teachers life - an online case study by doug baker

On Line DistributionSeptember 2017

• We are a small fraternal insurer

• Based in Toronto; founded in 1939

• Provincially regulated until 2008 in Ontario

• Expanded from 1 province to full national licencing in 2015

• 2016 Celent award – technology transformation

• Online Platforms

• Continuous improvements launched through 2017

• ‘White-labelled’ partners

• Growing group business

What we have learned….or, let’s tell the end of the story first….

• It does not happen overnight• Must be prepared for some detours….you are

allowed to screw up• Must break down walls• Size doesn’t matter• You just don’t ‘build it and they will come’• Marketing approach must change• Partner with organizations you know, like and trust

LESSONS FROM

GIN GINIT’S NOT A DESTINATION

IT’S A JOURNEY

WE LEARNEDA LOTALONG THE WAY

KEEPINGCOMPETITIVE

• Punching above our weight• ADVANTAGE: our size• DISADVANTAGE: our size• Confront our strengths

and weaknesses

Growth • New relationships • Building awarenessTechnology is the gateway to

Staying relevant as a business through our pursuit of technology innovation

A COMPANYWITHOUT WALLS

• CRM software – to stay focused on our customer

• New platform partners –to drive product innovation

• Gathering Data (must be relevant)

Embracing the NEW in our industry

• AD&D portfolio grows to 165,000 in 2017• Expanded business lines: white labelling

and middle and back office services• 6 partners across 9 platforms• 2017 Exploring more B2B opportunities• Working with Tech Company to improve all of our

process• Expansion to selling nationwide opening

up new individual markets, new partnerships

GROWTH BEYOND OUR TRADITIONAL BORDERS

SMARTER BUDGETSMust differentiate and target better

SMARTER BUDGETS

• Know the policyholder you want/can get

• Be clear on what makes you different/unique

• Invest in removing any additional pain points

• Invest in insights you can use

REMOVING BARRIERS• WIIFM marketing –

“what’s in it for me?”

• Helping policyholders –remove all friction

• Disrupt their complacency

• Support through self service

Help empower policyholders to buy insurance

INSIGHTS WE USE: EDUCATORS & LIFE INSURANCE• 37% think insurance is a luxury they can’t

afford

• 60% would prefer a free iPhone over free insurance for a year

• 29% are afraid to get a medical exam– 9% higher than general population

• 54% are overwhelmed by the choices – 9% more than general population

SOME KEY METRICS cont’d

6.1% 6.6%

9.9%

17.5%

7.6%

12.9%

11.6%

14.4% 14.4%

13.0%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

20.0%

T10 T20 T30 T40 Aggregate

ProfitMargin(On-lineTerm)

Actual Expected

• Within Term 10, 20 and 30 - There is a skew to lower profit margin cells

• Distribution (T10-40)

• Average Face Value - $283,440.00

• Average Premium is $409.33

SOME KEY METRICS:

• Volumes are still relatively low (less than 750 policies)

• Distribution (T10-40) – over 50% are T20 or less

• Average age: 39.8 Female/41.0 Male

• 55% Female Policy Holders

• 45% Increase in sales (July/16 over July/17)

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

T10 T20 T30 T40

DistributionofBusiness(On-lineTerm)

Actual Expected

NEXT CHAPTERInsurance innovation for policy holders

NEXT CHAPTER

Leading a series of data-gathering trials for policyholders

• Digital marketing: hypertargeting of interests on people’s geo-locations

• Investments in analytics – data collection is a big step forward for us

• Automating more personalized communications

• Solving some service pain points

THE ENTERPRISE JOURNEY CONTINUES KEEPING OUR MOMENTUM GOING BEYOND 2017

• Deeper investments in data, technology

• New white-labelled services

• Improved back-office & administration

• Implementing a CRMfor anticipated growth

IT’S A JOURNEYNOT A DESTINATION

• There is no “build it and they will come”

• Stay open to the new and different – seek trusted partners

• Investments in technology must be supported by changes to people, processes

• Small insurers can succeed – work our advantages

• And… be prepared to visit Gin Gin on your journey!

IT’S A JOURNEYNOT A DESTINATION (A Re Cap..)

Teachers Life in 2017

Q&A