Interpolis. Crystal Clear Business Model & Brand Strategy

Business Testimonial, MBA-FSI

Tilburg, 08.11.2012

Introduction & Program

René Voets, Manager Operations

• Business model

• Operating Model Rabobank-Interpolis

• Key succss factors: Packaging & Bundling

• Office Concept: tour

René van Gerwen, Brand & Media Strategist

• Brand evolution ‘Crystal Clear’

• Challenge and ambition

• Practice what you preach

Introduction of the Company, partnership and business model

Playing field

Achmea organizational structure

Direct distribution

Market & Strategy

Non Life & Income protection

Life & Pensions

International

Bank distribution

Broker distribution

Achmea Association Other

Syntrus

Large Corporates

Achmea Bank

De Friesland Zorgverzekering

Health Care services

Health

Staalbankiers

63.3% 5.4% 31.3%

1st in Dutch non-life market

34% bank distribution

Achmea Facts & Figures

1st in Dutch health market

3 top player in

Dutch life market

2011 result from

regular activities

€ 51 mn

€14 billion largest

Dutch real estate investor

2011 GWP

€ 19,650 mn

Rabobank Facts & Figures

139 local branches in 872 offices

with 3000 advisors

AA/AAA rated cooperative bank

39% market share

savings accounts

6,8 Million Dutch customers

42% SME market share

32% market share

residential mortgages

2011 net profit

€ 2.6 billion 83% market share

Food and Agri

Interpolis Facts & Figures

Crystal Clear concept

1st market share non-life

300,000 Corporate/SME customers

3rd market share life

1.6 million consumer customers

Business Model Rabobank-Interpolis

Advice & selling insurances

Sales Support

Claim Management & Prevention

Change of coverage

Vision on Customer contact

Rabobank Rabobank

Rabobank Rabobank

Rabobank

Interpolis Interpolis Interpolis

3rd party 3rd party 3rd party

Rabobank-Interpolis Operating Model

Rabobank Sales

Proposition Management

Rabobank Product

Management

Chain Management

Local Rabobank branches

Achmea `Product divisions

Interpolis

Brand Management

Account Management

Sales Support

Central

Local

Evolution of bancassurance

Evolution of insurance distribution

Tied Agents

other other other other

Tied Agents

Tied Agents

Bancassurance

IFAs / Brokers IFAs / Brokers Direct

Direct

IFAs / Brokers

IFAs / Brokers

Affinity

Bancassurance

Tied Agents

Bancassurance

Developing Emerging Super Mature Mature

Russia Turkey Greece

The Netherlands

• As the market matures, the importance of bancassurance as a distribution channel grows

Insurance distribution within Achmea

Netherlands only

Simple ‘Referral’

Model

Focus on commissions, not different

from an agent channel

Traditional Bancassurance

Focus on reducing costs and increase

margin at stake for partners

Integrated Financial Services Provider

Focus on delivering quality of

service and maximize cost

efficiency

Increased tailoring and integration with the Bank

Evolution in bancassurance

Partner in life and

business

Focus on needs of partners and support their business from

all aspects

Rabobank-Interpolis Successful partnership

Market share in P&C lines through bancassurance

2%

5%

20%

65%

Fortis

SNS

ABN/Amro

Rabobank

Gross written premium (€ bio.)

Non-life

Life

2.3

1.2

2.8

1995 2000 2008

The evolution of the relationship between

Interpolis and Rabobank creates value

Simple ‘Referral’ Model

Traditional Bancassurance

Integrated Financial Services Provider

Introduction of All-in-One policy

Improvement of claim handling by Interpolis

Introduction of Travel insurance as

part of initial product proposal from Rabobank

Introduction of All-in-One policy

for SME

Lauch of in- and outbound sales from Rabobank

Call Center

Introduction of Interpolis

Insurance Check

Key Success Factors for Rabobank-Interpolis

• No exclusivity agreement, continuous improvement.

• Integration in Rabobank’s all finance proposition.

• Coordinated development of core sales support / CRM systems.

• Rabobank is involved in product/proposition management process

• Claims handling by Interpolis: high level of service to the customer.

Packaging

Bundles & Packages approach

Rabobank Mortgage Package

Rabobank

propositions

Interpolis

propositions

Insurance

products

Customer

Rabobank SME

package

Service concept + Proposition functions

Service concept + Proposition functions

Service concept + Proposition functions

Add ons based

on brand

Services Pre-

vention Bundle

3

Add ons

By Rabobank

Single

products

1 Bundle

2

“I want advise about”:

•“turning 18”

•“living together/marriage/divorce”

•“decease”

•“going to university”

•“buying my first house”

LOB’s

Starting point: customer needs

“Buying my first house”

Insurance product

Banking product

Buying your first house

Additional services

“Starting my own company”

All relevant subjects concerning starting a company

Banking and insurance as one of the subects

Action plan for starting your own company

Bundling

Interpolis All in One policy

Retail, non-life

insurance

Bundle of 5

types of

insurance

Policy, premium,

renewal date, sales

application, claims

process, etc.

Cross-sell

More insurance =

more discount

Discount system

Discount amount

Cross selling

triggers …

…and strong

lock-in effect!

‘In this class, you

are not insured’

Cross selling

trigger!

The icons make

clear which

coverages

customer has

Integrated part of

Rabobank’s

banking

welcome package

Interpolis ‘Sure Company’ policy

Immediately

insured

No paperwork >

all electronic

Covers all

risks:

everything

unless…

Immediately

terminable

Co-growth

guarantee

Interpolis Brand Strategy

Context: lack of trust

Context: certainty seekers

Context: cry for transparancy

Market Perception

‘Insurers are big, complex and customer unfriendly companies that are never there when you really need

them’

‘I am just a number’

‘I have no idea what exactly is insured’

‘They make a huge profit, on my back’

‘Make sure you read the small print’

‘In short: you never know where you stand’

Market Expectations

‘Be there at the moment of truth’

‘I want them to keep their promises’

‘thinking along’

‘provide real solutions’

‘being crystal clear, so I can make the right choices’

‘being straightforward’

Brand evolution 2000-2012

Brand Development (1)

1

Interpolis. Give trust to gain trust (2000 – 2005) Interpolis is the first insurance company that makes insurances simple: simple communication and relevant solutions.

Eg: ‘Leave your receipts at home’

2 3 1

Brand Development (2)

2

Interpolis Guys (2005 – 2010) Interpolis is the first insurance company that understands money doesn’t solve everything

E.g.: ‘Interpolis Guys and Webshop’

2 3 1

Brand Development (3)

3

Interpolis. Insuring is not the only solutions (2010 – 2012) Interpolis is the first insurance company who states that insurance is not the only solution. And offers alternative solutions to cope with risks

Eg: ‘Online Prevention Shop’

2 3 1

In our campaigns we make tangible what’s slippery. Our crystal clear

solutions are always central in our communication.

We don’t make empty promises, but make extremely simple and concrete

what clarity means for our customers:

• leave your receipts at home, we believe you

• one telephone call and you exactly know where you stand • buy a new one right away, the money is on its way

• we send ‘guys’ because money doesn’t solve everything (repair)

• our webshop offers many products (replacement)

• the Insurance check: know what you should insure and what not.

Brand Values

Campaign Results

Brand Consistency:

-Rationally

-Solutions focussed

-Aqua branding

-Less is more

-Simplicity

Campaign Results

Results:

-Explosive growth of Brand Awareness: from challenger towards perceived

market leader.

-Brand preference and Brand consideration: nr. 1/2 position within category

-2011 survey: Interpolis most trusted insurer and Rabobank most trusted bank

Consistency Award

Next step Crystal Clear: challenge and ambition

Crystal Clear is more relevant than ever…

Society

• Customers no longer choose

products. They follow an identity

or idea.

• Authenticity & Credibility are

crucial for reputation

• Trust in established companies is

at an all time low, especially in

financial services

Crystal Clear is more relevant than ever…

Insurance category

• Insurance products have become

commodities. Products and

propositions are easy to copy

• Category is becoming more and

more complex: increasing number

of niche players (OnnaOnna) and

retail sellers (Hema, ANWB)

• Transparancy and simplicity are

becoming dissatisfiers (forced by

regulations)

Crystal Clear is more relevant than ever…

Organisation

• Achmea: Synergy and integration of

back offices, forces front end

differentation

• Rabobank: modified business

model insurance (virtualisation)

• Interpolis: embedding prevention

and risk management in business

strategy and incorporating health

insurance in brandkey

Interpolis is there for its customers when they really need it.

Not just by being and staying transparent but by offering

new solutions, so that people can be

in control of their own risks.

We want people to not uncritically insure everything,

but to use their common sense.

Because there are more ways to deal with risks.

The focus shifts to risk advice and prevention as an alternative for insurance.

With that we get rid of a false perception of security.

Brand Ambition

1. Risk insight are the starting point. What are the risks that are relevant for you?

2. Based on your preferences you can choose to reduce the risks (prevention), bear risk for yourself, or transfer the risk (insurance)

Insurance is not the only solution

It’s perfectly clear what risks are relevant to you and its crystal clear what measures you

can take to reduce the risk

Risk insights

Prevention Insurance Services

With our prevention measures, your risk reduces

significantly. That’s our guarantee

Everything unless

coverage, 100%

coverage

You can be sure that your

problem is solved, even though you

have no insurance with us

Impact renewed brandkey on business

Products and Propositions:

•Focus shift from insurance products towards risk

management (need driven vs product driven)

•Assessing relevant risks per client

•Outlining alternative options (besides insurance)

•Simple products and services (DIY)

Branding:

•Focus on Emotionele benefits (less

instrumental): Customers want to be understood

and supported.

Insuring is not the only solution…

Loss reduction in case of fire blanket

Loss reduction in case of smoke alert

Effects of prevention

Crystal Clear in operations

• Starting point: Deliver internal what we promise external

Key brand values must be incorporated in all phases:

• Products & Propositions

• Marketing & Communications

• Customer contact

Crystal clear in operations

Practice what you preach…

Interpolis

is the first Dutch insurer who provides alternative solutions, besides

insurances. With trust as a mutual basis, we provide maximum clarity

with simple products and easy processes.

In our day to day business we are always solutions-focussed and

towards our customers we act empathicly and equally.

By offering our clients need driven services and support we enable our

clients to get in control of their own risks. And give them a reassured

feeling about how they take care of themselves and their relatives.

Trust

Clarity

Solutions-

focussed

Empathic

Equality

Living up to expectations

That’s it! More information?

www.interpolis.nl

www.preventiewinkel.nl

And now: The Interpolis Office concept…