Around the Globe CHRIS SAMUEL KEVIN PLEDGE FIA, FSA 13 Oct 2015 Session 115
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Around the GlobeCHRIS SAMUELKEVIN PLEDGE FIA, FSA13 Oct 2015
Session 115
2010
“We can’t issue our business fast enough – can you help us?”
2
Where is the UK with Online distribution?
3
“The future is here, it’s just not very evenly distributed”
Online Life Insurance Beagle Street Case Study
4
Chris SamuelTCP LifeSystems
5
UK New entrant – not really an insurance company
Not encumbered by existing distribution
Online only
No advertising for first two years
The Traditional Approach
6
Indicative Quote zApply
Underwrite
IssueOfferAdd’l Q’s
Modify Application
Underwrite evidence
Further Questions
The Beagle Street Approach
7
Indicative Quote
Buy
Apply and UW
Fully UnderwrittenNo fluids or additional evidenceCover up to £750kBetter lapse experienceAve issue time 12 minutes
• 5,000x faster
• 1/10 of the cost
• ∞ scalable
(85% of the time)
Accelerate existing processes
8
What about barriers to entry?• Not an insurance company• Focus on distribution• Partnerships – Reinsurer, Traditional Insurer, Software
• No complex systems• Focus on distribution – outsource the rest
• Fresh approach to branding…
9
10
11
www.acceptiv.com/SOA2015
Can the lessons from Beagle Street be applied here?
12
Kevin Pledge FIA, FSAAcceptiv
Market research
13
“Almost half of participants found the value proposition [to buy directly online] very appealing (rating of 8 or more out of 10); these results are encouraging.
Years ago, when evaluating consumer interest in the ING Direct value proposition, our goal was to find interest in only half as many target group members (who we defined as innovators).”
14
Term, CI, Joint and Single Life Term, single life only
Coverage up to 1.5m Coverage up to $500k
10 – 50 Yr Term 10 – 40 Yr Term (originally 10 - 30)
Coverage age range 18 -70 Coverage age range 18 -70
Fully underwritten Fully underwritten
No medical evidence referrals No medical evidence referrals
On cover in 15 minutes or less On cover in 15 minutes or less
Online, with offline support if needed
Online, with agent support if needed
Full UW + Lower cost = Lower premium
T10 - $13.42T20 - $21.08
Online Quote, Application and BuyAutomated underwriting immediate decision including rating if applicable
T10 - $18.65T20 - $24.80
Online Quote and ApplicationSimplified and Manual Underwriting
T10 - $20.00T20 - $26.04
Online Quote and ApplicationBasic auto and Manual Underwriting
T10 - $20.10Online Quote and ApplicationBasic auto and Manual Underwriting
T10 - $20.30T20 - $30.69
Online QuoteManual Application and Underwriting
Where did this put Teachers Life?
Insurance
Turn Key Solution for Canadian FraternalsA Complete Solution: Full go to market solution for online fulfillmentAdministration support Product and underwriting designed for online sales
Faster, less costly, more agile: Fast, economical solutionBenefit from Teachers Life experience Pay for results
Final Thought…
18
www.acceptiv.com/SOA2015
Thank You & Discussion
20
Kevin PledgeAcceptivwww.acceptiv.com/soa2015
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