Generali Vietnam Business Case Study

BOOMING DIGITALIZATION WITH VIETNAM’S LIFE INSURANCE INDUSTRY

Team: Zero Five 16/03/2021

EXECUTIVE SUMMARY S

Our company wants to keep pace with the booming digitalization trend in Vietnam life insurance industry, aiming at an annual 50% growth in Online sales.

C

Insufficient product diversification and consultancy interaction with brand’s agents are the barrier to our online distribution.

Q

How can we optimize these two unfulfiled potentials of our online business?

A

A comprehensive product customization system on our online platforms.

DIGITALIZATION IS THE GROWING TREND IN VIETNAM'S LIFE INSURANCE INDUSTRY Key players are transferring their insurance transactions to digital platforms

Customers are calling for a faster, easier purchase experience

82.4%

Price (46%) Speed (7%)

Convenience (26%) Factors concerned when buying life insurance

Insurance companies has built a digitalization development strategy.

Analysis

Apart from Price, Speed and Convenience are also valued in Insurance purchase experience

Recommendation

Implementation

OVERALL OBJECTIVE To successfully grow the sales of Online business by 50% annually in the next 5 years, the source of growth will come from two online distribution channels:.

447 Number of policies per year

Company’s website & mobile app

21% Premium per policy per year

E-commerce partnership

Analysis

Recommendation

Implementation

OUR OWNED PLATFORM ARE DOING GOOD, BUT NOT YET OPTIMIZED… Customers are getting on well with our Online purchase process…

But it lacks one triggering factor: Interaction with Brand’s Agent Our online customer journey

Relationship – NPS score

Purchase

Aware

50 40

ZERO consultancy with agent

30

Which is sadly the key driver of the insurance industry

20 10 0 Q1/2020

Q4/2020

50%

Speaking to an Agent % more important to Buyers vs Non Buyers

56 Transactional – NPS score stays in top tier of the industry

Analysis

Our owned platforms are missing the potential of Agent Interaction to drive more sales.

Recommendation

Implementation

FURTHERMORE, OUR E-COMMERCE ACTIVITIES IS LEAVING MANY OPPORTUNITIES UNTAPPED… Partnership with Shopee enables us to reach a wide customer base

However, our company is lagging behind in this potential

Only 1/3

52.5 million Vietnamese monthly active users

Product B

Product A

Product C

Of our life insurance products is distributed

Resulting in the gap between Brand Awareness and Brand Preferrence

Along with a tremendous source of growth

41.3% 6%

Brand Awareness

Brand Preference

>50% 8%

Of Singapore population having life insurance

Our E-commerce product portfolio has left many promising customer needs on hold.

Of Vietnamese population having life insurance Analysis

Recommendation

Implementation

SO HOW CAN WE ADDRESS THESE TWO UNFULFILED POTENTIALS OF OUR ONLINE BUSINESS?

Lacking consultancy interaction

Analysis

Recommendation

Lacking product diversification

Implementation

A PICTURE OF WHO OUR ONLINE BUSINESS SHOULD TARGET: ZENNIALS – The new Family’s Breadwinner – Demographic: -

Age: 24-40 Location: Urban White-collar, income AB+

5

Motivation: -

Likelihood of Life Insurance Ownership (By Life Event vs Average)

Family’s financial status and safety

27.1 million

~30% Vietnam population -10

65%

Despite a clear importance placed on financial security when having life insurance during life events…

Analysis

... fail to connect their desired financial state with buying a suitable life insurance package Recommendation

Implementation

THE INITIATIVE: Develop a comprehensive product customization system on online platforms

A tool in the form of chatbot to help customer find the optimal insurance package personalized to their need and condition

Analysis

Recommendation

Implementation

The final insurance package can be tailored to each customer by:

Analysis

01

Customers providing the essential information of their need, financial status,…

02

The Chatbot will analyze and recommend for the customer the insurance packages that are personalized for their needs and status (*Further elaborated in the Appendix)

Recommendation

Implementation

When interested in a package, customer can:

01

Receive virtual consultancy right on the Chatbot with a sales agent

Or 02

Analysis

Schedule a consulting session with a nearby agent!

Recommendation

Implementation

LONGTERM DATA UTILAZTION TO SUSTAIN THE COMPETITIVE ADVANTAGE Data Utilizing

Data Collecting

Engaging with customers: Customers’ Data: -

-

Demographic: Age, Gender, Geography.

Consumption preferences.

Financial status Family relations

-

Aligning products with customers’ needs

Data from partnerships: -

-

-

Health condition and Medical check-up schedules (from Pharmacy and Medical Service partners) Sales volume and value (Ecommerce partner – Shopee)

Analysis

Understand how to optimize purchase process to drive sales.

Planning campaigns to increase brand awareness and enhance brand preference.

Better consult suitable product for each customers’ needs and condition.

Forecasting trends -

Recommendation

Proactively predicting upcoming trends and life events.

Implementation

MARKETING TACTICS CONVERTING BRAND AWARENESS TO BRAND PREFERENCE Strengthen Positoning

Raise awareness Social Media:

Focusing on the company core value SOHI and the positioning Family Centricity

OOH:

Amplify the images and message of the brand

Promote awareness in office buildings

Boost Preference

Retain Loyalty

Promotion:

CRM Activities:

Influential Marketing

Promotion Gifts on Life events (Birthday, Anniversary,…)

Analysis

Recommendation

Implementation

Referral value discount to trigger volume sales

HOW SUCCESS IS MEASURED Revenue

Year 0

Year 1

Year 2

Year 3

Year 4

Year 5

1.800.000.000

2.700.000.000

4.050.000.000

6.075.000.000

9.112.500.000

13.668.750.000

KPI for each personalized group of packages (assumption in appendix) Low

611.250.000

706.250.000

750.000.000

931.250.000

1.031.250.000

Lower Middle

0

0

525.000.000

875.000.000

1.295.000.000

Upper Middle

558.750.000

671.250.000

780.000.000

993.750.000

1.425.000.000

High

750.000.000

900.000.000

1.125.000.000

1.350.000.000

1.875.000.000

Couple family

0

472.500.000

945.000.000

1.575.000.000

2.362.500.000

Two-gen family

780.000.000

1.300.000.000

1.950.000.000

2.600.000.000

4.420.000.000

Three-gen family

0

0

0

787.500.000

1.260.000.000

Analysis

Recommendation

Implementation

BUDGET ALLOCATE AND OPTIMIZE Budget allocate Sales - Marketing

Year 0

Year 1

Year 2

Year 3

Year 4

Year 5

455.700.000

700.000.000

900.000.000

1.200.000.000

1.500.000.000

2.000.000.000

277.060.000

500.000.000

650.000.000

900.000.000

1.100.000.000

1.500.000.000

178.640.000

200.000.000

250.000.000

300.000.000

400.000.000

500.000.000

Technology

494.540.000

650.000.000

600.000.000

700.000.000

800.000.000

1.000.000.000

Others

49.760.000

50.000.000

70.000.000

100.000.000

150.000.000

200.000.000

1.000.000.000

2.100.000.000

2.470.000.000

3.200.000.000

3.950.000.000

5.200.000.000

Online Sales Marketing Offline Sales Marketing

Total

Analysis

Recommendation

Implementation

IMPLEMENTATION PLAN YEAR 1

YEAR 2

YEAR 3

YEAR 4

YEAR 5

Launching

Technology R&D Evaluate, maintaining and upgrade

Product Diversification

Launch, Testing Data collection and diversification Branding

Sales&Marketing Push sales

Partnership Distribution

Forming Securing partnership

Analysis

Promotional partnership

Recommendation

Retain Loyalty

Implementation

THANK YOU! Team: Zero Five 16/03/2021

APPENDIX

Team: Zero Five 16/03/2021

APPENDIX How we calculate size of target customer: VN population x %Aged 24-40 x %Income AB+

APPENDIX How the chatbot customizes insurance packages personalized to each customer’s need and status:

APPENDIX How the chatbot customizes insurance packages personalized to each customer’s need and status: