Five questions: To help you identify value. - An insurer s checklist to assess the value of your next strategic move

Five questions: To help you identify value - An insurer’s checklist to assess the value of your next strategic move € 1 2 3 4 5 Hello. Hello. Th...
Author: Shon Clark
1 downloads 2 Views 925KB Size
Five questions: To help you identify value - An insurer’s checklist to assess the value of your next strategic move

€ 1

2

3

4 5

Hello. Hello. The aim of this checklist is to get you to start identifying the value of your next strategic move. Look at the questions we pose and take time to jot down your ideas and thoughts. Your notes could be the first step to transforming your business. The CEOs of insurance companies tell us that their organizations need to implement substantial strategic change over the next few years. This runs true regardless of insurer size or type – personal, commercial and life and pension insurers all face these challenges. Insurers must mobilize to remain competitive in the face of external forces that are putting pressure on the industry. The digital revolution has given consumers more power and to gain an edge insurers must understand their needs more precisely than ever before – even insurers that sell through indirect channels, such as brokers or affinity groups.

Only by placing customers at the center of everything you do can you hope to create products that sell and drive profit. The popularity of comparison websites, mobile apps and social media in consumers’ decision-making processes is putting pressure on insurers’ traditional way of doing business; forcing them to rethink their strategies to survive and thrive. And while technology opens up a whole new world of opportunities for insurers to meet the demands of smarter customers, knowing which opportunities present real value is not as clear. There are five key questions you can ask to help you understand how to position the needs of your customers at the heart of your business and unlock the hidden value. While these questions can start you thinking about your next move, there are still many different directions your organization can go. So how do you choose where to start? We think it makes sense to start where you get the most bang for your buck, so let’s explore which strategies will make the most difference.

Now for a closer look at the questions…

2

€ €

Hello.

1

Do you want to create a unique customer experience? An efficient and user-friendly customer experience can help you win new customers and retain current ones. Involving the customer in the process, giving them the opportunity to explore options and offering them products tailored to their needs will make your company distinctive and a potential market leader. The value of creating a unique customer experience: • Your current customers will spend more money on your offerings. How much more will they spend? • You will attract new customers. How many new customers will you attract? How much new revenue will they bring in? • Your customers will be more loyal to your brand and will stay with your company longer. How much lower will your churn rate be?

Notes:

3



Hello.

2

Could you benefit by simplifying the products and portfolio you offer your customers? Simple and transparent products sell. If you can quickly and easily show customers what they’re getting and how they’ll be covered, you’ll hold their attention. But if they don’t understand your offer or cannot compare products easily, they’ll find another insurer. So if you can’t get the right products to market quickly and tailor them to your customers’ needs, you will lose business. The value of simplifying products and product portfolio: • You will attract new customer segments with better products suited to their specific needs and you will launch new products faster. What will the added revenue be? •

You will be able to identify unprofitable products and remove them from your portfolio more easily. How much money are you losing today because it’s too complicated to adjust risk and pull products out of the market?



You will lower the cost of maintaining your product portfolio and re-focus resources to build new business. How much will you save in maintenance and development if you consolidate and modernize your products?

Notes:

4



Hello.

Hello.

3

Is there a way to improve cross-channel interaction with customers? Customers will change their minds and look to change their products. Some use their smart phones to make changes on the fly. Others discuss their options with a call center or an agent. Many switch between the channels depending on their needs at the time. You must show a customer that, no matter how they contact you, their business, and their information, is a valuable commodity. The value of improving cross-channel interaction: •

Being where your customers want to do business is critical to keeping current and finding new customers. How much value will you get out of establishing integrated customer self-service distribution channels?



Establishing partnerships with different intermediaries will bring more business in. How much revenue will you gain if you become more agile in serving your brokers? How much more will you make if you work with valued brands via affinity programs?



Most customers use a variety of different interaction types to get in touch with you – and they prefer personalized service. How much cost will you cut (or revenue will you generate) if your call center or agents are empowered to deal with customer inquiries efficiently?

Notes:

5



Hello.

4

Is it possible to use the data you collect and the data you gather externally to optimize your business? Every enquiry and every transaction generates a huge array of data. You need to deal with critical issues such as risk, fraud and regulatory compliance while at the same time finding insights into customer behavior. The challenge lies in knowing which data is worthless and which offers the gateway to precious knowledge about customer needs. Learn to tell the difference and you will create business value and be more proactive in your decision making. The value of using data to optimize your business: •

Understanding your data will help you make better decisions to optimize your business performance. What data are you missing today? What’s the impact of this data on your business performance?

• There’s a lot to gain if you manage to minimize fraud. What’s the estimated fraud level today? How much will you reduce it and save on your bottom line? •

Compliance and regulation requirements are ever increasing in the financial environment. What’s at stake for your business? What’s the cost of not being able to live up to regulatory requirements?

Notes:

6



Hello.

5

How will you streamline processes and achieve operational savings while still focusing on your customers? In today’s business it’s no longer a question of either-or. Insurers have to master a long list of capabilities and stay customer-focused even when streamlining internal processes and reducing operational cost. Automation and digitization can help you offer newer, simpler products that are well priced with vastly more efficient claims processes. The value of streamlining processes and saving costs: •

Many processes still require manual attention due to redundancy in data, systems and handling. If you could increase the number of claims handled per adjuster, how much cost would that save?



In today’s fragmented IT landscape, a lot of cost is tied up by having many administrators and developers needed to maintain legacy systems. How much could you reduce your IT spending if you consolidated and modernized your legacy systems?



Operational excellence is not only about cutting costs but also about building capabilities within the organization. Have you identified the key capabilities that you need to grow? How will you release resources to gain these capabilities?



Process efficiency and transparency reduce leakage as you will be able to process faster. How much could you reduce handling time? How much could you reduce operational leakage?

Notes:

7



Next step. Hello. Your answers are where to start Now that you’ve reached the end of our checklist, we hope you’ve come a bit closer to uncovering the potential value of your next big strategic move. We’d love to work with you and your team to dig in and get a deeper understanding of the challenges that lie ahead of your business.

+45 70 22 76 20

[email protected]

What happens next is up to you. Contact us to arrange a 60-minute strategy session, where we work together to explore future strategic scenarios and identify the value that is hidden in your organization. For more information about the session we offer, please visit www.tiatechnology.com/60-minutes

We are TIA. Our business has been created by helping insurance companies such as Allianz, Alm. Brand, Liberty Direct, RSA and Zurich get closer to their customers and understand their needs. With the answers to these five questions and by working alongside you on a consultancy basis, we can help you offer products and services that are closer to what customers want and delivered on the devices that they use. And with 100,000 insurance professionals in over 60 companies using the TIA Solution across 40 countries, we’re the market leader in what we offer.

7

€ €

The contributors

Pamela Simms-Borre

Jette Børsting Lundquist

Steen Vingaard Larsen

Peter Braad Olesen

Marketing Specialist Marketing Director

Business Advisory Director

Chief Innovation & Marketing Officer

[email protected]

[email protected]

[email protected]

[email protected]

This checklist is a SIM publication. SIM is in charge of driving strategic innovation and marketing initiatives at TIA Technology. The team creates innovative ideas and content that provide insurers with the information and insights they need to help move their business in the right direction.

Head Office: Denmark TIA Technology A/S Bredevej 2 DK-2830 Virum Denmark



Phone: +45 70 22 76 20 Fax: +45 70 22 76 21 [email protected] www.tiatechnology.com Offices: Germany: Phone: +49 711 222 54 490 www.tiatechnology.de Lithuania: Phone: +370 5 205 2467 www.tiatechnology.com

TIA, the TIA Solution is a trademark of TIA Technology A/S Copyright© 1986-2014 TIA Technology A/S. All copyrights, trademarks, and registered trademarks are the property of their respective owners. This document may not be reproduced or transmitted in any form or by any means, for any purpose, without prior written approval of TIA Technology A/S. The contents of this document are continually subject to amendment without prior notice. Although due care and diligence has been taken to ensure accuracy of this document, TIA Technology A/S does not undertake any liability for the accuracy of the document, including errors and omissions. This document shall not impose any obligations on TIA Technology A/S by any means.

Norway: Phone: +47 47 48 42 92 www.tiatechnology.com Poland: Phone: +48 694 619 658 www.tiatechnology.com

Suggest Documents