Technology Futures inLife Insurance

BOARD PRESENTATION TO A LARGEUK LIFE INSURANCE FIRM

2

Major Trends

Socioeconomic Change

(De)regulation

Technology Evolution

3

Industry Vision

4

Strategic Vision: The Evolution of IT

5

IT/Business Alignment

Key Initiatives

• CRM• Single View of Customer• Customer Service Improvement• New products & service development• Channel Consolidations• Online & Wireless initiatives• External Portal• xxxxxxx

• Business Process Improvements• IT Cost-Take Outs• Workflow and Collaborations• Procurement• Asset Management• Internal Portal, Knowledge Mngt.• Employee Self Service, Training• Shared Services • Regulatory Compliance• xxxxxxxx

• Business Process Re-engineering• Decision Support• xxxxxxx

Metrics

• Revenue/customer• Customer Retention Rate• Avg. Products/Cust.• Market Penetration• Revenue/Channel• Revenue/employee• Revenue growth rate• xxxxxxx

• Process Cost• Cost to acquire customers• Cost/employee• Employee Retention• SG&A as% of Sale• Operating income/Net Sale• Productivity/Employee• Efficiency Ratios• IT cost / Revenue• IT cost/ employee• xxxxxxxxx

• Cash to Cash Cycle• Infrastructure improvement• Time to Service & Develop• Maintenance Reduction• xxxxxxx

Customer AcquisitionCustomer Retention

Cross-Sell

Products & Services

Market ShareGeographical ReachDelivery Channels

Distribution & Delivery

Information Technology

Sales and Marketing

Staffing

General Administration

Capital Lockup

Infrastructure Related

Process Improvement

Research& Development

Business Drivers

Revenue Increase

Cost Reduction

Working Capital Reduction

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Shareholder Value

Annual Benefit

• ROI• IRR• P/E

EPS Impact

One Time Benefit

6

Customer Management

7

Enterprise Architecture

8

Information

9

Channels

Aggregators(i.e. banks)

Aggregators(i.e. banks) PolicyholdersPolicyholders

AgentsAgents

10

Conclusions

Establish a clear achievable vision that includes clear steps.

Be realistic about what capabilities and resources need to be in place.

Develop a culture of follow-through on a long-term basis.

Overcome organizational inertia, structurally harness innovation.

Learn to cut losses when necessary.