There is an unmet need of $1T in Canada - a failure of traditional distribution and processes. A new approach to online distribution could be the answer.
dream of banking online – “it’s not safe” 5 years ago few people would buy groceries online 15 years ago Travel Agents would claim that you cannot book vacations online – “it needs a personal touch and experience”
Prudential oversight of insurance companies } Capital adequacy } Policyholder protection Complex Infrastructure } Systems } Processes Brand Reputation LIFE INSURANCE IS SOLD NOT BOUGHT 6
} Most consumers happy doing business online } Disconnect to consumers – average age of agents now 57 7 } Insurance Gap - $20T in US, 1T in Canada } 57% of families with children will have immediate financial trouble if the primary wage earner died } 50% of households believe they are underinsured
first source for information } Not a positive view of agents or insurance companies “The broker is needed to make the sale. They push you (to buy) because they will make the commission.” “Life insurance companies want to sell you more than what you need.” “First place I would go to is Google.” “What are you getting? What are you really covered for? What are your options? No one tells you.” “I would go on the internet and research companies through forums.”
appointment) Cost $500 - $747** + commission Capacity Depends on number of agents Sources: * 2009 LOMA Service Turnaround Times Survey – Term Products: 47 days **SOA 2010 Expense Study Average Per Policy $500 weighted, $747 unweighted 9
Prudential oversight of insurance companies } Capital adequacy } Policyholder protection Complex Infrastructure } Systems } Processes Brand Reputation LIFE INSURANCE IS SOLD NOT BOUGHT innovation The myth that 10
traditional new business process is not customer friendly Indicative Quote Underwrite Issue Offer Add’l Q’s Modify Application Apply Underwrite evidence Further Questions multiple hand-offs lack overall process control 11
Application Apply Underwrite evidence Further Questions Indicative Quote Apply 15 OR } Answer a few questions and we may issue immediately (but the chances are we won’t) } Refer to agent otherwise
and UW Fully Underwritten No fluids or additional evidence Cover up to £750k Better lapse experience Ave issue time 12 minutes } 5,000x faster } 1/10 of the cost } ∞ scalable (85% of the time)
Focus on distribution } Partnerships – Reinsurer, Traditional Insurer, Software No complex systems } Focus on distribution – outsource the rest Fresh approach to branding… 21
“Almost half of participants found the value proposition [to buy directly online] very appealing (rating of 8 or more out of 10); these results are encouraging. Years ago, when evaluating consumer interest in the ING Direct value proposition, our goal was to find interest in only half as many target group members (who we defined as innovators).” 23
} Coverage age range 18 - 70 } Applied UK experience and P&C lessons } Simpler, yet more flexible than current products } No medical evidence referrals } Online, with offline support if needed } On cover in 15 minutes or less Full UW + Lower cost = Lower premium 25
Buy Automated underwriting immediate decision including rating if applicable T10 - $18.65 T20 - $24.80 Online Quote and Application Simplified and Manual Underwriting T10 - $20.00 T20 - $26.04 Online Quote and Application Basic auto and Manual Underwriting T10 - $20.10 Online Quote and Application Basic auto and Manual Underwriting T10 - $20.30 T20 - $30.69 Online Quote Manual Application and Underwriting Where did this put Teachers Life? Insurance 26
kevinpledge
kraf
gpol
tokyo_metropolitan_gov_digital_hr
layerx
tkchy
10xinc
takeuchigroup
natsumidnx
nexera
kubell_hr
ta0o_o0821
hideki_ojima
sferik
sachag
philnash
csswizardry
eileencodes
garrettdimon
malarkey
addyosmani
chrisshort
sugarenia
kevinliebholz
chriscoyier
![Thank You Kevin Pledge CEO and Founder, Acceptiv [email protected] 416](https://files.speakerdeck.com/presentations/3d63d98b71ad4125883cf636f4e05001/slide_29.jpg){kind=link}