The Digital Insurer was pleased to talk about how to think digital and transform face -to-face bancassurance models in Asia. visit the-digital-insurer.com for more information on the conference.

1. Think Digital:
Transform your Bancassurance Business

2. Discussion Agenda
Strategic context
Digital – it is a revolution
The Digital Advisor …. The new “face” of life insurance
sales
Getting into the details
Tablets point of sales toolkits are pivotal for success
Bancassurance transformation challenges
Q&A Session

3. The Digital Revolution:
“It will not be televised”
Digital
Convenience
•
•
•
•
Always on
Always there
Universal
Almost free
Digital
Connectivity
• Access to
information
(Google)
• Access to each
other (Facebook)
• Access through
devices (Apple)
• Location-agnostic
(cloud services)
Change, Change, Change….
Digital
Expectations
• Data “on demand”
• Desire for clarity &
simplicity
• Dialogue not
monologue
• Easy to promote a
product .. and
complain

4. Two digital “Mega” trends :
Forces beyond anyone’s control
1. Technology is cheaper and
easier to implement than ever
– it is the fulcrum to meet
consumer needs, reduce
operating costs and to
change your culture
2. Changing consumer
behaviour – they are
demanding and seek a
different experience

5. 5

6. Welcome to Digital Customers:
“They are hybrid”
Myth #1: Digital is a new distribution channel
Reality : Digital enables customer (& distributor) engagement
Online
The Hybrid
Customer
Face
To
Face
Phone
The hybrid customer is…
• Better informed
• More demanding
• “Multi-channel” for both sales &
services
• Will jump channels at any point –
catch them if you can!

7. Bancassurance Audit:
x
Where are we now?
Strengths
•
•
•
Leverage customer
banking relationships
Utilise physical
infrastructure
Insurance is a logical
product extension to bank
products
The Customer Centricity Challenge
•
•
•
•
Result : higher productivity &
generally higher quality
business than life agency
distribution
•
Fee driven models: are the norm.
After sales service limited to basics
transactions – where is the cross-sell
opportunity?
How well do RM‘s really know their
customers? Or are they product
pushers?
“Traditional” Tele-marketing –
regulatory tightening to continue
Insurance Product can be driven by
wealth managers product bias –
short term and investment focused
…. and what happens when we factor in digital trends?

8. Anchored to basics : Digital Bancassurance
strategies need to leverage insurance fundamentals
Current Bancassurance
Paradigm
Trust is at
the heart of
insurance
Rely on Bank brand
Relationship managers
leverage trust already placed in
the bank
Digital Impacts
As customers research on-line
trust will need to be developed
and leveraged on-line
Trust must be earned and
reinforced in every interaction
Great
insurance
advisors always in
demand
Bank RM’s ≠ insurance
advisors. RM’s have natural
bias towards investment
products
For mass market not really a
personal relationship – order
taking and closing the sale
When customers research online
they will research their advisors as
well….
Less time face-to-face – but no
less important
Insurance advisors need to be
more mobile (digitally & physically)
Customer
service
matters
Little emphasis on customer
service after the sale is closed
Back office is … back office
Mobile technology provides
opportunities for cost effective
customer service differentiation
Customer will expect this – a
hygiene factor very soon

9. Digital Bancassurance:
3 Opportunities
1. Generate more leads
2. Improve customer service &
engagement
3. Improve face-to-face sales
processes
Combining all three = The “Digital Advisor” Business Model

10. The Digital Advisor
Business Model
Customer
Portal / App
Sales
Opportunities
Policy Systems
Tablet
Lead / Prospect
Management
Advisor
Portal

11. 1. More Leads
Fewer and fewer customers will go to the bank branch
•
•
Sales
Opportunities
•
•
•
Co-partnership Customer lead
models for
generation
Portal / App
Apps to generate leads from the “digital
cafes”
Analytics has an enormous role to play
Get the lead to the right person at the
right time
Policy systems to
Lead management Systems manage
multiple leads , measure ROI and
promote better practices
Business outcome:
- More leads
Tablet
- Better quality leads
Lead / Prospect
Management
Advisor
Portal

12. 2. BUILD A “DIGITAL ECO-SYSTEM”
AROUND LEGACY POLICY SYSTEM TO
TREAT CUSTOMERS LIKE CUSTOMERS
2. Better Service
•
Customer portal/app: An on-line
marketing capability for customer
engagement leading to cross sell / up sell
opportunities
Customer
Portal / App
•
Customer experience centre: Multi
channel customer support to connect
Advisor Generated
customer interactions – a digitally assisted
Leads
customer service revolution (the engine
room for converting “data into business”)
Customer Experience Centre
•
Policy Systems
Advisor portal: Customer data and
advisor performance at your finger tips
Business outcome:
-
Building deeper, richer and better
relationships with customers and advisors
Lead Generator /
Facilitate and co-partners the advisors to
Prospect Management
better meet customer needs
Allow “farming” as well as “hunting”
Advisor
Portal

13. 3. Improved Selling
Customer
Portal / App
Sales
Opportunities
3. “connecting
the eco system”
Policy Systems
Tablet
Lead / Prospect
Management
Advisor
Portal

14. Tablet sales toolkits : Will be “business as
usual” in most markets within 5 3 years
Tablet Functionality:
Should be focused on the customer
1.
2.
3.
4.
Present credentials (materials)
Identify needs
Produce quotes and help to close
Easy proposal submission
Usability is the Key Success Factor
•
•
•
Must be designed for advisors to connect with customers
Easy to use with a “wow” factor that encourages use with clients
Great usability is critical: engage/delight customers & advisors

15. Usability = function plus form
Quote Output: graphical display option with
premium iteration to facilitate closing
Easy iteration on
premium to
help sales closing

16. POS Tablet sales toolkit : Easy business case
OTHER BENEFITS AFTER SUCCESS
PRIMARY BENEFIT
Improved Sales
effectiveness through
a better customer
experience
1.
2.
Enable lead analytics / Predictive analysis
Improved compliance to sales best practice
(& regulatory requirements)
3.
Back office productivity from digital
proposals
More efficient
Faster & more accurate (clean policies in a day)
MEASURED BY :
High tablet usage from
Advisors
Increased sales
productivity per month
4.
5.
Reduced overheads: premises &
technology costs
Business intelligence
Benchmarking data
Usage data
“Bigger” data
6.
7.
Recruitment training (and hiring) tool
Platform for more automated underwriting

17. Independent Case Study:
AIA Point of Sales Tablet Toolkit
iPoS Interactive Point of Sales
Video interview
(to insert movie file here)

18. 3 Key success factors Broad POS functionality delivered with offline regional platform
1. Off-line model
2. Broad set of Functionality
• 100% availability
• “Any time, Anywhere”
• Advisor “digital briefcase”
3. AIA’s Regional Journey
1. Year 2012: Initial Rollout in Singapore
2. End of 2013: Rollout in 9 countries (2 to go)
•
Singapore, Malaysia, Indonesia, Thailand, Philippines, Sri Lanka, Vietnam,
Hong Kong, Taiwan
3. 2014 first bank partner moves to 100% tablet sales

19. Usability = function plus form
“The Dial”
Easy, fast, fun
& professional
needs analysis

20. Initial results:
Results exceeding expectations
High Usage
If AIA could do it again
% of Advisors actively using iPoS
100%
75%
Country A
Country B
Country C
Country D
50%
25%
0%
Oct 12
Jan 13
Apr 13
Jul 13
Increased Productivity
Average increase in ANP*
Country B
+16%
Country C
+54%
Country D
+64%
*iPoS advisor versus non-iPoS advisor
“I would not do much
differently. iPoS is very
successful in the way we
manage it, continuously
improve it and roll it out.
However, we were initially
overwhelmed by the
success of iPoS and
didn’t have enough scale
and capacity to roll it out
to the countries. Next time
I would react quicker and
be more decisive on
adding manpower to such
a program.”
AIA Director leading the
development

21. Reality check: In practice, Digital Advisor models
for bancassurance are complicated
1.
Who builds & controls the technology?
2.
How long-term is the bank/insurer relationships?
How closely are the bank and insurer aligned?
3.
Who does the selling? Wealth Manager or
dedicated insurance advisor? (Latter is easier to transform)
4.
How many insurance partners does the bank have– best in class / “open
architecture”, tied or broker model?
5.
Can you navigate the security & governance maze - X2 (bank + insurer)?
Easiest starting point for digital transformation : exclusive
relationship using dedicated Insurance specialists with technology
provided by the insurer

22. Are you ready? 3 Pre-conditions for Success
1. Willing to mine and share data – “Provide access with due care”
2. Co-operative & long term partnership where both bank and
insurer compromise and learn from each other – and both invest
for success
3. Prepare for hard work: No easy paths when it comes to
technology implementation
• No “one size” fits all
• No magic wand
22

23. Concluding: “Business as usual” is a dangerous path
for bancassurance operations
Be radical
Now is the time to embrace change and start building digital models.
Be Cautious
You don’t need to “bet the bank”. Learn from fast and strategically well
thought our pilot projects (e.g. POS tablets and lead analytics). Find
people with the skills to transform
Beware
If you don’t utilise digital thinking, plenty of others will.