Digital Insurance Enterprise: The Nest Case Study

Digital Insurance EnterpriseDigital Insurance Enterprise

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Copyright © 2011 Tata Consultancy Services Limited

Digital Insurance EnterpriseDigital Insurance Enterprise

NEST Case Study NEST Case Study –– A Digital StartA Digital Start--upup

VinodVinod KachrooKachroo Helen Dean Helen Dean CTO & Global Head CTO & Global Head –– Industry SolutionsIndustry Solutions Managing Managing DirectoreDirectore

Insurance &Insurance & HealthcareHealthcare NEST CorporationNEST Corporation

Evolution of Business ObjectivesEvolution of Business Objectives

Extend Portfolio

Realize Rapidly

Physical to Digital

Footprint

Social Influencers

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Yesterday

Traditional Enterprise

Sense Demand

Reach Everyone

Extend Portfolio

Today & Tomorrow

Digital Enterprise

Business Objectives as the Enterprise Evolves

Insurers Must Evolve into Digital InsurersInsurers Must Evolve into Digital Insurers

Social

media

Multi-channel

experiences

Four generations

co-existing

Evolving

Global

reach

3

Yesterday

Traditional Insurer

Evolving

technology

Next gen genomics, autonomous

vehicles, internet of things &

intelligent cities

Customer

centricity

Today & Tomorrow

Digital Insurer

Market drivers forcing evolution

Shift Shift to to “Systems “Systems of Engagement”of Engagement”

Decision Support

Top executives

Systems of Engagement

Consumer technology

Mobile face

External Stakeholders

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Middle of the Organization

SOR Integration

Context

Public Cloud

Transactional workers

Systems of Record

Digital Forces Are Transforming The BusinessDigital Forces Are Transforming The Business

AI &

Robotics

Mobility & Pervasive

Computing

CloudBusiness Models

Channels

Business Processes

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Robotics

Big Data

AnalyticsSocial

Media

Five

Digital

Forces

Products & Services

Business Processes

Customer Segments

Workplaces

Creating Innovation Assets… Making the Digital Journey RealCreating Innovation Assets… Making the Digital Journey Real

iAgent

Telematics

Virtual

Assistant

CubuZZ

Insurance

Quickpass

Social

CRM

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Quotation

&

Illustratio

n

Executive

Dashboard

Fraud

Analytics

& Data

Mining

Knowledge

Mgmt &

Collaboration

Platform

GIS

Integration

Real Time

Integrated

Platform for

Services &

Analytics

The Digital Enterprise Creates New OutcomesThe Digital Enterprise Creates New Outcomes

New Business

Models

Innovative Products

& Services

Simplified

Processes

Characteristics of the Digital Enterprise

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Omni-Channel

Experience

Insight Driven Digitization of

Workplaces

Customer

Centric

Next Gen

Efficiency

Improved

Effectiveness Growth

Improved

Compliance

New Business Outcomes

NEST: A major corporate start upEmbracing innovation and digital

© NEST Corporation 2012

Helen Dean

MD Product and Operations

Embracing innovation and digital

NEST is…

Part of a UK Government programme of auto enrolment, aimed at getting the

population saving for retirement

A trust-based statutory occupational pension scheme overseen by a Trustee

Corporation which is also a non-departmental public body

A high quality scheme designed for the ‘mass market’ including those unserved by

traditional providers

Obliged to accept any employer at a single price

© NEST Corporation 2012 9

Obliged to accept any employer at a single price

Not-for-profit

Priced 1.8% on contributions, 0.3%amc

Self-funding in the longer-term, loan from Government in the shorter-term

Unprecedented take on challenge

A digital enterprise out of necessity and sustainability

COST

�Achieving low cost will require

straight through processing

� Simple charging structure

means we can’t charge for

extra’s

Product Innovation - Online by default

Decided to make a virtue of the

absence of legacy business

Redrew the line between the

provider and customer

– Key administrative tasks sit with

the customer

Customers (either employers or

members) are guided towards the

online option. For employers it is

the only option.


Successful

e-businesses leverage

high quality self

service capabilities to

enable scale and drive

down cost

QUALITY of

experience�Must be easy to use

�Available outside of

core hours

�High quality web

experience mitigates

channel risk

SCALE� Millions of members

– never been done on

this scale before

� Traditional paper

based model will

struggle with scale

Product Innovation: the evolution of delegated

access

Full third party

product


Third party

access to the

product to allow

ad hoc

translation

Different levels

of product

access for

different

customer

business units

product

administration

access for

advisers and

intermediaries

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Customer engagement driving innovation

Aim to be an intelligent user of quantitative and qualitative

research

Early design:– understanding market for auto-enrolment – the “unpensioned” & their specific needs

– bringing the product to the market –brand, communication and engagement strategy

– Research-based communications approach makes pension saving easily understood

– Qualitative research into attitudes to pensions, investment risk and loss. Investment

strategy is tied directly to research findings

– Extensive product usability testing


– Extensive product usability testing

Now focused on:– tracking member’s and employers experiences of the scheme and NEST

– tracking behaviour of NEST members over time – making fund choices, engagement

with NEST communications, ceasing contributions etc

– evaluating impact of engagement strategies on member behaviour

All including continuing use of insights from behavioural economics

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Affordability message

targets procrastination

bias


Wording targets loss

aversion


Future innovation - NEST’s data should tell the

story of automatic enrolment

Collecting a mass of data through MI – basic analysis underway –

more advanced work to come

– Main question for us is how to use it in the interests of the membership and

in the context of widespread academic interest

Very difficult to encourage engagement with the product – and

hence capture more sophisticated information


hence capture more sophisticated information

– Only 4 per cent register online

– Key question for NEST is how to exploit that in the context of a product

predicated on inert consumers

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Start with “USER”: Unify, Simplify, Engage & RespondStart with “USER”: Unify, Simplify, Engage & Respond

Unify: Ability to provide a consistent customer

experience across brands, products, and channels• Omni channel customer experience

• Matching & mapping of enterprise customer & social persona into

SocialCRM

E R

Simplify: Ability to achieve operational

excellence in both business and IT• Process simplification

• Application portfolio simplification

Engage: Ability to create and

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Engage Respond

Simplify

UnifyU

S

E REngage: Ability to create and

sustain customer engagement• Improved stickiness

• Advocacy

• Collaboration

• Rewards

• Value added productivity tools

• Gamification

Respond: Ability to sense and

react to customers timely• Anytime anywhere

• Real-time systems integration

• Insight driven next best action

recommendations

Think Holistic, Plan IncrementalThink Holistic, Plan Incremental

Holistic Digital Strategy

Integrated insurance

digital experience

platform vision

Business

prioritization

Single executive

sponsor / owner

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Small projects with continuous business value delivery

• Web / portal redesign & consolidation

• Web content migration & management

• Insurance forms modernization

• Multi-channel analytics & Voice of customer

• Social data leverage & big data analytics

• Backend service & data integration

• Incremental legacy modernization

• Infrastructure & availability optimization

Common Common myths about being a digital insurer:myths about being a digital insurer:

• Omni-channel

• Flexibility for customer to use preferred channel

• Ability to switch between channels without losing

context

• It will never be for “1”

Direct to

consumers

only

Customer

Myth Myth Buster

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• Use both structured & un-structured data

• Use externally available data wherever it makes

sense

• Use data from social to complement internal CRM

data

“It’s all

about big

data”

• It will never be for “1”

• Better customer insight for finer segmentation

• Contextualized offers & next best action

recommendation

Customer

segment of

one

Thank YouThank You

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