Sales
Policy
Service
Claims Partner/Vendor
P&C Personal Lines
P&C Commercial Lines
Workers Comp
Specialty Lines
Individual Life
Group Life
Annuities & Investments
Disability
LTC
Source: Strategy Meets Action 2016

17. © Copyright Strategy Meets Action 2016
Insurance Uses Cases for E-Signature
16
Sales
Policy
Service
Claims Partner/Vendor
P&C Personal Lines
P&C Commercial Lines
Workers Comp
Specialty Lines
Individual Life
Group Life
Annuities & Investments
Disability
LTC
Source: Strategy Meets Action 2016

18. © Copyright Strategy Meets Action 2016 17
The Ultimate 360 Experience
… across channels
… throughout the lifecycle
… for every interaction
… for immediate action
… with customer insight
Integrated
Unified
Right
Context
Real
Time
Informed
Ultimate
360
Experience

19. © Copyright Strategy Meets Action 2016
SMA Call to Action
18
Approach the customer/producer experience
as a major strategic initiative:
your competitors are!
Develop a strategy and plan for full channel integration:
beyond transactions to encompass all interactions
Map out customer journeys: capitalize by moving to implement
learnings in customer/producer systems
Implement an enterprise plan for e-signatures to enable digital
across the value chain
Source: Strategy Meets Action 2016

20. © Copyright Strategy Meets Action 2016 19
SMA Copyright
The material and observations contained in this publication have been developed
from sources believed to be reliable. SMA shall have no liability for omissions or
errors and no obligation to revise or update any data or conclusions should new
information become available or future events occur. © 2016 Strategy Meets
Action, Inc. USA. All rights reserved.