webinar - making change happen within insurers
TRANSCRIPT
Making change happen within
insurers
Making change happen within insurers
Presenter:Gildas N’Zouba
Directeur Central Opérationnel
SUNU Assurances Vie
Facilitator:Aparna Dalal
Senior Research Officer,Impact Insurance Facility
Presenter:Omosolape Odeniyi
Unit HeadDistribution and Support Services
AXA Mansard
Presenter:Paul Musoke
Director, Competitive StrategiesFSD Africa
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FSD Africa
Paul Musoke
Director, Competitive Strategies
Change Management in SSA Financial Sector
Contents• The Need for Change Management
• Effective Change Management
• ILO Impact Insurance Change Management Project
The Need For Change Management
• Financial Sector is Critical to Inclusive Economic Development
• SSA Facing Some of the Most Difficult Real Economy Challenges
• SSA is also on the Leading Edge of Disruptive Trends in the Financial Sector
• Leading in Mobile Technology Consumer Adaption Globally
• Pressure on Leading FSPs & Regulators to Quickly Develop New Business Models
• Large FSPs Have the Scale and Regulatory Mandate to Make a Big Impact
• FSPs Currently Fall Into Three Broad Categories
• Established FSPs fighting for Sustained Profitability in mature Markets
• Mid Tier FSPs Driving Towards Growth Diversification into New Segments
• Telcos Seeking to Expand Beyond Airtime Revenues Through New Services
The Need For Change Management
• Repurposing Established FSPs to Address Underserved Markets Will Require significant Organisational Change
• New Entrants will Require Support to Manage Change as They Grow
• Leadership Development, Training and Technical Services Will Be The Required Support Services
• Technical Assistance to Support Processes of Innovation and Organisational Change will be Key to Capitalisation of Opportunities in Underserved Markets
• FSDA Prioritises Programmes or Institutions that Can Reach Scale and Have Impact
Effective Change Management
• Visionary Leadership
• Exploring & Committing to The Right Ideas
• Set Out a Clear Strategy For the Change Capability
• Develop Ideas Into Sustainable Designs
• Enabling The Organisation Through the Implementation Phase
• Manage Perceived Gaps in Internal Capabilities
• Sustain Change on a Continuous Basis
• Manage Availability & Prioritisation of Funds
• Leveraging and Experience with Professional Services
Effective Change Management
• Knowing When and How to Ask for Assistance
• Supporting the Change Process Through Executive Coaching
ILO Impact Insurance Change Management Project
VALUE TO FSDA
• Market Building
• Transformative
• Targets the Underserved
• Regional
ILO Impact Insurance Change Management Project
GOALS• Spur innovation and Build Capacity Within Leading Insurance Players in SSA
• Work with Partners to Scale Innovations Quickly to Achieve Sustainability
• Identify Related Organisation Changes Within Selected Partners
• Gradually Improving Customer & Shareholder value
• 1 Million MSMEs and Low Income Persons Reached with Micro Insurance
• Develop Change Management Toolkits
• Demonstration Cases That Can be Shared with the Broader Industry
Change process1.Identify(validate)thedesiredfuture
• Identifyproblemoropportunity
• Specifyvisionforchange
2.Securebuy-in
•Communicatevision
•Createsenseofurgency
3.Organizeforchange
• Formx-functionalcoalition
•Removeobstaclesforchange
4.Implementchanges
• Setstrategicpriorities
•Performactivitiesinpillars
5.Communicatesuccess
•Maintainbuy-in
•Communicateshort-termwins
6.Mainstreamchanges
•Anchorchangesinculture
• Institutionalizeprocessandstructuralchanges
AXA Mansard
Omosolape Odeniyi
Unit Head
Distribution and Support Services
CONTENTS
1. Key Activities
2. Key Learning
1KEY ACTIVITIES
Compulsory (Loan-tied)
Voluntary (Deposit-Linked)
Benefits are tied to bank
offerings
OPT-IN PROCESS
MFBs
Affinity Groups
DISTRIBUTION CHANNELS
Life
General Business
PRODUCT CLASS
Product was launched in partnership with MicroEnsure
First EC product that was launched targeted at MFBs Life Cover
Hospitalization Cover
Property Cover
Permanent Disability
Family Cover (Death)
Distr. Channels select
relevant benefits
PRODUCT BENEFITS
PRODUCT DETAILS
LAUNCH OF KEY MICROINSURANCE PRODUCT (MFB-TIED)
World’s first Microinsurance intermediary
Began operations in 2002 (Premium collection and claims management)
Provides protection against the many risks faced by those living in poverty
Specializes in building products that meet the technical demands of underwriters but are simple enough
for customers to understand
Key Activities – Collaboration with Microinsurance Expert (MicroEnsure)
MicroEnsure
Partnership
Product/Process Design
Operational Setup
Data Management
Prospecting
TargetMicroFinance Banks
Affinity Groups
Result
Sign up of 1 MFB
Continued discussion with others
Launch of 1 product
KEY ACTIVITIES – MICROINSURANCE DRIVE (CUSTOMER INSIGHTS & SUPPLY
SIDE)
TELCOS Strategy sessions with MTN
Repositioning of previously existent EC product
Microinsurance product approval process
Market research activities
Ideation workshop (fallout of the market research)
Change management workshop
Capacity Building – ILO Market research training
Involvement in:
women-focused project
Agric-focused project
INTERNAL ACTIVITIES
3RD PARTY PAYMENT AGGREGATORS Discussions with Paycom
Discussions With Teasy Pay
Strategy sessions with GTBank
Strategy sessions with Diamond Bank
Partnership launch with Bosak MFB
Discussions with Accion MFB
Discussions with Advans MFB
BANKS/MFBs
Since the launch of the Emerging Customer initiative, there has been an awakening within the organization on
MicroInsurance.
The team has been involved in a lot of discussions with prospective partners who want to partner within the EC
space.
Some of these activities include.
2KEY LEARNINGS
KEY LESSONS FROM ACTIVITIES EMBARKED ON
Increased Interest in Emerging Customers within the organization
Increased activity around promoting financial inclusion within several key sectors
Increased need for progressive regulation within the EC space
SUNU Assurances Vie
Gildas N’Zouba
Directeur Central Opérationnel
Why we did it
Significant size change
• Merger-takeover in Nov-15;
• Now #1 Life insurer in Cote d’Ivoire (CIV) and the CIMA region
Significant operational readjustments needed.
Competitive intensity increasing
• First insurer to launch mobile insurance in CIV in 2011 with Orange.
The top 4 insurers in CIV now do it as well;
• Market saturated in large cities New challenge: Inner country.
Changing environment
• Booming medium class, and 92% of the working population
vulnerable, calling for an increased financial protection;
• A technology gap that must be bridged quickly.
1
3
2 Low-cost life insurance:
$0.9/month + Tailored savings
product
Both operable on the mobile,
via Orange Money
+
30 STAFF
70 STAFF
117 STAFF
+ interns
How we did it – A strong core
Extended diagnosis phase
Becoming familiar with the company, the people and the environment.
Top Mgmt on board right from the start
Strong internal communication plan rolled-out – formal and informal:
- Language switched: “change” → “improvement”, “evolution”;
- Internal paper rerun;
- Town halls and regular roundtable.
Structured and nimble methodology adopted
Building capacity to move from implementing to streamlining change:
- Merger New scale Professionalization required;
- Project mgmt structure implemented 4 clusters of excellence.
→ Managing change while running business as usual required new skills.
1
3
2
We determined
precisely where we
were
Prior to defining
where to go
Desired future
Internalreorganisation
Product&Distribution
Informationtechnology
Pilot
CM process ref.:
How we did it – 3 shifts
Product-centricity Customer-centricity
- PACE analysis (ILO tool);
- Marketing team created;
- Market research and focus group discussions;
- Prototype testing prior to product launch.
Distributors Strategic partners
- Understanding their business model and challenges;
- Partnership proposal highlighting potential adjacencies.
Technical process-oriented Customer experience-oriented
- Customer journey mapping (CGAP tool);
- Rationalisation of the operational procedures;
- Gravity centre shifted from Production and Claims to Marketing,
Sales and Customer care.
1
3
2
CustomerValue
PACEassessmentMarketresearchClientprofilingCustomerjourneymapping
Distribution&Operations
DistributormappingProcessmappingSalespitchfocusedonvalueproposition
BusinessCase&RiskManagement
Mappotentialrisks(reputations,operations,solvency)
Governance&People
NewunitsetupRolesandperformancemeasuresrelatedtolow-incomehhsCustomerValue
PACEassessmentMarketresearchClientprofilingCustomerjourneymapping
Distribution&Operations
DistributormappingProcessmappingSalespitchfocusedonvalueproposition
BusinessCase&RiskManagement
Mappotentialrisks(reputations,operations,solvency)
Governance&People
NewunitsetupRolesandperformancemeasuresrelatedtolow-incomehhs
CM framework ref.:
AVANTSOUSCRIPTION SOUSCRIPTION APRESSOUSCRIPTION
Siteinternet
Faceàface
Téléphone
SMS
visuels
Presse
6- Demandedesituationsursapolice
7- Invitationautirage
8- Vérificationdesonnuméro
detirage
9- Dépôtdudossierderachat/
Gagnant
10-Règlement
1- Prise deconscience
2- Recherchedesolutions
3- Approchecommerciale
4- RemplissageduBIAavecla
CNI
5- RéceptionduBIA
CustomerValue
PACEassessmentMarketresearchClientprofilingCustomerjourneymapping
Distribution&Operations
DistributormappingProcessmappingSalespitchfocusedonvalueproposition
BusinessCase&RiskManagement
Mappotentialrisks(reputations,operations,solvency)
Governance&People
NewunitsetupRolesandperformancemeasuresrelatedtolow-incomehhs
CustomerValue
PACEassessmentMarketresearchClientprofilingCustomerjourneymapping
Distribution&Operations
DistributormappingProcessmappingSalespitchfocusedonvalueproposition
BusinessCase&RiskManagement
Mappotentialrisks(reputations,operations,solvency)
Governance&People
NewunitsetupRolesandperformancemeasuresrelatedtolow-incomehhs
CustomerValue
PACEassessmentMarketresearchClientprofilingCustomerjourneymapping
Distribution&Operations
DistributormappingProcessmappingSalespitchfocusedonvalueproposition
BusinessCase&RiskManagement
Mappotentialrisks(reputations,operations,solvency)
Governance&People
NewunitsetupRolesandperformancemeasuresrelatedtolow-incomehhs
What we’ve learnt
Implementing is the moment of truth
• Content produced during the diagnosis and design phases requires staff appropriation;
• Progressive methodology and best practices uptake is essential;
• The reality check is when the project meets with business as usual.
Failing to convince the staff is a deal breaker
• Identify a core project team, ambitious, nimble and flexible, including opinion makers;
• This core team must achieve quick wins Bring tangibility;
• Tangibility is a strong contributor to convincing the inner circle, who will then convince
the outer circle.
Challenging the status-quo must be supported by training
• Dealing with vulnerable customers requires a new business model;
• This new business model requires significant changes to the operational procedures;
• Some job description evolve, others are created from scratch HR involvement and
early training to match this new need of skills is essential.
1
3
2
CM process ref.:
Transverse agility is
key to be successful
in managing change
Core
team
Peripheral
team
All staff
Making change happen within insurers
Presenter:Gildas N’Zouba
Directeur Central Opérationnel
SUNU Assurances Vie
Facilitator:Aparna Dalal
Senior Research Officer,Impact Insurance Facility
Presenter:Omosolape Odeniyi
Unit HeadDistribution and Support Services
AXA Mansard
Presenter:Paul Musoke
Director, Competitive StrategiesFSD Africa
Q&A