ideas for today and tomorrow pension and life insurance · 2018-10-05 · 2 ideas for today and...

1 Ideas for today and tomorrow Pension and life Insurance

NHH Case Competition 2018

Pension and life InsuranceIdeas for today and tomorrow



Setting the sceneYou are part of a case competition that aims to bring the best teams from the world’s top-ranked business schools together. The goal is to come up with valuable solutions for some of the major companies. Last year it was an outstanding performance from all the teams, and the solutions were valuable and innovative. This year should be no different, solving one of the significant challenges for DNB.

The competition that serves valuable solutions to the biggest companies

DNB take their social responsibility as the biggest bank in Norway seriously. They also believe that their knowledge, services, and experience can help the younger generation towards their desired retirement. They have changed strategies to capture and educate youths and young professionals about the importance of pension and life insurances. However, the task is difficult.

To do this, DNB has decided to take on the challenge and be the first mover to rethink how they market to, acquire and retain pension and life insurance customers aged 18-32 years old. DNB do a strategic change from both a corporate responsibility perspective, but also a strategic and financial perspective.

The business area “Wealth Management and Insurance” (WMI) in DNB has been given responsibility for the pension and life insurance market challenge. This group has several divisions, with DNB Life Insurance being the provider of pension and Life Insurance services. Other divisions include the general insurance market (Houses, cars, etc.), asset and wealth management and sales and customer services.

Being the biggest bank in Norway, and a leading player in the life insurance field, DNB Life Insurance has approximately 1.3 million customers,

400 000 with a defined contribution pension scheme. However, the pension is not a driving force in peoples’ everyday life, with only 40% knowing which type of pension they have. In addition to this, DNB research has found that pension schemes are rarely considered when accepting or changing jobs, even though a pension is necessary to keep the desired quality of living when retired.

However, their 1.3 million pension customers are mostly well-established individuals from the older generation. They want to change this. To do this, they don’t need to capture the market from their competitors. In fact, the young generation is not captured by any bank within the pension and insurance market.

As a young and assertive consultant, you are part of the young generation and an important key to create and capture the pension market for youths and young professionals. With your knowledge, DNB is looking for ideas for today and tomorrow and a strategy to obtain, retain and make the pension and life insurance market within the young generation profitable, and to be loved for it by this customer segment.



In 24 hours, you will hold a 15-minute presentation with your strategy on how to approach DNB’s challenge and bring innovative ideas on how to capture the young generation’s interest in pension and life insurance services. Your creativity, strategic abilities and ability to rethink a problematic area will be tested. Finalists will present their Ideas to Haakon Hansen, Leader of the Wealth Management and Insurance in

DNB, and a jury consisting of leaders from major companies and academia.



Pension and Life InsuranceThe pension system in Norway is based on three levels; retirement pension from the National Social Security Association, Pension from the employers and your own retirement savings. To understand the pension system, it is essential to understand the basic principles of these levels. The figure below expresses how the need for private savings has changed from before to now.

The welfare system in Norway

National Insurance from the National Security Association The National Security Association secures your income the day you retire. The National Security Association was founded in 1967 and is the foundation in the Norwegian pension system. Their goal is to secure everyone a pension that is reasonable compared to what you earned while in a full-time position. At the same time, there are strong allocation principles which guarantee everyone a basic pension, even if you have never worked. This pension is financed through the yearly government budget, and the deficit in the government budget is covered through the profits from the Pension fund (known as the Oil Fund).

How much you are granted in retirement pension from the National Security Association is based on your total income throughout your career and how many years you have stayed in Norway. For the youth generation, the pension is calculated as illustrated on the next page.

Mandatory Occupational pension and AFPThe occupational pension is pension schemes for employees and is mandatory for private employers and the public sector. For private companies, the pension schemes can be one out of two alternatives; Defined contribution pension or benefit-based pension.



A defined contribution scheme means that the employer’s cost for the pension scheme is a fixed cost, while the size of the pension is dependent on how much is inserted/ paid and the return on the paid amount. If an employer chooses a defined contribution scheme, the law requires that at least two percent of an employee’s income is inserted into a pension fund, for example in DNB. However, an employer could choose a higher percentage, and employees could contribute with their own savings within defined limits. Those limits are not relevant for solving this case.

A benefit-based pension is a pension which is predictable for the employee, while the cost to the company will depend on certain variables, such as age and income level. The cost can vary from one year to another. As a rule of thumb, the pension amount is calculated as a percentage of the income an employee is entitled to the year s/he retires.

AFP is a collectively agreed pension scheme in the private sector. In connection with the pensions reform, the private sector AFP contractual pensions scheme was wholly revised in 2011. The main features of the new AFP scheme, which applies from 1 January 2011, are described here. AFP is a private sector tariff-based pension scheme. AFP is an ungraded lifelong supplement to the retirement pension from the National Insurance scheme. After you have turned 62 years old, you largely determine yourself when you want to draw AFP. In the new AFP scheme, you can continue to work while drawing pension and AFP is not means-tested against your employment income. A condition for entitlement to AFP is that you work for a company that is bound by a tariff agreement with AFP right up until you start receiving your pension.

Life InsuranceThe government does not provide any options for life insurance solutions, and this is a financial service offered by banks and insurance institutions. The government does not give any recommendations on what you should choose to have, nor do they put a lot of emphasis on its importance. They do, however, offer a disability pension to people with disabilities.

Private funds – Private pension savings If you have saved towards your pension, this will come in addition to other payments when you retire. There are many ways to save for your pension, and there are a lot of products to choose from. The government does not give any recommendations, and it is your own responsibility to find, understand and select the strategy you would like to use to build capital. However, very few save towards their life after retirement. Indeed, in 2014 only 9% aged 18 to 29 saved for their retirement. In 2018, the same number is more than doubled and is currently 22%.

Pension products are not the only way customers can save towards their pensions. DNB offers a wide variety of saving schemes, ranging from funds to actively managed investment portfolios. The aspi-ration for DNB is not only to increase the interest in pension products but to increase awareness around the need to save money towards retirement.



Challenges in the Norwegian Pension System

1. Aging population In the long term, the government expects that the part of the population above 65 years will double in 2050 compared to today. Today 22 percent of the population is 65 years or older, but within 2050, we expect this number to be close to 40 percent.

2. Increased pension payments for the governmentAn analysis was done by the Statistical Bureau in Norway (SSB) and show an expected increase in pension cost of 30 percent relative to the income level in the society because of the retirement pension system not being fully implemented, and that women in the future will have higher occupational participation and therefore higher public pension earned throughout their lifetime.

The combination of an increased share of older people and higher average retirement pension will drastically increase the cost within the National security association. Indeed, SSB expects an increase from 9% today to 20% in 2050, in the percentage of the total mainland economy (Not including oil and gas which is part of the offshore economy).

These trends will also dramatically increase the cost needed to run the public healthcare system, which is expected to be much more expensive because of an aging population.

3. Risk of not being able to fund the public pension system in the future The Government Pension Fund Global, also known as the Oil Fund, is where the Norwegian Government manages the revenue from their North Sea activity, mainly oil and gas. The fund is expected to secure that Norway’s wealth is equitably distributed between generations today and in the future. However, it’s not given that

this fund will be sustainable with today’s pension system, and the retirement pension could be reduced or changed according to the challenges mentioned above.

4. Expectation gap between the expected amount and real amount DNB Life Insurance has experienced several times that customers’ expectations to their pension and life insurance coverage deviate substantially from their actual coverage. This is due to many reasons. First, it is often because of their expectations of the welfare system is significantly different compared to what the welfare system can provide in the future. This is due to the challenges above and other factors, such as a misunderstood concept of the government securing you for the rest of your life without taking into considerations how much they have earned, etc. Another factor is the difficult pension products and the advanced services not fully understood by customers. Even though DNB employees have made a real effort in educating their customer base, it is still many things that are unclear. Other factors are not yet explored, but DNB expects it to be other potential reasons.





DNB GroupPurpose For almost 200 years, DNB has been there for customers, employees, and society in general.

Company Presentation

They are Norwegian, and they are national, and value tradition and innovation. They aim to be a partner in all phases of your life and seek to be available for all your needs in the financial services sector. They want to be a bank for the small details and the big questions. Every day they bring together people and ideas with knowledge and capital.

Their purpose is to make your everyday life more comfortable. As Norway’s largest bank and one of the largest financial services groups in the Nordic region, they offer a complete range of financial services through mobile solutions, 24/7 customer service centers, online banking, branch offices, in-store postal outlets, real estate brokers and National offices.

“We are here. So you can stay ahead” – Purpose of the DNB Group

This is their purpose and the answer to why DNB is there for customers, society, and employees. The purpose aims to set the direction for their choices and priorities. The aspiration for the purpose is to inspire innovation and drive change. Everything they do must be in line with their purpose.

ValuesThe values in DNB describe how they aim to deliver their purpose and guides their expectation from

each other and what their customers, stakeholders, and society, in general, can expect from them. Their values are as follows.

Curious«Being curios means that we seek new knowledge and learn from our experience, so that we continuously gain new insight. We are genuinely interested in and curios about how we can make everyday life better for our customer and colleagues. We find good solutions together”.

Bold“Being bold means that we challenge established truths and make decisions even though the picture is unclear. We take responsibility for our actions, admit when we make mistakes and then learn from them. We face challenges and new competition with an unshakeable conviction that we will become even better at developing the best ideas and solutions.”

Responsible«We create values in a sustainable way. We are transparent and contribute positively to society. We listen to those who have opinions and insight about what society expects of us. We use simple language and are predictable in our actions”.

Strategy and organizationDNB’s overarching goals are to create the best



customer experiences and to reach its financial targets. Four strategic priorities have been identified to ensure that the Group succeeds with their strategy.

Overreaching goalsCreate the best customer experience Today’s society is characterized by persistently low interest rates, high capital requirements, ever- increasing price transparency and fragmentation of value chains in traditional banks. New regulations open the way for new competitors. It is likely that global players like Facebook, Google and Amazon will offer banking services in DNB’s markets in the future. There is a risk that these, and other smaller players, may come between DNB and its customers, reducing DNB to an infrastructure provider which will become increasingly less visible. Strong customer relationships are therefore essential to retain customers and ensure continued profitability. With a gradually more open infrastructure and declining switching costs and customer loyalty, it will be increasingly difficult to “own” the customer relationship. DNB will have to earn it again and again through each experience the Group offers its customers.

Reaching financial targets Long-term profitability is the underlying premise for all of the Group’s activities. The overriding financial target for DNB is a return on equity, ROE, above 12 percent. At the same time, DNB aspires to maintain a cost/income ratio below 40 percent, meet the authorities’ capital requirements and deliver a dividend of more than 50 percent of profits. To reach these goals, DNB must continue to improve, develop and streamline its current operations, while actively phasing out that which is no longer profitable. Change is essential to position the bank for the future, but the traditional business will continue to be the main contributor to the financial results for the foreseeable future.

To succeed, the Group needs to accelerate its pace of innovation while balancing scarce resources such as capital, development funds, and people.

Strategic priorities1. Increase innovative power Includes keeping up the pace of innovation and secure the ability to meet new customer needs. Also, it provides for the importance of privacy protection and information security. 2. Increase the use of customer insight Aims to give excellent customer experience and should ensure the ability to provide ethical products and services 3. Drive skills enhancement Skills are essential to keep the market position and the trust from customers. Therefore, DNB focuses on the internal development and put a great effort into the importance of good working conditions. 4. Incorporate corporate responsibility in all processes CSR promotes the need for innovation and restructuring in the Norwegian economy.



DNB Life InsuranceDNB Life Insurance [Registered as DNB Liv AS] base their decisions on the DNB group’s over-all purpose, vision, and strategies. As a subsidiary in the business area “Wealth Management and Insurance,” and one of the largest insurance providers in Norway, they have 1.3 million private customers and control approximately 284 billion NOK in customer funds.

Company Presentation

Wealth Management and Insurance (WMI) WMI is the business area within DNB overseeing the asset management business, insurance, savings and sales divisions. The group is led by Håkon Hansen. DNB Life Insurance, including pensions, is one of the divisions in WMI. WMI is responsible for overseeing that the strategy, purpose, and visions are effectively implemented and that it is used to execute the day to day business. A significant strength for DNB Life Insurance is the availability of other services as part of WMI. For instance, being part of WMI gives access to asset management experts, markets analysts and DNB Life Insurance’s products are pushed to markets through a specialized sales division.

Strategic positioningWMI has based their strategy on DNB’s purpose, vision, and overall strategic goals. This has resulted in three focus areas.

• Contribute to increased knowledge and decreased passivity towards pension and life insurance • Make pension saving a part of the full life cycle, not only in the end • Support the financial targets in the DNB Group by taking advantage of their broad product line

As an overall strategic goal, they have incorporated the values curios, bold and responsible, and added the overall strategic objectives and created their strategic niche in the group.

Products and servicesDNB Life Insurance can offer a broad range of products within pension and life insurance. Their product line is designed to fit every phase of their customer’s lives. DNB Customer consultants should advise according to the customer need, economic situation, and risk preference. A pure profitability- based offering is not an aspiration for DNB. On the other hand, DNB has a broad range of products, and synergies of customers with all their products (savings account, loans, insurance, pension, etc.) are profitable for DNB.

“No DNB Customer shall become a struggling pensioner”

– Goal of WMI



Group chief executiveRune Bjerke

Group FinanceKjerstin Braathen

Wealth Management & InsuranceHåkon Hansen (konst.)

People & Operations Solveig Hellebust

Risk ManagementIda Lerner

MarketsOttar Ertzeid

ITAlf B. Otterstad

ComplianceMirella Wassiluk

New Business Rasmus Figenschou

Personal BankingIngjerd Blekeli Spiten

Administration

Sales B2B Pension Private BankingSales SavingPerson

Asset Management

WMI

Life Insurance and Pension (Product

supplier for life insurance and pension products)

Insurance (Product supplier for general insurance)

Corporate BankingBenedicte Schilbred Fasmer

Large Corporate Int. Harald Serck-Hanssen

Media & Marketing Thomas Midteide



The pension and insurance market and outside threats

The markets for financial services are exposed to new players

The Norwegian pension and life-insurance market are dominated by several players within the banking industry and several insurance companies. The most prominent banking institutions in Scandinavia, such as DNB, Nordea, Sparebank 1 and Handelsbanken, do all give their customer the opportunity to purchase life- insurance and to save towards retirement through pension schemes. Furthermore, they are providing a whole range of products which makes it easy for the customer to have all their savings and loans in one place. As being a provider of all the most commonly used financial services, it gives them an advantage towards customers in the market.

Other participants in the market, the pension and life insurance companies, are all threats toward DNB and other banking institutions. In the Norwegian market, these are companies like Storebrand, Gjensidige, Tryg, and If. They are specialists on life insurances and are therefore an attractive alternative for the customers.

As the customer has several options among corporations in the Norwegian market, it is difficult to stand out for the firms. To differentiate themselves from other competitors, sustainable business models are essential to capture their market shares. As the biggest bank in Norway, DNB has currently a market share of 28 % in 2017, which is an increase of 0.7 percentage points compared to 2016.

However, the threats of competitors are not solely in the Norwegian market. Foreign international companies like Facebook, Google, and Amazon, are all trying to break into financial services. By providing innovative solutions such as Pay by Messenger and Google Wallet, they are challenging the banking industry as we know it. Amazon is already giving their customers credit cards and short-term loans. By being part of people’s everyday life, especially young ones, these companies have excess to customer data which can be used for targeted marketing. This could cause a problem for DNB who outlined that their general marketing campaigns have not worked. Given the profitability in the financial markets, it does not come as a surprise that leading players within social media targets areas such as banking, asset management, as well as life insurance and pensions schemes. However, this is speculations (at this point), but every bank should be concerned about it. A new and innovative approach toward the young generations is crucial to sustaining the current market position of DNB.

Other Big Tech companies are also trying to figure out how they can provide new services to explore potential markets. As the world population increases and people are getting older, it would not be surprising to see that they will be offering services within pension schemes and life-insurance shortly. A disadvantage for these firms is that they do not have an existing customer base, resulting in customers might not trust them to safely and securely hold their money and personal data.



Customer Insight and hypothesis Knowledge of pension products

DNB Life Insurance products are affected by Rational Ignorance

The pension and life insurance team have summarized their insights about their customers.

I. Our Customers don’t know which product (s) they have in their pension plan

II. Our Customers struggle do understand the quality of their pension plan

III. Many of our customers think they have enough pension for their whole retirement. This is not always the case.

IV. Customers don’t know how much they need to save, when to start their pension plan, and they struggle to keep to their scheduled pension plan.

Motivation After conducting customer surveys, DNB have found that

I. Only one out of three plans to put more effort into saving, and many of our respondents don’t plan to save any more in the upcoming years.

II. The motivation to save increase substantially when there is put an emphasis on the benefits you could have during your retirement, but it all depends on terminology; technical explanations and “DNB internal language” have the opposite effect.

III. Rational Ignorance is present for pension and life insurance products. Indeed, rational ignorance refers to a choice of a person not to acquire (not to pay attention to) a particular kind of information because of its cost in terms of time and effort that yields little or no benefit. However, DNB believes that this is due to the lack of ability to understand the importance of a good pension after the retirement. Therefore, the “benefit” is not known.

IV. Our customers do not act before they understand why they should act. When asked, “It is easy to save money when the savings is towards…” a. Pension: 21% agree b. Bigger expenses: 52% agree c. Something I look forward to 59%

V. Our customers don’t start to think about pension and life insurance until they have grown older and have established a family.



40% Do not know which pension scheme they currently have

50% Do not know how much their employer save for their defined contribution scheme

70% That start in a new job do not consider pension when considering their job offer

People are insecure on DNB’s intentions when they don’t have a personal relation with the bank

People don’t know who oversees their pension and many trust the government to take care of them

DNB developed a pension calculator, but has not triggered further actions from the customers

People save, but not dedicated to their pension. Most of our customer save “just in case”

Customers are not aware of the importance of doing something today to get more in the future

Rational Ignorance is present. The interest in pension is low, independent of prior knowledge on pension products

Quotes from customer interview

“My financial advisors are great, but they

are also in a sales position”

“I would probably speak to friends and

family instead”

“I trust the government to take care of me”

“I think my employer will take care of

securing me the best pensions schemes”

“What – is my pension that small!?”

“That calculator gave me a shock, but I

have not started my pension saving yet”

“I see that the media is writing that I

cannot live out of the pension I get from

the government”

“I save by paying down my mortgage

instead”

“I am not really interested in all this pension

stuff, and I don’t have a clue what it is”

“The best thing I do for my retirement is

keeping a good healthy lifestyle”

23 years old”John”



50 100 150

2

12

15

19

25

Total 283,7BNOK

1 300 000 customers

Life Insurance

Savings with investment possibilities

Products with guaranteed return

Pension capital certificates; statement of pension assets

Defined Benefit pension

Old pension model in Norway

Defined Contribution pension

Paid-up policies

34

47

131

Customer insight and dataDistribution of captial between product groups

Percentage of pension agreements in each product category

Data and key results from DNB Life Insurance

Products with guaranteed return; 3%

Savings with investment possibilities; 4%

Paid-up policies; 24%

Defined Contribution pension; 21%

Old pension model in Norway; 15%

Defined Benefit pension; 2%

Pension captial certificates; statement of pension assets; 21%

Life Insurance; 5%

Other and outgoing products; 5%



Paid-up policies A paid-up policy is saved pension which is paid out during a defined period. Paid-up policies are a result of saved pension through a defined benefit pension scheme. When you quit a job, or change jobs, your defined contribution pension scheme is moved to a paid-up policy. You can continue the defined benefit pension scheme on your own, but it would then be an individual agreement between you and your bank / insurance company.

Pension capital certificates Every time you quit a job where you have had a defined contribution scheme, your employer issues a pension capital certificate which shows your saved capital. All certificates can be moved to one bank to avoid the cost of administration and will give you a better overview of your certificates.

Savings with investment possibilities This is a form of long-term mutual fund savings, which allow you to take more risk through your funds by investing your capital. Mutual fund savings offer a high level of flexibility and favorable tax rules.

As of today, DNB offers several mutual funds. DNB also offers an investment account, but this usually is only granted to persons with deeper knowledge of investment and finance, and normally person in leadership positions in companies DNB have in their customer portfolio.

This is not suitable for customers who prefer a low-risk investment or have a short-term savings perspective.

Individual Insurance / Life insurance Life insurance products are an insurance of your life. It aims to provide insurance products that are activated in case of emergencies such as critical illness, death, and similar incidents. The life insurance is there to give a secure web in your everyday life, so if you experience a tragedy, it helps you to be economically safe.

Fund savings Even though a lot of DNB’s funds can be implemented as part of a pension scheme, there is no restrictions or preference on whether the customers start their savings through regular funds. DNB is a bank with all financial services represented in their product pipeline, including a variety of funds stretching from mutual funds to



balance funds. DNB would as mentioned, advise customers according to their needs, economy, knowledge and investment horizon. Therefore, it is not given that general pension products would be the best fit. The most important thing would be to incentivize and increase savings.

Individual Pension Savings (IPS) To incentivize pension saving among the Norwegian population, the government presented tax benefits for pension saving. The positive tax benefit is that if you save 40 000 NOK or above, you will receive a 24 % tax deduction (9600 NOK). However, that’s the maximum tax deduction, and below 40 000 NOK, it’s the saved amount multiplied with 24 %. In addition to this, there is no

wealth tax on pension savings, and your returns are not taxed until they are withdrawn.

The constraints in IPS is that the savings are locked to its purpose (pension) and that you can’t take out your funds until you have turned 62 years old.

You can combine IPS with a wide variety of funds, and DNB has a broad range of savings schemes you can use. Also, you can follow your own saving pattern and take a break when needed. DNB does not charge you for having an IPS in their bank, but the administration cost and managing fees for the funds you choose will still be charged.

1 A wealth tax is implemented in Norway to tax high wealth individuals. To clarify; if your net wealth is above 1 480 000 NOK, you pay 0.7 % to the municipality and 0.15 % to the government. This is per person.



Finance Innovation members – A small selection of companies

Time to rethink and innovate?Something must be done to increase the amount people save before they retire. This can either be done through higher savings each month or by incentivizing savings from an earlier age. The average age for a DNB Pension customer is 51 years, which is too high considering the challenges mentioned above.

The innovative environment in and around DNB is present

DNB is a partner of Finance Innovation hub. This hub focuses on fintech and has a broad range of members, stretching from portfolio investment analysis to chat robots. DNB is one of many partners in the hub. Finance Innovation allows DNB to have a first-row seat to follow the technical developments within the financial innovation field.

Financial technology is present in the insurance field. A company called Lemonade is currently offering an insurance platform, which is both innovative, fast and good quality. They have made the insurance process for general insurance (house, cars, etc.) available and easy to obtain. For Life Insurance, a customer must fill out a health

form prior to receiving an insurance offer, and this process can be a barrier for DNB in obtaining customers. Both because the health form is time-consuming, and because people don’t want to put in a huge effort when changing banks and insurance provider.

Your workshop with Finance Innovation on Monday gave insight on how the financial technology is changing, how managers should embrace the technology and the importance of technology. DNB is always looking for technological solutions to implement in their financial services, and key challenges companies face when working with financial technology.

First fully digital bank in norway. Incorporating technology in every phase of their banking services

A meeting place for young finance professiornals and creates a meeting place for young talents

Digital investment technology with a strong algorithm (AI). Beaten the markets every year since launching their services

Digital payment platform to enable a range of digital payment services

Technology company allowing users to pay their invoiced by only taking one picture. Text recognition technology at the core of the company

Interactive connection between banking services through a strong API



The Digital WorldThe customers in DNB is no stranger to digital tools and new digital inventions. Even though only 3% of DNB customers use only mobile devices as part of their customer experience, 7 out of 10 customers expect DNB to be a first mover into a digital world. The customer has expressed an expectation that DNB keeps up with technological developments. Over half of DNB’s customers see themselves as technically skilled and interested in technology.

DNB’s customers expect DNB to be at the forefront of the digital evolution

When looking at other platforms, DNB has noticed that 71% still solely use online banking services, and 26% use a hybrid between mobile devices and the online bank. DNB, therefore, want their employees to be able to reach out to their customers on all plat-forms and offer their services throughout the techni-cal specter. How this will develop in the future is not clear, but the data below gives strong indications on the need for improvement and the digital demand.

Pension and life insurance services are today mainly marketed through ads and their web page. The web page, however, is not easy to find. DNB is aware of the problem and is trying to rethink how to market their products in a way that spark the interest of more people than the older and established part of the society. General marketing campaigns that have been run on television, radio, and through online banners have not worked.

Based on your experience with the DNB’s online bank / mobile bank: On a scale from 0 to 100, how much do you agree that the online bank / mobile bank ….

8381

8582

70 69

76

7069

78 Online bank

Mobile bank

Is logical and user-friendly designed

Have content that is relevant and interesting to you

Has a simple and easy-to-understand language

Presenting information in a way that suits you

Provides honest and good information about products, prices and conditions

Based on your experience with the DNB’s online bank / mobile bank: On a scale from 0 to 100, to which degree do you experience that the online bank / mobile bank….

Covers what you need of products and services

Gives you an overview of your personal economy

Provides useful messages and information

Adjust content according to your preferences

Online bank

Mobile bank

81 83

5751

73 75

51 51



3 % of customers use only the mobile bank

45 % experience their mobile bank as outdated and with a

lack of services

8 % of the DNB customers have several mobile banks

71 % of customers use only the online bank

67 % has experienced problems with their mobile bank the last

6 months

70 % expect DNB to be in the forefront of the digital

development

Customers aged 18-33 have an average score of 58 % when asked

how pleased they are with the mobile bank

10 % of DNB’s customers express difficulties when navigating in

the mobile bank

3 %

45 %

8 %

71 %

67 %

70 %

58 %

10 %

26 % of customers use a hybrid of the online bank and the

mobile bank

26 %



To avoid being left with the minimum guaranteed pension given by the government in Norway, Norwegians need to start their pension savings much earlier. Also, life insurance could potentially save you from being economically ruined in case of an accident. People tend to insure their house, their car, and their belongings, but not their life.

Based on the information given in this case, your task is to rethink pension and life insurance in DNB and create a strategy on how to activate and capture the market for pension and life insurance within the young generation market.

The summarized problems in this case are;

1. How can DNB acquire and retain users of pension and life insurance programs within the young generation?

2. As part of the CSR strategy, how can DNB implement their overall CSR responsibility to their pension and life insurance markets?

3. How can DNB make sure that the solution you have proposed becomes profitable within five years?

You should answer all three questions in your presentation. Feel free to design your PowerPoint presentation as you wish. However, make it clear to the judges how you have proposed to tackle and solve these three problems. Remember to focus on quality over quantity, and execution as an integrated part of your solution. DNB Leadership has specifically asked for creativity and innovative approaches in this case

Good luck!

Your taskPension and life insurance might sound boring. But it is something that all need to think about at some time in life, and DNB wants to make sure that those thoughts don’t come too late. The potential for DNB is vast, both in terms of market share, strategic positions and this is an integral part of their CSR. Remember, when solving this case; DNB is curious, bold and responsible. Everything they do should be in line with these values.

Are you ready to start?

2 Profitability calculations for each product cannot be distributed because of the importance for keeping such data internal. However, there are many ways to increase profitability without the need for showing the numbers.



Case writersMagnus Johannesen, NHH Ole-Bjørn J. Østensen, NHH

MentorsLise C. Gjeraker, DNB Barbro Knudsen, DNB

AcknowledgmentsWe would like to thank Finance Innovation for their contributions in this case. They have been a valuable partner in finding and reaching out to the case company and assisting us with the coordination with the case competition. We would also like to thank Lise C. Gjeraker and Barbro Knudsen at DNB for their valuable input and efforts in this case. Their time, insights and helpful comments have been an important piece when writing this case. In addition, we would like to thank the organizing committee at ICCNHH for inviting us to write this case.

DisclaimerThis case has been prepared for the NHH international Case Competition 2018. The information, in this case, is the responsibility of the case writers, and DNB is not responsible for any statements or information given in this case. As such, the case is not intended to serve as a source of primary data, or an assessment, of pension and life insurance products in DNB, as part of the NHH National Case Competition 2018, and is not to be quoted, shown or distributed without the permission of the organizing committee.

Copyright © 2018

ideas for today and tomorrow pension and life insurance · 2018-10-05 · 2 ideas for today and...

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