the esurance story - valenvalen.com/wp-content/uploads/2017/03/esurance-valen... · 2019-09-12 ·...
TRANSCRIPT
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The Esurance StoryInnovation in the Real World
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John Swigart, Former CMOEsurance
John is a 4th generation “insurance guy” (too boring?)
John rides a Burton Custom 160
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Esurance Growth History
$4 $29 $33 $87$177
$321
$564
$766 $794 $753 $812 $847$1,003
$1,291
$1,484$1,563
$1,689
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Total Premium Written($millions)
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• Relentless focus on our customers
• Understanding what customers value
• Intense focus on data to drive decisions
How Did We Do It?
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Who Are Your Customers?
Policyholders Agents
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Evolve With Your Customers
Erin Esurance Insurance for the Modern World
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Value Vs. Commodity – Getting in the Consideration Set
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How are Customer Expectations Set?Small Business Financial Services and Tools
Small Business Digital Tools
Personal Insurance and Finance
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Using Data To Identify Value
• Policy level loss estimates
• Policy level lifetime value estimates
• Quote value scoring
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Policy Level Loss Estimates
1Q 2Q
3Q 4Q
Google Online Agents
Mobile Web Buyers
Standard accident period loss calculations …
Would be disaggregated at the policy level…
And reaggregated into useful groups for analysis and decisions
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It Is Not Easy
• Direct distribution and service is expensive to build (scale really matters)
• Accounting is not your friend in direct distribution
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Direct Distribution is Expensive to BuildQuoting and Selling Mobile App Customer Self-Service
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Powerful Lifetime Unit Economics – Horrible GAAP Accounting Result
Total Lifetime
Cumulative Renewals
First Term(6 months)Personal Auto Example
$4,000$3,200$800Premium
71%70%78%Loss and LAE Ratio
9%3%
-3%10%
0%2%0%2%
40%9%
-10%39%
MarketingSalesAgency Offset (3rd party products)Total Marketing
13%12%18%Other Operating Expenses
94%84%135%Combined Ratio
$232$512$(280)Underwriting Profit