Digital Bancassurance Models
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The document discusses the transformation of bancassurance businesses in the Asia Pacific region, highlighting the impact of digital trends and changing consumer behaviors on traditional models. It emphasizes the importance of leveraging technology to meet consumer demands while also providing insights on developing a digital ecosystem for customer engagement and lead generation. As the industry evolves, it underscores the need for banks and insurers to adapt quickly or risk being left behind by competitors who embrace digital innovation.
Digital Bancassurance Models
- 1. Think Digital: Transform your Bancassurance Business www.the-digital-insurer.com
- 2. www.the-digital-insurer.com Subscribe for free, and be the first to The forum for Digital know Insurance in Asia Articles: – Articles on digital insurance – The Digital Advisor – Free subscription to the – Customer & Advisor portals Quarterly digest – Pre-sales tablet toolkits – Discussion forum – Implementation Tips – Worksite marketing The Digital Insurer provides consulting services to insurance companies and banks in the Asia Pacific Region Hugh Terry Building tomorrow’s digital insurance business models, today. www.the-digital-insurer.com 2
- 3. Presentation focus Is on individual Presentation Flow consumers 1. Bancassurance “as usual” – a legacy model? 2. Digital is an opportunity .. and a threat 3. Digital changes business models – but not the fundamentals 4. The “Digital Advisor” model is the likely future of bancassurance 5. .. But there is more than one route to success www.the-digital-insurer.com 3
- 4. Bancassurance Audit: Where are we now? x Strengths Challenges • Leverage customer banking • Fee driven models: customer centric relationships models have not evolved • Utilise physical • After sales service limited to basics infrastructure transactions – where is the cross-sell • Insurance is a logical opportunity? product extension to bank • How well do RM‘s really know their products customers? Or are they product pushers? Result : high productivity and • “Traditional” Tele-marketing – higher quality business than regulatory tightening to continue agency distribution • Product driven by banks product bias – short term and investment focused …. and what happens when we factor in digital trends? www.the-digital-insurer.com 4
- 5. The Digital Revolution: it will not be televised Digital Digital Digital Convenience Connectivity Expectations • Always on • Access to • Data “on demand” • Always there information • Desire for clarity & • Universal (Google) simplicity • Almost free • Access to each • Dialogue not other (Facebook) monologue • Access through • Easy to promote a devices (Apple) product .. and • Location-agnostic complain (cloud services) Change, Change, Change…. www.the-digital-insurer.com 5
- 6. Two digital “Mega” trends : forces beyond anyone’s control 1. Changing consumer behaviour – they are demanding and seeking a different experience 2. 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 www.the-digital-insurer.com 6
- 7. Welcome to Digital Customers : they are “Hybrid” Online The hybrid customer is • Better informed • More demanding Face • “multi-channel” for both The Hybrid To sales & services Customer Face • Will jump channels at any point – catch them if you can! Phone www.the-digital-insurer.com 7
- 8. Digital customers are going to research more before they buy Source ; Ernst & Young Voice of the Insurance Customer – Asia Pacific 2012 www.the-digital-insurer.com 8
- 9. Multi-channel is here… Customer are already hybrid Source ; Ernst & Young Voice of the Insurance Customer – Asia Pacific 2012 www.the-digital-insurer.com 9
- 10. There Is demand for online services .. And more personal service Demand for more direct and self service channels www.the-digital-insurer.com 10
- 11. Demand is across all age groups Demand is across all age groups Source : MetLife employee benefits trends study (1,400 employee interviews) Gen Y :<31,Gen X :32-47,Younger Boomers: 48-56,Older Boomers 57-66 www.the-digital-insurer.com 11
- 12. Anchored to basics : Digital Bancassurance strategies need to leverage insurance fundamentals Current Bancassurance Digital impacts Paradigm Rely on Bank brand As customer research on-line trust will need to be developed and Trust is at the Relationship managers leverage leveraged on-line heart of trust already placed in the bank insurance Trust must be earned and reinforced in every interaction Bank RM’s ≠ insurance When customers research online they advisors. RM’s have natural bias will research their advisors as well . Great towards investment products Less time face-to-face – but no less insurance advisors - For mass market not really a important always in personal relationship – order Insurance advisors need to be more demand taking and closing the sale mobile (digitally & physically) Little emphasis on customer Mobile technology provides service after the sale is closed opportunities for cost effective Customer Back office is back office customer service differentiation service matters Customer will expect this – a hygiene factor very soon www.the-digital-insurer.com 12
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- 14. 1. Managing the Sales Funnel • Co-partnership models for lead generation • Apps to generate leads from the “digital cafes” • Analytics has a big role to play • Get the lead to the right person • Lead management systems to manage multiple leads , measure ROI and promote better practices Business outcome: - More leads - Better quality leads www.the-digital-insurer.com 14
- 15. 2. Build a “digital eco-system” around legacy policy system to treat customers -- like customers • Customer portals/apps : an on-line marketing capability for customer engagement leading to cross sell / upsell opportunities • Customer experience centre : multi channel customer support to connect customer interactions – a digitally Customer Experience Centre assisted customer service revolution (the engine room for converting “big” data Policy Record Systems into business) • Advisor portals: customer data and advisor performance 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” www.the-digital-insurer.com 15
- 16. Cross Sell Opportunities: Do bancassurance models really cater for moments of truth? 1. Signing up for a mortgage? 2. Opening a joint account? 3. Other transactional data Can banks overcome their traditional reluctance to use data to professionally provide customers more options and Success factors • Data analysis & a range of “push” better services? based actions (hybrid) The digital competition can, • Pro-active customer experience should and will… centre • Timely and appropriate handover to professional insurance advisors There are “orphan” customers all over the world www.the-digital-insurer.com 16
- 17. 3. “connecting the eco system” www.the-digital-insurer.com 17
- 18. Tablet sales toolkits : will be “business as usual” in most markets within 5 years Tablet Functionality: Should be Focused on The customer 1. Identify needs 2. Produce quotes and help to close 3. Allow faster, easier and more accurate proposal Key Success factors submission • Must be Designed for Advisors • Easy to use with a “wow” factor that encourages use with clients • Great usability is critical: engage/delight customers & advisors www.the-digital-insurer.com 18
- 19. Usability Example : Life insurance quote on a tablet Data entry: non-linear data capture process supported by traffic light system Screenshot: courtesy & copyright of Mobile Insurance Solutions www.the-digital-insurer.com 19
- 20. Usability Example : Life insurance quote on a tablet Output: Graphical display option with premium iteration to facilitate closing Screenshot:courtesy & copyright of Mobile Insurance Solutions www.the-digital-insurer.com 20
- 21. Reality check: In practice Digital Advisor models for bancassurance are complicated 1. Who builds & controls the technology? 2. How long-term are the relationships? How closely are the bank and insurer aligned? 3. Who does the selling? 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? A common template cannot be applied – each opportunity is unique www.the-digital-insurer.com 21
- 22. Digital Advisor : Making the business case The Digital Difference Digitally enhanced and developed “trust” More leads Better lead sourcing – high quality and higher volume More consistent More engaging Better sales Better match to customer needs process More digital – yet also more personal Paperless policy issuance Improved Automated customer service operational requests efficiency www.the-digital-insurer.com 22
- 23. Concluding thoughts Be radical : Now is the time to embrace change and start building digital models Be Cautious : you don’t need to “bet the bank”. Learn from fast and strategically well thought our pilot projects Beware : If you don’t utilise digital thinking plenty of others will www.the-digital-insurer.com