insurance 2.0 : the way forward - rationale, strategy, methodology

Private & Confidential | Copyright 2011 @ 121advisor

21 July 2011

INSURANCE 2.0

The Way Forward

Insurance 2.0 :The Rationale and The Strategy

By Don Tan, Senior VPBusiness Consultancy


Insurance 2.0 : The Way Forward

21 July 2011

WHY Insurance 2.0 : The Rationale

WHAT to Insurance 2.0 : The Strategy

HOW to Insurance 2.0 : The Methodology

121advisor for Insurance 2.0


WHY INSURANCE 2.0 :

THE RATIONALE21 July 2011


Web 2.0Evolving Role of Internet & World Wide Web

INTERNET

WEB 1.0

WEB 2.0

One Way Owner = Power

Mass Authoring User = Power

Informationale.g. Corporate Websites, Product Info Downloads, Banners … …

Interactive

e.g. Chat - Messaging - Forms - Games - Flash … …

Transactional

e.g. E-Commerce - Online Shopping - E-payment … …

Personal

e.g. Personalized Sites - Feeds - Blogs … …

Social

e.g. Microblogging - Facebook - Tweets … …

21 July 2011


INSURANCE 2.0

Insurance 2.0Evolving Role of Internet / Web for Insurance & Takaful

INTERNET

WEB 1.0

WEB 2.0

Informational

Interactive

Transactional

Personal

Social

e.g. Corporate Websites - Product Catalogue - Downloads … …

e.g. Online Quotes - Games - Contests - Request Submission … …

e.g. E-Cover Note - E-Proposal - Online Sales … …

e.g. Simulators - Need Analysis - Product Advisory - Self-Service Process … …

e.g. Social Network MarketingFriend’s Review & Feedback, Expert / Blogger’s Advice … …

21 July 2011


Internet-savvy generation’s Preference for Self Serviceability

Gen-Y fancy on Internet, Social Network & Mobility

Trend & Choice of Communication / Information channel

WHY Insurance 2.0WHY Insurers should embark on Insurance 2.0

Consumers

21 July 2011

Watch “Social Media in Plain English” Video athttp://vimeo.com/groups/23930/videos/11551721

http://vimeo.com/groups/23930/videos/11551721





WHY Insurance 2.0Where Consumers Are : Social Web !

21 July 2011

726 million

119 million

200 million

Members

3.7 million articles15 million Wikipedians24.5 million pages

> 200 million Blogs

> 3 billion views per day(average person spent 15 min a day on YouTube)

11.3 mil Malaysians

Source : Nielsen-Online 2010

Domains visited per person per month 70 domains

Web pages per person per week 1,576 pages

Duration of a Web page viewed 50 seconds

PC time spent per month 37.2 hours


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 psychographics not demographics.

December 2010

21 July 2011

IBM Institute of Business Value


WHY Insurance 2.0How Consumers Evaluate Your Brand : Social Web !

21 July 2011

Brand?Product?Service?

agentbank

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…

global survey 2010


WHY Insurance 2.0What Consumers Expect to have : Rich Experience and Fun !

Simulator

Games

Advisors Characters

21 July 2011


WHY Insurance 2.0Where Consumers Prefer to Shop Next : Online !

21 July 2011

Growing Trends


WHY Insurance 2.0How Consumers Talks about You : You can’t Control !

21 July 2011

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.






Consumers

Lower Distribution Cost, More Competitive Pricing

Lower Cost for Marketing, Larger Pool of Leads / Market

Lead generation of younger prospects for Agency force

Channels

21 July 2011


WHY Insurance 2.0Web Channel : More Competitive Pricing

21 July 2011

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

http://www.justezi.com.au/

http://www.justezi.com.au/


WHY Insurance 2.0Marketing 2.0 : Social Network Marketing

21 July 2011

Millennials taking action on behalf of Brands 57% Millennials would volunteer to try new products

from a preferred brand and most would post an online review of the experience

68% have recommended their products to friends & family and 44 % have friended/followed that brand on their social network

8095 survey 2010

Brand MessageBrand ExperienceBrand Campaign

FamilyFriendsNetwork

Watch “Social Media in Plain English” Video atwww.youtube.com/watch?v=MpIOClX1jPE

http://www.youtube.com/watch?v=MpIOClX1jPE




WHY Insurance 2.0Recruitment 2.0 : Hiring via Social Media

21 July 2011

In a recent survey of 500 companies, the University of Massachusetts Dartmouth found that 53 percent of them use social media in their hiring processes.

These connections start when a candidate mentions a brand or expresses desire in working for a company. In addition to be tech-savvy, these candidates tend to have done their homework: they know more about the

company, and are more engaged with the company brand than candidates sourced through more

traditional channels.






Consumers

Lower Distribution Cost, More Competitive Pricing

Lower Cost for Marketing, Larger Pool of Leads / Market

Lead generation of younger prospects for Agency force

Channels

Competitor’s entry to the Insurance 2.0 space

Customer retention against Competitors and New Players

Stay Relevant and position in Market place

Competitions

21 July 2011


WHY Insurance 2.0Taking Lead and Stay Ahead !

Company CountryFortune

500Revenue

USD ’bil

Online Presence & Insurance 2.0

Marketing & Branding Prospecting Sales Services Web2.0 /

Social Media

Met Life USA 51Life #1

41

Berkshire – Geico (Life & Gen)

USA 11Overall #1

112

State Farm (Life & Gen) USA 34 61

USAA (Life & Gen) USA 132 17.5

Progressive (Life & Gen) USA 161 14.5

1

2

3

5

4 59k

157k

3.0m

6k

167k

Updated May.2011

21 July 2011

http://www.progressive.com/


WHY Insurance 2.0Taking Lead and Stay Ahead !

21 July 2011

3 millions listeners!


WHAT TO INSURANCE 2.0 :

THE STRATEGY

Trends

21 July 2011


Insurance 2.0Evolving Role of Internet / Web for Insurance & Takaful

INTERNET

WEB 1.0

INSURANCE 2.0

Informational

Interactive

Transactional

Personal

Social

e.g. Corporate Websites - Product Catalogue - Downloads … …

e.g. Online Quotes - Games - Contests - Request Submission … …

e.g. E-Cover Note - E-Proposal - Online Sales … …

e.g. Simulators - Need Analysis - Product Advisory - Self-Service Process … …

e.g. Social Network Marketing - Feedback / Reviews - Online Advisor … …

Information Delivery

Marketing &Lead Generation

Commodity Sales(also Complex Products later)

Customer Service & Retention

Feedback Management

Source : Evolving Insurance Channel Roles – 2009 & Beyond, GARTNER

21 July 2011


Insurance 2.0 StrategyCommon Dilemma of Insurance Companies

INSURANCE 2.0WHAT

HOW

WHEN

WHERE

WHO

21 July 2011


e-commerce

intern

et sales

e-business

on

line

sale

s

Online Consumer Life CycleManaging Consumer Experience Effectively with CEM 2.0

targets / leads

suspects

prospectsopportunities

customers

aggressors advocates

ATTRACT

EXPERIENCE

INVOLVE

OWN

USE

21 July 2011


Consumer Experience Management 2.0Connecting Conversation to Conversion

ConsumerExperience

Management2.0

Attract

Experience

InvolveOwn

Use

21 July 2011


Consumer Experience Management 2.0Applying the Right Web 2.0 Value to the Right Audience

ConsumerExperience

Management2.0

Attract

Experience

InvolveOwn

Use

21 July 2011

Point-of-Sales

Games

ContestMicrosite

Simulators

Reminders


Insurance 2.0 : A Webassurance ChannelComplementary and Supplementary to all Channels

AGENCIES

BANCA

TELEMKTG

PARTNERS

BRANCHES

CYBER AGENTS

WEBASSURANCE

21 July 2011

http://www.clker.com/clipart-25562.html


Insurance 2.0 : A Webassurance ChannelWhat Can be Done ?

Customer Engagement

Marketing

Branding

ProspectingSales

Services

Social Network MarketingInternet CampaignsOnline Advertisements

Web 2.0 PresenceSocial CommunityInformation Delivery

Lead GenerationQualify Leads/ProspectsVirtual Advisory

Internet SalesOnline UnderwritingE-Policy

Self ServicesOnline SupportFeedback Management

21 July 2011


HOW TO INSURANCE 2.0

THE METHODOLOGY21 July 2011


Clear Strategy

S.M.A.R.T Objectives

Feasible Model

Pricing & Rewards

Relevant Values

Unique & Special Features / Fun

Effective Attractions

Efficient Communication

Unique Branding

Easy, Fast & Stable

Attractive Presentation

Concise & Updated Content

Personalized

Simple & Minimal Steps

Guided & Online Help / Response

Private & Secured

Connected End-to-End Process

Straight Through & Seamless Flow

Authentication & Security

Channel Conflict Managed

Cross-Channel Collaboration

Tracking & Monitoring

Insurance 2.0 StrategyKey Success Factors

Marketing & Attractions

Online Experience

Self Serviceability Integrated Process

Multi-Channel Integration

Strategic Business Plans

Value & Unique Propositions

Agile Development

Experience-focus Design

Customer-oriented Support

Agile & Creative

21 July 2011


Webassurance Strategy ConsultancyOperationalize Webassurance as Your Insurance 2.0 Channel

Strategize

Analyze

Organize

Improvise

Realize

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 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

To execute the Detailed Implementation Action Plan to bring Webassurance live for Insurer

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


Webassurance Strategy ConsultancyOperationalize Webassurance as Your Insurance 2.0 Channel

Strategize

Analyze

Organize

Improvise

Realize


To analyze and assess Insurer’s Go-To-Market conditions, Sales and Offerings positions, and Implementation capabilities for Webassurance






To assess the Strategy defined, perform Impact Analysis, prioritize and propose an effective, realistic and long term Webassurance roadmap



21 July 2011


Webassurance Strategy ConsultancyHOW to implement Insurance 2.0 effectively

Strategize

Analyze

Organize

Improvise

Realize

To brainstorm, validate and define strategy on Business model, Channel and Marketing, and Product and Service Offerings for Webassurance

Business Strategy

Marketing Strategy Offerings Strategy

Includes: Business Objectives Business Models Approaches / Tactics

Includes: Marketing Strategy Web Channel Framework Operational Plan

Includes: Product Strategy Online Product Framework Services / Product Tools

21 July 2011


Val

ues

/ R

etu

rns

Costs / Risks


Strategize

Organize

Improvise

Realize

Analyze

Assess Prioritize Propose Decide

Gaps

Solutions

Impacts

Go Defer

KIV Drop

Business Roadmap

Operation

Roadmap

Technology

Roadmap

Costs-Values-Analysis

To assess the Strategy defined, perform Impact Analysis, prioritize and propose an effective, realistic and long term Webassurance roadmap

GO

No-GO

21 July 2011



Strategize

Improvise

Realize

Analyze

Organize

Priorities Actions Timelines Resources Budget


21 July 2011



Strategize

Improvise

Analyze

Organize

Realize

Phase 1 Phase 2 Phase 3 … … Phase N

Sponsor

PSC

IT User

PMO

Vendor


21 July 2011



Strategize

Analyze

Organize

Realize

Improvise

Gather

Assess

Recommend

Improve


Man

age

Monitor

OPERATIONAL

Revis

e Review

21 July 2011


Use CEM 2.0Applying the Right Web 2.0 Value to the Right Audience

ConsumerExperience

Management2.0

Attract

Experience

InvolveOwn

Use

21 July 2011

Point-of-Sales

Games

ContestMicrosite

Simulators

Reminders


Use CEM 2.0Internet Web 2.0 Tool Effectiveness Matrix

Tools Attract Experience Involve Own Use

Advertisements (Online / Offline)

Roadshows

Personalized Marketing

Contests

Gifts

Games

Websites

Videos

Online Search / Online Help

Simulators

Very Useful Useful May be Useful

Example

21 July 2011


• Well-design simulators (e.g. easy, fancy, fun, fast) gives visitors good hands-on experience hence visitors will stay on to the website / simulator to try and complete the simulation process

• Good simulators (especially those with very sound branding, known to be fun and provide value add advisory) may attract visitors to the simulators through word of mouth, popular search results, and recommended links (e.g. on Facebooks)• Simulators are Application Tools which

simulate conditions, events or outcomes based on input provided by the Users with the objective to generate results that are close to reality.

• 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.

• Example of Simulators are:a) Retirement Planner (What’s Your

Number by Prudential)b) Health Planner (Health Planner by ICICI

Prudential – already removed from official website)

c) Education Planner

SimulatorDefinition & Effectiveness

Tools Attract Experience Involve Own Use

Simulator

Definition

• Users usually willing to input some personal data to simulate results / output as relevant and as close to the reality as possible, e.g. DOB, gender, marital status. These are useful information to understand the prospect and approach appropriately. It’s also good opportunity to capture their contact information.

• Simulators usually do not transact any sales of policies, but will lead to Point-of-Sales engine/webpage when prospect intended to purchase.

• As life progress and statuses change, users may return to the simulators to perform simulation based on their latest statuses.

Example

21 July 2011


121ADVISOR

FOR INSURANCE 2.021 July 2011


121advisor for Insurance 2.0Solution & Services

Solution & Services

Insurance 2.0StrategyConsultancy

Insurance 2.0 Solution

& Campaign

Design & Development Solution Implementation Outsourcing & Managed Services Campaign Execution

Web Business Strategy IT Strategy Planning Requirement Elicitation Business Process Innovation

21 July 2011

Webassurance Channel Implementation


Webassurancefor Life & General

Se

rvic

es

Channel Management

SolutionS.a.a.SS

olu

tio

ns

Social MediaManagement

Web Application Hosting &

Management

Webassurance Strategy

Consultancy

Cyberagency Strategy

Consultancy

Artwork – Blog – Content – Design – E-Learning – Games

Application Processing – Chat Agents – Site Mgmt

121advisor : Complete Solution & ServicesInsurance & Takaful 2.0 Enablement

21 July 2011

Web 2.0Portal

Management

Social Media Outsourcing

Setup – Monitor – Report – Engage - Manage


More Ideas? Follow Webassurance.org!www.Webassurance.org or Facebook.com/Webassurance.org

21 July 2011

http://www.webassurance.org/

http://www.facebook.com/webassurance.org


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21 July 2011

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insurance 2.0 : the way forward - rationale, strategy, methodology

Technology

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evolving role of internet