Below is the executive summary for workshop 3 from TINtech 2011, Using Technology to Maximise Mobile & Multi-channel Distribution, by Balaji Ramakrishnan of Accenture. In in, he details the issues raised and the conclusions that were reached during the workshop.
Using Technology to Maximise Mobile & Multi-channel Distribution workshop: executive summary
After the morning sessions where various speakers spoke about the role of technology in creating growth, this workshop focused specifically on how technology can be leveraged to support multi-channel distribution.
Accenture´s chairperson, Silvia Milian, started the session discussing the opportunities and challenges posted by the new multi-channel distribution model. The new channels provide wider alternatives to bring the insurance offerings to the market, but also create challenges around the multi-channel time to market as well as the seamless integration of information exchanged through the channels.
The workshop speakers covered next the technology challenges posed by the new distribution channels as well as effective strategies to successfully manage multiple distribution channels:
Session 1: Technology enablers for effective multi channel distribution
Speaker: Balalji Ramakrishnan, Accenture
Set the context with some of the key challenges facing insurers. These included achieving meaningful differentiation, agility and customer centricity, cost & regulatory pressures and being able to offer multi channel access to customers.
We then referred to some key findings from Accenture's recent 'Consumer Driven Innovation Survey'. These key findings include:
- Over 80% of customers demand for being able to start a transaction in one access point and continue the same transaction in another access point.
- 59% of respondents were willing to switch for superior multi-channel service.
- Over 30% concurred that social media has an influence on their purchasing decision.
With this background of strong demand for multi-channel services and the opportunity for insurers to differentiate by offering such services, we spoke about a virtuous circle - wherein the self-service aspect of some of the new channels can drive costs down, leading to price competitiveness and agility in the marketplace and this in turn can raise customer satisfaction levels.
We then focused on 5 key technologies today that support multi-channel distribution:
- Mobile: We see an increased adoption of mobile technologies, particularly mobility tools such as iPad amongst brokers and underwriters. Adoption of this technology is expected to rise in the commercial lines space.
- Analytics: Leveraging analytics for micro segmentation of customers will help insurers target the most profitable customers and brokers. This will in turn increase their return on investment and help retain customers and aid cross sell and up sell initiatives.
- Social Media: Plays an increasingly important role in influencing purchasing decisions. Customers, particularly the youth, constantly communication their life status (e.g. change of job, getting married, having children etc) through social media such as facebook and twitter. Insurers need to be creating the technology and service infrastructure to listen to 'narrative bits' by establishing effective 'listening posts'. Social media and gaming present a great opportunity to bring a 'fun' element to the sales process. Also gaming can help insurers improve their brand image (e.g. Farmers Insurance in the US has partnered with the popular online game called Farmville and lets players buy 'protection insurance' for their online 'crops'.
- Collaboration: Increased collaboration between underwriters and customers and brokers is possible through the effective use of collaboration technology. These technologies also help to personalise the conversation between the underwriter and broker and so cement long term relationships. Collaboration helps enable global expertise at short notice and can be a key enabler in dramatically reducing sales closure times.
- Product Configurators: These help insurers create the building blocks for effective multi-channel infrastructure. Product configurators also help insurers launch products quickly into the market, bundle product offerings and customise quickly based on changing market demand or competitive pressures.
While there is value in each of these technologies, integration is key to maximising value.
In summary:
- Insurers have an opportunity to differentiate themselves through their distribution channels.
- There is substantial value to be gained in each channel.
- Incremental investments over a sustained period of time across multiple channels is probably the best way to go.
- Ability to offer an integrated multi-channel experience will be key to customer satisfaction and profitable growth.
Session 2: Case Study - Leveraging Multi-channel Distribution Strategy
Greg Coughlin presented a real case of how multiple channels are being managed efficiently in a complex multi-channel distribution business such as Small and Medium Enterprises.
The main topics covered during this slot were:
- The case for change - market moving to new electronic propositions.
- SME capabilities requirements: short term vs. long term.
- Current and future distribution models.
- The journey so far and the future.
After the presentations, the room debated via round tables about the top multi-channel distribution challenges and how to overcome them. The main issues that were identified are 1) how to effectively and simultaneously manage the old and new distribution channels (e.g. brokers / agents vs. direct internet business), 2) the culture change and the limitations inherent to the legacy systems. To tackle these issues, discussions focused on the need to balance a long term IT transformation vision combined with short term pilots.
Accenture's presentations including references to various brochures. To access these, and for further reading on hot insurance topics, please refer to the latest brochures published by
Accenture Insurance Research. For more information on Accenture solutions for insurance, please visit
Accenture Software for Insurance.
To discuss any of the issues raised in this executive summary or the workshop in general please go to our
discussion forum on LinkedIn. If you would like to share your views with Balaji Ramakrishnan, please find his details below.
Balaji Ramakrishnan
Accenture Software Lead for UKI
Accenture
07973 317 018