digital thinking to transform the underwriting process

www.the-digital-insurer.com

Think Digital: Transform your

underwriting process


Four Themes / Areas for discussion

1. Digital will transform face-to-face advisory channels

2. Tablets point of sales toolkits are pivotal

3. Underwriting will also be transformed - twice

4. How to avoid the roadblocks

2

Life Insurance as focus

For today’s discussion


The Digital Revolution: it will not be televised

Digital Convenience

• Always on

• Always there

• Universal

• Almost free

Digital Connectivity

• Access to information (Google)

• Access to each other (Facebook)

• Access through devices (Apple)

• Location-agnostic (cloud services)

Digital

Expectations

• Data “on demand”

• Desire for clarity & simplicity

• Dialogue not monologue

• Easy to promote a product .. and complain

Change, Change, Change….

3


Two digital “Mega” trends : forces beyond

anyone’s control

1. Technology is cheaper and

easier to implement than

ever – it is the fulcrum to

meet consumer needs,

reduce operating costs and

to change your culture

2. Changing consumer

behaviour – they are

demanding and seeking a

different experience

4


4 digital Insurance business

opportunities (& threats)

Create New Models

1. Pilot New Digital models : Partner

with companies with digital assets

to create new models

2. Digital Worksite Marketing:

unlocking the hidden value in your

employee benefits business

Transform Existing Models

3. Transform Life insurance Advisory

Businesses : The Digital Advisor

4. Digital Cross Selling: personal

lines, asset management, banking

5

Focus for Today


Welcome to Digital Customers : they are

“Hybrid”

The hybrid customer is…

• Better informed

• More demanding

• “Multi-channel” for both

sales & services

• Will jump channels at

any point – catch them if

you can!

The Hybrid

Customer

Face

To

Face

Online

Phone

6

Myth #1: Digital is a new distribution channel

Reality : Digital enables customer engagement

www.the-digital-insurer.com 7


Tablet sales toolkits : a pivotal tool in the

transformation process

1. Access sales aids/ brochures

2. Identify needs

3. Produce quotes and help to

close

4. faster, easier and more accurate

proposal submissionKey Success factors

• Must be Designed for Advisors

• Easy to use with a “wow” factor that encourages use with

clients

• Great usability is critical: engage/delight customers &

advisors8

Tablet Functionality:

Focus on the parts of the sales

process that engage with customer


Tablet sales toolkit : Easy business case

Primary benefit

Improved Sales effectiveness

through a better customer

experience

Measured by :

- High tablet usage from

Advisors

- Increased sales productivity

per month

Other Benefits after success

1. Back office productivity from

digital proposals� More efficient

� Faster & more accurate (clean policies in a

day)

2. Reduced agency overheads :

premises & technology costs

3. Business intelligence� Benchmarking data

� Usage data

� “Bigger” data

4. Improved compliance to sales best

practice (& regulatory

requirements)

5. Recruitment training tool

6. Platform for more automated

underwriting


AIA Case study: a tablet success story

10Full AIA case study available on-line

AIA’s Journey

1. Initial Pilot in Taiwan (end 2011)

2. Rollout in 3 countries completed (Singapore, Indonesia and Malaysia)

3. Further 6 countries to complete in 2013 (6-9 months per country)

Compete set of functionality

“The adoption of iPoS goes beyond our

expectations. In one country more than

80% of the new business is coming in

through iPoS within 12 months of launch

and in another country it was more than

30% after 3 months. The agents just love

iPoS. All other indicators such as

productivity, activity or case size are equally

positive and better than expected.”

AIA Executive leading the development

Results exceeding expectations


Tablet Underwriting : 3 phases of the first evolution

Deliverable Benefits

1. Digital Application

� Make the application form digital

� Collect additional info e.g. ID,

proof of address

� Improve Accuracy &

completeness

� Easy to submit

2. Digital Issuance

� Allow immediate issuance of

clean non medical policies

� Collect first premium by credit

card

� Next day policy issuance for

majority of policies (clean and non

medical)

3. Digital Underwriting

� Workflow engine for outstanding

medical requirements

� Increased use of underwriting

engines

� Supplementary questionnaires

completed immediately

11

� Streamlined management of non

clean and / or large cases


Just over the Horizon : The second digital

underwriting revolution1. Big data = more info

� LinkedIn

� Facebook

� Underwriting questions digitised

2. Wearable devices are

coming

� Fitness statistics

� Personal medical data (heart rate,

blood pressure)

3. Digital Medical records

� Can provide access to insurers

With more data

available

Risks can be

more quickly

& more accurately

priced


Tips for successful digital transformation

Strategic Alignment

� Digital as a transformation opportunity

� The importance of Tablet POS toolkits

� Comprehensive business case

approved

� Resources dedicated

New Implementation approach

� Customer centric (outside in)

� Prototype (AGILE)

� Explicit change management

� Distribution owned

� Launched like a product


Objectives Accomplished?

1. Digital will transform face-to-face advisory channels

2. Tablets point of sales toolkits are pivotal

3. Underwriting will also be transformed - twice

4. How to avoid the roadblocks

14



A Forum for Digital Insurance

in Asia

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Articles:

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Building tomorrow’s digital

insurance business models, today.

Hugh Terry

15

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