Tawanda Chatikobo, Digital Manager for Nedbank Insurance presented at the Digutial Insurance Conference in Johannesburg in 2015 on how digital transformation can increase profits in the context of bancassurance

1. NEDBANK
INSURANCE
DOUBLE
THE
PROFITS:
HOW
HIGH
PERFORMANCE
INSURERS
CAN
CREATE
VALUE
FROM
DIGITAL
TRANSFORMATION

2. AGENDA
|
2
• Seizing
the
opportunity
of
Digital
transformaJon.
• Developing
a
business
strategy
for
the
Digital
age.
• AdapJng
to
a
new
Digital
landscape
(Nedbank
Insurance
Case
Study).
• Overcoming
challenges
in
introducing
new
channels
to
market
while
simultaneously
remodeling
tradiJonal
ones.
• Is
legacy
and
current
industry
culture
prevenJng
progress?

3. |
3
SEIZING
THE
OPPORTUNITY
Changing
consumer
Changing
compe::on
Changing
regula:on
Changing
technology
Forces
of
change
underpinning
digital
• A
myriad
of
complex
products
in
a
highly
compe::ve
and
commodi:zed
market
• Low
levels
of
customer
understanding
and
engagement.
• The
South
African
market
is
in
a
state
of
flux
–
a
series
of
far
reaching
disrup:ve
changes
occurring
at
the
same
Jme.

4. |
4
SEIZING
THE
OPPORTUNITY
–
CHANGING
CUSTOMER
• The
Age
of
the
Customer
is
upon
us.
• Customer
experience
is
key
and
has
become
an
area
of
compeJJve
advantage.
• Customers
want:
• Simplicity
• Transparency
• Speed.
*
*
Source:
PWC
Insurance
2020

5. |
5
SEIZING
THE
OPPORTUNITY
–
CHANGING
TECHNOLOGY
• The
are
5
Forces
driving
the
Digital
age:
Increasingly
customers
want
to
be
able
to
buy
insurance
and
manage
claims
via
their
mobile
or
tablet.
Customers
are
increasingly
concerned
about
their
security
and
privacy
when
using
digital
services
–
parJcularly
about
the
safety
of
personal
data
and
informaJon.
SOCIAL
MEDIA
MOBILE
ANALYTICS
CLOUD
CYBER
SECURITY
Customers
are
increasingly
using
social
media
to
research
insurance
products
and
rate
providers.
Social
Media
also
provides
a
very
public
medium
to
vent
any
dissaJsfacJon.
“Big
Data”
provided
by
the
wealth
of
data
created
through
social,
mobile
and
sensor
(telemaJcs)
channels
offers
huge
opportuniJes
for
sharper
client
profiling
and
individual
pricing
of
risk.
Source:
PWC
Insurance
2020
Cloud
compuJng
frees
insurers
from
the
constraints
and
costs
of
on-­‐premise
IT,
allowing
more
flexible
technology
plaeorms
and
the
ability
to
innovate
new
services
and
soluJons
with
much
shorter
lead
Jmes.
Key
for
winning
in
the
digital
arena.

6. |
6
SEIZING
THE
OPPORTUNITY
–
CHANGING
COMPETITION
• Insurers
are
no
longer
compeJng
amongst
other
insurance
companies
–
and
customers
are
taking
full
advantage
of
this.
• 15%
of
customers
would
be
willing
to
buy
insurance
from
a
major
retail
brand.

7. |
7
DEVELOPING
A
BUSINESS
STRATEGY
FOR
THE
DIGITAL
AGE
• There
has
been
an
evoluJon
from
building
bolt-­‐on
digital
strategies
for
business.
• To
building
business
strategies
for
the
Digital
age.
• Strategies
that
are
dynamic,
responsive,
adaptable
to
the
constant
flux
in
Customers,
Technology,
CompeJJon
and
RegulaJon.

8. |
8
ADAPTING
TO
A
NEW
DIGITAL
LANDSCAPE
–
CASE
STUDY.
NEDBANK
INSURANCE
• Nedbank
Insurance
was
faced
with
the
challenge
of
adapJng,
and
took
steps:
• To
develop
a
dynamic
business
strategy
for
the
digital
age
and
evolve
the
business
from
a
bricks
&
mortar,
branch
and
broker
model
.
• To
build
a
compe::ve
digital
channel
(Web
&
Mobi),
including
contact
center
fulfillment,
with
cost
effecJve
Cost
Per
Lead
(CPL)
and
Cost
Per
Sale
(CPS)
• To
develop
and
implement
a
complimentary
digital
marke:ng
strategy,
including
Search
Engine
and
Social
Media
MarkeJng.
• To
build
tracking
and
analysis
tools
to
measure
performance
against
business
targets
and
benchmarks.

9. |
9
ADAPTING
TO
A
NEW
DIGITAL
LANDSCAPE
–
CASE
STUDY.
NEDBANK
INSURANCE
• The
principal
step
–
Understanding
the
customer,
and
their
needs.

10. |
10
ADAPTING
TO
A
NEW
DIGITAL
LANDSCAPE
–
CASE
STUDY.
NEDBANK
INSURANCE
• Customer
insight
is
then
translated
into
User
Journeys,
which
influence
User
Experience
(UX)
Design
and
the
look,
feel
and
funcJonality
of
the
digital
channel.

11. |
11
ADAPTING
TO
A
NEW
DIGITAL
LANDSCAPE
–
CASE
STUDY.
NEDBANK
INSURANCE
• Search
Engine
MarkeJng
and
Social
Media
MarkeJng
(Including
YouTube)
is
used
to
drive
awareness
and
drive
traffic
to
Nedbankinsurance.co.za

12. |
12