©UFS

Direct Marketing: a complementary

channel for Insurance Distribution

Federico Pastora

VP & Head of Direct to Consumer – MetLife EMEA

EFMA Distribution Summit | Barcelona 26th March, 2015

Social

Print Search

TV/Video Site

eMail

Digital Media

Mobile

Offline Data Digital Data

Mgmt Platform CRM Data

Platform

The shopping process has changed

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The changing face of insurance sales

How likely would you be to consider purchasing insurance coverage from these potential sources for insurance if they sold insurance?

(% who would consider or strongly consider)

Source: North American Technographics® Omnibus Online Survey, Q1 2014 (US); Base: US Online Adults 18+

© 2012 Forrester Research, Inc.

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4

EMEA Direct-to-Consumer Footprint

REGIONAL FOOTPRINT

29 Countries

85+

DM Professionals

2450 Operators

25M Leads

35 Call Centers

900K+ New Customers

80

ACTIVE Partners

HIGHLIGHT Y2014

30 NEW PARTNERS

2014: Facts and Figures

Strong cultural and local understanding of diverse markets and practices

Dedicated expert teams with ability to deliver end-to-end effective solutions

A region of Demographic and Financial Contrast

Countries with active DM operations

Romania

France

Spain

Portugal

Slovakia

Russia

Turkey

Poland

Gulf

Italy

Greece

Bulgaria

Egypt

Why our Partners sell Insurance to their Customers

Increase loyalty

Reduce churn (Telecoms)

Increase stickiness

Increase Brand awareness

Additional revenue stream

They care about their customers and family protection

Differentiation and Opportunity cost – If they don’t do it, others will

67% of Telecom (*) customers declared

interest in Insurance offered by Telecom +

MetLife

Telecom (*) customers evaluate positively

(42%) or neutrally (40%) the purchasing

experience.

(*) Source: Telecom research in Poland

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Insurance product positioning

6

Correlation between Insurance Offer and Customer Linkage

Insurance Offer Adaptation Customer Linkage

Low

High

-

+

Rational

Emotional

RETAIL BANKS

CREDIT CARDS

CONSUMER LOANS

TELCOS & UTILITIES

CAR MANUFACTURERS

RETAILERS

PROFESSIONAL ASSOCIATIONS

SPORT CLUBS

NON PROFIT ORGANIZATIONS

MetLife’s Direct Marketing Model

Direct Marketing in EMEA is mostly telephone-based

ACQUIRE: Simple guaranteed issue A&H Products

DEVELOP: Cross-sell + new offer to non-interested and non-contractual

ENGAGE: Up-Sell + Cross-Sell to existing customers

RETAIN: Inbound retention, missed payment, outbound lapse rescue

MetLife’s Direct Marketing Model is based on four value disciplines

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Internet – a trusted source of Information

Which one source would you trust the most to give you advice on Life & Protection insurance?

Source: Swiss Re – European Insurance Report 2012: customers for life.

Internet as the most trusted source

and the first driver for consumers awareness & consideration 8

Customer has the purchasing decision power

ADVOCACY

DECISION

INTENTION

AWARENESS

CONSIDERATION

1 REACH

2

3

4

5

CAPTURE

CONTACT

CONVERT

ENGAGE

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Customer Centricity - Leverage touch points

REACH

CAPTURE

CONTACT

CONVERT

ENGAGE

Integrate with our Partners’ customer journey

Facilitate the customer decision with an improved customer

onboarding experience ( combine voice & data technologies )

Maintain on ongoing relationship with the customer through

regular communications, upgrade & Xsell offers.

1

2

3

4

5

Qualify the Sponsor Database : drive database segmentation

to better understand the customer and the product fit

Listen to the customer and adapt the telephone script &

message for a personalized approach

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Direct Marketing: support, not substitute

Many insurers consider the direct-to-consumer channel to be a vital

addition to their strategy – one that will enable them to survive and

effectively compete in the 21st century (*)

Direct distribution is not expected to displace traditional channels –

but it will help insurers to reach consumers by addressing multiple

consumer challenges in a simple, fast and trusting environment (*)

(*) Source: PWC – Life Insurance is “sold” and not “bought“ for how long?

A perspective on direct to consumer life Insurance – February 2013”

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“MetLife, Inc. (NYSE: MET), through its subsidiaries and affiliates (“MetLife”), is one of the largest life insurance companies in the world. Founded

in 1868, MetLife is a global provider of life insurance, annuities, employee benefits and asset management. Serving approximately 100 million

customers, MetLife has operations in nearly 50 countries and holds leading market positions in the United States, Japan, Latin America, Asia,

Europe and the Middle East. For more information, visit www.metlife.com.”