Bancassurance: Products

Transcription

1 Bancassurance: Products Sean Gilday RGA May 13 th, 2013 The security of experience. The power of innovation.

2 Hockey is our sport Still 2

3 Agenda Banks Customer Segments Product Development Bancassurance Case Studies Questions 3

4 Segment/Needs Family Market Typically Both spouses working with kids Spending and incurring debt Disposable income can be low Needs: 1. Mortgage cover, Credit Card Covers 2. Education plans 3. Health Coverage 4. Income replacement on death, disability, illness 5. Retirement Planning 4

5 Segment/Needs Seniors Market Typically over age 65 Close to retirement/already retired Accumulated decent assets Needs: 1. Estate conservation 2. Funeral Expenses 3. Payout Annuities 4. LTC, Health Care Medical and old age 5

6 Segment/Needs Business Market (SME) Family owned or limited partnership Small Management Team Under 100 employees Needs: 1. Group insurance Life, Health, Pension 2. Worksite Marketing 3. Key Man, Buy Sell, Business Continuation 4. Business Loan Cover 5. Retirement Planning 6

7 Segment/Needs High Net Worth Market Estate Conservation Tax Planning Business Coverage Complex needs with high-end solutions Global solutions Needs: 1. Life, Critical Illness, Total Permanent Disability 7

8 Segment Product Solutions Sales Channel Underwriting Type Family Term Life, UL, Whole Life Internet Tele-underwriting Market Critical Illness, TPD Bank On-line underwriting PHI AD&D Credit Card, loan covers Variable Annuities Agent/Broker Online Tele-sales For agent and broker sales full underwriting Simplified issue Pre-approved Long Term Care Agent/Broker Tele-underwriting Seniors Market Guaranteed Issue Whole Life Simple Premium Whole Life Bank Tele-Sales Guaranteed and Simplified Issue Payout Annuities Direct Mail Underwritten Annuities Business Market Term Life, Whole life, UL Group Products Agent/Broker Business Banking Full financial and medical underwriting Disability Protection (DI, TPD) Worksite Marketing High Net Worth Whole Life Universal Life Private Bank via Agent/Broker Agent/Broker Full financial and medical underwriting Use tele-underwriting Para-medicals/medicals 8

9 Product Development 9

10 Sample Process for PD Idea Selection Go to Business Plan Go to Implementation Plan Creation Go to Implementation Go to Launch Post- Launch Review DP 1 WS 1 DP 2 WS 2 DP 3 WS 3 DP 4 WS 4 DP 5 WS 5 Idea Generation Preliminary Idea Assessment Build Business Plan Build Implementation Plan Implement Launch Symbol Legend -Process Start and Finish Point DP -Decision Point (permission to proceed) WS# -Work Stage (with deliverables due at the end of each stage) 10

11 New Products Absent -Quality or Performance not achieved Exciters and Delighters 3 High Satisfaction -Delighted 2 1 Performance/Linear Threshold/Basic (Must Haves) Ideas Implemented -Sales as Expected 4 Indifferent Low Satisfaction -Sales Below Expectations Source: Kano 11

12 Using the Kano Model in PD Product Features -Term Life Product Must Have Interesting Exciting Preferred Underwriting Return of Premium Rider Automated Underwriting (Lower Face Amounts) Waiver of Premium Rider Tele-underwriting LTC and CI riders 5, 10 and 20 Year Terms 12

13 Product Development Trends MEXICO Critical Illness Hospital Cash Surgery Cash UK Substandard Annuity Wrap Protection Whole Life Product FRANCE & GERMANY Substandard Mortgage Protection Key Man Product Simplified Preferred Mortgage Protection Substandard Annuity Disability Income SPAIN & ITALY SI Cancer Stand Alone TPD Preferred Term Credit Life DM Term Life Utilities Protection CEE Mortgage Protection Accidental Partial Disability Preferred Term CHINA Increasing Term Life Single Premium Par Endowment INDIA Online Term Deposit Continuation Accidental Hospital Cash Non-Medical Graded Term HONG KONG & TAIWAN GI Mortgage Protection GI Term Life Limited Pay CI SI Mortgage Protection Return of Premium Products (Death, Cancer, Hospital Cash) High Net Worth Preferred Term & Whole Life Mortgage Protection SOUTH KOREA Female CI Staged Cancer Preferred Term JAPAN Impaired Annuity Long-Term Level Term Life Preferred Life (Long-Term) AUSTRALIA & NZ Mortgage Protection Simplified Issue CI 13

14 Product Trends Guaranteed/simplified issue Whole Life Staged Critical Illness Staged Cancer LTC Combination Product Underwritten Annuities Tele-sales Hospital Income Plan (HIP) Multiple-benefit product ROP Products 14

15 Bancassurance Trends Straight through processing Market Segmentation/Personas Improving distribution performance Tele-underwriting Predictive Modeling Increase in Tele-sales 15

16 Predictive Modeling Accessing good quality data Using propensity to claims and lapse models Combining with propensity to buy models To pre-approve/segment clients and to choose the most likely channel for them to buy Effective Multi-channel marketing 16

17 US Annuities vs. Life Sales Source: Limra 2013 (life: B) 17

18 Bank Life Sales in the US Source: Limra

19 US Life Insurance Distribution Source: Limra

20 Bank Life Sales Performance Source: Limra

21 Financial Consultants vs. Platform Bankers Source: Limra

22 Aggregators Replacing IFAs? 22

23 Brand Differentiaton? The Meerkat 23

24 Low price and speedy issue?? 24

25 Creditor Cover: Canada Creditor Call Centre Mortgage Protection Plan Life, CI and Disability (2 yr benefit period) 1 pg application 6 medical questions If YES to any question, referred for tele-underwriting (37 questions) Up to 30 mins 80-85% are issued over the phone Loadings and exclusions are applied Alternative offer (Acc Death) for declines 40,000+ applications per year Improved customer experience; reduced cycle times; reduced NPWs; reduced medical expenses 25

26 Bancassurance: NOVEL IDEA! ATM Dread (Turkey) Key features: Pop-up screen appears when drawing money No more than 2 follow Clever use of buttons Covers cancer, heart, stroke Cover = 5,000 No underwriting 10 p.a. premiums Clever market segmentation Profile customers ~ 5% - 10% take-up 26

27 Outbound Tele-marketing DM/TM Term Life Large Canadian Bank Over 4 million retail banking customers Developed call center outbound tele-sales solution Use bank s database to target market customers Have full tele sales tele-underwriting Good Straight through processing model Term life pick your term 27

28 Bancassurance: NOVEL IDEAS! New Parents (UK) Key features: 10k free cover per parent Cover runs for first year of baby s life FREE! Require client to go into branch to sign off content for further offerings Call to action! 3,000 4,000 responses Massive PR Why don t banks offer the same? 28

29 Free Life Cover? Future Leads? 29

30 Improving Distribution Secret shopping Voice of distribution Product portfolio review KANO Identifying global best practices Use of wholesalers (US) 30

31 RGA Distribution Surveys Reason for surveys RGA as a Bancassurance specialist International benchmarking External Factors Changing legislation in South Africa, UK, France, Korea, etc. Recent Surveys RGA US, ME, India Survey Bridging the Cultural Divide RGA France Survey 2009 The Changing Landscape of Mortgage Insurance RGA SA, India Survey 2010, 2012, 2013 Bridging the Cultural Divide Focus on Sales RGA India, Group Survey 2012 RGA Australia, Japan Bancassurance Survey 2013 RGA LA Columbia, Group Survey

32 Questions? 32