Leading Practices in Multi-Channel Distribution in Insurance by Navdeep Arora

Leading Practices in MultiChannel Distribution in Insurance Navdeep Arora 8 April 2020

6 key characteristics of leading multi-channel distribution models Leading Characteristics

Examples

1 Integrating digital and traditional channels to provide a consistent and seamless customer experience regardless of entry point

 Connecting all channels to new and legacy platforms to provide a single view of customer product holdings and enable policy administration  Establishing a seamless transition between channels across entire purchase cycles

Co-developing new channels with customers and agents, by piloting new models and seeking advocacy to ‘roll-out’ model

 Recruiting volunteer ‘agents’ to co-develop, pilot and advocate the benefits of ‘digital channel enablement’ and multi-distribution channel model. Enables agent buy-in  Using Crowd Sourcing to understanding customers needs and co-develop digital capabilities

Moving from a ‘push’ to ‘pull’ product and pricing strategy, providing common modularised products for customer tailoring, agnostic of channel

 Move away from channel specific products and prices to a common product construct and across all channels with ‘modular’ options to allow customers to tailor product to needs. Channel agnostic pricing  Information query to existing book to prevent lower new business premiums for existing customers

2

3

6 key characteristics of leading multi-channel distribution models Leading Characteristics

Examples

Reinventing rating models using customer segment analytics to price on customer behaviour and life time value, not channel economics

 Customer segment behavioural analytics are applied into rating models to inform technical price on a ‘life time value’ basis. Pricing based on predictive indicators such as length of product holding, claims frequency, average claims cost, propensity for multi-product holdings, contact centre utilisation

Managing conflict by assigning all ‘direct’ sales to an agent by postcode and providing ‘trail commission’ to support retention

 Agents are awarded ‘trail’ commissions for all direct ‘new business’ sales of customers within allocated postcode. Agents are incentivised to promote carrier regardless of sales channel and provide service  Improving agent productivity by leveraging ‘predictive analytics’ to provide ‘attractive’ target risk profiles

Capturing information from all customer touch-points for data analytics and machine learning, driving personalised customer journeys, consistent communications and pricing and next best action

 Capturing information on customer preferences and behaviours from ‘unstructured’ sources such as social media data and contact centre notes and ‘structured’ sources such as customer journey break-points  Data used for machine learning, providing personalised customer journeys on digital channels and telephony scripts, next best action prompts connected to customer touch-points, recorded quotes for consistent pricing across channels

4

5

6

THANK YOU! Website: www.navdeeparora.com

Quora: https://www.quora.com/profile/Navdeep-Arora-43

Facebook: https://www.facebook.com/InsNavdeepArora

Slideshare: https://www.slideshare.net/NArora3

Twitter: https://twitter.com/InsNavdeepArora