Think Digital: Transform your Bancassurance Business

Strategic context

� Digital – it is a revolution

� The Digital Advisor …. The new “face” of life insurance

sales

Getting into the details

� Tablets point of sales toolkits are pivotal for success

� Bancassurance transformation challenges

Q&A Session

Discussion Agenda

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….

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 seek a

different experience

5

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

Myth #1: Digital is a new distribution channel

Reality : Digital enables customer (& distributor) engagement

Welcome to Digital Customers: “They are hybrid”

Bancassurance Audit: Where are we now?

…. and what happens when we factor in digital trends?

x

• Leverage customer

banking relationships

• Utilise physical

infrastructure

• Insurance is a logical

product extension to bank

products

Result : higher productivity &

generally higher quality

business than life agency

distribution

Strengths

• Fee driven models: are the norm.

• After sales service limited to basics

transactions – where is the cross-sell

opportunity?

• How well do RM‘s really know their

customers? Or are they product

pushers?

• “Traditional” Tele-marketing –

regulatory tightening to continue

• Insurance Product can be driven by

wealth managers product bias –

short term and investment focused

The Customer Centricity Challenge

Anchored to basics : Digital Bancassurance

strategies need to leverage insurance fundamentals

Trust is at the heart of insurance

Great insurance advisors -always in demand

Customer service matters

Current Bancassurance

ParadigmDigital Impacts

� Rely on Bank brand

� Relationship managers

leverage trust already placed in

the bank

� As customers research on-line

trust will need to be developed

and leveraged on-line

� Trust must be earned and

reinforced in every interaction

� When customers research online

they will research their advisors as

well….

� Less time face-to-face – but no

less important

� Insurance advisors need to be

more mobile (digitally & physically)

� Bank RM’s ≠ insurance

advisors. RM’s have natural

bias towards investment

products

� For mass market not really a

personal relationship – order

taking and closing the sale

� Little emphasis on customer

service after the sale is closed

� Back office is … back office

� Mobile technology provides

opportunities for cost effective

customer service differentiation

� Customer will expect this – a

hygiene factor very soon

Digital Bancassurance: 3 Opportunities

1. Generate more leads

2. Improve customer service &

engagement

3. Improve face-to-face sales

processes

Combining all three = The “Digital Advisor” Business Model

Lead / Prospect Management

Sales

Opportunities

Tablet

Advisor

Portal

Policy Systems

The Digital Advisor

Business Model

CustomerPortal / App

Tablet

Advisor

Portal

Policy Systems

Customer

Portal / App

1. More Leads

• Co-partnership models for lead

generation

• Apps to generate leads from the “digital

cafes”

• Analytics has an enormous role to play

• Get the lead to the right person at the

right time

• Lead management systems to manage

multiple leads , measure ROI and

promote better practices

Business outcome:

- More leads

- Better quality leads

Fewer and fewer customers will go to the bank branch

Lead / Prospect Management

Sales

Opportunities

Lead Generator /

Prospect Management

Advisor Generated

Leads

Advisor

Portal

Policy Systems

CustomerPortal / App

2. BUILD A “DIGITAL ECO-SYSTEM”

AROUND LEGACY POLICY SYSTEM TO

TREAT CUSTOMERS LIKE CUSTOMERS

• Customer portal/app: An on-line

marketing capability for customer

engagement leading to cross sell / up sell

opportunities

• Customer experience centre: Multi

channel customer support to connect

customer interactions – a digitally assisted

customer service revolution (the engine

room for converting “data into business”)

• Advisor portal: Customer data and

advisor performance at your finger tips

Business outcome:

- Building deeper, richer and better

relationships with customers and advisors

- Facilitate and co-partners the advisors to

better meet customer needs

- Allow “farming” as well as “hunting”

2. Better Service

Customer Experience Centre

Advisor

Portal

Policy Systems3. “connecting the eco system”

3. Improved Selling

Sales

Opportunities

Lead / Prospect Management

Tablet

CustomerPortal / App

Tablet sales toolkits : Will be “business as

usual” in most markets within 5 3 years

1. Present credentials (materials)

2. Identify needs

3. Produce quotes and help to close

4. Easy proposal submission

Tablet Functionality:

Should be focused on the customer

• Must be designed for advisors to connect with customers

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

• Great usability is critical: engage/delight customers & advisors

Usability is the Key Success Factor

Usability = function plus form

Quote Output: graphical display option with

premium iteration to facilitate closing

Easy iteration on

premium to

help sales closing

POS 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. Enable lead analytics / Predictive analysis

2. Improved compliance to sales best practice (& regulatory requirements)

3. Back office productivity from digital

proposals� More efficient

� Faster & more accurate (clean policies in a day)

4. Reduced overheads: premises &

technology costs

5. Business intelligence� Benchmarking data

� Usage data

� “Bigger” data

6. Recruitment training (and hiring) tool

7. Platform for more automated underwriting

Video interview

(to insert movie file here)

iPoS Interactive Point of Sales

Independent Case Study: AIA Point of Sales Tablet Toolkit

1. Off-line model• 100% availability

• “Any time, Anywhere”

• Advisor “digital briefcase”

3 Key success factors -Broad POS functionality delivered with off-

line regional platform

3. AIA’s Regional Journey

1. Year 2012: Initial Rollout in Singapore

2. End of 2013: Rollout in 9 countries (2 to go)

• Singapore, Malaysia, Indonesia, Thailand, Philippines, Sri Lanka, Vietnam,

Hong Kong, Taiwan

3. 2014 first bank partner moves to 100% tablet sales

2. Broad set of Functionality

Usability = function plus form

“The Dial”

Easy, fast, fun

& professional

needs analysis

� High Usage% of Advisors actively using iPoS

� Increased ProductivityAverage increase in ANP*

Country B +16%

Country C +54%

Country D +64%

“I would not do much

differently. iPoS is very

successful in the way we

manage it, continuously

improve it and roll it out.

However, we were initially

overwhelmed by the

success of iPoS and

didn’t have enough scale

and capacity to roll it out

to the countries. Next time

I would react quicker and

be more decisive on

adding manpower to such

a program.”

AIA Director leading the

development

If AIA could do it again

*iPoS advisor versus non-iPoS advisor

Initial results: Results exceeding expectations

0%

25%

50%

75%

100%

Oct 12 Jan 13 Apr 13 Jul 13

Country A

Country B

Country C

Country D

Reality check: In practice, Digital Advisor models

for bancassurance are complicated

1. Who builds & controls the technology?

2. How long-term is the bank/insurer relationships?

How closely are the bank and insurer aligned?

3. Who does the selling? Wealth Manager or

dedicated insurance advisor? (Latter is easier to transform)

4. How many insurance partners does the bank have– best in class / “open

architecture”, tied or broker model?

5. Can you navigate the security & governance maze - X2 (bank + insurer)?

Easiest starting point for digital transformation : exclusive

relationship using dedicated Insurance specialists with technology

provided by the insurer

Are you ready? 3 Pre-conditions for Success

1. Willing to mine and share data – “Provide access with due care”

2. Co-operative & long term partnership where both bank and

insurer compromise and learn from each other – and both invest

for success

3. Prepare for hard work: No easy paths when it comes to

technology implementation

• No “one size” fits all

• No magic wand

22

Concluding: “Business as usual” is a dangerous path

for bancassurance operations

Be radicalNow is the time to embrace change and start building digital models.

Be CautiousYou don’t need to “bet the bank”. Learn from fast and strategically well

thought our pilot projects (e.g. POS tablets and lead analytics). Find

people with the skills to transform

B e w a r eIf you don’t utilise digital thinking, plenty of others will.