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© ValChoice 2016
Dan Karr
Founder and CEO, ValChoice Assistant © 123rf.com
© ValChoice 2016
Topics
•  Who is ValChoice?
•  Marketing & Selling Insurance
•  Transparency
•  Summary
o  Carriers – Win...
© ValChoice 2016
Who is ValChoice?
© ValChoice 2016
Data Mining/
Analytics
User Surveys
Insurance
Other Markets
© ValChoice 2016
Forbes Calls us, “Carfax for Insurance”
© ValChoice 2016
Where We’re Heading
The Technology Effect
© ValChoice 2016
Differentiation is Difficult
•  Regulation limits
product differences
© ValChoice 2016
Differentiation is Difficult
•  Differentiation vs. brand
building
$
$ $
$
$
$
$
$
Brand Identity
Technology Will
Make Insurance
Easier to
Understand and
Easier to Buy
rawpixel© 123rf.com
Purchase Decisions Made
Based on Online
Shopping and Research
Ivan Kruk © 123rf.com
© ValChoice 2016
Consumers & Online Research
LIMRA Surveys
conducted to
identify % of
consumers
researching on
Internet be...
© ValChoice 2016
The Research Consumers Find
© ValChoice 2016
Customer Loyalty
A Changing Market
© ValChoice 2016
Online shopping
+  Self-directed research
+  Easy price comparisons
+  Little connection with
supplier
= ...
mindscanner © 123rf.com
© ValChoice 2016
Transparency
What Does it Mean?
© ValChoice 2016
Transparency
Market Definition
In economics one of the
theoretical conditions
required for a free market
...
© ValChoice 2016
Transparency
Social Definition
A set of policies that
allow citizens to access
information held by
author...
© ValChoice 2016
Transparency
Why Embrace it?
© ValChoice 2016
Extreme Transparency
© ValChoice 2016
Why Buffer Does This?
“The power of
transparency…is that it
drives us to be better—to
create a company th...
© ValChoice 2016
Data Mining + Analytics
Car Buyers Save Thousand$
© ValChoice 2016
Quality Programs
A Form of Transparency
© ValChoice 2016
Baldrige Award
“(Im)Prove Your Performance”
•  Presidential award for
performance excellence
•  Award giv...
© ValChoice 2016
2014 Service Winner
Public Sector Practice
Source, http://patapsco.nist.gov/Award_Recipients/PDF_Files/2014_PwC_PSP_Award%20Application_Summary.pdf
Revenue per Emplo...
© ValChoice 2016
Asset Utilization
© ValChoice 2016
Good Example for
•  Asset Utilization
•  Revenue per Employee
Not a Good Example for
Growth
•  PWC-PS ser...
© ValChoice 2016
1992 Manufacturing Winner
•  IC industry early adopter
of quality programs
•  Many companies are
transpar...
© ValChoice 2016
•  Production costs reduced 20 to
30%
•  One of two semiconductor
companies to gain market
share from ‘93...
Transparency Delivers
© ValChoice 2016
Transparency
It’s on our Doorstep
© ValChoice 2016
© ValChoice 2016
“People in the Granite State
do their research before
any important purchase,
such as buying a car,” said...
© ValChoice 2016
Completing That Thought
“They ought to have that same right when it comes to
their heath care expenses”…A...
Artem Egorov © 123rf.com
Artem Egorov © 123rf.com
Artem Egorov © 123rf.com
Artem Egorov © 123rf.com
© ValChoice 2016
Carriers
Winning in a Digital World
© ValChoice 2016
Winning in a Digital World
“Customers are willing to
pay more for better
advice and coverage
that is care...
© ValChoice 2016
Winning in a Digital World
1)  Differentiate based on
o  Price
o  Protection – claims payment
o  Service ...
© ValChoice 2016
Winning in a Digital World
2)  Set clear, cross-
functional,
improvement goals
o  Communicate performance...
© ValChoice 2016
Winning in a Digital World
3)  Work with the private
sector to improve
transparency
© ValChoice 2016
Regulators
Helping Consumers
© ValChoice 2016
Helping Consumers
1)  Improve complaint
data collection
o  Based on number of claims
filed
o  Include tim...
© ValChoice 2016
Helping Consumers
2)  Consistent collection &
vetting of complaint
data
Gemenacom © 123rf.com
© ValChoice 2016
Helping Consumers
3)  Make rate filings,
including loss ratio
studies, public
Gemenacom © 123rf.com
© ValChoice 2016
Helping Consumers
4)  Work with the private
sector to improve
transparency
Gemenacom © 123rf.com
Embracing
the Inevitable
is a Good
Business
Strategy Assistant © 123rf.com
Meet the Founder
Sheraton Lobby, Today, 12 to 2
High-Top Tables Overlooking Canal Street
NAIC 040316 v2
NAIC 040316 v2
NAIC 040316 v2
NAIC 040316 v2
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NAIC 040316 v2

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Presentation to the National Association of Insurance Commissioners on the benefits of transparency and the data regulators need to collect to enable transparency.

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NAIC 040316 v2

  1. 1. © ValChoice 2016 Dan Karr Founder and CEO, ValChoice Assistant © 123rf.com
  2. 2. © ValChoice 2016 Topics •  Who is ValChoice? •  Marketing & Selling Insurance •  Transparency •  Summary o  Carriers – Winning in a Digital World o  Regulators – Helping Consumers
  3. 3. © ValChoice 2016 Who is ValChoice?
  4. 4. © ValChoice 2016 Data Mining/ Analytics User Surveys Insurance Other Markets © ValChoice 2016
  5. 5. Forbes Calls us, “Carfax for Insurance”
  6. 6. © ValChoice 2016 Where We’re Heading The Technology Effect
  7. 7. © ValChoice 2016 Differentiation is Difficult •  Regulation limits product differences
  8. 8. © ValChoice 2016 Differentiation is Difficult •  Differentiation vs. brand building
  9. 9. $ $ $ $ $ $ $ $ Brand Identity
  10. 10. Technology Will Make Insurance Easier to Understand and Easier to Buy rawpixel© 123rf.com
  11. 11. Purchase Decisions Made Based on Online Shopping and Research Ivan Kruk © 123rf.com
  12. 12. © ValChoice 2016 Consumers & Online Research LIMRA Surveys conducted to identify % of consumers researching on Internet before buying life insurance. Online research is rapidly increasing 0%# 10%# 20%# 30%# 40%# 50%# 60%# 70%# 80%# 90%# 2006# # ...# 2013# %#of# Consumers# Researching# Life#Insurance# on#Internet#
  13. 13. © ValChoice 2016 The Research Consumers Find
  14. 14. © ValChoice 2016 Customer Loyalty A Changing Market
  15. 15. © ValChoice 2016 Online shopping +  Self-directed research +  Easy price comparisons +  Little connection with supplier =  Customer churn © ValChoice 2016 iqoncep © 123rf.com
  16. 16. mindscanner © 123rf.com
  17. 17. © ValChoice 2016 Transparency What Does it Mean?
  18. 18. © ValChoice 2016 Transparency Market Definition In economics one of the theoretical conditions required for a free market to be efficient
  19. 19. © ValChoice 2016 Transparency Social Definition A set of policies that allow citizens to access information held by authorities
  20. 20. © ValChoice 2016 Transparency Why Embrace it?
  21. 21. © ValChoice 2016 Extreme Transparency
  22. 22. © ValChoice 2016 Why Buffer Does This? “The power of transparency…is that it drives us to be better—to create a company that's both great and good.” Leo Widrich, Founder and COO, Buffer
  23. 23. © ValChoice 2016 Data Mining + Analytics Car Buyers Save Thousand$
  24. 24. © ValChoice 2016 Quality Programs A Form of Transparency
  25. 25. © ValChoice 2016 Baldrige Award “(Im)Prove Your Performance” •  Presidential award for performance excellence •  Award given for 27 years •  No P/C insurer has won the award
  26. 26. © ValChoice 2016 2014 Service Winner Public Sector Practice
  27. 27. Source, http://patapsco.nist.gov/Award_Recipients/PDF_Files/2014_PwC_PSP_Award%20Application_Summary.pdf Revenue per Employee
  28. 28. © ValChoice 2016 Asset Utilization
  29. 29. © ValChoice 2016 Good Example for •  Asset Utilization •  Revenue per Employee Not a Good Example for Growth •  PWC-PS serving a shrinking market
  30. 30. © ValChoice 2016 1992 Manufacturing Winner •  IC industry early adopter of quality programs •  Many companies are transparent about defect rates
  31. 31. © ValChoice 2016 •  Production costs reduced 20 to 30% •  One of two semiconductor companies to gain market share from ‘93 to ’96 •  Last to first in return on assets compared to big four U.S. semiconductor companies Won Baldrige Award in ‘92
  32. 32. Transparency Delivers
  33. 33. © ValChoice 2016 Transparency It’s on our Doorstep
  34. 34. © ValChoice 2016
  35. 35. © ValChoice 2016 “People in the Granite State do their research before any important purchase, such as buying a car,” said Insurance Department Commissioner Roger Sevigny. “They ought to have that same right when it comes to their heath care expenses.”
  36. 36. © ValChoice 2016 Completing That Thought “They ought to have that same right when it comes to their heath care expenses”…AND their auto, home and health insurance.
  37. 37. Artem Egorov © 123rf.com
  38. 38. Artem Egorov © 123rf.com
  39. 39. Artem Egorov © 123rf.com
  40. 40. Artem Egorov © 123rf.com
  41. 41. © ValChoice 2016 Carriers Winning in a Digital World
  42. 42. © ValChoice 2016 Winning in a Digital World “Customers are willing to pay more for better advice and coverage that is carefully tailored to their individual needs.” https://hbr.org/2014/07/insurance-isnt-safe-from-digital-upheaval
  43. 43. © ValChoice 2016 Winning in a Digital World 1)  Differentiate based on o  Price o  Protection – claims payment o  Service quality Hannu Viitanen © 123rf.com
  44. 44. © ValChoice 2016 Winning in a Digital World 2)  Set clear, cross- functional, improvement goals o  Communicate performance goals o  Measure performance o  Communicate results
  45. 45. © ValChoice 2016 Winning in a Digital World 3)  Work with the private sector to improve transparency
  46. 46. © ValChoice 2016 Regulators Helping Consumers
  47. 47. © ValChoice 2016 Helping Consumers 1)  Improve complaint data collection o  Based on number of claims filed o  Include time-to-settlement o  Include number of contested claims, and why o  Include settlement data Gemenacom © 123rf.com
  48. 48. © ValChoice 2016 Helping Consumers 2)  Consistent collection & vetting of complaint data Gemenacom © 123rf.com
  49. 49. © ValChoice 2016 Helping Consumers 3)  Make rate filings, including loss ratio studies, public Gemenacom © 123rf.com
  50. 50. © ValChoice 2016 Helping Consumers 4)  Work with the private sector to improve transparency Gemenacom © 123rf.com
  51. 51. Embracing the Inevitable is a Good Business Strategy Assistant © 123rf.com
  52. 52. Meet the Founder Sheraton Lobby, Today, 12 to 2 High-Top Tables Overlooking Canal Street

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