CIA Annual Meeting CIA Annual Meeting Session 1101: Non-Traditional Session 1101: Non-Traditional Distribution Distribution LOOKING BACK…focused on the future Non-Traditional Distribution Through The Eyes of a Direct Writer Geoff Clarke VP Direct Marketing AIG Assurance Canada
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CIA Annual Meeting Session 1101: Non-Traditional Distribution LOOKING BACK…focused on the future Non-Traditional Distribution Through The Eyes of a Direct.
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CIA Annual MeetingCIA Annual MeetingSession 1101: Non-Traditional DistributionSession 1101: Non-Traditional Distribution
LOOKING BACK…focused on the futureLOOKING BACK…focused on the future
Non-Traditional Distribution Through The Eyes of a Direct
Writer
Geoff ClarkeVP Direct Marketing
AIG Assurance Canada
Non-Traditional Distribution Through The Eyes of a Direct
Writer
Geoff ClarkeVP Direct Marketing
AIG Assurance Canada
CIA Annual MeetingCIA Annual MeetingSession 1101: Non-Traditional DistributionSession 1101: Non-Traditional Distribution
LOOKING BACK…focused on the futureLOOKING BACK…focused on the future
Topics to cover:• What do we mean by non-traditional
distribution?• How does it differ from traditional
distribution?• How are products distributed?• Which product features work?• What do actuaries have to consider? • How can we manage the risk?
Topics to cover:• What do we mean by non-traditional
distribution?• How does it differ from traditional
distribution?• How are products distributed?• Which product features work?• What do actuaries have to consider? • How can we manage the risk?
CIA Annual MeetingCIA Annual MeetingSession 1101: Non-Traditional DistributionSession 1101: Non-Traditional Distribution
LOOKING BACK…focused on the futureLOOKING BACK…focused on the future
What is Direct Marketing? A system of marketing designed to
solicit a direct and measurable response from a consumer using one or more media.
It is a marketing and distribution channel in one
What is Direct Marketing? A system of marketing designed to
solicit a direct and measurable response from a consumer using one or more media.
It is a marketing and distribution channel in one
CIA Annual MeetingCIA Annual MeetingSession 1101: Non-Traditional DistributionSession 1101: Non-Traditional Distribution
LOOKING BACK…focused on the futureLOOKING BACK…focused on the future
Why do people buy Direct?• Personal preference• Small/Simple policies• Medical reasons• No intermediary• Cost
Why do people buy Direct?• Personal preference• Small/Simple policies• Medical reasons• No intermediary• Cost
CIA Annual MeetingCIA Annual MeetingSession 1101: Non-Traditional DistributionSession 1101: Non-Traditional Distribution
LOOKING BACK…focused on the futureLOOKING BACK…focused on the future
Broad Market• Direct to the Canadian public• No broker involvement
Affinity or Sponsored Market• Direct to customers of affinity partner• Compensation to partner in return for
• access to customer base• improved response
Broad Market• Direct to the Canadian public• No broker involvement
Affinity or Sponsored Market• Direct to customers of affinity partner• Compensation to partner in return for
• access to customer base• improved response
CIA Annual MeetingCIA Annual MeetingSession 1101: Non-Traditional DistributionSession 1101: Non-Traditional Distribution
LOOKING BACK…focused on the futureLOOKING BACK…focused on the future
Key Differences:
Traditional Non-Traditional
Distribution Broker Various
Products Complex Simple
Underwriting Full Guaranteed or
Simplified issue
Acquisition Costs Linked Non-linked
CIA Annual MeetingCIA Annual MeetingSession 1101: Non-Traditional DistributionSession 1101: Non-Traditional Distribution
LOOKING BACK…focused on the futureLOOKING BACK…focused on the future
Distribution • Insurance has to be sold• Direct Marketing promotion:
• Media – method of distribution and target market
• Offer – Value proposition and positioning• Creative – presentation of the offer
CIA Annual MeetingCIA Annual MeetingSession 1101: Non-Traditional DistributionSession 1101: Non-Traditional Distribution
LOOKING BACK…focused on the futureLOOKING BACK…focused on the future
Distribution techniques• DRTV• Direct Mail• Telemarketing• Print• Internet
Distribution techniques• DRTV• Direct Mail• Telemarketing• Print• Internet
CIA Annual MeetingCIA Annual MeetingSession 1101: Non-Traditional DistributionSession 1101: Non-Traditional Distribution
LOOKING BACK…focused on the futureLOOKING BACK…focused on the future
DRTV:• Hard costs:
• DRTV production• Variable costs
• Media• Talent costs
• Key metrics:• Cost per lead• Cost per dollar of premium
DRTV:• Hard costs:
• DRTV production• Variable costs
• Media• Talent costs
• Key metrics:• Cost per lead• Cost per dollar of premium
CIA Annual MeetingCIA Annual MeetingSession 1101: Non-Traditional DistributionSession 1101: Non-Traditional Distribution
LOOKING BACK…focused on the futureLOOKING BACK…focused on the future
Telemarketing• Hard costs:
• TSR / agent training• Script development• Statement inserts
• Variable costs• Telemarketing costs
• Key metrics:• Sales per hour• Cost per dollar of premium
Telemarketing• Hard costs:
• TSR / agent training• Script development• Statement inserts
• Variable costs• Telemarketing costs
• Key metrics:• Sales per hour• Cost per dollar of premium
CIA Annual MeetingCIA Annual MeetingSession 1101: Non-Traditional DistributionSession 1101: Non-Traditional Distribution
LOOKING BACK…focused on the futureLOOKING BACK…focused on the future
Direct Mail• Hard costs:
• Creative development• Variable costs
• Printing• List rental • Postage
• Key metrics:• Response rate• Cost per dollar of premium
Direct Mail• Hard costs:
• Creative development• Variable costs
• Printing• List rental • Postage
• Key metrics:• Response rate• Cost per dollar of premium
CIA Annual MeetingCIA Annual MeetingSession 1101: Non-Traditional DistributionSession 1101: Non-Traditional Distribution
LOOKING BACK…focused on the futureLOOKING BACK…focused on the future
Successful direct marketing products are:
• Simple and easily understood• Easy to obtain• Affordable • Provide supplementary coverage• Cover specific circumstances• Provide high perceived value
CIA Annual MeetingCIA Annual MeetingSession 1101: Non-Traditional DistributionSession 1101: Non-Traditional Distribution
LOOKING BACK…focused on the futureLOOKING BACK…focused on the future
Product Features that Work:• Wow factor - big numbers impress!
• Common Carrier - $1 million• PTD - $100,000
• 30 or 60 day complimentary coverage• Thank You benefits• Risk free:
• Free look• Money back guarantee
• Premium guarantees
CIA Annual MeetingCIA Annual MeetingSession 1101: Non-Traditional DistributionSession 1101: Non-Traditional Distribution
LOOKING BACK…focused on the futureLOOKING BACK…focused on the future