Private & Confidential | Copyright 2011 @ 121advisor
21 July 2011
INSURANCE 2.0
The Way Forward
Insurance 2.0 :The Rationale and The Strategy
By Don Tan, Senior VPBusiness Consultancy
Private & Confidential | Copyright 2011 @ 121advisor
Insurance 2.0 : The Way Forward
21 July 2011Page 2
WHY Insurance 2.0 : The Rationale
WHAT to Insurance 2.0 : The Strategy
HOW to Insurance 2.0 : The Methodology
121advisor for Insurance 2.0
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WHY INSURANCE 2.0 :
THE RATIONALE21 July 2011
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Web 2.0Evolving Role of Internet & World Wide Web
INTERNET
WEB 1.0
WEB 2.0
One Way Owner = Power
Mass Authoring User = Power
Informationale.g. Corporate Websites, Product Info Downloads, Banners … …
Interactive
e.g. Chat - Messaging - Forms - Games - Flash … …
Transactional
e.g. E-Commerce - Online Shopping - E-payment … …
Personal
e.g. Personalized Sites - Feeds - Blogs … …
Social
e.g. Microblogging - Facebook - Tweets … …
21 July 2011Page 4
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INSURANCE 2.0
Insurance 2.0Evolving Role of Internet / Web for Insurance & Takaful
INTERNET
WEB 1.0
WEB 2.0
Informational
Interactive
Transactional
Personal
Social
e.g. Corporate Websites - Product Catalogue - Downloads … …
e.g. Online Quotes - Games - Contests - Request Submission … …
e.g. E-Cover Note - E-Proposal - Online Sales … …
e.g. Simulators - Need Analysis - Product Advisory - Self-Service Process … …
e.g. Social Network MarketingFriend’s Review & Feedback, Expert / Blogger’s Advice … …
21 July 2011Page 5
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Internet-savvy generation’s Preference for Self Serviceability
Gen-Y fancy on Internet, Social Network & Mobility
Trend & Choice of Communication / Information channel
WHY Insurance 2.0WHY Insurers should embark on Insurance 2.0
Consumers
21 July 2011Page 6
Watch “Social Media in Plain English” Video athttp://vimeo.com/groups/23930/videos/11551721
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WHY Insurance 2.0Where Consumers Are : Social Web !
21 July 2011Page 7
726 million
119 million
200 million
Members
3.7 million articles15 million Wikipedians24.5 million pages
> 200 million Blogs
> 3 billion views per day(average person spent 15 min a day on YouTube)
11.3 mil Malaysians
Source : Nielsen-Online 2010
Domains visited per person per month 70 domains
Web pages per person per week 1,576 pages
Duration of a Web page viewed 50 seconds
PC time spent per month 37.2 hours
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WHY Insurance 2.0How Consumers prefer to Interact : Where They Are !
If insurers are serious about getting closer to their customers, they should forego conventional “channel” strategy development and instead focus on quality interactions. Based on input from more than 21,000 consumers in 20 countries, we believe insurers need to create an interaction mix that appeals to their particular target audiences. To find out what matters, insurers need to take a different approach to segmenting their customers – one based on psychographics not demographics.
December 2010
21 July 2011Page 8
IBM Institute of Business Value
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WHY Insurance 2.0How Consumers Evaluate Your Brand : Social Web !
21 July 2011Page 9
Brand?Product?Service?
agentbank
the most credible spokesperson a company can have is a "person like me”… the share of people who trust “a person like me” more than they trust brands or organizations is increasing globally…
global survey 2010
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WHY Insurance 2.0What Consumers Expect to have : Rich Experience and Fun !
Simulator
Games
Advisors Characters
21 July 2011Page 10
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WHY Insurance 2.0Where Consumers Prefer to Shop Next : Online !
21 July 2011Page 11
Growing Trends
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WHY Insurance 2.0How Consumers Talks about You : You can’t Control !
21 July 2011Page 12
If you worry about losing control in the age of social media, stop. It has already happened — you no longer control the majority of the information that people
hear or trust about your brand.
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Internet-savvy generation’s Preference for Self Serviceability
Gen-Y fancy on Internet, Social Network & Mobility
Trend & Choice of Communication / Information channel
WHY Insurance 2.0WHY Insurers should embark on Insurance 2.0
Consumers
Lower Distribution Cost, More Competitive Pricing
Lower Cost for Marketing, Larger Pool of Leads / Market
Lead generation of younger prospects for Agency force
Channels
21 July 2011Page 13
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WHY Insurance 2.0Web Channel : More Competitive Pricing
21 July 2011Page 14
Australia: Online Aggregators Threaten Insurers’ Premium Revenue
An estimated A$1.8 billion (US$1.97 billion) of commercial and personal insurance premiums are at risk for
Australia’s largest insurers from so-called “contestable platforms”, technology that
allows brokers and customers to compare prices of products online
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WHY Insurance 2.0Marketing 2.0 : Social Network Marketing
21 July 2011Page 15
Millennials taking action on behalf of Brands 57% Millennials would volunteer to try new products
from a preferred brand and most would post an online review of the experience
68% have recommended their products to friends & family and 44 % have friended/followed that brand on their social network
8095 survey 2010
Brand MessageBrand ExperienceBrand Campaign
FamilyFriendsNetwork
Watch “Social Media in Plain English” Video atwww.youtube.com/watch?v=MpIOClX1jPE
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WHY Insurance 2.0Recruitment 2.0 : Hiring via Social Media
21 July 2011Page 16
In a recent survey of 500 companies, the University of Massachusetts Dartmouth found that 53 percent of them use social media in their hiring processes.
These connections start when a candidate mentions a brand or expresses desire in working for a company. In addition to be tech-savvy, these candidates tend to have done their homework: they know more about the
company, and are more engaged with the company brand than candidates sourced through more
traditional channels.
Private & Confidential | Copyright 2011 @ 121advisor
Internet-savvy generation’s Preference for Self Serviceability
Gen-Y fancy on Internet, Social Network & Mobility
Trend & Choice of Communication / Information channel
WHY Insurance 2.0WHY Insurers should embark on Insurance 2.0
Consumers
Lower Distribution Cost, More Competitive Pricing
Lower Cost for Marketing, Larger Pool of Leads / Market
Lead generation of younger prospects for Agency force
Channels
Competitor’s entry to the Insurance 2.0 space
Customer retention against Competitors and New Players
Stay Relevant and position in Market place
Competitions
21 July 2011Page 17
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WHY Insurance 2.0Taking Lead and Stay Ahead !
Company CountryFortune
500Revenue
USD ’bil
Online Presence & Insurance 2.0
Marketing & Branding Prospecting Sales Services Web2.0 /
Social Media
Met Life USA 51Life #1
41
Berkshire – Geico (Life & Gen)
USA 11Overall #1
112
State Farm (Life & Gen) USA 34 61
USAA (Life & Gen) USA 132 17.5
Progressive (Life & Gen) USA 161 14.5
1
2
3
5
4 59k
157k
3.0m
6k
167k
Updated May.2011
21 July 2011Page 18
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WHY Insurance 2.0Taking Lead and Stay Ahead !
21 July 2011Page 19
3 millions listeners!
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WHAT TO INSURANCE 2.0 :
THE STRATEGY
Trends
21 July 2011
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Insurance 2.0Evolving Role of Internet / Web for Insurance & Takaful
INTERNET
WEB 1.0
INSURANCE 2.0
Informational
Interactive
Transactional
Personal
Social
e.g. Corporate Websites - Product Catalogue - Downloads … …
e.g. Online Quotes - Games - Contests - Request Submission … …
e.g. E-Cover Note - E-Proposal - Online Sales … …
e.g. Simulators - Need Analysis - Product Advisory - Self-Service Process … …
e.g. Social Network Marketing - Feedback / Reviews - Online Advisor … …
Information Delivery
Marketing &Lead Generation
Commodity Sales(also Complex Products later)
Customer Service & Retention
Feedback Management
Source : Evolving Insurance Channel Roles – 2009 & Beyond, GARTNER
21 July 2011Page 21
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Insurance 2.0 StrategyCommon Dilemma of Insurance Companies
INSURANCE 2.0WHAT
HOW
WHEN
WHERE
WHO
21 July 2011Page 22
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e-commerce
intern
et sales
e-business
on
line
sale
s
Online Consumer Life CycleManaging Consumer Experience Effectively with CEM 2.0
targets / leads
suspects
prospectsopportunities
customers
aggressors advocates
ATTRACT
EXPERIENCE
INVOLVE
OWN
USE
21 July 2011Page 23
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Consumer Experience Management 2.0Connecting Conversation to Conversion
ConsumerExperience
Management2.0
Attract
Experience
InvolveOwn
Use
21 July 2011Page 24
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Consumer Experience Management 2.0Applying the Right Web 2.0 Value to the Right Audience
ConsumerExperience
Management2.0
Attract
Experience
InvolveOwn
Use
21 July 2011Page 25
Point-of-Sales
Games
ContestMicrosite
Simulators
Reminders
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Insurance 2.0 : A Webassurance ChannelComplementary and Supplementary to all Channels
AGENCIES
BANCA
TELEMKTG
PARTNERS
BRANCHES
CYBER AGENTS
WEBASSURANCE
21 July 2011Page 26
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Insurance 2.0 : A Webassurance ChannelWhat Can be Done ?
Customer Engagement
Marketing
Branding
ProspectingSales
Services
Social Network MarketingInternet CampaignsOnline Advertisements
Web 2.0 PresenceSocial CommunityInformation Delivery
Lead GenerationQualify Leads/ProspectsVirtual Advisory
Internet SalesOnline UnderwritingE-Policy
Self ServicesOnline SupportFeedback Management
21 July 2011Page 27
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HOW TO INSURANCE 2.0
THE METHODOLOGY21 July 2011
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Clear Strategy
S.M.A.R.T Objectives
Feasible Model
Pricing & Rewards
Relevant Values
Unique & Special Features / Fun
Effective Attractions
Efficient Communication
Unique Branding
Easy, Fast & Stable
Attractive Presentation
Concise & Updated Content
Personalized
Simple & Minimal Steps
Guided & Online Help / Response
Private & Secured
Connected End-to-End Process
Straight Through & Seamless Flow
Authentication & Security
Channel Conflict Managed
Cross-Channel Collaboration
Tracking & Monitoring
Insurance 2.0 StrategyKey Success Factors
Marketing & Attractions
Online Experience
Self Serviceability Integrated Process
Multi-Channel Integration
Strategic Business Plans
Value & Unique Propositions
Agile Development
Experience-focus Design
Customer-oriented Support
Agile & Creative
21 July 2011Page 29
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Webassurance Strategy ConsultancyOperationalize Webassurance as Your Insurance 2.0 Channel
Strategize
Analyze
Organize
Improvise
Realize
To plan and propose the Detailed Implementation Action Plan in phases, and mobilize the Resources for the Implementation of Webassurance for Insurer upon approval
To analyze and assess Insurer’s Go-To-Market conditions, Sales and Offerings positions, and Implementation capabilities for Webassurance
To define Market Strategy and Offerings Strategy, perform Impact Analysis, prioritize and propose an effective, realistic and long term Webassurance Strategy Plan for Insurer
To execute the Detailed Implementation Action Plan to bring Webassurance live for Insurer
To perform Post Implementation Reviews at the end of each phase or key milestones, assess the achievements, recommend, and fine tune the Implementation Strategy and/or Action Plan where required, continuously
21 July 2011Page 30
Private & Confidential | Copyright 2011 @ 121advisor
Webassurance Strategy ConsultancyOperationalize Webassurance as Your Insurance 2.0 Channel
Strategize
Analyze
Organize
Improvise
Realize
To plan and propose the Detailed Implementation Action Plan in phases, and mobilize the Resources for the Implementation of Webassurance for Insurer upon approval
To analyze and assess Insurer’s Go-To-Market conditions, Sales and Offerings positions, and Implementation capabilities for Webassurance
To define Market Strategy and Offerings Strategy, perform Impact Analysis, prioritize and propose an effective, realistic and long term Webassurance Strategy Plan for Insurer
To execute the Detailed Implementation Action Plan to bring Webassurance live for Insurer
To perform Post Implementation Reviews at the end of each phase or key milestones, assess the achievements, recommend, and fine tune the Implementation Strategy and/or Action Plan where required, continuously
To plan and propose the Detailed Implementation Action Plan in phases, and mobilize the Resources for the Implementation of Webassurance for Insurer upon approval
To define Market Strategy and Offerings Strategy, perform Impact Analysis, prioritize and propose an effective, realistic and long term Webassurance Strategy Plan for Insurer
To assess the Strategy defined, perform Impact Analysis, prioritize and propose an effective, realistic and long term Webassurance roadmap
To execute the Detailed Implementation Action Plan to bring Webassurance live for Insurer
To perform Post Implementation Reviews at the end of each phase or key milestones, assess the achievements, recommend, and fine tune the Implementation Strategy and/or Action Plan where required, continuously
21 July 2011Page 31
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Webassurance Strategy ConsultancyHOW to implement Insurance 2.0 effectively
Strategize
Analyze
Organize
Improvise
Realize
To brainstorm, validate and define strategy on Business model, Channel and Marketing, and Product and Service Offerings for Webassurance
Business Strategy
Marketing Strategy Offerings Strategy
Includes: Business Objectives Business Models Approaches / Tactics
Includes: Marketing Strategy Web Channel Framework Operational Plan
Includes: Product Strategy Online Product Framework Services / Product Tools
21 July 2011Page 32
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Val
ues
/ R
etu
rns
Costs / Risks
Webassurance Strategy ConsultancyHOW to implement Insurance 2.0 effectively
Strategize
Organize
Improvise
Realize
Analyze
Assess Prioritize Propose Decide
Gaps
Solutions
Impacts
Go Defer
KIV Drop
Business Roadmap
Operation
Roadmap
Technology
Roadmap
Costs-Values-Analysis
To assess the Strategy defined, perform Impact Analysis, prioritize and propose an effective, realistic and long term Webassurance roadmap
GO
No-GO
21 July 2011Page 33
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Webassurance Strategy ConsultancyHOW to implement Insurance 2.0 effectively
Strategize
Improvise
Realize
Analyze
Organize
Priorities Actions Timelines Resources Budget
To plan and propose the Detailed Implementation Action Plan in phases, and mobilize the Resources for the Implementation of Webassurance for Insurer upon approval
21 July 2011Page 34
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Webassurance Strategy ConsultancyHOW to implement Insurance 2.0 effectively
Strategize
Improvise
Analyze
Organize
Realize
Phase 1 Phase 2 Phase 3 … … Phase N
Sponsor
PSC
IT User
PMO
Vendor
To execute the Detailed Implementation Action Plan to bring Webassurance live for Insurer
21 July 2011Page 35
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Webassurance Strategy ConsultancyHOW to implement Insurance 2.0 effectively
Strategize
Analyze
Organize
Realize
Improvise
Gather
Assess
Recommend
Improve
To perform Post Implementation Reviews at the end of each phase or key milestones, assess the achievements, recommend, and fine tune the Implementation Strategy and/or Action Plan where required, continuously
Man
age
Monitor
OPERATIONAL
Revis
e Review
21 July 2011Page 36
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Use CEM 2.0Applying the Right Web 2.0 Value to the Right Audience
ConsumerExperience
Management2.0
Attract
Experience
InvolveOwn
Use
21 July 2011Page 37
Point-of-Sales
Games
ContestMicrosite
Simulators
Reminders
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Use CEM 2.0Internet Web 2.0 Tool Effectiveness Matrix
Tools Attract Experience Involve Own Use
Advertisements (Online / Offline)
Roadshows
Personalized Marketing
Contests
Gifts
Games
Websites
Videos
Online Search / Online Help
Simulators
Very Useful Useful May be Useful
Example
21 July 2011Page 38
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• Well-design simulators (e.g. easy, fancy, fun, fast) gives visitors good hands-on experience hence visitors will stay on to the website / simulator to try and complete the simulation process
• Good simulators (especially those with very sound branding, known to be fun and provide value add advisory) may attract visitors to the simulators through word of mouth, popular search results, and recommended links (e.g. on Facebooks)• Simulators are Application Tools which
simulate conditions, events or outcomes based on input provided by the Users with the objective to generate results that are close to reality.
• For Insurance purposes, they are usually used to trigger awareness and attention to the Users on their needs for protection, investment, and/or savings so that they will purchase Insurance policies.
• Example of Simulators are:a) Retirement Planner (What’s Your
Number by Prudential)b) Health Planner (Health Planner by ICICI
Prudential – already removed from official website)
c) Education Planner
SimulatorDefinition & Effectiveness
Tools Attract Experience Involve Own Use
Simulator
Definition
• Users usually willing to input some personal data to simulate results / output as relevant and as close to the reality as possible, e.g. DOB, gender, marital status. These are useful information to understand the prospect and approach appropriately. It’s also good opportunity to capture their contact information.
• Simulators usually do not transact any sales of policies, but will lead to Point-of-Sales engine/webpage when prospect intended to purchase.
• As life progress and statuses change, users may return to the simulators to perform simulation based on their latest statuses.
Example
21 July 2011Page 39
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121ADVISOR
FOR INSURANCE 2.021 July 2011
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121advisor for Insurance 2.0Solution & Services
Solution & Services
Insurance 2.0StrategyConsultancy
Insurance 2.0 Solution
& Campaign
Design & Development Solution Implementation Outsourcing & Managed Services Campaign Execution
Web Business Strategy IT Strategy Planning Requirement Elicitation Business Process Innovation
21 July 2011Page 41
Webassurance Channel Implementation
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Webassurancefor Life & General
Se
rvic
es
Channel Management
SolutionS.a.a.SS
olu
tio
ns
Social MediaManagement
Web Application Hosting &
Management
Webassurance Strategy
Consultancy
Cyberagency Strategy
Consultancy
Artwork – Blog – Content – Design – E-Learning – Games
Application Processing – Chat Agents – Site Mgmt
121advisor : Complete Solution & ServicesInsurance & Takaful 2.0 Enablement
21 July 2011Page 42
Web 2.0Portal
Management
Social Media Outsourcing
Setup – Monitor – Report – Engage - Manage
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21 July 2011