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Tata AIA WBT Storyboard

Module: PersistencyTA Intervention Period Business Metric Intervention Type

NLA M7-M12 YTD Activation WBT

Learning Objectives Explain the importance and implications of persistency. Explain the impact of high or low persistency. List factors affecting persistency.

Notional Learning Time: 20 minutes

Tata AIA - Performance Improvement - Continuous Learning & Development

Module – Goal SettingTopics ScreensSplash 1. Splash

Menu 2. MenuIntroduction to Persistency 3. What is Persistency?

4. Module ObjectivesImpact of Persistency 5. The 13th Month Persistency

6. Impact of High Persistency7. Impact of Low Persistency8. Your Take

Tata Interactive Systems 1


Factors Affecting Persistency 9. Key Factors Affecting Persistency

10. Factors Affecting Persistency: TALIC Experience

11. Your TakeImproving Persistency 12. Tips for Improving Persistency

Summary 13. Key Learning PointsQuiz 14. Test Yourself

15. Question 116. Question 217. Question 318. Question 419. Question 520. Results

Add a common disclaimer at the beginning of the course as a popup –

“This product is to be strictly used for training TATA AIA professionals. Using this product for any other purpose is barred. All characters and organisations mentioned are fictitious. No association with any real person or company is intended or should be inferred.”



Screen No. 0Screen Title SplashOn-Screen Text Great food and service

Recommend

Repeat business

Word of mouth

Insurance business

Maintain existing customer base

Increase your income

Audio Transcript

You visit a restaurant and experience great food and service.You visit the restaurant again, and recommend it to your friends.

What has the restaurant achieved by providing great food and service?A steady stream of repeat customers which helps in business growth and positive brand image due to worth of mouth.

Similarly, in the insurance business you need your customers to be satisfied to generate repeat business and spread the word for you to generate references and increase your income.

Let’s find out how!

Graphic Description

Use the standard splash template


Shetty, Sushil, 14/06/17,

Increase your income

Mayura Kanse, 21/06/17,

Done


Similarly, in the insurance business you need your customers to be satisfied to generate repeat business and spread the word for you to generate references and increase your income


Done


Add text to highlight benefits of repeat business and positive brand image due to word of mouth


Stock illustration ID:158635367TOS:Great food and service

Image Id: ID:513540952TOS:Recommend



Stock illustration ID:673276324

TOS:Word of mouth

Image Id: Reuse from Prospecting and Approaching moduleTOS: Insurance business



Maintain existing customer base

Add a rupee or notes icon to the above image with the following TOSTOS:Increase your income

Show each concept with the image. Slide in each idea and image for few seconds and then present the next set. Show the text on screen in sync with the audio

Screen No.Screen Title MenuOn-Screen Text Introduction to Persistency

Impact of Persistency Factors Affecting Persistency Improving Persistency Quiz

i-text Click or tap a topic to begin.



Audio Transcript

Click or tap a topic to begin.

Graphic Description

Use the following template



Topic 1: Introduction to Persistency

Screen No. 1Screen Title What is Persistency?

On-Screen Text Persistent = Repetitive or Continuous

Persistency = a measure of the renewal premiums collected as compared to the renewal premiums due

Audio Transcript

What is persistency?It derives from the word “persistent” which means repetitive or continuous. Life insurance, as you’ll know, is a long term contract. Timely and persistent payment of premiums is necessary to keep the contract in-force and the life insurance risk cover alive. Persistency is, therefore, a measure of the renewal premiums collected as compared to the renewal premiums due.

Graphic Description

First, let this line of text appear on screen in sync with audioPersistent = Repetitive or Continuous

Below this image, show 2-3 receipt icons with the words “Premium Receipt” appear with the audio “payment of premiums”Then let the following line appear below the icons, in sync with audio

Persistency = a measure of the renewal premiums collected as compared to the renewal premiums due



In this topic, we are just giving a brief about persistency. In the next topic, we have explained 13th month persistency and its calculation which helps us to understand the high and low persistency.Then, we have explained the impact of high and low persistency on customer, advisor and company in the next screen.


Explain persistency, then talk about the impact it has i.e. WIIFM for advisor/company and then switch to how do we calculate persistency


Screen No. 2Screen Title Module ObjectivesOn-Screen Text By the end of this module, you will be able to:

Explain the importance and implications of persistency. Explain the impact of high or low persistency. Describe the factors affecting persistency. Recognize ways of improving persistency.

Audio Transcript

By the end of this module, you will be able to:

Explain the importance and implications of persistency, Explain the impact of high or low persistency, Describe the factors affecting persistency, and Recognize ways of improving persistency.

Graphic Description

Use the standard module objectives template.

Topic 2: Impact of Persistency

Screen No. 1Screen Title The 13th Month PersistencyOn-Screen Text

Premium Payment Mode

Premium used to calculate 13th Month Persistency

Monthly 13th premiumQuarterly 5th premiumHalf-Yearly 3rd premiumYearly 2nd premium



13th Month Persistency = The number of policies remaining in force at the beginning of the 2 nd year The total number of policies in force at the end of the 1 st year

High PersistencyLow Persistency

i-text Click or tap each plus symbol to learn more.

Popup1 High PersistencySuppose you have sold 10 policies in June last year, then irrespective of the mode of premium, the 2nd year premium will be due in July this year (including a one-month grace period).

Now, assume that in July this year, the renewal premium is submitted for only 9 policies.Then, the 13th Month Persistency = 9/10 = 90%, which is HIGH

Popup1 Low PersistencySuppose you have sold 10 policies in June last year, then irrespective of the mode of premium, the 2nd year premium will be due in July this year (including a one-month grace period).

Now, assume that in July this year, the renewal premium is submitted for only 5 policies.Then, the 13th Month Persistency = 5/10 = 50%, which is LOW

Audio Transcript

Let’s now understand what is meant by the 13th Month Persistency. Life insurance premiums can be paid either monthly, quarterly, half yearly or annually. All policies enter in to their 2nd year on the 13th month of the term. If the due premium of a policy is paid on the commencement of 2nd year (within the grace period), and the policy remains in-force, then the policy is said to have achieved the 13 th month persistency. The 13th month persistency varies as per the premium paying mode.

The 13th month persistency is calculated by dividing the number of policies remaining in force at the beginning of the 2 nd year by the total number of policies in force at the end of the 1st year. A persistency percentage of 70 and above is considered high.

Click or tap each plus symbol to view examples of high and low persistency.


Preeti Jasnani, 05/29/17,

Note to Tata AIA SME: Please validate this number.


Graphic Description

Use the following template.

Use an illustrative background, and draw the table and the formula as an animation in sync with the audio.

Screen No. 2Screen Title Impact of High PersistencyOn-Screen Text1 Display the icons as shown in the graphics section.

i-text Click or tap each plus symbol to learn more.Popup1 Customer

Impact on Customer

Insurance protection for the complete policy term Bonus for the entire term resulting in higher maturity benefit Financial goals protected and met Hassle free claim settlement



Popup2 You

Impact on You

Increased earnings due to renewal commission and persistency bonus Increased persistency implies satisfied clients and thus a long term relationship and future sales opportunity Satisfied clients give references for future business

Popup3 Organisation

Impact on Organisation

Satisfied client base Positive impact on bonus and policy dividends Increase in profitability Acknowledgement as trusted insurance organisation Fully recovered cost of acquisition Retention of distribution

Audio Transcript

Changes in persistency impacts your customer, you and your company “Tata AIA Life”. Let’s see how.Click or tap each plus symbol to learn more about the benefits of high persistency.

Graphic Description

Use this template for your reference.



Bring about minor modifications in the diagram above to indicate “High” persistency; for example, give an arrow head shape to the top of the S symbol or use a color to indicate “positive” impact

Screen No. 3Screen Title Impact of Low PersistencyOn-Screen Text1 Display the icons as shown in the graphics section.

i-text Click or tap each plus symbol to learn more.Popup1 Customer

Impact on Customer

No insurance protection at the time of need Loss of all premiums paid so far, as a policy usually acquires cash value (surrender value) only after 2 years Higher cost for any new insurance policy due to increase in age Adverse review of lapsed policy by underwriters may result in request for fresh insurance policies to be declined

Popup2 You

Impact on You

Loss of income opportunity and lower morale Reduced regular income from renewals and persistency bonus Loss of first year commission as penalty for lapsation (clawback)

Popup3 Organisation

Impact on Organisation



Decreased profitability and negative impact on annual bonus (as products are designed and priced based on expected return on investment, their acquisition and maintenance costs, mortality estimates and expected persistency level)

Loss of client base and brand value High expenses during initial period of policy

Audio Transcript

Low persistency also impacts your customer, you and your company “Tata AIA Life”

Click or tap each plus symbol to learn more about the impact of low persistency on these three entities.

Graphic Description

Use this template for your reference.

Bring about minor modifications in the diagram above to indicate “Low” persistency; for example, give an arrow head shape to the bottom of the S symbol or use a color to indicate “negative” impact

Screen No. 4



Screen Title Your TakeOn-Screen Text1

Kavita, a sales representative with Tata AIA, has been achieving 80% persistency on the polices sold last year. What possible impact would this have on her customers who’ve failed to pay the premiums on time?

On-Screen Text2 Insurance protection for the policy term completed so far

Higher cost for any new insurance policy due to increase in age Loss of all premiums paid so far Hassle free claim settlement

Select all the correct options and click or tap Submit.Popup1 <Correct answer feedback>

Absolutely Correct!

Not paying premiums on time could result in:

Higher cost for any new insurance policy due to increase in age Loss of all premiums paid so far, as a policy usually acquires cash value (surrender value) only after 2 years

Furthermore, the customers do not get insurance protection at the time of need and may also be subject to an adverse review of lapsed policy by underwriters resulting in fresh insurance policies to be declined.

Popup2 <Incorrect answer feedback>

Not Quite.

Not paying premiums on time could result in:

Higher cost for any new insurance policy due to increase in age Loss of all premiums paid so far, as a policy usually acquires cash value (surrender value) only after 2 years

Furthermore, the customers do not get insurance protection at the time of need and may also be subject to an adverse review of lapsed policy by underwriters resulting in fresh insurance policies to be declined.



Audio Transcript

Kavita, a sales representative with Tata AIA, has been achieving 80% persistency on the polices sold last year. What possible impact would this have on her customers who’ve failed to pay the premiums on time?

Select all the correct options and click or tap Submit.

Graphic Description

Show standard Your Take template

Topic 3: Factors Affecting Persistency

Screen No. 1Screen Title Key Factors Affecting Persistency

On-Screen TextKey Factors Affecting Persistency

Income Gender Case Size Insured Age Premium Payment Mode

i-text Click or tap each plus symbol to learn more.

Pop-up 1 IncomeAs per Life Insurance Management Research Association (LIMRA), persistency is higher for higher-income individuals.

Pop-up 2 GenderAs per LIMRA, female customers have higher persistency than male customers.



Pop-up 3 Case SizeAs per The American College (LUTCF-201), larger case size policies have higher persistency.

Pop-up 4 Insured AgeAs per The American College (LUTCF-201), persistency increases with age as customers become more matured and settled. Also persistency is high where teenagers are insured, because premiums are paid by parents.

Pop-up 5 Premium Payment ModeAs per The American College (LUTCF-201), persistency generally improves as the premium payment frequency decreases. Annual payments have the highest persistency, whereas monthly direct billings have the lowest persistency.

Audio Transcript

Now that we have seen the impact of changes in persistency, let us take a look at the factors affecting persistency.They are:

Income, Gender, Case Size, Insured Age, and Premium Payment Mode

Click or tap on each plus symbol to learn more about these factors.

Graphic Description

Use the below template

Use the images given below for the pop-ups respectively



Image Id: 518473498Income

Image Id: 535457004Gender

Image Id: 506538725Case Size

Image Id: 508952318Insured Age



Image Id: 478421495Premium Payment Mode

Screen No. 2Screen Title Factors Affecting Persistency: The TALIC Experience

On-Screen Text

Note to Graphics: Refer to page 17 of the Persistency PPT

Data shown is based on TALIC business in financial year 2012-13



Note to Graphics: Refer to page 18 of the Persistency PPT

Audio Transcript

Let’s now look at the TALIC experience for persistency. Let’s first consider, the annual income. At Tata AIA, we categorize our customers according to their annual income. Our experience has shown that persistency increases with the rise in annual income of our customers. High income group customers are more persistent than low income group customers. Persistency for the deprived section is as low as 42.75%.

Now, consider the case size. As the case size increases, persistency increases as well. Higher case size means customer’s involvement during the purchase was high. These customers always get all their queries resolved and commit a higher amount for a longer period.So, for most of our customers with a higher case size, the persistency will always be higher.

Graphic Description

Show the first graph build up with the first para of Audio. The replace the data on the pyramid with the second picture, build it up with the remaining audio transcript.

Screen No. 3Screen Title Your TakeOn-Screen Most of Akash’s clients are in their 40-50 years’ age bracket and make an annual payment for their premiums. Would you therefore



Text1 predict a higher persistency for him?

On-Screen Text2 Yes

No

Select the correct option and click or tap Submit.Popup1 <Correct answer feedback>

That’s right!As per The American College (LUTCF-201), persistency increases with age and as the premium payment frequency decreases, though other factors such as gender, annual income and case size also need to be considered.

Since most of Akash’s clients appear to be well settled and pay annually, the persistency could be high.

Popup2 <Incorrect answer feedback>

Not Quite.

As per The American College (LUTCF-201), persistency increases with age and as the premium payment frequency decreases, though other factors such as gender, annual income and case size also need to be considered.

Since most of Akash’s clients appear to be well settled and pay annually, the persistency could be high.

Audio Transcript

Most of Akash’s clients are in their 40-50 years’ age bracket and make an annual payment for their premiums. Would you therefore predict a higher persistency for him?

Select the correct option and click or tap Submit. Graphic Description

Show standard Your Take template



Topic 4: Improving Persistency

Screen No. 1Screen Title Tips for Improving Persistency

On-Screen Text Ravi: Keep yourself organized! Always keep all your client data in one place so you can retrieve it easily.

Ravi: Visit your clients often. I, for example, always make it a point to deliver the premium receipts to my clients in person.

Ravi: Most important – wish your clients on important occasions like birthdays, anniversaries and festivals.

Ravi: Encourage your clients to look at the entire portfolio rather than the product for returns. Fix an appointment for a yearly review with them.

Ravi: Respect any objections the consumer may raise. Take care to understand them and answer them sincerely and convincingly.

Ravi: If there is anything you cannot handle, don’t bluff. Ask for time to arrange a meeting with an expert or revert with relevant information.

Ravi: And last but not the least, take feedback for your services!

i-text Click or tap the arrows to view the slideshow.Audio Transcript

There are several ways and means to improve your persistency. Here are some tips from Ravi Sharma, a Tata AIA professional. Click or tap the arrow to view the slideshow.

Graphic Description

Use the slide show template.



Done


You can use some points from the customer service WBT, as good customer service drives persistency


Topic 5: Summary

Screen No. 1Screen Title Key Learning PointsOn-Screen Text

What is Persistency? Renewal premiums collected as compared to the renewal premiums due

What is 13th Month Persistency? Premium paid at the commencement of the 2nd year of the policy

What Impacts Persistency? Income Gender Case Size Insured Age Premium Payment Mode

Audio Transcript

Take a look at the key learning points of this module.

Graphic Description

Use the standard template

Topic 6: QuizScreen No. 1Screen Title Test YourselfOn-Screen Text You have completed this module on Persistency and are ready to take the final assessment. Please note:



You must complete all questions in one session. If you exit the assessment before all questions are answered, your answers will not be saved.

You need a minimum score of 80% to pass the assessment. You can retry the assessment if you do not achieve the minimum passing score.

Good Luck!Audio Transcript

You have completed this module on Persistency and are ready to take the final assessment. Please note:

You must complete all questions in one session. If you exit the assessment before all questions are answered, your answers will not be saved.

You need a minimum score of 80% to pass the assessment. You can retry the assessment if you do not achieve the minimum passing score.

Good Luck!Graphic Description

This is an assessment start screen. Show a generic graphic related to assessment on this screen.

Screen No. 2Screen Title Question 1On-Screen Text Which of the following are the key factors affecting persistency?

Income Occupation Gender Medical


Audio Transcript

<No audio or feedback in assessment screens>

Graphic Description

Standard assessment graphic



Screen No. 3Screen Title Question 2On-Screen Text Which of the following are the benefits of high persistency to the customers?

Insurance protection for the complete policy term Increase in profitability Increased earnings due to renewal commission and persistency bonus Hassle free claim settlement


Audio Transcript


Graphic Description


Screen No. 4Screen Title Question 3On-Screen Text Poonam, a sales representative at Tata AIA, has sold 10 policies in January last year. If in February this year, she gets a renewal

payment for 4 policies, how would you rate the persistency?? Low High

Select the correct option and click or tap Submit.

Audio Transcript


Graphic Description




Screen No. 5Screen Title Question 4On-Screen Text Which of the following statements are true?

Persistency is higher for higher-income individuals Smaller case size policies have higher persistency Female customers have higher persistency than male customers Annual payments have the lowest persistency, whereas monthly direct billings have the highest persistency


Audio Transcript


Graphic Description


Screen No. 6Screen Title Question 5

On-Screen Text Vikas, a sales representative at Tata AIA, got an 80% persistency this year. What impact would this have on him? Future sales opportunity Loss of first year commission Increased earnings Positive impact on bonus and policy dividends


Audio Transcript


Graphic Description




Screen No. 7Screen Title ResultBody Text 1 <Passing Text – When score is 80% or more>

Congratulations!

You scored __%

You have completed this course successfully.

Body Text 2 <Failing Text – When score is less than 80%>

Please Try Again.

You scored __%.

However, you need to score 80% or more to successfully complete this course. We recommend you commence this journey again and attempt the assessment after completing it.

Click or tap the Revisit button to reattempt the assessment.Audio TranscriptGraphic Description



Screen No. 8Screen Title DisclaimerBody Text 1

Audio Transcript

<No audio in disclaimer screens>

Graphic Description

Show Disclaimer with an Exit button. No need for itext for this button.



Add disclaimer from this file:

$/TATA_AIA_Continuous_L_and_D_TRMUINA250017_TFS/Project Documentation/07 Client Supplied Items/Nov28_2016 Disclaimers/disclaimers.pptx – Slide 5


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