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One Day Auto Insurance
Providing a New Customer Value
Tsukasa Makino
Deputy General Manager Corporate Planning Department & IT Planning Department Tokio Marine & Nichido Fire Insurance Co., Ltd.
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About Tokio Marine & Nichido
3) Distribution System HQ Branch (125) Sub Branch (427) Agencies（46,000) Independent Car Dealer
Tokio Marine & Nichido Post office Etc.. • Automobile • Superinsurance（Non-life+Life） • Homeowners • Injury, Sickness • Travel, Leisure • Kid’s • Saving Type • 401k • Mutual Fund • Life
Established in 1879 (134 years old)
Total Assets：US$87 Billion
Net Premium Written：US$18 Billion Employees: Domestic:17,000,
Overseas:16,000 （As of FY2011 1$=90Yen)
Bank
1) Profile
My Job
Hong Kong 2005 Hong Kong 2006Shanghai 2008
Las Vegas 2006 Athens 2006 Chicago 2006 Kyushu Univ.2008 New York 2007 Orlando 2007 Orlando 2005 Tsukuba Univ.2007 Dallas2007 Singapore 2007 Beijing2007 Rio de Janeiro 2007 Boston2008 Singapore 2008 Coming Soon Las Vegas 2008 Las Vegas 2004 Paris2008 Ｔａｉｐｅｉｉｉｉ2008 Paris 2008
New Delhi 2006 Brisbane2008
San Francisco2008 San Francisco 2008 Hong Kong 2008 Now Printing Zurich2009 Shanghai 2008
Research, presentation, teaching at Universities
Wiesbahden 2011
Munster 2007 London 2013
Which one is more “Moteru”(
モテる）
?
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30,000 Likes 10,000 Followers
Issues
30,000 Likes 10,000 Followers • Decreasing motivation for young people to own a car. • Mature Japanese Non Life insurance market.
Issues
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• Auto Insurance premium surges up when it include young drivers
One Day Auto insurance
• Short term, simple and inexpensive auto insurance.
• Can be purchased via mobile phones.
• Grant maximum 20% discount for those who
switched to annual policy.
On the market from Jan, 2012
Plan Basic With automobile
damage coverage
Premium ¥500/day ¥1,000/day
Liability (bodily injury and property) Unlimited Unlimited Driver/Passenger injury ¥10 million (lump-sum¥100,000) ¥10 million (lump-sum¥100,000) Liability for borrowed
car damage
- ¥3 million
Market
Young generation who has driver’s license and doesn’t own a car
(16million)
Have an intention to own a car within a year(0.7million)
Drive parent’s or friend’s car once a month in average (7million)
Objectives
• Cultivate auto insurance market in younger generation
• Provide more opportunity to drive cars to younger generation • Reduce accidents caused by non-insured cars.
Pay
Process
10 Buy Register • Name • Birthday • Address • e-mail address• Driver’s License No. • License expiry date
Input
• License plate No. • Date of driving
Premium is added on the monthly mobile phone bill
Read
QR Code
(agency code embedded)
Sales Volume
Japanese summer holiday season
Smartphones supported
Customer Research
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“Are you satisfied with the product and service of One Day Auto
Insurance?”
“Will you consider Tokio Marine & Nichido when you buy annual auto Insurance?”
Profitability
•
Loss ratio is (slightly) lower than the normal auto insurance
Annual One Day
Loss Ratio
♪
Market response
“I wanted to practice driving with my parents’ car before I buy my own. Insurance was my concern. One day auto insurance was
very helpful for me”
- a customer
-“One day auto insurance grants maximum 20% discount to the users. That is a good promotion for auto sales to young
generation.”
- An Executive of automobile manufacturer –
“We appreciate the social merit of One day auto insurance to
reduce the accidents caused by non-insured car, and its effect
to foster market for automobile and insurance industry.”
-Manager, Insurance division, Financial Services Agency (FSA) –
Brand recognition.
21% of the One Day Auto Insurance customers recognized the name of Tokio Marine & Nichido after they knew or
bought One day auto insurance.
Awards
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Second place of “Nikkei
Advertisement Award”
(Oct.2012)
“Nikkei Grand prize for superior
financial products and services”
(Jan 2012)
Market expansion
One day auto insurance
Annual auto insurance
160,000 policies
1,000 policies
160 million yen
170 million yen
From Jan.2012 to Nov.2012
Challenges
• How to evaluate the risk and calculate premium? • How to avoid fraud?
• How to avoid channel conflict with agencies? • Will it work?
• Will our peers copy our products?
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How to evaluate the risk and calculate premium?
• Conducted in-depth claims analysis on the target cluster in our customers.
• Utilized other data source which may have similar risk profile (such as claims data of rent-a-car)
How to avoid fraud?
• Introduced pre-registration system. Users should register their personal data before they can buy a policy.
• Automobile coverage plan can only be purchased 1 week after the registration.
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Pre-register
Can apply for
Basic Pl
an Can apply forAutomobile Coverage Plan
How to avoid channel conflict with agencies?
• One Day Auto is distributed by agencies.
• The users of One Day Auto are potential customers of annual auto insurance for the agencies.
• The users are potential car buyers as well.
Car-dealer-agencies obtain lead information by selling One Day Auto.
• TMNF is providing PC application to help agencies promote selling One Day Auto.(e.g generate flyers with QR)
Pre-register Buy Agency
Commission & Data Data
Will it work?
• Experience in “NTT docomo One Time Insurance” since 2010.
Sports & Leisure, Golf, Overseas Travel, Domestic Travel
• Piloted by NTT docomo 3 months prior to the grand opening.
Docomo One Time Insurance (AUTO)
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Lessons Leaned
• Have a courage to take a new business chance.
• Always think Customer, Society and Agency’s benefit first. Company’s benefit will follow.
• Build Win-Win-Win model.
• Trust customers. Do not miss opportunities by assuming “customers are always evil”
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Next Steps
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Structured Data
We have been dealing with very limited information
Claims form Feedback form Application Form Market Research Marketing Underwriting /Rating How the customer drives Claims How the accident
happened
Filter & Convert
How is the customer’s health condition Real Information Karte What the customer wants/ thinks/ feels
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We have to deal with real and huge information to create value
Marketing Underwriting /Rating How the customer drives Claims How is the customer’s health condition What the customer wants/ thinks/ feels Real Information Analyze& Create Value Heart rate Blood pressure Miles run or walked Weight Accurate Mileage Speed Hour/day Acceleration Deceleration Engine Speed Brakes Airbag Gravity Seatbelt Blogs Twitter Amazon YouTube Mixi Facebook What the customer is doing
How the accident happened
S A
Thank You!
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