digitisation in li
TRANSCRIPT
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Digitisation in Life Insurance
Sunayana Mahansaria, FIAI
1
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Global internet penetration was at 40% in
2013, implying that more than 2.7 bn
people are online
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Global internet penetration was at 40% in
2013, implying that more than 2.7 bn
people are online
Roughly 6.8bn mobile subscriptions in
2013 as against estimated world
population of 7.1bn
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Global internet penetration was at 40% in
2013, implying that more than 2.7 bn
people are online
Roughly 6.8bn mobile subscriptions in
2013 as against estimated world
population of 7.1bn
It is estimated that one in every five
people own a smartphone, and one in
every 17 a tablet
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Agenda
1. Value addition by using Digitisation through the Life-cycle in Life Insurance
2. How can one implement an Efficient Digital strategy?
3. Possible hurdles faced when embarking upon a Digital strategy and how to overcome them
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Value addition by using Digitisation throughout the Life-cycle in Life Insurance
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Value-addition throughout the
Life-cycle Actuarial
Marketing
Sales
Underwriting
Investments
Policy administration
Servicing
Data storage and analysis
Life - cycle
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Actuarial
-Better assumptions in Pricing
-Help in building complex products
-More efficient automation of actuarial
processes
-Hedging of risks less desired
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Marketing
Insurance is complicated / Trust factor
-Social media : Online customer
representatives, Consistency, Brand loyalty
-Online research tie-ups : buying trends,
effective marketing
-Varied digital channels : Targeted
marketing
-Advertisement follow ups during web
browsing
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Sales
-Digitally assisted sales on tablets
-Rapid issuance using tele-
underwriting
-Online sales of products
(Accept/Reject)
-Post sale follow ups (Feedback / Mis-
selling)
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Underwriting
-Iterative online application forms –
Disclosures / Risk assessment
-Automated underwriting systems
-Predictive underwriting
-Dynamic non-medical limits
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Investments
-Technologically driven news
-Faster systems / chats (Eg:
Bloomberg / Reuters)
-Access to online markets / Dark pools
-Better analyses of returns / spreads
(Time is money)
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Policy administration
Minimise errors and timeliness in:
-Policy issuance
-Premium payments
-Tracking
-Lapse / renewals – Reminders and servicing
-Unit values
-Application forms / Policyholder submissions and proofs
-Medical reports
-Premium receipts
-Renewal correspondence
-Marketing material
-Regulatory correspondence
-Claims correspondence
To improve accessibility for consumer: Develop a common
interface with all financial investments
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Servicing
-Mobile apps (Caution :
Downtime/errors)
-Refocus manpower
-Brand loyalty: Well functioning mobile
apps with value added services
Number of app downloads in 2013
between 56-85bn
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-Experience analysis
-Predictive analyses
-Marketing strategy
-Inhouse / Outsourced
Tools: Data servers / big data analytics
Data storage and analysis
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How can one implement an Efficient Digital Strategy?
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Implementation of an efficient
Digital strategy
• Adaptability dependent upon industry format
• First movers rewarded
• ‘Too fast’ can backfire..
Consider a first mover advantage
• Not IT/marketing alone
• Lack of involvement
• Synergy gains
Implement across the value chain
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Implementation of an efficient
Digital strategy
• Use inherent positioning to an advantage
• Large / Small / Newer companies
Be cognisant of competitive
positioning
• Investment plan for Senior management and Board
• Comparison of NPVs’ of business models
Establish stakeholder
support
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Implementation of an efficient
Digital strategy
• Excludes human involvement
• Looping of errors
• Susceptibility of data
Recognise the dangers of moving too
fast
• Alienation of the less digital segment
• Be in touch; use non-Digitisation too
Be mindful of the non-digital
segment
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Implementation of an efficient
Digital strategy
• High expectations
• Attention spans
Manage customer
expectations
• Appropriate harnessing of potential
• Effective targeting
• High performing agents
Train the salesforce to
‘go digital’
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Implementation of an efficient
Digital strategy
• Prepare your customer
• Sufficient planning
• Advance preparations
• Security measures
• Consistent image
• Regular monitoring
Manage the move carefully!
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Possible hurdles when embarking upon a digital strategy
And
How they can be overcome!
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Possible hurdles while embarking
upon a digital strategy
Resistance by
Distributors
Organisation
specifics Culture differences
Lack of integrated
strategy and drive
from top
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Resistance by Distributors
• Distributor resistance
• Digitisation as a perceived threat
Recommendations:
• Early Involvement
• Trainings and seminars
Have the distributors look forward to the change !!
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Lack of integrated strategy and
drive from top
• Shareholders not convinced
• Piecemeal approach
Recommendations:
• Long term value creation
• Do your research!
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Culture differences
• Inherent change resistance
• Comfortable leadership position inertia
Recommendations:
• Identification of ‘key influencers’
• Consequences of being a ‘follower’
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Organisation specifics
• Large companies (Lack of Flexibility)
• Small companies (Disproportionate investment)
Recommendations:
• Large companies – War chest
• Informal barrier creation
• Smaller companies –Agility
• Late entrants - Lack of legacy
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Conclusion
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Concluding remarks…
• Various aims of Digitisation
• Disproportionate gains
• Multiplication of benefits
• Holistic well-planned rollout
• Openness to refinement
• Awareness of future…
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THANK YOU!