Is the Insurance Industry

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(No Transcript)
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Is the Insurance Industry Walking the Talk?
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Its tough out there!

• Regulatory environment
• Falling equities, solvency challenges
• Pension shortfalls
• Natural disasters
• A new scale of terrorism
• An increasingly litigious culture

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Our customers expect us to change and cope

• Slow turnaround times
• Incompatible IT systems
• Integrating different corporate cultures
• High cost base

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What do our customers think?

• Not even BASIC standards of administration
• Insurers are still manufacturers
• Our speed to market is slow
• Were selling commodity products
• Our price/value propositions are vague
• 2001 a watershed year
• Low interest..Low trust sector
• A pan-European survey ranked financial services
  LAST for trustworthiness
• BUT 33bn sector is bolstered because insurance
  is a mandatory purchase
• Few insurance brands
• No world class customer service
• We dont really UNDERSTAND what we mean by
  customer satisfaction

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Direct Satisfaction Survey
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Commitment Index
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0
Dec'99
Apr'00
Jul'00
Oct'00
Feb'01
Nov'01
Sept'02
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Many CEOs unconvinced
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What does this tell us?

• We are distant from our customers
• We need to understand their needs and lifestyles
  and create brands, products and services that
  meet those needs

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Snakes and Ladders
I MY INSURER
I have a choice and I am in control - a
consumer of insurance
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The Service-Profit Chain
Employee Satisfaction Loyalty
Customer Value
Profit Growth
ADVOCACY
Customer Satisfaction Loyalty
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What difference can a brand make?
Brands
Products
Awareness
Consideration Sales growth
and value
SOFT ISSUES

HARD ISSUES
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Great Brands
Wheres Insurance?
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What do we need to do?

• Navigate the storm responsibly
• Move out of denial
• Get our own house in order
• Achieve sustainable Operational Efficiency and
  Effectiveness, Customer intimacy, Culture of
  Delivery and Empowerment
• Deliver against our promise of protecting
  peoples lives and enhancing peoples lifestyles

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What do we need to do?

• Focus on
• BRAND
• PRODUCT
• MARKETING
• SALES
• SERVICE

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Is the Insurance Industry Walking the Talk?

• Not really walking. but waking
• And we have woken up just in time..but the jury
  is still out

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Qs As
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