Lesson 7: Customer Experience. Topic 3 Operational excellence implementation to drive customer experience

Topic 3

–

Operational excellence

implementation to drive

customer experience

Lesson 7: Customer

Experience

2

2

Operational excellence will be driven by complex challenges that require

organizations to transform how they think about deploying and running technology

and operations

Insurers need to follow a structured approach to initiate the operational

excellence journey, achieve desired state and become self-sustaining with

periodic evaluation

4

4

Insurers can become digital by transforming the customer / intermediary / employee

experience through technologies and building scale based on the insurer’s digital

roadmap

Automating required processes helps eliminate transactional tasks, improve

the customer journey, enhance the control framework and insurance

6

6

Measuring the success of operational excellence

across insurance operations on a regular basis

AI is being put at the center of the insurance value chain

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Human Subject Matter

Expertise

Unified Data Layer

Artificial Intelligence

Sales /

Distribution

Claims /

Servicing

Claim

Notes

Policy

Docs

Phone

Email

Customer / Agents

/ Brokers / Staff

Outputs can be used to drive

forwards an insurer’s strategy

— Drive greater top line

— Reduce costs

— Increase customer experiences

— Better employee experiences

Better

interactions

and

insights

8

8

Insurers have started to digitize with the customer in

mind

Singapore Life

For customers:

A simplified and paperless buying experience, with an individual policy dashboard and 24/7 support via Chatbot technology

For brokers and FAs:

Digital platform covering offer, price comparison, underwriting, payment and issuance

“Singapore Life makes life insurance paper-free and hassle-paper-free using a 100% digital approach”

There has been an increase in digital adoption and leverage of technology solutions, to be more efficient, reduce costs and improve competitive edge by

offering better customer service. This has benefited both customers and other intermediaries.

For customers

Faster application faster without physical paper documentation as application forms are pre-filled upon user’s authorisation and authentication

“Launched a new service to enable SingPass users to digitally authorise the use of MyInfo data for new policy purchases.”

AIA

“Launched askSage, a digital advisor for life insurance”

For customers:

Enables online self-service for fact-finding, financial review and needs analysis, product identification, comparison and purchase

9

Possible discussion points for Weekly Clinic / Things to think about

TDI viewing Tip;

Duration:

9

2:20 mins

Future of motor claims

Youtube by Elcore

A contrast in customer experience between two motor claims processes

By the way – all the tech in the video currently exists…

•

If you knew these claims processes, who would you buy a policy from? Would you pay more for your policy for a superior claims experience or

not?

•

Which pillars of 6 pillars of customer experience did the superior claims experience cover well?

•

Have you mapped out your claims experience from your customers perspective? What did you think of it? How could it be improved?

Youtube – Future of Vehicle Insurance

Video Link

10

Some insurers have starting moving from traditional

paper processes to fully digital processes

American mutual life insurer, MassMutual transformed its forms processes to digitally transform paper and remove PDF forms, manual business

processes and batch document generation to reduce NIGO score and improve customer satisfaction.

MassMutual

Insurers are reimagining their traditional forms, workflows and customer communications across acquisition, onboarding and service

Business Challenges:

• Too many forms

• Online forms and forms e-mailed

customer weren’t fillable

• Poor Not-In-Good Order (NIGO) rates

for back office processors

NIGO

25%

70%

5%

85%

Outcome:

• Faster turnaround time (TAT)

• Reduced service centre call volumes

• Renewed partnerships with agents

and financial advisors

SmartForms

• Pre-fillable SmartForms for

agents and financial advisors

• Converted paper policy and

change forms to digital forms

• Used the digital data for

robotics and straight through

processing

11

Possible discussion points for Weekly Clinic / Things to think about

TDI viewing Tip;

Duration:

11

4:56 min

Reimagining forms: How Mass Mutual is

digitally transforming the customer experience

Intellidox with Mass Mutual – Interview with David Birittieri, Head of

Policyholder Services, Mass Mutual

Changing the customer and agent experience through the deployment

of smartform to automate servicing activities

•

Do you struggle with paper in your business? How much time does it take you to redirect them from a post room, enter data from paper forms

(or images of paper forms), scan and store copies of them, and send back incomplete paper documents?

•

Does your website still have pdf documents to download? Do you think your customers / intermediaries want to print, complete and post paper

forms to you?

•

How can you change this?

Intelledox – Reimagining forms

Video Link

12

COVID-19 has exposed the need for many insurers to

accelerate their digital transformation

Pac

e

of

COVI

D

R

e

c

o

v

e

ry

S

low

Fa

s

t

Industries which are likely to struggle to recover from COVID-19 due to “permanently” lowered demand for offerings, insufficient capital to ride out extended recession, and/or poor

execution of digital transformation.

“SURGE”

Industries which will scale post-COVID-19 as consumer behavior that was altered during the crisis is sustained in their favour. Investors sense their potential to ead and provide capital to scale

aggressively during recovery.

“MODIFIED BUSINESS AS USUAL”

Industries seen as daily essentials will suffer effects of the consumer shutdown recession but will recover more quickly as consumer demand returns in similar volumes.

• Airlines (carriers and manuf) • Brick and mortar retail • Higher education • Energy • Online retail • TMT • Food delivery • Tele-medicine • Asset management/PE • Life Sciences/Pharma • Interaction platforms • Streaming media • Hotels • Restaurants • Entertainment venues • Banking • Consumer goods • Agriculture • Transportation “TRANSFORM TO RE-EMERGE”

Industries which will recover but along a protracted path requiring reserves of capital to endure and transform operating models to emerge stronger and more in line with changed consumer priorities.

• Travel and Leisure

• Automotive (bias to electric) • Durable goods

• Other Industrial Manufacturing

• Insurance

• Professional Services • Healthcare

• Real estate/Construction

REACT

Every firm must triage then prepare for the likely recovery path for

their sector

Low

Degree of “Permanent” Change to Industry Economics/Value Chain

KPMG Analysis

The current pandemic has severely restricted the ability of insurers to conduct face-to-face activities both between customers and intermediaries,

between intermediaries and insurers, and among employees on internal processes.

All functions across insurers have felt the impacts of

COVID-19

HR / IT

Top priority to enable all staff to work from home; starting to shift toward better use of enabling technology – the

“new norm”???; develop staff support tools and engagement

STRATEGY

Many are developing new strategies as new business has slowed substantially

due to traditional face-to-face distribution; some assessing product opportunities and changing customer

needs

FINANCE & INVESTMENTS

Solvency ratios on the decline but still solvent; concern about the long-term financial markets impacts on results &

solvency; increase in reporting frequency due to volatility

CLAIMS

Surge in inquires and submissions for some lines of business with increased fraud risk concerns; other lines have

seen double-digit decreases (like motor)

OPERATIONS

Considerable strain persists, driving need for end-to-end digital processes

to better respond to customers (e.g. self-servicing, digital submissions /

e-forms)

MARKETING & DISTRIBUTION

Distribution channels need to be digitized; physical marketing spend is

being reallocated to digital marketing supported by analytics

IT

Insurance is a laggard relative to other industries; digital needs will drive change; accelerated movement to cloud strategies and data analytics

expected

MERGERS & ACQUISITIONS

Near-term slowdown, potential medium-to-long term pick up; those with cash reserves have a chance to accelerate strategies through inorganic