Accelerate Life Sales with Smarter Process Technology

transcript

From Speed Bumps to Flight Ramps:

Accelerating Life Sales with Smarter Process Technology

Sam StuckalResearch Director, InsuranceCEB TowerGroup

Gerard GibneySenior Strategist, Financial ServicesOpenText

CEB TOWERGROUP INSURANCE

ROAD MAP FOR THE PRESENTATION

Adaptive

AnswersGreat

ExpectationsFewer Agents

Fewer Sales

Less Efficiency

Less Satisfaction

1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 20100

100,000

200,000

300,000

400,000

500,000

By Year, 1960 - 2010

FEWER AGENTS FOR SALES AND SERVICE…..

US Life Insurance Agent Population

Sources: ACLI and Limra

By Year, 1960 - 2010

DECLINING US LIFE INSURANCE OWNERSHIP

Individual US Life Insurance Ownership

Sources: ACLI and Limra

By Income Class, 2011

BUT POSSIBILITIES….ESPECIALLY HIGH NET WORTH

Life Insurance Purchase Likelihood by US Household Income

Source: Limra

Purchase Likelihood

28% 28%

Low Income Middle Income High Income

Adaptive

AnswersGreat

ExpectationsFewer Agents

Fewer Sales

Less Efficiency

Less Satisfaction

Cost pressure/efficiency

Client Demands

Technology obsolescence

New regulations

Product changes

Availability of innovative technology

International expansion

M&A activity/ restructuring

Existing regulations

By Issue Type, 2011

FOCUSING ON EFFICIENCY AND CLIENT SERVICE

Insurance IT Investment Priorities

Sources: CEB TowerGroup

By Sales Phase, 2008

NOT IN GOOD ORDER (NIGO) – AN EFFICIENCY LEAK

Tasks to Issue a Life and Annuity Policy

CEB TOWERGROUP INSURANCESource: NAVA

By Sale Type, 2012

THE CASE FOR EXCEPTION-HANDLING EXCELLENCE

Causes of a NIGO (Not In Good Order) Policy

New Purchases Problems

Incomplete information about the insured including supplemental answers.

Incorrect Beneficiary designations

Missing agent or insured signatures

Financial details are incomplete including bank and routing information

Policy rider forms are missing or lack signatures

Replacement Errors

Missing or unsigned new coverage disclosures

Prior insurer name or policy details incorrect

Inconsistent financial information between the replacement policy form and the original policy

Missing agent or insured signatures and all new forms

Incomplete or adjusted beneficiary designations

Source: CEB TowerGroup

By Region, 2012

A GRADE ‘C’ FOR SATISFACTION

Insurance Customer SatisfactionTh

Source: ERNST & Young

Adaptive

Answers

Expectations

Fewer Agents

Fewer Sales

Less Efficiency

Less Satisfaction

By Priority, 2012

WHAT MATTERS DURING THE PURCHASE…..

Key Factors in Choosing an Insurer

Source: Accenture

Product Price Product Fit Call Center Online Access Brand Reputation

45% 45%

Service Trust Price Ease Confidence

By Priority, 2012

CHANGES AT RENEWAL AND IN CROSS-SELL/UP-SELL

Key Reasons for Staying with an Insurer

Source: ERNST & Young

Adaptive

Answers

Expectations

Fewer Agents

Fewer Sales

Less Efficiency

Less Satisfaction

Customer

Channels

Adaptability

Availability

SO CUSTOMER CENTRICITY IS THE GOAL….

Source: CEB TowerGroup, 2012

By Factor, 2012The Customer Centric Roadmap

….ACROSS MANY CHANNELS….

Insurance Channels, Functions and ProductsBy Customer and Distributor, 2011

InvestmentsPersonal Property

HealthPensions LifeWorkers Comp

Personal Auto

Commercial Lines

Specialty Lines

Marine

Functions

ProductSystems

DeliveryChannels

Policy Administration

ProposalGeneration

Underwriting Actuary

CustomerSupport

Claims Processing

Billing

SOCIAL MEDIA

CENTER

INTERNET

PORTAL

MOBILE

Rating

Compliance

CONSUMERS DISTRIBUTORS

FINANCIAL SERVICES PRACTICE, CEB TOWERGROUP INSURANCE

….AND MANY TYPES OF CONTENT

Policy Approvals and Claims Payments

Instant Messages

Adjuster/Underwriter Notes

Medical, Inspection

Reports

Social Media

Photos

By Type, 2012Insurance Sales and Service ‘Documents’

What Makes Insurance Knowledge Work Hard?

• There Are Two Customers (Agent and Policy Holder)

• Customer Needs Change Over Time

• Customers Require Solutions Yesterday

• Outside Factors Cannot be Predicted or Controlled (Catastrophes, Economics, Government Policy)

• Employee Turnover and Knowledge Retention

By Challenge, 2012The Case for Adaptive Case Management

ADAPTABILITY IS REQUIRED….

CEB TOWERGROUP INSURANCESource: CEB TowerGroup

ECM BPM EIM

Don’t

Standardize Forms across Products and

Channels

Ignore Key NIGO Causes

Treat Variations as

Stored Customizations

Expect Process to be

Set in Stone

Look at the Customer

Experience across

Processes

Fail to Continuously

Improve

TO MOVE FROM INFORMATION TO INTELLIGENCE

Thank you

Sam Stuckal

Research Director

Insurance Practice

CEB TowerGroup

617.488-1985

Sam.Stuckal@executiveboard.com

Website: https://insurance.tg.executiveboard.com

Major US Insurance Company

Life, Annuities, Retirement Plans, Group Employee Benefits, Stop Loss

2 million customers

20,000 agents

1,200 employees

$21 billion in Assets

Hired four people for every 100 new applications

After Deploying OpenText ACM, there were more applications but no increase in staff

Through attrition staff declined 14.5%

Cases handled +30% increase

Underwriters +20% increase in capacity

Life & Investment Group can now handle 67% more work

Agents get the answer in real-time while on the phone

Developed a NEW channel to sell Term Life through other Financial Institutions

What are Insurance Companies doing with ACM?

Trying to simplify while adding value

People live in a world of relationships that go on for decades, HOW do you monetize this?

ACM can provide a more complete or useful “view” of a customer

All interactions can be linked to a “case” which lives on.

This improved view can be acted on: improve customer service market new products to people more likely to buy process a claim cheaper and faster

Electronically sent back to/through channel

STPStraight Through

Processing

Case Management increases New Business agility and efficiency to drive profitable growth

Call Center

Website

Agent/Broker

Customer

Application

Submission/Order Entry

Data ValidationBase Rate

Quote& Bind

RiskAssessment

Loss Adjustment

Analysis

External DataDistribution

Channel

Policy Underwriting/Enrollment/ New Business

Source: SMA/OpenText

How does ACM help my business?

Leverages the experience of knowledge workers as they know what to do, and can add or delete processes, to get the application processed quickly and correctly, a quicker time to revenue!

ACM- the data is central: the “case” may belong to a process, it may initiate a process and can exist for 50 years, which you can use to improve sales

ACM is the same fundamental business process for ALL work types and business processes for the entire firm.

Case includes: Ad hoc tasks Checklists Case notes Discussions Audit trails, etc.

How does ACM help my business? cont’d

Case has Persona based UI’s

We put the customer at the center of everything!

Single view via a Master Folder The customer Policies Advisers Documents, emails, letters,

proposals Links to all investors, brokers,

fund managers, etc. folders

AIA Insurance

Was AIG in Asia

23 million policies

Second largest Insurer in Australia, insures 20% of the population

Uses ACM with OpenText New Business Underwriting Policy Administration

Questions?

Download your complimentary report:Breaking with Tradition in the Insurance Industry:Strategies to Insure Operational Efficiency and Future Growth

You can view the report at: http://bps.opentext.com/resources/ot-bps-insurance-execbrief.pdf

Learn more: www.opentext.com/insurance

Thank you