The Power of the Nudge How IoT is Disrupting Life Insurance Industry

Vishwa Kolla

Head of Advanced Analytics

John Hancock Insurance

1 2 3 4

Internet of

Things and the

consumer

Understanding

today’s

perceptions of

life insurance

Leveraging IoT

for life

insurance

Rapidly

growing

trends in

technology

Agenda

4 Ways the IoT Has Innovated the Way We Market to Consumers

4

The Emergence of Platforms and APIs “Build” opportunities are becoming more numerous

than “Buy”

The Lines Between Marketing and Product Are Blurring Where does marketing end and product begin?

Increased Accessibility of Consumer Data Cost of accessing user data is decreasing 1

2

3 Marketing Has Become More Technical and Quantitative The skill set needed to execute marketing initiatives

have become more tech/quant focused 4

Understanding Today’s Perception of Life Insurance

Life insurance ranks at the top of the list of things

consumers know they probably should buy, but get no

personal enjoyment from whatsoever. There's just no

happy way to look at life insurance. In the best-case

scenario, life insurance is just another bill to pay.

And in the worst case, your family collects the benefits,

but unfortunately you're dead.

Source: USA Today, Knowing when you need life insurance, September 19, 2013

CURRENT

PROCESS

Cumbersome & Complex

Long

Invasive

One and Done Approach

Company/Product Focused

Confusion & Lack of Knowledge

The New Insurance Consumer’s Mindset

Source: Suncorp Group, The Changing Face of the Insurance Customer, 2013 1More than 800 owners of small to medium policyholders across the nation were surveyed and classified as the “new generation” due to their change in needs for life insurance

EXPERIENTIAL Driven by experience

SOCIAL Relays on personal networks to access

information

CONNECTED Multiple channels and

devices

INFORMED Gets relevant content

frequently

CURIOUS Interested in

learning

VALUED Looking for appreciation

and recognition

CHOOSEY Less brand conscious HURRIED

Expect the life insurance buying process to take

2 – 3 days

Traditional distribution is shrinking

and moving up market

Limited Access

85% of consumers agree that they

need life insurance

Demand

50-70 Million U.S. Consumers with

unmet Life Insurance need,

creating a $15.3 trillion market

Need

Many Americans are underinsured

and unprepared to cope financially

in the event of the loss of a loved

one

Result

The Gap is not Only in the Process

Rapidly Growing Trends in IoT

The Internet of Things is rapidly changing the

world we live in…

from the way we drive

to how we make purchases

even how we manage energy in our homes

How can we leverage IoT for

life insurance?

What is ?

KNOW YOUR HEALTH

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ENJOY THE REWARDS

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How It Works?

KNOW YOUR

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Travel

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Walking

Buying HealthyFood

Flu Shot

Non-smoker

Health Screenings

On-line Education

Gym Workout

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10,000 pts

Gold

7,000 pts

Silver

3,500 pts

Bronze

0 pts

ENJOY THE

REWARDS

IMPROVE YOUR

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Enjoy

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Achieve a

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Engage in activities and

earn points

Determine Vitality Age

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Age

CURRENT CUSTOMER EXPERIENCE

After Bob receives his policy,

the only time he hears from

John Hancock is when he

gets his bill and his annual

privacy statement.

Bob receives his policy

Changes the Customer Experience

PRIVACY

FREQUENT POSITIVE AND REWARDING ENGAGEMENT

John Hancock interacts

with Bob many times in

positive rewarding ways,

helps him reach his

weight-loss goal and

save money!

Earn points for

Vitality Health Review

46

43

Save 50% on

luxury hotel stay

Earn points for biometrics

from underwriting

Earn points for going

to the gym

Earn points and save $$

buying HealthyFood

Earn points for

healthy activities

Bob receives

his free Fitbit

Bob receives his

Welcome Kit Bob receives

his policy

The Whole New Customer Journey

Age

Age

Using IoT to Create a Positive

Customer Experience

Eating Healthy

Exercise Lower Stress

- Step trackers

- Heart rate monitors

Exercise

- Nutrition trackers

- Smart forks

Eating Healthy

- Sleep trackers

- Stress/breathing trackers

Lower Stress

Technology Enables Key Elements of Health

The world of health technology is accelerating so rapidly, it’s hard to keep up with the change!

Linking

loyalty cards

to John Hancock

Vitality account

Product

catalog

Available

offers

Shopping list

creation

Scan barcode

for product

details

View healthy

alternatives

NutriSavings Mobile App Functionality

• Complete your VHR

• Track a gym visit

• View points

• Submit an athletic event

• Upload health screen results

• Read customized newsfeed article

John Hancock Vitality Mobile App

John Hancock Vitality Website

Earn a spin on the Vitality Wheel

Gamification to Drive Engagement

Rewards and discounts are subject to change and are not guaranteed to remain the same for the life of the policy.

JHV mobile app allows you to

submit events, track gym visits

Quest/Walgreens lab results

automatically transfer to Vitality

Vitality Wheel motivates and rewards

customers with e-gift cards

JHV website provides VHR,

online education, goals, tools

Personal health technology data

automatically transfers to Vitality

MapMyFitness app tracks activity

or syncs many other devices

NutriSavings app makes healthier

alternative recommendations

Fitbit app tracks your step

data, weight, food intake, sleep

Connectivity of John Hancock Vitality

QUESTIONS