AEGON is a leader in helping customers secure their financial future. To bolster their market leadership, AEGON UK launched a Customer Service Transformation initiative with the objective to reduce operation costs through increased efficiency and broaden its market share by improving the customer experience. These slides were used as part of a live presentation. Watch the complete presentation (with full video) at: http://www.pega.com/resources/pw-2014-video-aegon-revolutionizes-the-policyholder-experience-while-reducing-costs‘?utm_source=ss’

1. © 2013, Confidential, Pegasystems Inc.
TM

2. 22 © 2014, Confidential, Pegasystems Inc.
AEGON Revolutionizes the
Customer Experience and
Reduces Costs
David Beattie – Customer Service Director
Iain MacKenzie – IT & Change Director

3. 33 © 2014, Confidential, Pegasystems Inc.
3
Over
26,500
EMPLOYEES1
EUR
1.9
billion
Underlying earnings before tax
in 2013
EUR 20
billion
Paid out in claims and benefits
in 2013
Revenue-generating investments
EUR 475 billion1
AA- financial
strength rating
1) As per December 31, 2013
Aegon at a glance
Over 150
years of
history
Life insurance, pensions
& asset management
Present in more than 25
markets throughout the
Americas, Europe and Asia

4. 44 © 2014, Confidential, Pegasystems Inc.
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Around
2,400
EMPLOYEES1
£42
billion
Assets Under Administration
Lead Partner of British Tennis
1) As per December 31, 2013
Aegon UK at a glance
Retirement, Workplace Savings
& Protection
Founded in 1831
Award Winning
Platform

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1) As per December 31, 2013
Scotland at a glance
Around
5.5M
PEOPLE1

6. 66 © 2014, Confidential, Pegasystems Inc.
Introduction to Aegon UK
Significant scale as a
consistent Top 3 player
Combined with best in breed partners
22,000 employers

800 FTEs servicing
150 person contact
center
 1 million calls p.a.
1.85 million customers

 1.3 million paper
transactions
150 Subject matter
experts

Business Processes
Voice Platform
Print & Distribution
Platform Technology
PEGA Supply Partner
Strategic IT Partner
Digital Consultancy

7. 77 © 2014, Confidential, Pegasystems Inc.
Agenda
Why
Bother?
Approach Results
Where
Next?

8. 88 © 2014, Confidential, Pegasystems Inc.
Customer Services Targets
Our People
Our
Shareholders
Our
Customers
Better Quality
Customer
Service
Higher
Returns,
Lower Cost
Agile and
Responsive
Compliant and
Low Risk
Rewarding
Careers

9. 99 © 2014, Confidential, Pegasystems Inc.
Why Bother? Customer Services Challenges
Independent functions,
individually managed in
Silo’s
Same Processes,
different procedures
Handoffs between areas
Limited Cross Functional
planning or resource
sharing
Slow and inconsistent
Customer Experience
Operational Costs too
high
Low Level of Staff
Engagement

10. 1010 © 2014, Confidential, Pegasystems Inc.
Customer Services 2014
Single CS Management
Team
Cross Functional Planning
and Resource Sharing
Standardised Processes,
Multiskilling
Reduced Handoffs
+10% Staff
Engagement
7-10% Cost
Reduction
Improved Customer
Experience +20 NPS
positive increase

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Why
Bother?
Approach Results
Where
Next?

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Business Process Management

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BPM Delivery Centre
Built a Foundation
Initially supplier led
General work
Single project
PEGA’s methodology
Internal Capability
Continuity of supplier
resources
Inclusion of internal team
Integrated with Aegon
methodology
Multiple Pega Projects
Delivery Center
Experts in technology
Roadmap creation
Responsible for all projects
and BAU
Supports business /
delegated rules
Creating new best practice
principles and methodology

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New Needs and Thinking
Drivers Approach

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Evolving Approach to Automation
Change of
Address
• Aimed for 100% STP
• 12 months+ delivery
• Achieved semi automation
Upgrade
Claim
Process
• Targeted partial automation
• 9 month delivery
• 60% unit time saving
achieved
Allocate
Payroll
Payment
• 50% automation target
• 3 month Delivery
• 70% process fulfilment
achieved

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Business Empowerment
Increased Business Agility and Reduced IT Costs
Delegated Rules
Business
Configuration
175 Delegated Rules Implemented….and
Counting
Regular
Releases, outside
of IT cycles
No additional IT
spend
Business Configuration
Work Prioritisation
Checklist and
Procedure Updates
User Skill and
License Updates

17. 1717 © 2014, Confidential, Pegasystems Inc.
Approach to PEGA
Objectives Processes Structure Culture Delivery
Customisation versus “out of the box”
Clear Vision,
Well Communicated,
Set Expectations
Embed into future
business planning
Do you
understand them,
will you
reengineer?
Define your
TOM, build for
agility,
BAU support?
Design this,
don’t just
evolve, how to
measure?
Core Team, Decide
on Methodology,
Performance Test
against current
infrastructure

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19. 1919 © 2014, Confidential, Pegasystems Inc.
Why
Bother?
Approach Results
Where
Next?

20. 2020 © 2014, Confidential, Pegasystems Inc.
Current Pega Scope
10 Million Transactions
1000 Back Office CS Users
100 Pega Cloud
Installation Users
12500 PEGA
Project Days
150 Contact
Centre Users
(CPM)
Retire Ready D2C
Launched April 14

21. 2121 © 2014, Confidential, Pegasystems Inc.
Claims
Processes
Servicing
Processes
New Business
Processes
Policy Query Switch
Policy Change
Premium Change
Annual Review
Valuation
Increments
Letters of Authority
Retirement Quote
Internal Transfer
Controls
Transfers In
Annuitant Certificate
Surrender
Bankruptcy
Quick Hits
Transfer Quotes Refund Quotes
Transfer Settlements
Retirement Quotes
Retirement Settlements
Death Quotes
Death Settlements
PSO Quotes
PSO Settlements
Refund Settlements
Divorce Quotes
Divorce Settlements
Enquiries
CA Forms
Policy Alterations
Surrender
Quote New Member
New Policy
Transfer In
Increments
Handoffs
Premium Change
Controls
New Entrant
New Scheme
Allocate Payroll Payment
Policy Query
Policy Change
Packaged Business Platform BusinessUpgrade
Coach (Next Best Action)
Customer Process
Manager
Renewals Reconciliations
Leavers Policy Alterations
Controls Bankruptcy
Multi-Channel
Services
Old World New World

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• Pension reform
• Contact centre
implementation
• D2C – rules engine
• Automated upgrade
process
• Cloud installation
• Customer DB
• Foundation build
• Transformation
roadmap
discovered
• BPM workflow engine
established
“Top of the T”
• Automated quality
model
• Get next work
• Quote System (Client-
facing UI)
• CS roll out complete
• Change of address
straight through
process
• Resilience programme
• RDR
• Automate policy
upgrade
• Extending Pega
platform to
business
• Process
automation for
customer service
• CPM knowledge
management
BPM Way
Forward
2010
2011
2012
2013
2014
Beyond
• Contact center
optimization
• Pega version upgrade
• Extending Pega work
flow to business units
• Built “General Work” basic capability
and delivered quickly across CS
• Gave Aegon a platform to build upon
and move into automation
• Established an internal Delivery
Center to drive Aegon forward
through future projects
Roadmap

23. 2323 © 2014, Confidential, Pegasystems Inc.
PEGA has Enabled - For Our Customers
Better Quality Customer Service
NPS increase from -18 to +20
First Call resolution increased from 50% to 80%
Improved, consistent experience through standardised processes
Service differentiation for large employee benefits consultants
Move from policy to customer level processing

24. 2424 © 2014, Confidential, Pegasystems Inc.
Evidence of Continuing Improvement
2014 Employee Feedback
Customer Feedback
• Engagement Score
• 49 (+10 from 2012)
• Enablement Score
• 52 (+7 from 2012)
• NPS
• +20 (2014)
• -17 (2013)
• -25 (2012)

25. 2525 © 2014, Confidential, Pegasystems Inc.
PEGA has Enabled - For Our Shareholders
Higher Returns,
Lower Cost
Average call times reduced from
8 mins to 6:30 mins
60-70% Unit time savings through
Process Automation
Trading efficiencies improved
Improved Customer Level Data
Reduced Time to Market for new
services
Compliant and
Low Risk
Successful Sox Auditing through
Quality Automation
Robust Regulatory Solutions
Improved Operational Intelligence

26. 2626 © 2014, Confidential, Pegasystems Inc.
Claim Process Automation (Unit Time Reduction)
• 24.7 minutesFull Process
(pre-automation)
• 12 minutesAutomated Flow
• 10 minutesAuto Claim
Health Checks
• 4 minIntegrated Work
Creation
84% Unit
Time
Reduction

27. 2727 © 2014, Confidential, Pegasystems Inc.
PEGA has Enabled - For Our People
Agile and Responsive
Cross functional planning / sharing resources
Easy business configuration changes without IT development
Rapid development cycles (process automation, cloud installation)
Training simplification and reduction in effort
Managers focusing on staff development (get next work)
Improved communication (newsfeed)
Enhanced usability

28. 2828 © 2014, Confidential, Pegasystems Inc.
Case Studies 2
28

29. 2929 © 2014, Confidential, Pegasystems Inc.
Why
Bother?
Approach Results
Where
Next?

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Getting the UK ready for
retirement
Digital Service Experience
A retail comparable, mobile first experience that gives you
access to an intuitive interface to manage retirement
planning
Simple Products, Pricing and
Investments
Products and pricing that are transparent and simple to
understand with access to a range of funds that are designed to
provide choice while meeting risk attitude of our target audience
Support and Guidance
An engaging user experience that encourages and
supports self service through interactive tools and our
‘Coach’ functionality
A Proposition Summary
Ongoing Engagement
Straight talking but nurturing communications across a
number of different media channels including UX interface,
social, email and film

31. 3131 © 2014, Confidential, Pegasystems Inc.
Add John Mac Video

32. 3232 © 2014, Confidential, Pegasystems Inc.
Where Next?
 PEGA is central to
all ongoing Aegon
development and
strategy…
Contact Centre
Efficiency
Increase Digital
Presence / Direct
to Customer
Increased Self
Service
More Process
Automation
PEGA Upgrade

33. 3333 © 2014, Confidential, Pegasystems Inc.
QUESTIONS & ANSWERS