3. Discussion
agenda
1
Presenta8ons:
Emma
Royall:
Direct
Life
@
FWD
David
Cook:
Reinsurers
Perspec*ve
Erick
Qin:
Digital
Life
in
China
KS
Gopalakrishnan:
Digital
Life
in
India
Hugh
Terry:
Strategic
summary
2
Ques8ons
and
Answers
3
Snap
Poll
–
share
your
view
4. Ques8ons
&
Answers
How
to
par8cipate:
If
you
have
a
ques*on
please
type
into
the
messaging
area
and
send
to
the
presenters
Session
format:
The
moderator
will
use
a
combina*on
of
his
own
ques*ons
and
those
from
the
audience
6. FWD
DTC:
Establishing
a
4th
Distribu8on
Pillar
Bancassurance
including
Banc
Telemarke8ng
Alterna8ve
Retail/Group
Assurance
Tradi8onal
Agency
Direct
&
Affinity
Marke8ng
Underlying
vulnerability
in
the
exis3ng
primary
channels
is
that
Customer
ownership
and
Marke3ng
rights
is
retained
to
a
lesser
or
greater
extent
by
the
3rd
party
owner.
Customer
Ownership
Bancassurance
including;
F2F
and
Telemarke8ng
Alterna8ve
&
Retail
Assurance
F2F
&
Telemarke8ng
Tradi8onal
Agency
(F2F)
7. Having
a
D&A
business
and
in
par8cular,
the
DTC
component
offers
some
key
strategic
benefits
for
FWD
CUSTOMER
OWNERSHIP
CUSTOMER
RETENTION
CUSTOMER
ANALYTICS
OMNI-‐CHANNEL
DISTRIBUTION
DIGITAL
EXCELLENCE
Capability
to
develop
a
fully
owned
customer
base
with
unrestricted
marke*ng
rights
Opportunity
to
dialogue
with
our
customers
through
omni-‐
channel
leading
to
greater
reten*on
&
engagement
Ability
to
acquire
rich
customer
data
in
turn
allowing
a
deep
analy*cs
strategy
to
provide
*mely
and
relevant
product
offerings
to
our
customers
Be
amongst
the
first
few
insurers
in
Asia
with
1st
mover
advantage
in
the
DTC
space.
Opportunity
to
transform
CX
from
a
one-‐
dimensional
approach
to
one
based
on
personaliza*on
&
relevancy
Benefits
to
FWD:
from
deploying
DTC
8. A
liYle
story…
The
D&A
pla_orm
has
to
align
to
our
3
strategic
differen*ators
to
deliver
a
CVP
that
upholds
our
brand
promise
to
our
target
segments
from
A
to
G
We
aim
to
build
a
sizeable,
owned
customer
database
which
can
be
nurtured
through
a
tailored
strategy
which
offers
scope
to
establish
mul*ple
sales
and
life
*me
value
(Life
and
Non
Life
Products)
The
CVP
should
prove
the
embedded
value
of
customer
engagement
The
CVP
should
prove
Ecommerce
and
Direct
to
Consumer
strategies
and
remain
agile
in
it
ability
to
change
course
We
must
develop
a
porolio
of
strong
affinity
partners
that
will
accelerate
brand
awareness
of
FWD
in
the
market
and
likewise
perpetuate
greater
trust
and
credibility
by
associa*on
with
well
known
consumer
brands
Cri8cal
Success
Factors:
for
a
Direct
&
Affinity
Strategy
Build
and
embed
from
outset
a
data
acquisi8on,
management
and
analy8cs
strategy
enabling
FWD
to
tailor
its
products
and
services
for
our
customers
CVP
Owned
Database
Engagement
Ecommerce
&
DTC
Affinity
Data
9. A
liYle
story…
iFWD
Hong
Kong:
DTC
Overview
• Integrated
Digital
Strategy
to
create
awareness,
engage
with
consumers,
drive
traffic
and
educate
prospects
• Treated
as
a
‘business
within
a
business’
and
thus
has
a
full
team
of
DTC
FTE’s
dedicated
to
its
24
hour
servicing
and
ongoing
development
(Product,
Marke*ng,
Actuarial,
etc.).
• Proposi*on
is
designed
for
our
target
segment
in
HK
–
similar
profile/demographics
to
Millennials
• Built
an
O2O
(online
to
offline)
model
that
has
proven
to
be
very
successful
for
more
complex
products
(e.g.
Savie
which
is
classified
under
Life)
• Product
amrac*veness
is
important
to
secure
interest
from
customers
• A
strong
CX,
product
simplicity
and
purchase
ease
have
proven
to
be
crucial
for
success
• Striving
towards
either
predic*ve
or
automa*c
underwri*ng
wherever
possible
10. A
liYle
story…
iFWD
Hong
Kong:
What’s
to
come
in
2016?
• Pipeline
of
differen*ated
products
for
launch
in
2016
• Deploying
a
dynamic/animated
digital
FNA
(financial
needs
analysis)
form
to
address
regulatory
requirements
for
the
sale
of
Life
products
in
Hong
Kong
• Growing
por_olio
of
affinity
partners
to
offer
policyholders
related
products
and
services
from
reputed
HK
brands
• Increasing
assisted
sales
capacity
11. A
liYle
story…
iFWD
Indonesia:
Features
• Simple,
differen*ated
products
e.g.
PA
with
no
exclusions.
• Guaranteed
Acceptance
with
the
excep*on
of
a
few
dangerous
occupa*ons
• Easy
to
buy,
and
soon
bringing
in
Single
Premium
version
• Instant
Support
(Click
to
Chat
func*onality)
for
assisted
sales
• Simple
Claim
Process
• Responsive
site
–
pay
on
mobile
12. A
liYle
story…
iFWD
Indonesia:
Challenges
Galore
• Overall,
awareness
about
the
category
of
Insurance
is
very
low.
Our
research
indicates
that
in
a
popula*on
of
90m
internet
users,
only
50,000
of
those
are
searching
for
insurance
every
month
• Working
with
pipeline
of
strong
affinity
partners
to
posi*on
our
product
alongside
well
known
Indonesian
brands,
at
the
point
of
sale
• The
nascent
ecommerce
market
in
Indonesia
means
that
key
components
of
the
purchase
process
are
s*ll
poor
in
their
delivery.
E.g.
payment
gateways
are
clunky
and
offer
poor
integra*on
with
ecommerce
pla_orms
themselves
• Persistency
and
renewals
are
proving
challenging
13. A
liYle
story…
Key
Learning’s:
from
iFWD
HK
&
Indonesia
There
needs
to
be
sufficient
ABT
and
BTL
marke8ng
investment
made
available
for
the
program
launch
to
generate
a
sufficient
level
of
awareness
and
traffic
to
the
site.
For
a
new
program
and
digital
brand
presence
to
have
any
chance
of
gaining
a
foothold
in
the
market
the
investment
needs
to
be
a
material
amount
and
not
represent
a
“toe
in
the
water”
approach.
A
well
built
contact
centre
with
requisite
resource
needs
to
be
in
place
to
convert
leads
generated
via
ATL
marke*ng
and
also
to
service
consumers
who
prefer
human
contact
Lead
Genera8on
must
be
an
integral
pillar
of
the
DTC
strategy
in
a
market
where
payment
and
STP
can
be
challenging
due
to
low
penetra*on
of
credit
cards
and
billings
mechanism
in
order
to
make
the
economics
of
the
channel
amrac*ve.
Quality
Lead
Genera*on
cannot
occur
without
strong
investment
in
ATL
marke*ng
A
seamless,
and
well
constructed
Online
to
Offline
(O2O)
model
must
be
in
place
to
service
consumers
who
prefer
human
contact
The
payment
gateway
(and
payment
process)
needs
to
be
best-‐in-‐class
and
water*ght
to
facilitate
seamless
straight-‐through-‐processing
and
strong
purchase
CX.
It
should
also
allow
for
mul*ple
payment
methods
and
frequencies
14. A
liYle
story…
Key
Learning’s:
from
iFWD
in
HK
&
Indonesia
Affinity
Partnerships
are
impera*ve
to
the
success
of
iFWD
–
providing
access
to
customer
bases
of
notable
scale,
and
offering
the
poten*al
of
further
value-‐added
partner/merchant
services
to
our
iFWD
customers.
Affinity
Partners
can
also
be
important
influencers
and
brand
ambassadors.
The
product
offering
needs
to
be
differen*ated
but
this
should
not
be
the
core
value
proposi*on
for
iFWD
understanding
that
most
“innova*ve
product
proposi*ons”
will
be
commodi*zed
very
quickly.
Therefore
flexibility
of
premium,
and
ability
to
‘customize’
product
for
the
customer
is
an
important
feature
in
the
provision
of
a
strong
CX.
Recogni*on
that
in
order
for
DTC
to
succeed,
it
must
be
treated
as
a
business
within
a
business.
And
as
such,
requisite
resource
and
funding
needs
to
be
allocated
to
enable
the
model
to
scale
up
with
speed.
KPI’s
and
success
metrics
must
differ
from
tradi8onal
insurance
channels.
Using
APE
and
VNB
as
measures
of
success
will
only
result
in
disappointment.
The
channel
takes
*me
to
develop
15. Digital Life Insurance in
Asia : Reinsurer’s
Perspective
David Cook – Head of Distribution Solutions L&H Asia, Swiss Re
February 2016
16. § The digital consumer’s expectations
– Digital channels are an essential part of a consumers’ daily lives
– insurers responding with a relevant digital proposition which
optimises the experience across all customer touch points is key.
– The increasing use of social media generates a huge amount of
data and information exchange that insurers can use to better
understand & forge stronger connections with their customers.
§ New data & technologies provide a radical
transformation opportunity for life insurers
– New technologies will support stronger customer engagement
aiding distribution models and processes.
– Underwriting & risk management practices can be potentially
improved by reducing the length an invasiveness of risk
assessment; enhancing risk selection and refining policy pricing.
– Supports a better understanding of underlying risk factors (in a
digital environment)
§ Omni channel access & support
– Omni channel distribution models are becoming increasingly
expected by our customers. Accommodate for varying customer
preferences throughout the buying & servicing journey.
Introduction
The digital landscape in life & health insurance
17. 17
Key considerations for digital life & health insurance
Risk Management
• Establish a clear understanding of the risk
(new & different) that applies to life &
health insurance in a digital environment
& how does this differ to traditional offline
risks?
• Social listening skills are being developed
by insurers to manage reputational risk on
social media
• Accessing, storing and using new forms
of data comes with additional risk that
needs to be carefully managed and
understood
IoT + New & Alternative Data
sources
• Data from wearables & health monitoring
devices provide a new opportunity to
monitor & manage risks as well as
personalise pricing and adapt product
offerings
• eHealth developments & platforms for
sharing data by end customers will
support the transformation of life & health
insurance underwriting
• Unique engagement opportunity
Automated Underwriting
Systems
• Enhance the customer journey through
technology – multi channel
• Varying functionality & decision types
• Opportunity for insurers to turn data into
knowledge to deepen their
understanding of risk.
• Cognitive computing – developments
will push automated underwriting to
new levels
• IBM Watson
- Overcome the misconception that offline = online
- Awareness & response to shorten attention spans and online expectations
- An interactive customer buying & servicing journey must be created
- Engagement tools & techniques will become the new standard
Create an online experience
20. 0
50,000,000
100,000,000
150,000,000
200,000,000
250,000,000
300,000,000
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
Total
Premium
Income
of
China's
Insurance
Industry
Personal
Insurance
life
Insurance
Health
Insurance
Personal
Accident
Insurance
Property
Insurance
10K
RMB
20
1 Context
Top 3 Insurance Market in the world, $373.6 billion
The biggest growth contributor in 2015, 26%
Insurance density $227.6, Insurance penetration 3.2%
21. "China
Life"
Ping
An
"New
China
Life"
Pacific
Life
PICC
Life
TaiPing
Life
Funde
Sino
Life
TaiKing
Life
AnBang
Life
Sunshine
Life
Others
2015
Market
Share
21
Na*ve
Chinese
Life
Insurance
Organiza*ons
94%
Foreign
Life
Insurance
Organiza*ons
6%
1 Context
Players
27. 27
Digital
8%
Tradi*onal
92%
The
Propor8on
of
Digital
in
2015
64.4
353.2
1250
233%
548.50%
254%
200%
300%
400%
500%
600%
700%
0
200
400
600
800
1000
1200
1400
2013
Digital
Life
Insurance
2014
Digital
Life
Insurance
2015
Digital
Life
Insurance
Premium
100m
RMB
Growth
Rate
2 Digital
-‐
Two
solu8ons
28. 28
570m
Users
Every
Day
1. The Third Party Digital Sale Platform
2 Digital
-‐
Two
solu8ons
2. The Self Built Digital Platform and Ecosystem
29. 29
570m
Users
Every
Day
1. The Third Party Digital Sale Platform
2 Digital
-‐
Two
solu8ons
Personal Accident Insurance
Simple Critical Illness Insurance
Universal Life Insurance
High Cash Value
30. 30
"China
Life"
Ping
An
"New
China
Life"
Pacific
Life
PICC
Life
TaiPing
Life
Funde
Sino
Life
TaiKing
Life
AnBang
Life
Sunshine
Life
Others
2015
Market
Share2 Digital
-‐
Two
solu8ons
1. The Third Party Digital Sale Platform
Huge amount of universal life insurance + radical investment strategy
31. 31
Pla?orm
Class
=
Barbarians
at
the
gate!
2 Digital
-‐
Two
solu8ons
1. The Third Party Digital Sale Platform
32. 32
Big Assets Management
Big Health Management
Big Aged Care
Group Strategy
2 Digital
-‐
Two
solu8ons
2. The Self Built Digital Platform and Ecosystem
33. 33
Sports App + Insurance Health Care App + Insurance
2 Digital
-‐
Two
solu8ons
2. The Self Built Digital Platform and Ecosystem
35. 35
3 Insights
• Existing Chinese insurers’ digital attempts still belong to improvement,
rather than innovation.
• The China’s insurers ought to create new value for customers by new
digital technology with more customer-centric orientation.
• The big data business model is the future.
Thanks!
36. Digital
Life
Insurance
In
India
K.
S.
Gopalakrishnan
CEO
and
MD
-‐
Aegon
Life
Insurance
Company
Limited
37. Agenda
Indian
Life
Insurance
Space
• Size
and
growth
Journey
so
far..
Impera*ves
• What
needs
to
be
done
Recent
Changes
• Digital
developments
Change
of
influencers
• Internet
as
a
influencer
What
to
expect
Top
priori*es.
38. Life
Insurance
in
India
Many
call
it
the
phase
of
trouble
teens
2003
2014
2009
Annualized
New
Business
Premium
(MN
INR)
Life
Insurance
Penetra8on
(%GDP)
Individual
Number
of
inforce
policies
(Mn)
120,000
590,000
570,000
(2013)
2.4%
4.2%
Approx.
3.9%
144
258
413
5
*mes
1.8
*mes
1.6
*mes
No
Change
Source:
BCG
–
FICCI
study
and
Internal
data
39. Impera8ves
• Iden*fy
more
efficient
ways
to
reach
out
to
the
customers.
Rediscover
growth
• Customer
centricity
as
the
core
Transparency
in
value
proposi*on
• Not
another
channel
but
a
core
to
the
strategy
Digital
an
opportunity
• Enhanced
produc*vity.
New
look
at
the
cost
structure
40. Today
We
will
talk
more
on
the
digital
opportunity
Star*ng
with
the
journey
so
far…
41. Digital
Life
Insurance
in
India
–
A
Timeline
Around
the
Life
Insurance
Space
2009
• Online
Life
Insurance
was
launched
in
India.
• Customers
started
to
get
amracted
towards
the
protec*on
space
in
Life
Insurance.
• Protec*on
plans
in
the
life
insurance
space
started
to
grow.
2012
• Success
amracted
other
insurers
to
launch
online
plans.
• Need
for
bemer
customer
experience
and
journey
was
felt.
• New
products
were
launched.
2015
• We
have
over
16
insurers
offering
online
plans.
• INR
5000
mn
premium
from
online
products
was
grossed.
42. Interes8ng
achievements
and
trends
• Websites
of
insurer
started
to
look
more
like
web-‐shop
with
integrated
online
payment
and
customer
fulfilment.
• India
learned
fast
from
the
eCommerce
counter
parts.
Evolu*on
of
online
customer
journey
• We
could
see
tradi*onal
channels
implemen*ng
digital
interface
to
build
efficiency.
Tab
based
selling
and
training
Mobility
• Protec*on
space
is
now
flooded
with
over
50
online
plans
and
built
new
categories
like
Cancer
and
Income
replacement.
• Unit
Linked
Products
also
has
started
to
get
amrac*on
online.
Product
innova*on
• Insurers
started
to
engage
customer
and
prospects
through
social
media.
CRM
also
has
started
to
integrate
social
media.
Social
media
integra*on
• We
could
see
insurers
inves*ng
in
technologies
to
build
self
service
models.
Self
Service
44. Digital
as
a
choice..
Customers
are
increasingly
adop8ng
digital
and
the
trend
is
expected
to
con8nue..
45. Source
:
Cisco
VNI,
CII
A
Different
Future..
Increasing
Internet
and
mobile
penetra8on
will
be
major
influencers
in
shaping
customer
preferences
and
research
of
products
online..
CAGR
20%
CAGR
36%
46. A
Different
Future..
Online
purchase
and
advice
have
emerged
as
a
preferred
medium
for
insurance
as
well
as
investment
opportuni8es
Key
findings:
§ Branch
visits
are
preferred
at
lower
income
levels,
while
door
step
sales
and
online
purchase
dominate
at
higher
levels;
telecalling
is
not
preferred
across
any
income
group
§ In
other
financial
service
categories,
preference
for
online
as
a
medium
for
online
transac*ons
drops
at
higher
income
levels,
with
even
higher
preference
for
door
step
sales
§ Internet
remains
an
important
source
for
informa*on
related
to
investment
advice
47.
48. Influence
across
different
income
segments…
26%
37%
48%
50%
83%
67%
64%
55%
91%
90%
87%
98%
LOWER
INCOME
MIDDLE
CLASS
UPPER
MIDDLE
CLASS
AFFLUENT
LEVEL
OF
INFLUENCE
Internet
Agents
Family
/
Friends
Source:
BCG
CCCI
Survey
2013,
Life
Insurance
49. 3
Major
changes
in
the
Customer
Behaviour:
As
seen
widelywith
protec*on
plans
in
the
market
we
see
more
of
young
customer
showing
interest.
Research
online
and
purchase
both
on
and
offline.
Need
Mul*ple
channel
based
services
with
utmost
transparency.
Lack
of
brand
loyalty
while
s*ck
to
differen*ated
experience.
Role
of
relevance
in
the
society
is
strongest
than
ever.
Digital
Insurer
Asia
50. What
we
expect
• Almost
all
providers
have
started
to
look
at
digital
with
enhanced
seriousness.
• Many
started
to
see
4G
as
the
catalyst
towards
the
growth
point.
Mobile
screen
are
mostly
used.
Digital
Focus
• With
more
customers
wan*ng
to
research
online
we
foresee
few
more
strong
aggregators
to
evolve.
Aggregators
• We
expect
more
online
products
and
innova*on
therein.
• Different
products
catering
to
different
needs.
Online
specific
products
and
structure
51. Proposi*ons
are
evolving
Digital
Maturity
Curve
Maturity
CustomerSatisfaction
v1.x Digital Basic v2.x Digital First v3.x Digital DNA
Informational
websiteWeb
Forms
User
Account
Dashboards
Personalised
recommendations
Call center
servicing
Digital sales
and
servicing
Pay-as-
you go
Proactive
concierge
Active
sensors
(IoT)
52. Underneath
the
Jargon
there
is
a
major
change
in
product
design
in
the
insurance
industry
Convenient &
Supportive
Simple to use and supportive
throughout the customer’s life
Value Added
services
Personalized and catered to the
customer’s habits and lifestyles.
Integrated with other value added
services
Reducing Risk
Solutions that make our customers
safer / healthier – and also reduce
their costs of insurance
“ECO-‐SYSTEM”
Proposi8ons
The
Business
Opportunity
:
What
will
this
look
like
for
the
life
insurance
industry?
53. Key
Components
in
Digital
Target
Opera8ng
Models
Awareness
&
demand
• Client
connec*vity
• Distribu*on
partnerships
• Content
marke*ng
• Compelling
proposi*on
Sales
Fulfillment
• Mobile
and
digital
first
• Configurable
to
easy
to
change
• ..
But
PLENTY
of
room
for
advice
/
face-‐to-‐face
Collabora8ve
Partnerships
• Distribu*on
• Rewards
• Marke*ng
agencies
• Wearables/IoT
• Technology
Organisa8onal
• Budgets
&
buy
in
• Agile
as
a
reality
not
an
aspira*on
• Low
cost
as
new
normal
• TOM
architecture
• Talent
acquisi*on
&
reten*on
54. Snap
Poll
3
54
Q .
Which
of
the
following
digital
life
insurance
business
models
do
you
think
will
become
the
most
popular
in
Asia?
How
to
par8cipate:
Just
respond
to
the
ques*on
when
it
appears
on
your
screen
55. Post
webinar
ac8vi8es
Recording
will
be
emailed
to
registered
par*cipants
Next
Webinar
will
be
on
the
topic
of
digital
and
direct
non-‐life
insurance
in
Asia
Please
give
us
your
feedback
If
you
would
like
to
follow
up
with
any
of
the
panelists
-‐
Simon
Phipps:
simon.phipps@kpmg.com
-‐
Emma
Royall:
emma.royall@fwd.com
-‐
David
Cook:
david_cook@swissre.com
-‐
Erick:
qinzj@chinalife.com.cn
-‐
KS
Gopalakrishnan:
ks.gopalakrishnan@aegonlife.com
-‐
Hugh
Terry:
hugh.terry@the-‐digital-‐insurer.com