SOME

v.romanenco

Social-media-insurance-monitor-2016

SOME

SOCIAL MEDIA INSURANCE MONITOR 2016 BY ITDS

MILLENNIALS CHOOSE

THEIR OWN PATH

SHIFT TO

MOBILE -FIRST APPROACH

A CHANGE OF THE BUSINESS

MODEL IS NEEDED

TOWARDS

A SOCIAL COMPANY

GLOBAL EDITION

2

3


INDEX

ITDS MEASURES INSURERS’ USE

OF SOCIAL MEDIA ALL OVER THE WORLD

8

Conclusions: Active, but

many chances are not

yet being exploited

14

Johan van den Neste:

(InShared);

The personal approach

20

Ranking

and analyses

30

Neil Hiltz

(Facebook):

Consumers first

44

Innovators:

Global initiatives

show courage

52

Olav Cuiper (RGA):

Insurance

is meaningful

58

Millennials first

68

Frank van Wessel

(Delta Lloyd):

Transformation is crucial

74

Vision:

To survive with

Social Media

4

5

FOREWORD

HIGHLY

COMMENDED

O

nce again, we’ve taken the next step. Last year, for the first time, we presented

a study into the use of Social Media in the European insurance market.

And what you are now holding is a report of the first global survey. Within

the framework of our independent Social Media Insurance Monitor, earlier

this year we surveyed no less than 20 leading international insurers. We did so because, as

ITDS Business Consultants involved in this sector, we know that we are active in a rapidly

changing world. “To survive with Social Media” is the bottom line, and that’s something

that transcends all borders, in every which way.

Our initiative − which was launched six years ago in the Netherlands, extended to cover

Europe last year and went global this year − is highly appreciated internationally. This

year, for the second time in a row, we were nominated for Social Agency of the Year at

the annual Corporate Social Media Awards in New York. Nearly 500 leading companies

from around the world vie for these prestigious awards. Our Monitor and SoMe magazine

garnered the honour of “Highly Commended” during the awards gala. This puts us at the

international leading edge of Social Media, with our research being valued at an international

level, something we are justifiably proud of.

The insurer that achieved the highest score of all the 20 surveyed insurers to claim our top

ranking also has reason to be proud. The facts and figures lead to a number of conclusions

that will be of interest to everyone in the industry. Furthermore, I’d like to draw your a

ttention to the advice of Neil Hiltz, Global Head Financial Services, Facebook, which is to

“Think from the customer’s perspective”. In his opinion, and ours too, this is clearly still

not always the case. Our vision in this respect is unambiguous: a change of the business

model is needed. And this is why “Towards a Social Company” is the main theme of this

first global edition of SoMe magazine.

ESTHER LENS

CEO ITDS

7


CONCLUSIONS

SOCIAL IS GLOBAL:

EVERYDAY,

EVERYWHERE

Social is global; in every country people are making extensive

use of Social Media. But our research shows that international

insurers are not effectively exploiting this to the full.

8

9

CONCLUSIONS

SOCIAL IS GLOBAL

ACTIVE, BUT

MANY CHANCES

ARE NOT YET

BEING EXPLOITED

Looking at 20 major players in the insurance industry, spread across

11 different countries, we certainly encountered plenty of Social Media

activities. But digging a little deeper with our Social Media Insurance

Monitor it would appear that many options are going untapped. Here are

our conclusions, one-by-one.

10

THERE IS A LACK OF SOCIAL

STRATEGY EMBEDDING

Most insurers that are active on Social

Media have drawn up a Social strategy.

However, less than half (40%) of the

insurers that do have a Social strategy

have actually communicated it within the

organisation. This means that the strategy

is only being experienced from one place

in the organisation, thus blocking the way

towards becoming a really Social Business.

THE ONLINE ECO-SYSTEM

IS NOT CLEAR

Of those 20 insurers, 15 (75%) of them have a

content platform on which informative blogs

can be found. Insurers use these blogs to

derive SEO advantages and/or claim thought

leadership on a particular topic.

Consumers mainly access these content platforms

through blogs that the insurers share

on their Social Media channels. However, the

content platform is often difficult to find on

the insurer’s homepage because any throughreferrals

aren’t clear enough. In many instances

the online “eco-system” (online-socialmobile)

is not clear for consumers.

THERE’S TOO

LITTLE DIALOGUE

Of those insurers with a content platform,

consumers can respond to the blogs of

only 40% of them. Clearly, relatively few

opportunities for interaction are offered

through dialogue. A huge advantage of

Social Media is that it offers two-way

traffic, but this is being insufficiently

exploited.

11

USER-GENERATED CONTENT

IS STILL SCARCE

Despite increasing amounts of content,

communication is still mainly one-sided,

from the side of the insurers. Insurers have

some catching up to do in this respect

because user-generated content is perceived

as many times more credible than content

created by the companies themselves.

Only 15%

of the insurers

have a

platform with

user-generated

content.

MILLENNIALS ARE RARELY

TARGETED

Generally speaking, insurers are not proactively

capitalising on the behaviour of

Millennials, the generation that today

makes extensive use of messaging platforms

to communicate. Of the surveyed insurers

not one of them yet use WhatsApp as a

contact channel. This is despite the fact

that it’s been proved that WhatsApp hugely

increases customer satisfaction and transcends

all other channels. Most insurers

are accessible via Facebook Messenger,

although three of the 20 surveyed insurers

(15%) have actually disabled this option.

AXA’s Millennials label “Switch” is the first

to officially partner with Facebook Messen-


CONCLUSIONS

WhatsApp increases

customer satisfaction but insurers

don’t use this channel.

ger. Similarly, no insurers are yet making

structural use of Snapchat, although two

insurers have deployed it in the context of

sports club sponsorship.

THE VALUE OF THE SERVICE

PROVIDED BY WEBCARE IS

UNDERESTIMATED

All 20 insurers respond to questions via

Social Media. However, an average of only

30% refer to Social Media channels on their

contact page. On Facebook only 50% indicate

in their profile that webcare is offered on that

channel. On Twitter this drops to 35%. These

statistics demonstrate that Social Media is not

yet seen as a fully fledged service channel.

USER REVIEWS ARE NOT

ASKED FOR, OR SHARED

More than half of all consumers base their

choices on ratings and user reviews, but

the importance of these user reviews is

not yet being acknowledged by insurers.

Facebook offers the opportunity to leave

a review on the page, but only 10% of the

insurers enabled this functionality.

Just 25%

of the

insurers that

were surveyed

show user

reviews on their

websites.

MOBILE-PROOF? YES. MOBILE ENGAGEMENT? NO.

Insurers have acknowledged the importance of mobile. Almost all insurers have a mobileproof

site: 90% of them have a responsive website, 5% have a separate mobile website and

5% have a site that’s not mobile-proof. However, the content that is created is often not

mobile-first. This means the content doesn’t appear well on mobile and consumers do not

get an optimum mobile experience.

12

13

INTERVIEW

ONE SIZE

DOESN’T FIT ALL

JOHAN VAN DEN NESTE, COMMERCIAL DIRECTOR AT INSHARED

14

“I have a confrontational perspective that speaks volumes about my

ambition. How good would it be if we could offer everybody a personal

and bespoke insurance proposition. One that uses data and with which

we can serve our customers as optimally as possible.” So says Johan van

den Neste, commercial director of the 100 per cent digital InShared, part

of Achmea.

15


INTERVIEW

JOHAN VAN DEN NESTE

W

ith InShared, Johan

van den Neste focuses

strongly on customer behaviour.

Behaviour that,

when coupled to data, defines how people

can be served and their needs exactly met.

The objective, he explains, is a marketing

strategy that’s focused on the individual.

WHAT ARE YOU CURRENTLY

WORKING ON?

There are a number of building blocks

for commercial success. At the heart of

the online environment it’s all about four

cornerstones, on which you can base that

success.


able. How can you generate traffic to

your website? With Google and with SEO,

obviously. But you can also use Social.

And banners. A strong brand is, of course,

an indispensible prerequisite in all this.

You must make sure that people can find

you without any problems.


your site. Just how user-friendly is it?

Can consumers use it easily?


That’s all down to your content, your

storytelling. The message must always be

relevant. And without commercial hooks.

PERSONAL

Before his current position as commercial director at InShared, Johan van den Neste was the digital

inspiration at Allsecur, part of Allianz. He is, without doubt, a pioneer in the insurance sector, one of

very few people who has identified and harnessed the potential of online and is continuously looking

to improve and optimise it. His vision and ideas about online marketing and strategy always come

from the customer’s perspective.

16

pends

completely on the analysis of the

customer’s behaviour. There are many

differences in people’s search behaviour,

which say a lot about how they live their

lives. One customer might be looking for

convenience, while the other might be

price-driven. If you look closely enough

you can exploit this. Take the security

hunter, for example. He’ll visit your site,

leave it and then come back a bit later.

You’ll see that he’s checking out the terms

of the product. That’s how you’ll know

he’s looking for security. The third time

he comes to your landing page you’ll send

a personalised message. That’s when you

offer him that security and, based on his

behaviour, you make him a suitably adapted

offer. That’s where we want to be.

Because one size doesn’t fit all.

The behaviour on Social Media and

the website determine our

one-on-one marketing strategy.

AND WHERE ARE WE TODAY?

In the retail sector the use of data is more

advanced than it is in financial services.

That said, if you look at pricing, particularly

actuarial pricing, the insurance

industry is further. As an online insurer,

at InShared we are already applying some

retail concepts, but not yet in the form

that we really want to. We are 100% digital

so we don’t have the baggage of longterm

legacies that the big insurers do. Our

expertise and the IT platform that we

developed are what fuelled the recent

creation of OutShared. This new company

now serves as a platform to other parties,

partly thanks to demand from insurers

for flexible IT at a low cost per policy.

In the meantime, our first external

insurance label is already fully operational

on our platform. We still have a way to go,

but it’s a journey we’re making with our

customers.

AND WHAT DOES THIS MEAN IN

PRACTICE?

We really scrutinise people’s behaviour

and we invest a lot of time in doing so.

We analyse web behaviour data, as well as

the combinations of CRM data. We want

to do more than just offer a product; we

want more and better quality contact with

people. So we explore how people seek

and establish contact with us. It can be

through chat, email or telephone, and

soon via WhatsApp too. Sales have to be

assimilated to that behaviour. Sometimes

you can send somebody a chat message proactively.

Other times people might want to

speak to a real person, because they want

to introduce a human component into the

business process. It’s this kind of bespoke

approach that we are optimising. The

behaviour on Social Media and the website,

linked to actuarial data, are what determine

the marketing strategy we’ll use for

an individual at any given time.

17

AND WHAT FORM DOES THAT TAKE

ON SOCIAL MEDIA?

Again, data intelligence is an important

part of the equation. The more you know

about the customers in your target group,

the better you’ll know what they want. It’s

an opportunity to get your message across

intelligently. It even makes something as

potentially irritating as retargeting more

palatable. Here’s a retail example of the

wrong approach. Supposing I order a suit

online at Hugo Boss. If I then go to news

sites I’ll still get be pestered with Hugo

Boss advertisements, even though I’ve

already bought the suit there. Shame. But

if this retargeting is done more intelligently

and without being annoying, we’ll

also reach people who didn’t initially

have a preference for us. It’s important to

learn continuously from people’s behaviour

and invest heavily in it. An area in which

we want to be so much better in future is

having real relevance on Social Media.

INTERVIEW JOHAN VAN DEN NESTE

Agility is the key to the organisation’s

success and that calls for a different

organisational structure.

By giving concrete tips to make people

more aware of risks, for example.

AND THE PRIVACY ISSUE?

It goes without saying that staying within

the law and strictly observing it is our

main departure point. But you cannot

really avoid this issue. If you do it really

well it won’t be a problem; but if you do it

wrong it will be. One customer might be

used to it and take it for granted. Another

might be much more aggressive in the way

he protects his privacy or even withholds

his data. You have to take both approaches

into account. Transparency, sharing excess

profit with our customers, is one of

our USPs as an insurer. InShared wants

people to be able to insure themselves

online. If you limit the damage together,

you can share the spoils together. There is

no small print. And this is something we’ll

continue to apply if we develop products

and services for which our customers need

to give us data.

WHERE IS THE BIGGEST

CHALLENGE?

The biggest challenge is not one of

linking together all the data streams;

it’s making this data actionable and

facilitating a conversion when someone is

visiting the site. But it’s not just about the

conversion either; it’s also about being able

to make a profit. Sometimes customers want

products that don’t suit us. Here again,

based on behaviour and on our customer

groups, we’ll know instinctively which

people in the traffic may or may not

be of interest to us. Agility is the key to

the organisation’s success and that calls

for a different organisational structure.

The various disciplines, data analysis,

marketing, actuarial and IT must be

closely meshed. For traditional insurers

this can be problematic.

WHAT ARE YOU MOST PROUD OF?

We do everything in house and orchestrate

it all ourselves. We investigate the

real person behind the data. What does

he want? And how can we help him in a

relevant way, without being a nuisance?

Sometimes it’s not even about sales or the

settlement of a claim, but about offering

other support. We’re all in it together, with

the courage to move forward by trial and

error. It makes you increasingly smarter

and more effective and underscores

improvement, bit-by-bit. That’s the bottom

line.

18

19


RANKING

20 MAJOR GLOBAL INSURERS

90

80

GOLD FOR

STATE FARM

70

60

US insurer State Farm tops our ranking. It uses social content to build

communities. Second place went to the Netherlands’ Aegon, thanks to

its integrated social approach. Number three, Germany’s Allianz, enters

into dialogue with consumers with its forum ‘Allianz hilft’.

50

40

30

20

10

0

1 State Farm (US)

2 Aegon (NL)

3 Allianz (DE)

4 AXA (FR)

5 Allstate (US)

5 Aviva (UK)

6 Geico (US)

7 Nationwide (US)

8 MAPFRE (ES)

9 Farmers (US)

10 Generali (IT)

11 Sun Life (CA)

12 New York Life (US)

13 Legal & General (UK)

13 Great Eastern (MY)

14 MetLife (US)

14 AIA (MY)

15 Zurich (CH)

16 AMP (NZ)

17 Chubb (US)

20

21

RANKING

20 MAJOR GLOBAL INSURERS

FANS AND FOLLOWERS:

The insurers have a total of 10,023,979 fans and followers. Of these, Facebook commands

the biggest share, with 7,573,595 fans, then LinkedIn with 1,754,811 followers. On

Twitter insurers have 695,571 followers and last year Instagram secured the loyalty of

72,311 followers.

With a grand total of 2,274,555 fans, Farmers is the absolute winner, followed by the top

ranking State Farm, with 2,093,254.

The chart shown below shows the absolute numbers of fans per insurer. However, in

calculating the ranking on the previous page, differences in population have been taken

into account. To achieve a fair comparison, a correction per country has been applied.

Insurers gradually begin to exploit

the emerging channels.

2.500.000

2.000.000

1.500.000

1.000.000

500.000

0

Farmers (US)

State Farm (US)

New York Life (US)

MetLife (US)

Allstate (US)

Geico (US)

Allianz (DE)

AIA (MY)

Nationwide (US)

Zurich (CH)

Generali (IT)

MAPFRE (ES)

Aviva (UK)

Sun Life (CA)

AXA (FR)

Chubb (US)

Great Eastern (US)

Instagram

LinkedIn

Twitter

Facebook

AEGON (NL)

AMP (NZ)

Legal & Genarali (UK)

SOCIAL

All insurers in the ranking are active

on Facebook, LinkedIn and YouTube and

19 of the 20 surveyed insurers (95%) are

active on Twitter.

On average, insurers posted 5 messages

per week on Facebook, 12 on Twitter and

2 on LinkedIn. An average of 1 video per

week was uploaded on YouTube.

On Facebook, insurers received a total of

39,916 responses from consumers on their

page.

50% of the insurers responded within

two hours after receiving questions from

consumers on their Facebook page. On

Twitter that was only 45%.

Insurers are gradually beginning to exploit

the emerging channels: 70% − to

a greater or lesser extent − are active

on Instagram, with an average of 2 posts

per week (not counting advertisements).

However, there is still little use made of

Snapchat, with the exception of a few insurers

who have experimented with it in the

context of a campaign.

At the moment, WhatsApp is still not

being used by international insurers as a

service channel.

ONLINE

95% of the insurers link through from

their homepage to one or more Social Media

channels. However, only 30% (6 out of

20 insurers) link through from the contact

page to Social Media. In this case it’s often

limited to a referral to traditional contact

channels, such as email and telephone.

Only 5 of the 20 insurers (25%) show

consumer reviews on the website.

The opportunity to provide feedback on

the website or service is offered on the

websites of 9 of the 20 insurers (45%).

Only 3 insurers (15%) acknowledge the

importance of user-generated content and

have created a platform for it. These are:

Allianz, with a forum (forum.allianz.de),

New York Life, with Keep Going Good

(newyorklife.com/keepgoodgoing) and

State Farm, with Neighborhood Sessions

(neighborhoodsessions.statefarm.com).

75% of the insurers have a platform or

page on which they can share blogs. These

blogs are typically shared through Social

Media.

22

23


RANKING 20 MAJOR GLOBAL INSURERS

Has an app

Does not

have an app

Has a mobileproof

website

Does not have

a mobile-proof

website

MOBILE

Nearly all insurers (90%) have a responsive website; in other words the website

is the same as the desktop site but it automatically scales down to the mobile device.

Furthermore, 5% has developed a separate mobile website, while 5% does not have a

mobile-proof website.

Of all the insurers, 95% have smartphone apps, which are used by insurers for different

purposes. While one insurer might use an app as a news source, another might use it for

managing insurance policies.

ACCOUNTABILITY AND

METHODOLOGY

This is the first and only independent

survey about the use of Social Media in the

global insurance industry. The survey takes

in 20 major global insurers from 11 different

countries. These insurers are leaders in

their field in the worldwide insurance market

and they wield considerable influence

on the complexion of global insurance.

The surveyed insurers each have a clear

brand name. Insurance groups that have a

variety of different brands have not been included.

We have also excluded insurers that

are part of a major bank, because they have

no separate social insurance channels.

To provide an objective view as possible,

and to compare insurers with one ano-

ther, we have looked at the Social Media

accounts in the respective countries in

which the insurers are active. In other words,

AXA in France, Aviva in the UK, Generali in

Italy, and so on.

Accounts that target other countries

or languages have had no effect on the

ranking. Moreover, communities that were

set by consumers, insurers and employees

have been excluded.

The measurements were taken between

January and June 2016. Changes that

took place after the final measurement

date have not been taken into account in

determining the ranking. In the global

Social Media Insurance Monitor 2016 all

insurers were allocated a score between 0

and 100.

24

25

CHARACTERISTICS

CHARACTERISTICS

INTERNATIONAL

INSURERS

ON SOCIAL MEDIA

The final report of our Social Media Insurance Monitor is based on measurements,

statistics, a survey and desk research. The characteristics of the

20 insurers that were surveyed on their use of Social Media are given below.

1

STATE FARM (UNITED STATES)

By organising what it calls “Neighborhood

Sessions”, local concerts given by major

artists from the vicinity, State Farm works

both online − through the Neighborhood

Sessions platform − and offline on

its community. On Facebook, State Farm

shares many videos and links through to

its “Good Neighbors” blog.

2

26

AEGON (THE NETHERLANDS)

Aegon’s focus on Social Media is mainly on

dialogue. On both Facebook and Twitter conversation

management is deployed alongside

webcare, with the emphasis being on

online dialogue. From a special innovation

fund, Aegon invests in initiatives.

3

ALLIANZ (GERMANY)

By using Instagram Allianz tries to appeal

to young people. And the online forum,

Allianz Hilft, gives Allianz in Germany an

additional platform for online services.

The cornerstones of this platform are the

community team, the role played by

gamification, and integration with Facebook.

With the lab Digital Accelerator Allianz is

preparing for the future.

AIA (MALAYSIA)

AIA relies on Social Media primarily for

claiming a role for itself as a partner in

the area of care and health, in both the

private and business markets. AIA is the

biggest partner of the Vitality programme, an

integrated health and wellness programme.

Because its content often includes a call

to action, the Social Media community is

stimulated to enter into dialogue.

ALLSTATE (UNITED STATES)

Using Instagram and Pinterest alongside

traditional channels, Allstate is widely

represented online. It also has its own blog.

The blog offers external experts a platform.

Furthermore, the Good Hands community

platform provides user-generated

content. Allstate also offers the Good Life, a

platform on which personalised content

can be found.

AMP (NEW ZEALAND)

AMP helps people online with practical

content, such as blogs that provide stepby-step

advice on how to pay off a debt.

In addition to this, Twitter is used for

webcare. Every year AMP organises Life

Amplify, a festival of innovation and disruptive

technology. The festival is also extensively

publicised through Social Media.

AVIVA (UNITED KINGDOM)

This year, and in collaboration with Facebook,

Aviva has elected to create a global

page as a shell on which to build local

pages around. The content is more than

just audio-visual; Aviva also conducts

surveys on Facebook. In this way the

insurer isn’t just collating data; it’s complementing

the results by providing feedback

as to what the next steps should be.

27

AXA (FRANCE)

AXA deploys Social Media and content for

specific groups, often under the umbrella

of “People Protectors”. The company also

focuses on the future and on innovation

by investing in start-ups such as Tröv and

AXA Switch, a separate proposition for

Millennials. AXA is also the first insurer

to integrate Facebook Messenger with its

online services.

CHUBB (UNITED STATES)

In 2016 Chubb’s Social Media channels have

been mainly characterised by its merger

with the Ace Group. The focus is on telling

people about the company’s new course.

As a sponsor, Chubb is active with content

related to Nascar races.

FARMERS (UNITED STATES)

Of the 20 insurers that were surveyed,

Farmers has, at 2.1 million, the highest

number of fans on Facebook. Its content

is characterised by humour. Example of

this is the “Hall of Claims”, in which its

most bizarre claims are presented in a

tongue-in-cheek manner, and JK Simmons

as the choice of spokesman. Farmers also

promotes itself through its association with

professional golfer, Rickie Fowler.

GEICO (UNITED STATES)

Geico is the only insurer that claims to

offer 24/7 webcare. In addition to

deploying Social Media for its blog Geico

More, on Twitter it mainly provides content

about the Nascar races, which it sponsors.

The insurer is also identifiable through its

mascot, Geico Gecko. Geico is the most

active insurer on YouTube.


CHARACTERISTICS

GENERALI (ITALY)

Fans’ activities on Generali’s Social Media

channels are mainly visible because of the

high degree to which their messages are

shared. Besides Facebook, Generali is particularly

active on Twitter, with several posts

every day. For youngsters Generali uses

Instagram, with daily posts in its own style

focusing on events.

GREAT EASTERN (MALAYSIA)

Great Eastern uses mainly Facebook,

primarily for visual content, and enjoys a

great deal of interaction with its support

base. Furthermore, Great Eastern focuses

on vitality with Live Great, an integrated

online wellness and health programme.

LEGAL & GENERAL (UNITED KINGDOM)

Of late, Legal & General has mainly used

Social Media channels to set up a community

through #becauseyoulovethem

centred around pets, the aim being to

promote insurance for pets.

MAPFRE (SPAIN)

MAPFRE uses Social Media worldwide.

On Facebook it uses a global page with underlying

local pages. Its Spanish Facebook

page links through extensively to its website.

Moreover, MAPFRE uses a variety of

platforms, such as a channel specifically

aimed at young people, called Generación

Young.

METLIFE (UNITED STATES)

MetLife mainly deploys Social Media for

MetLife blog, in which tips and ideas are

broken down into easily digestible lists,

sorted into various categories. Outside the

US, “Light Up Your Dream” and “Dream For

My Child” provide a lot of user-generated

28

content. MetLife has introduced a tool that

facilitates one-on-one customers advice.

NATIONWIDE (UNITED STATES)

In addition to its regular website, Nationwide

has an extensive online ecosystem.

This comprises a blog, “In The Nation”, a

community, “Living on Your Side” and

various content pages, such as “Make Safe

Happen”. This platform is bursting with

parenting tips to prevent children having

accidents.

NEW YORK LIFE (UNITED STATES)

New York Life mainly uses Social Media for

its “Keep Good Going” community, a collection

of user-generated content. The role of

its more than 12,000 agents is worth noting,

because they act as brand ambassadors by

sending personal tweets. New York Life has

also US$175 million available every year for

promising innovations.

SUN LIFE (CANADA)

With its Brighter Life blog, Sun Life has

been building up an online community. It

offers tips and ideas, without laying overt

links to Sun Life products. The blog generated

about 1,900 leads per month for Sun

Life, which has integrated the service part

of its website into its Facebook page.

ZURICH (SWITZERLAND)

Using audio-visual content, visuals and

videos, Zurich connects with its community

at an international level. And to build up

local communities, Zurich provides relevant

content on Facebook pages and separate

Twitter and YouTube channels. In the area

of innovation, Zurich recently introduced its

so-called cyber policy.

‘To keep

and attract

customers

a change

of the

business

model is

needed’

29

XXXXXXXXXXX

INTERVIEW

THINK FROM

THE CUSTOMER’S

POINT OF VIEW

NEIL HILTZ, HEAD OF GLOBAL FINANCIAL SERVICES STRATEGY FACEBOOK

30

“Two things stick out in a very big way and demand everyone’s attention:

completing the shift to mobile-first and the reintegration of the

customer experience from end-to-end for the entire life cycle,” says Neil

Hiltz, Head of Global Financial Services Strategy Facebook. “It’s not just

the social team, it’s not just the digital advertising team and it’s not just

the product manager. It’s everyone, channelling their energy into being

mobile-first and thinking about things from the customer’s point of view.

And finding ways to reduce friction between consumers and how they

interact with companies on their mobile devices.”

31


INTERVIEW

NEIL HILTZ

W

HAT DO YOU SEE AS

IMPORTANT DEVELOP-

MENTS IN THE

FINANCIAL INDUSTRY?

We are moving from a traditional communication

model to what the industry

calls a digital or omni-channel model.

The first step is to become mobile-first.

If a person starts thinking of mobile as a

primary way of communication, it offers

a lot of opportunities. The second step

is to personalise the communication.

Insurance companies’ products are very

personal. How much you pay for your

car insurance, for example, is based on

the car, your age and where you live.

However, the communication around

this product tends to be less personal.

Contrast this to a bank, say 60 years ago

when business was done face-to-face.

With the rise of platforms like television

and radio we made a trade off, improving

marketing efficiency to find a broad

pallet of consumers. But now, with

mobile, we can focus on real people.

We have the opportunity to reinvent

personalisation and focus on highly

personalised end-to-end consumer

experiences. Because of all the things

happening on mobile phones we can

create experiences in which the media

and consumer paths are highly integrated.

LOOKING AT TODAY’S INSURANCE

INDUSTRY, WHAT ARE THE MAIN

ISSUES IT FACES?

I’d say that a common challenge across

all financial services, and one that we are

committed to helping the industry solve,

is completing the transition to becoming

global Social companies. Another challenge

is creating great customer experiences

on a global level across their entire

lifecycle and portfolio. There is still a lot

of work to be done to create the bestpossible

experiences. At the same time,

Social is evolving rapidly because it takes

all the previous best practices and implements

them very quickly. In the past, we

had services and we had communication

and they were distributed by very different

platforms. You’d see an advertisement

for an insurance policy on TV or

in a magazine, and then you’d talk to an

agent or call a call-centre for a quote. In

some cases it involved lots of paperwork.

That was the “old” model, but it was only

15 years ago, before the Internet took off

in earnest. Nowadays the focus for all of

us, as industry partners, is to create great

sales experiences from end-to-end. And to

be able to do that on mobile is a phenomenal

opportunity. A person can watch a

video, take action immediately and can go

through the entire conversion process on

a mobile device within minutes. It used to

take hours, days even. That’s what we are

transforming.

CAN YOU GIVE INSURANCE

COMPANIES SOME SURVIVAL TIPS

IN OUR FAST-CHANGING WORLD?

They must make the move to mobile-first,

absolutely. That’s a foundational point that

everyone must move towards. Making this

a starting point enables you to reinvent

the entire customer life cycle. Think about

advertising and communication and

the opportunities for increased personalisation,

and what it all means for the

marketing and advertising departments. It

requires tighter integration between the

teams than was previously necessary.

Teams today need to work more closely than

The key to success is management’s

attitude and commitment to

drive innovation – their leadership.

they did in that old world. Tighter integration

between the media teams and the product

organisations will greatly improve the customer

experience. The media, product and

operational teams must also be on the same

wavelength as to how they develop their

services and communications. Something I

learned about Mark Zuckerberg’s leadership

approach at Facebook is how he does product

reviews. As a CEO, he regularly reviews

the mobile experience to establish

what a typical customer journey is. That’s

leadership. Putting yourself in the customer’s

shoes and seeing that experience

does create the possibility for change and

improvement. It helps to make things easier

and more personal, and it would accelerate

the shift to becoming mobile-first.

REGARDING INNOVATION ARE

THERE DIFFERENCES BETWEEN

TRADITIONAL INSURERS AND THE

NEWCOMERS?

In the financial services segment there

are businesses that are very innovative

and want to try new things and scale-up

new communication channels as soon as

possible. They might be newer Fintech

companies or traditional companies

focusing on innovation and transforming

their companies. The key to success is

management’s attitude and commitment

to drive innovation – their leadership.

That said, it’s is easier to build something

new than to build something new around

changing functionalities. We recognise that

the amount of change management that’s

necessary in the industry depends strongly

on how the company goes to market and

on its business strategy. It all comes down

to the client level and their approach.

Insurance is an ageing industry that

employs many people over 50. Do you think

this transition can succeed with them?

Every successive generation grows up

with a specific information base available

to them. People of my age remember the

time before the Internet, but Millennials

don’t know any different. It’s more about

a person’s mindset and about providing

the opportunity to change it. If we were to

become a little more childlike in our everyday

approach it would really open our

minds to change. That’s actually the biggest

shift and it can happen regardless of age.

WHAT DOES IT MEAN FOR A COMPA-

NY TO PARTNER WITH FACEBOOK?

We have partnered with a number of insurance

companies around the world that are

stepping up to the plate and doing things

from an innovation perspective. What’s

great about working with clients like AXA,

Progressive and Geico is that when partnerships

like these are announced it creates a

sense of urgency within the organisation to

drive forward at a very rapid pace. Having

worked in the financial industry, I know that

32

33

INTERVIEW NEIL HILTZ

leadership alignment throughout the organisation

is very important for driving change.

It’s a clear signal to the market, but also to

their employees and to Facebook. It not only

says they want to work on innovative things,

but that they are really committed financially

to drive innovation forward. There must be

a commitment to drive innovation throughout

the company, from the top all the way

through to implementation. The difficulty of

driving change in companies is something

that must not be taken lightly, and neither

should a lack of alignment in them.

DO YOU AGREE THAT WHATSAPP

AND FACEBOOK MESSENGER OWN

THE FUTURE WHEN IT COMES TO

THE MOBILE ENVIRONMENT?

I am so excited that we have started to work

on Facebook Messenger and WhatsApp.

There’s a real opportunity here to approach

people the same way that they approach

their friends and family. WhatsApp and

Messenger will be huge and transformative

in driving insurance companies’ efficiency

and profitability in all areas of the life cycle.

Just imagine what it would mean for sales

support and answering people’s questions,

and how it will affect the customer care experience.

When the Canadian telecom company

Rogers implemented Messenger they

saw a 50 per cent increase in customer satisfaction

in just a couple of months. So I think

that will be an opportunity for insurers too.

People use these messages platforms regularly;

so sending messages through these

preferred channels will increase the likelihood

that they will be acted upon. Furthermore,

the entire claim experience could be

facilitated with the use of images and videos,

from both the client’s side and the backoffice

side of the service provider. The most

exciting part is leveraging all the knowledge

that financial companies already have and

animating smart ways of communicating

it. This will be possible from the early stages

of building brand awareness all the way

through to the customer experience, such

as the claim process, for example. By doing

this we will increase the efficiency, longterm

profitability and scalability of the entire

financial services sector. It’s so exciting

that we can help save both time and effort.

And customers will get their answers in real

time, as opposed to being put on hold indefinitely

or having to wait for days.

PERSONAL

Neil Hiltz: My role is to improve the financial wellbeing of the people who leverage our platforms, like

Facebook, WhatsApp, Instagram and Facebook Messenger, and to help the industry improve its

efficiency, scalability and long-term profitability. It’s my job to identify the best pratices used by

financial services companies on our platforms today. At Facebook, we have successfully transitioned

from a desktop- to a mobile-device company. I worked in the financial services industry for 11 years at

Capital One, HSBC, Wells Fargo, and U.S. Bank. I’ve learned from both the consumer and the

financial industry’s point of view what the pain points are and I support our team’s to innovate and

solve these challenges and I recognise the challenges of grasping this huge opportunity to take the

business to mobile. In my spare time, I play and practice golf, support my wife as she builds her

company, Farmgirl Flowers, read, and spend time with my family and friends.

34

35


GLOBAL SOCIAL FACTS

GLOBAL

SOCIAL FACTS

To see insurers’ results in the Social Media Insurance Monitor in the right

context, it’s important to look at a number of generic statistics about the

GENERAL

At the beginning of 2016 there were 3.4

billion Internet users worldwide, 46% of the

total global population.

More than 50% of the global population

owns at least one mobile device: worldwide

there are 3.8 billion unique mobile users.

Worldwide, there are 2.3 billion active Social

Media users. This translates to 31% of

the global population and 67.5% of all Internet

users.

Two billion people visit their Social Media

accounts via their mobile devices, which is

85% of the active Social Media users.

FACEBOOK

Facebook is still the most popular social

network, with almost 1.6 billion monthly

active users worldwide.

Facebook is the most popular social network

in most countries. Important exceptions

to this are Russia, China and Japan,

use of Social Media in the world.

36

where the most popular social networks are

VKontakte, Qzone and Twitter respectively.

83% of active users visit Facebook with

their smartphones, followed by desktops

and laptops with 50% and then tablets with

15% of active users.

Compared to last year, the number of

daily Facebook users has increased by 16%,

to over one billion.

Facebook is, by a long way, also the most

popular social network among Millennials (20

to 35). This group spends an average of 1,000

minutes a month on this social network.

INSTAGRAM

Instagram has now attained 400 million

monthly active users, making it one of the

world’s biggest social networks after Facebook.

Compared to the beginning of 2015, the

number of active monthly Instagram users

has risen by 33%, making it one of the

fastest-growing social networks.

Instagram is popular among Millennials.

In the US, for example, almost half of all

Instagram users are between 18 and 34.

TWITTER

Twitter has 320 million active users a

month worldwide, following Facebook and

Instagram as one of the most popular social

networks.

With an increase of just 3% since the beginning

of 2015, the growth in the number

of active monthly Twitter users appears to

be slowing down.

LINKEDIN

Boasting over 400 million members,

LinkedIn is the biggest professional network.

However, only 25% of those members

are monthtly active users.

22% of active LinkedIn users log in to

their LinkedIn account every day, 32% log

in on a weekly basis and 34% do so less frequently

than every week.

MESSENGERS

Messengers and chat apps are becoming

increasingly popular.

WhatsApp has now become the most

popular messenger, with one billion

monthly active users.

Facebook Messenger is next, with 900

million monthly active users in April 2016.

Both WhatsApp and Facebook Messenger

grew phenomenally last year, by 43% and

50% respectively.

Other platforms are QQ and WeChat,

especially popular in China.

SNAPCHAT

Along with Instagram, the popularity of

Snapchat has increased exponentially these

past two years.

37

Since the beginning of 2016, Snapchat has

had 200 million monthly active users.

Half of these 200 million users are active

on Snapchat on a daily basis.

In the US, 18% of Social Media users use

Snapchat.

Like Instagram, Snapchat is extremely popular

among Millennials; 8% of the world’s

Millennials use Snapchat.

73% of Snapchat users are Millennials.

Snapchat is the most popular platform for

Generation Z (13 to 24) In the US 72% use

Snapchat, followed by Facebook with 68%

and Instagram with 66%.

YOUTUBE

YouTube has 1.3 billion users worldwide.

YouTube is the second-most-popular

search engine in the world, after Google.

More than half of all YouTube views are

from mobile devices.

On average, mobile YouTube users spend

40 minutes per session watching videos, an

increase of more than 50% with respect to

last year.

YouTube is very popular among Millennials;

81% of Millennials in the US use YouTube.

Through mobile devices alone, YouTube

reaches more 18- to 34-year-olds and 18- to

49-year-olds than all the cable networks in

the US.

PINTEREST

Worldwide, Pinterest has 110 million

monthly active users.

The vast majority is female: 71% to be

exact.

Pinterest is most popular among 18- to

29-year-olds, accounting for 34% of its users.

SOURCES

wearesocial.com, statista.com, alexa.com

‘Digital,

Mobile

and Social

are the new

Normal’

38 39


INTERVIEW

CONTEXT

IS KEY

“If we continuously position ourselves in the context of our customers,

we’ll really be able to proactively add value to their financial circumstances,

exactly when it’s necessary. That just about sums up the

JESSICA NIEWIERRA, DIRECTOR DIGITAL DEVELOPMENT & INTERACTION

ABN AMRO BANK

emphasis of our digital efforts,” says Jessica Niewierra, Director of Digital

Development & Interaction at ABN AMRO Bank in the Netherlands.

41

INTERVIEW

JESSICA NIEWIERRA

J

essica Niewierra is working on

the increasingly far-reaching

digitisation of ABN AMRO Retail.

The bank wants to be relevant,

so she’s convinced that the customer’s

context is more important than it has

ever been.

WHICH DIGITAL DIRECTION IS THE

BANK MOVING IN?

We’re continuing the development of

our mobile strategy. You can only stay

constantly relevant in the lives of your

customers if you are close to them on the

devices they always carry with them. We

started by doing everything we could for

our customers in configuring the daily

basics ‘mobile first’. By last year we’d

reached the phase in which we could

see how we could continuously add

value through the devices, if that’s what

customers wanted. For example, we

launched Alert & Check, an app that

allows customers to set six different types

of free push alerts to help them identify

real-time and relevant changes in their

financial environment. These can

include inadvertently being in the red,

or a sum being deposited in a specific

account, for example. The app is also

compatible with the Apple Watch,

meaning customers can link the app so

they’ll instantly feel a vibration on their

wrist if something they’ve set an alert for

PERSONAL

Since June 2015 Jessica Niewierra has been responsible for sales and targeting, mobile and online

development, user experience, analysis and optimisation and content copy of the digital channels of

ABN AMRO Retail. The focus in this new portfolio lies on impact-rich digital change-processes and

the development and innovation of various digital sales, marketing and copy specialties.

42

actually happens. We’ve also launched a

beta version of an app called Grip. We’re

now testing it live with customers, with

a view to developing it further. This app

doesn’t just give insight into and an overview

of customers spending categories; it

also allows them to set maximum spending

targets per category. They’ll then

receive free alerts if they exceed those

spending targets. All this helps customers

to keep a better grip on their spending.

We launched this app with a Swedish

company called FinTech. It’s another

example of how we learn from others and

realise a quicker time-to-market.

WHAT IS YOUR OBJECTIVE?

Essentially, for those customers who

want it, we, as a bank, want to draw a

financial picture of a household or

company. We want to be able to proactively

add something for our customers,

when they want it and about the things

that interest them. That’s our ambition. We

work from the outside-in, guided by four

departure points: we have to be “always

connected” to our customers; the contact

for customers must be “quick and easy”;

content must be “personal and relevant”;

and we must “learn from the context” of the

customer. It’s all about the essence of the

customer’s story and how we can help. It

means having to position ourselves where

the customer looks for answers.

Our ambition is to deliver relevant

value to the way that people

do their financial housekeeping.

WHAT HAS BEEN CHANGED IN YOUR

APPROACH TO CUSTOMERS?

If you want to be relevant to your customers,

you simply have to listen to them

properly. That’s the true interpretation of

“don’t make the bank key, make the customer

key”. If we’re aware of the challenges

people face in their lives, they will, in

fact, have defined the content we produce

for them themselves. It means we are proactively

sharing themes with people

and really entering into dialogue with

customers. This is why, for example, we

communicate with entrepreneurs in a

business forum that we have created on

our website and why we’ve partnered

with a variety of parties to help answer

entrepreneurs’ questions. We can only

offer real value if we give people the right

content at the right time. And in a

different tone of voice than before, incidentally,

less formal and more personal.

WHAT ROLE DOES SOCIAL MEDIA

PLAY IN ALL THIS?

We rely heavily on digital to keep us

continuously relevant in our interaction

with customers online. Social media is

indispensable in this respect, because we

want to be where our customers are and

to serve them proactively. In addition to

innovation, experimentation also plays a

role. Last year, for example, we launched

a pilot with webcare via WhatsApp. You

notice that people really appreciate this

level of customer service.

43

IS THE BANKING SECTOR DIGITALLY

UP TO SPEED?

If I look around me I see that, in a digital

context, the Netherlands is doing pretty

well and is somewhat of a digital pioneer

in the world. Banks are very active in the

area of digitisation; they identified the

mobile trend very quickly, for example,

and launched several mobile banking apps

for their customers. From the high density

of contact moments you can also see that

customers have really embraced it. ABN

AMRO, for example, gets some 60 million

logins every month on its mobile banking

app. More and more players intent on

taking a slice of banking will be entering

the market. But because we’re a fullservice

bank that offers customers a

complete overview over their financial

situation, and because we’re proactively

capable of continuously adding value

across the whole spectrum, we can offer

our customers much more, so they will

stay with us. But it’s something that we’ll

have to keep up, and keep developing at a

quick pace. Taking it easy is not an option.

We feel a pressing sense of urgency.


INNOVATORS

If you want to stay relevant you have to show courage. Which is

why we’ve checked out a number of international initiatives of insurers

that are exploiting the potential of technological developments.

44

45

INNOVATORS

UP-TO-DATE

UP-TO-DATE

In 2015 substantial investments were made in international technology

start-ups, not only by venture capitalists but by insurers too. And more

money was invested this way in the insurance industry than in other

sectors. It’s all done with an eye on the future, particularly in rising to external

challenges and in response to meeting today’s customer requirements.

All in all, it’s resulted in a number of notable and inspiring innovations.

VITALITY

STIMULATING A HEALTHY

LIFESTYLE

Vitality, an offering of South African

insurer Discovery, is a hidden gem of

the insurance industry. As we all know,

healthcare is a cornerstone of tomorrow’s

insurance industry, all over the world.

The Vitality programme capitalises on

today’s customer needs when it comes to

healthcare, for both traditional customers

46

and the so-called Millennials. It offers a

wellness programme, in which everything

from physical activities to nutrition

can be measured. It also boasts a strong

loyalty programme. It uses an app with

an unprecedented customer experience,

coupled with the new-generation of sports

batches and activity trackers. Customers

are given discounts if they buy healthy

products at major retailers such as Marks

and Spencer, and even for airline tickets

and hotel bookings. Thanks also to the low

premiums, customers are encouraged to

live a healthier lifestyle. Vitality operates

independently in South Africa and the UK.

In the US and Asia it operates successfully

through a white label and partners such as

AIA and John Hancock.

www.vitality.com

COVERHOUND

A COMPARISON SITE WITH

CLAIMS SERVICE

In the US, CoverHound has created

an online platform for comparing car

insurance. CoverHound has distinguished

itself by quickly delivering accurate and

actionable rates based on customers’

specific needs, either through CoverHound

itself or Google’s Insurance Search. Developed

by an experienced insurance

team, CoverHound offers superior

customer experiences with leading US insurers,

such as Esurance and Progressive.

In addition to comparing the various insurers,

CoverHound also offers service

during claims, meaning it earns commission

for a lead and for servicing the

policy. CoverHound is also entering into

partnerships with accelerators and

incubators to offer insurance products

to start-ups. It offers quick quotes and

sells products online to these start-ups.

The way CoverHound sees it, the insurance

industry is ready for change and

it is paving the way for a new generation

of insurers. Google has also discovered

CoverHound and is now one of its

partners. CoverHound scores an average

of 7.0 from its customers.

www.coverhound.com

47

COLLECTIVE HEALTH

THE EMPLOYER BECOMES

THE INSURER

By merging the best medical networks

on an online platform, new Silicon Valley

start-up Collective Health gives the

employer the opportunity to be the

insurer. The advantage for the employer

is that it can manage its own page, where

details of the insurer can be instantly

accessed. Collective Health makes it

easier for employers to circumvent the

continuous demand for information

from the insurer. Instead of having to

sign up for a traditional healthcare plan,

for which it pays the insurance company

a monthly premium, an employer pays

the cost of its workers’ healthcare from

its own pocket. The employer collects

monthly premiums from its employees,

but instead of this money going directly

to the insurance company, it goes to

an internal fund to cover employees’

medical bills. Employers have the

freedom to decide which medical treatment

and procedures they want to cover.

Given that employers do not have to pay

the full amount every month, companies

that self-insure in this way can save a lot

of money, thanks to Collective Health.

www.collectivehealth.com


UP-TO-DATE

KNIP

ALL ABOUT INNOVATION

Knip, a “digital insurance manager” and

user-friendly mobile app with which a

policyholder can quickly conjure up an

overview of all his insurance affairs on

his smartphone, has become a successful

innovator in Germany and Switzerland.

It started off in Zurich (with 10,000

customers) then expanded to Berlin (with

another 10,000 customers). And now, with

an investment of almost €14 million, Knip

is ready to cross the pond and conquer the

US. The app started out as an “insurance

concierge” giving users a quick and easy

overview of their various insurance policies

and the contractual deadlines of

different insurers, but without all the

paperwork. Since then, the service has

been extended. The app can now provide

bespoke advice for cheaper premiums,

push through claims and even completely

facilitate a move to another insurer.

And via the app, a team of advisors is at

hand to answer any questions customers

may have about their insurance policies.

With about 100 employees, Knip earns its

income through commission from insurance

companies, managing their policies

and generating leads. Knip’s app is a godsend

for consumers because it responds

to demand on mobile, circumventing the

need to sift through all the paperwork.

www.knip.com

POLICYGENIUS

COMPARISON SITE AIMED

AT MILLENNIALS

Why does taking out insurance have to be

such a frustrating experience? That’s what

the two founders of US PolicyGenius asked

themselves. It spurred the ex-McKinsey &

Co consultants to set up a comparison site

that’s clear, transparent and user-friendly.

PolicyGenius is aimed at Millennials, the

generation of young people who want to

arrange everything themselves, online,

and through channels they use extensively

in their daily lives. By the end of 2015

the site boasted more than 800,000 visitors,

over half of them Millennials. Thanks to

an online “Insurance Check-up” visitors

receive bespoke insurance advice. In a

matter of minutes they’ll get a premium

overview of 26 different insurance

companies that are affiliated to

PolicyGenius, including ING, MetLife and

Prudential. On Social Media PolicyGenius

keeps consumers informed through

insurance-related blogs. An investor in

PolicyGenius is AXA Strategic Ventures,

the venture capital fund of French insurer

AXA. This is in keeping with AXA’s

mission to invest in start-ups that

underscore innovation in the insurance

industry.

www.policygenius.com

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49

INNOVATORS

UP-TO-DATE

METLIFE WALL

IMAGINBANK

TROV

SURE

COMPLETE VIEW OF ITS

CUSTOMERS

In just three months US insurer MetLife

has developed “MetLife Wall”, a datadriven

application that gives agents a

complete overview of their customers by

collating information from 70 internal

systems. On a user-friendly screen, not

unlike that of a Facebook timeline, agents

receive a 360-degree view of transactions

and contacts with customers. Moreover

it’s a view that transcends business lines.

It saves agents a great deal of time,

enabling them to respond quickly and

proactively to customers’ needs. Chief

Customer Officer Claire Burns introduced

special teams across all silos,

focusing on specific customer segments.

The insights into customers that “Met-

Life Wall” now provides have improved

the customer experience. Internal

forums have also been used to align the

customer journey and experiences.

MetLife is very active on Social Media.

Thanks to advertisements on Facebook

the insurer has boosted the lead-tosale

ratio by a factor of 2.4 and reduced

costs per lead by 49 per cent. Defining

different target groups on MetLife’s CRM

system has made it possible to reach

them in a very focused manner.

www.metlife.com

MOBILE-ONLY BANK

FOR MILLENNIALS

Spanish bank Caixa has launched the first

mobile-only bank in Spain for Millennials,

imaginBank. The new bank model can

only be accessed via a mobile app and

through social networks and offers a completely

new range of commission-free

products and services. The bank’s app

boasts a very simple design, one with the

mobile environment specifically in mind.

It makes it possible for users to browse,

sign up for a full range of products and

services, check their bank balance,

request transactions and monitor overall

account activity. In addition to the app,

imaginBank also runs a website, but this

is only meant as a source of information

and instructions on how to become a

customer. The bank has also developed

an application that makes it possible for

customers to enjoy interactive contact

with the bank without having to leave

Facebook, and thus in a completely

secure environment. Customers can

also communicate with the bank via

WhatsApp.

www.imaginbank.com

ON-DEMAND

INSURANCE OF THINGS

Launched in Australia, Trov is the perfect

form of insurance for millennials and

the mobile generation. Thanks to this

on-demand insurer, personal things can

be temporarily insured, on a day-by-day

basis, through an app. Trov is simple,

flexible and transparent. The focus is

firmly on the user, who can easily decide

which possessions he or she wants to insure,

and for how long too.

Six investors have already invested

US$46 million in the Trov app, which was

successfully launched on the Australian

market in collaboration with Australian

insurer Suncorp. Together with AXA,

Trov will now be extended to include the

UK, with plans to do the same in the US

and other markets next year.

The app gives users a clear overview of

how long something is insured for. The

possessions that can be insured range

from mobile devices to musical instruments.

The claiming process via the Trov

app is also straightforward. If customers

have questions they can quickly contact

an employee, thanks to an integrated chat

function. In a nutshell, Trov is a bone-fide

innovator when it comes to on-demand

insurance.

www.trov.com

ONLY WHEN

THERE’S RISK

This year American start-up, Sure, launched

“Episodic Insurance”, an on-demand

insurance that you can take out via an app

to cover short-term risks, whenever and

wherever you want it. You can indicate

the type of insurance you want through

Sure’s Robo-Broker, which is a chatbot. Sure

kicked off by launching a life insurance

policy covering the duration of a flight.

Based on your flight number and your

passenger data, a price is calculated. If you

agree you can pay directly through the app

and you are then insured.

More than two million policies have already

been closed with the Sure app,

so the first few months can definitely

be seen as a success. The start-up has

already received investments to the tune

of US$2.6 million and the insurance

policies have been underwritten by some

of the world’s biggest insurers. During the

next few months Sure plans to introduce

new on-demand products. As a customer

you pay only for coverage if there is

an actual risk. The price that’s offered is

customised through artificial intelligence

and on the basis of information obtained

from your mobile phone or tablet.

www.sureapp.com

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51


INTERVIEW

INSURANCE IS,

AND WILL REMAIN,

MEANINGFUL

OLAV CUIPER, RGA, EXECUTIVE VICE PRESIDENT, HEAD OF EMEA

His vision is global. And now, especially for the benefit of SoMe readers,

Olav Cuiper (RGA) has flagged up some internationally significant trends

and themes in the area of insurance and Social Media. His main mantra

is: “Insurance is, and will remain, meaningful, because it’s all about the

protection of people and their families. But we will have to re-invent our

insurance industry to fulfill the needs and demands of future generations.”

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INTERVIEW

OLAV CUIPER

SIGNAL 1 THE BASIS

Visit an average insurer’s office and chances

are you’ll see most of the employees working

with out-dated IT applications. What

this means is that insurers often require different

systems to issue and approve an insurance

policy, for example. Nowadays in the

year 2016 this can be considered as the ‘oldworld’,

as practically all consumers enjoy

modern Internet connectivity and they

expect quick and bespoke processing that’s

fully Internet facilitated. The office environment

itself, the work and customer journeys

in the insurance sector need to be modernised

in all these areas. Nowadays, for example,

it’s no longer realistic to offer customers

application forms with ‘one-size fits all’ PDFdocuments

and physical post-processing.

SIGNAL 2 OLD THINKING

What keeps me awake at night is the speed

of change of the world around us. We tell

ourselves that our market isn’t ready for

disruption because we operate in a highly

54

regulated environment. I personally think

this is a big mistake. Our thinking is still

bogged down in the traditional value chain

and discussing the role we should be playing

in that value chain. And the more I think

about it, the more redundant the discussion

seems to be. Wherever you are in this chain,

it’s nothing more than a collection of services

for the consumer. It’s no longer about the

value chain, its about who’s orchestrating this

collection of services to the end-consumer.

SIGNAL 3

EXCELLENT SERVICE

If you think less traditionally other

aspects will come to the fore. As an

insurer you’ll think: how can I stay

connected with my clients. It would be

cool if a customer – who checks out his

Facebook account 10 times a day, anyway

– occasionally sees something from his

insurer. It’s often said that insurance isn’t

sexy. Perhaps so, but insurance is certainly

very meaningful. By using it you are

THE AGEING INSURANCE WORLD

Discussions about distribution can often become very technical. In many parts of the world

consumers are not being served as a result of regulation, it’s not commercially viable for

insurance agents. In successful markets in Asia and Africa, for example, several steps within

applications processes have been eliminated and much more use is made of modern technologies.

On an iPad, for example, the consumer’s life cycle is taken into account to establish

what he needs. In Europe and the US we are dealing with an ageing insurance industry and

an ageing population. An ageing insurance agent from an ageing generation will be inclined

to sell ageing products to his peers. Many insurers haven’t yet found a way to bond with

the younger generation.But just how viable are current distribution models for this? And

what about distribution through banks? In some countries insurers no longer believe in bank

distribution, but in Europe we trust it completely. We are not making enough effort to

envisage what the world will look like in 10 years’ time. We have to separate reality from

perception. The facts tell us which direction the insurance industry is moving.

We will have to re-invent our

insurance industry to fulfill the needs

and demands of future generations.

protecting your family and those who support

you in difficult times. This makes insurance

a relevant product for consumers.

How can you make someone appreciate

insurance? For example with a product

that not only adapts to his or her lifestyle,

but pro-actively changes along with it too.

But nobody wants to see a chart in an app

if it doesn’t work properly, or if it doesn’t

correspond with the personal data. The common

denominator among the large successful

players is organising that collection

of services around consumers, in which

quality, reliability and excellent service are

anchored in the insurer’s DNA.

SIGNAL 4

WELLNESS INITIATIVES

Wellness is hot at the moment, and, seen

from a marketing perspective, highly innovative.

A wellness insurance proposition forces

you to think from the consumer’s perceptive.

And because the consumer is prepared to

give data to the insurance company about his

health and lifestyle, in exchange for discounts

and other savings, it creates an entirely new

dialogue between the insurer and the consumer.

It’s a form of dialogue in which the insurer

is constantly in discussion with the target

group members and continuously receiving

information about how their lives are changing.

It actually enhances life-style changes.

Young people spend all day on mobile such

55

as Facebook, Instagram and other Social Media

channels. If, as an insurer, you don’t exploit

this you’ll miss the opportunity to connect

and communicate with this target group.

Vitality, which has enjoyed much success

in South Africa, is now also beginning to

make an impact in the UK, Europe and Asia.

But why not in the Netherlands yet? I put it

down to the “not invented here” syndrome.

But I reckon wellness can bring insurers closer

to their customers, particularly new ones.

SIGNAL 5

THE POWER OF DATA

Slowly but surely the raw power of data is

becoming clear to everyone. And if insurers

don’t embrace this, huge anti-selection

will take place. The use of data is a very

important trend. And the player who is the

slowest to pick it up, organise it properly

and use it will draw the shortest straw.

The customer will soon know more than

the insurer. In several countries we are already

seeing that more small-claims with a

higher volume are being generated through

the deployment of STP (Straight Through

Processing) and automatic acceptance

alongside the inadequate and efficient use

of data. Online and STP are therefore a

given. Asking the customer three questions

for medical acceptance is OK, but it’s not

enough. The available data also has to be

used. Data must be used more intelligent-


INTERVIEW OLAV CUIPER

ly. Data such as postal code, occupation

and driving behaviour can play important

roles in this respect. In my opinion, data

like this is not sufficiently exploited in the

insurance industry. As reinsurers this is

something we are currently very focused

on. It’s something on which we are even

expanding our underwriting capability.

SIGNAL 6

THE ELIMINATION OF STEPS

Nowadays, I see that a number of insurers

have launched novel insurance concepts,

but I cannot help wondering when these

initiatives will eventually make a substantial

contribution to the insurer’s income.

But, of course, I realise that new innovative

concepts often need more time and

learning-curve investments than you might

originally allow beforehand. However, as

an insurer it’s very important to remain

constantly in motion; stand still is not an

option. An insurer like AXA, does many

things well. As a big player it keeps things

moving and is, for example, very active on

innovation & Social Media. As an insurer

you have to keep responding to market

developments. The most successful companies

are the ones that are the most open

to change. That remains a problem in the

industry; we immediately want to develop

a new Airbus, rather than an aircraft that

gets us from A to B. It always has to be big.

SIGNAL 7 TWO WORLDS

As far as having a vision of the future is

concerned, the issue is how the legacy,

traditional, and the new, modern, worlds

will meet. Insurers that create a hip and

customer-oriented image for themselves

on the outside on Social Media are

often unable to meet the expectations on

the inside, with their policy-administration

process, for example. Should we see

those two worlds as separate entities, or

as an integral whole, complete with all the

challenges that would bring? Personally, I

would put the complex, legacy, world in

a separate company, supported by excellent

customer service. The new world

could then serve as the basis for all your

new policies and customers, based on

the latest technologies. I think a straightforward

marriage between the new and

old world will be difficult, the journey will

be how to adapt, adopt and improve.

RGA X

In the context of change we have launched RGA X as a venture for new initiatives

and as an accelerator of innovation. Budget is reserved for investments, such as in the

technology that underpins micro insurance, for example, as well as in funds that invest

in FinTech and InsurTech. Ventures should not be seen as a fad. We genuinely believe

that “make or buy” should be a part of your new business model. As a large international

company, it’s an illusion to think you can do it all yourself. For me, a venture is not

a utopian pursuit. That said, if you identify a concept that you consider relevant, you

can develop it yourself or invest in a company that is already doing so.

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RESEARCH

MILLENNIALS

FIRST

They’re the future, the Millennials, also known as Generation Y,

young people between 20 and 35 and the first real Internet generation.

Insurance doesn’t really figure prominently in their priorities, so how

can insurers reach them?

I

t’s not that Millennials don’t

consider insurance important; of

course they do, especially when it

comes to insuring a new moped or

scooter, for example. But they don’t see it

as an obligation. And that’s certainly the

case when it comes to health insurance.

The bottom line here is that they have no

emotional bond with insurance and thus,

by definition, not with insurers either. It

means that insurers have to create more

relevant products, no nonsense content

and, of course, use mobile platforms.

So where and how can insurers interact

with Millennials? Well, these youngsters are

the first generation that grew up with the

Internet, which makes them inextricably

linked to Social Media. In the eyes of Millennials

the future of insurance is ‘mobile only’.

And that’s where you’ll find them, on Social,

on forums and on blogs. Insurers have to be

in all the places where Millennials express

themselves. By responding to them, asking

them questions and, wherever possible, giving

them expert advice.

To complement other channels, WhatsApp

and Facebook Messenger are the platforms

on which insurers should focus the

most if they want to reach Millennials.

Forget having to create an account, forget

logon details, it has to be easily and always

accessible. And not just to answer

questions or make proposals either,

but somewhere you can also take out

insurance and even submit claims. Remember,

photos and videos can also be sent with

WhatsApp or Facebook Messenger.

A company’s brand values and experience

weigh heavily with Millennials, be-

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RESEARCH

MILLENNIALS

cause they need to be able to feel a personal

bond with it. Worldwide studies

show that most Millennials agree that it is

important for them to find brands that

reflect their personality. Brands should

look at their Millennial customers and

create a brand personality that mirrors

that of Millennials themselves. A company

must take them seriously by listening

to them, being loyal and showing them

that they care about them. To gain their

trust calls for a personalised customer

experience. In the era of big data, one-sizedoesn’t-fit-all

when it comes to Millennials.

They are reluctant to pay every month for

blanket coverage, as opposed to actual

usage. Age aside, Millennials are also

different to baby boomers. They don’t

want the same products. Their households

are different and they are fans of

the sharing economy. All-in-all, insurers

are going to have to change a lot.

Millennials want to be approached completely

differently than previous generations.

Any communication must be

simple, quick and clear. If it’s not, they’re

gone. No nonsense then, certainly no

gimmicky content, just relevant information.

It’s precisely because their association

with insurance is driven purely by need

that means it cannot be complicated. Millennials

want to be helped simply, so that

they don’t have to concern themselves

afterwards. They live their lives online,

but they still love offline experiences.

Being online is a means of expressing

themselves via digital channels.

Decisions made by Millennials are

largely driven by what others say

elsewhere, which is why they mainly

rely on user-generated content. And,

remarkably, they take the reviews of

strangers more seriously than those of their

family or friends. And their willingness

to switch products is much, much higher,

because they have less brand loyalty.

his just underlines how important it is for

insurers to “play the game” on Social Media

and to increase relevance. Millennials want

to decide themselves about what they buy,

when it suits them, and where. On Social

Media, of course.

MILLENNIALS IN FIGURES

Qualitative and quantitative research

carried out during these past few years

have provided many interesting insights

into Millennials, namely:

87% of them keep their smartphones

with them, day and night;

they spend over three hours a day on

their mobile device;

71% of them use social media every day;

they spend an average of 2 hours and 20

minutes on Social Media every day;

of the social networking apps, the Facebook

mobile app is used the most;

they spend an average of 51 minutes a

day on the Facebook mobile app;

this is followed by Instagram, Snapchat

and Twitter;

they have started to look further afield

than just Facebook, although it remains by

far the largest social network in the world;

84% of them say that user-generated

content on company websites has at least

some influence on what they buy;

33% of them rely heavily on reading

blogs before making a purchase;

93% of them check out online reviews

before making a purchase.

SOURCES: socialmediaweek.org

www.statista.com

LARS (20)

“In the event of a complaint I have experience

with Facebook, even though

I know it’s also handy to use Twitter.

I always hope to get a response within 12

hours, certainly within 24 hours, but the

sooner the better.”

DAAN (22)

“Price and quality are important. As far

as I’m concerned it doesn’t necessarily

have to be the cheapest; I want quality.

The website must be clear in what’s being

offered. No fine print and no nonsense.”

THOMAS (18)

“The best way for an insurer to contact

me is through email. If I buy a phone, it’s

handier if an offer for phone insurance

is part of the package because you can

close the deal on it immediately.”

JOOST (20)

“An insurer doesn’t have to be cool. Sometimes

I see TV ads in which insurers target

young people using some semi-cool name

that simply doesn’t hit the spot. Not only is

this not effective, it makes us feel as if we

are not being taken seriously.”

ROBIN (21)

“Communities are becoming increasingly

important and it’s mainly about

reviews. In future I think the opinions of

other consumers will become more and

more important. Because they are not

completely objective, comparison sites

will become a bit less relevant.”

PIEN (24)

“I’m becoming increasingly focused on

things that will happen in five years, so

with things that I should insure too. But

I know so little about insurance at the

moment. Like most young people, it is

something my parents are taking care of.”

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61

MILLENNIALS

Millennials choose their own path.

They are completely

linked with Social Media.

NOOR (23)

“I’ve just taken out health insurance

because my parents felt it was time to

do it myself. I checked online for quality

and good reviews. When I called it was all

arranged in just five minutes.”

MATS (26)

“I’ll check reviews to see if sites I’m not

familiar with can be trusted, but I won’t

compare quality when it comes to brands

like Nike or Apple. Then it’s all about the

concept, the image. Functionality is also

very important. And privacy? It doesn’t

really exist any more, which is something

we just accept and take for granted.”

JORIS (18)

“Mail is more formal and clearer than

WhatsApp or Instagram and with mail

you tend to take more time to write a

better, more readable text. I prefer to

respond to mails with my laptop because

it’s easier. When you use your phone you

do things quickly and you don’t always

take enough care.”

LIZA (23)

“Based on all kinds of data, ads are placed

on your timeline and this irritates 95 per

cent of people. If you want to take out

insurance for your phone, for example,

that’s something you’re more likely to

do with an insurer and not with Apple.

‘‘An insurer has the necessary expertise

whereas Apple does it as a side-line.”

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KARLIJN MUTSAERTS, MANAGER SOCIAL MEDIA PRACTICE ITDS

SOCIAL SELLS

“When I carry out a Social Media Scan at an insurer I certainly notice that

the importance of Social Media is acknowledged by the management. But

in reality Social Media is often not being given the priority it warrants, and

its success depends entirely on the marketer who makes a case for it. Its

real importance is just not recognised enough.”

D

uring the past few years

Karlijn Mutsaerts, Manager

Social Media Practice at ITDS,

has come to know the insurance

sector in the field of Social Media like the back

of her hand. Using the Social Media Scan,

which she developed personally, she advises

companies how to embed Social Media in

their operations. Since the launch of the

Scan, she and her team have advised over

20 insurers in this area.

IS SOCIAL MEDIA TAKEN SERIOUSLY?

Not seriously enough, there’s no doubt

about that. At best, a company will appoint

a Social Media manager, but in less

favourable cases that won’t happen at all.

Insurers are struggling with good reports

that don’t emphasis its importance, so the

management style stays too focused on “old”

KPIs. They remain locked in a vicious circle:

no insight into results, so no priority.

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CAN THE EFFECT OF SOCIAL MEDIA

BE MEASURED?

Absolutely. Based on an attribution

model defined by the insurer it’s possible

to measure the role that was played by

Social Media in the conversion process

(such as a click, a premium calculation

or a new policy). Yet few insurers provide

insight into the results in this way.

HOW MUCH SALES POWER DOES

SOCIAL MEDIA HAVE?

Social Media gives you the opportunity to

make the customer key. Actually, the customer

puts himself at the centre; as the insurer

you just need to handle it correctly.

We’ve helped insurers to set up a “Social

Command Centre”, in which everything

literally revolves around the dialogue with

the customer. It’s a great way to get things

moving in an organisation and wake

people up to the possibilities. What the

KARLIJN MUTSAERTS

customer says is displayed on large screens,

so the organisation can simply no longer

ignore it. By entering into dialogue with the

customer he feels as if he’s being heard,

which contributes directly to customer

satisfaction, as well as the perception that

people have of the brand in question. Using

messenger services, such as WhatsApp, also

clearly contribute to customer satisfaction.

I was allowed to implement it with several of

our customers and their customer satisfaction

has never been higher! Email and

phone calls can never compete with it. And

Millennials, in particular, are becoming

increasingly more accustomed to communicating

via WhatsApp and Facebook Messenger.

But Social Media offers much more: it

presents so many opportunities to learn from

and learn about (potential) customers. Once,

you know how to play the game you can

establish a bond with your customers. That’s

sales, or call it retention, but that’s also sales.

ARE THERE MEASURING

INSTRUMENTS THAT CAN HELP?

Like I mentioned, insurers often remain in a

state of flux because the figures aren’t made

transparent, or because KPIs go no further

than increases in the numbers of fans and

followers. This perpetuates the problem of

it not being clear what Social Media adds

to the equation. The management dashboard

doesn’t exist yet, at least not with any

insurer I’ve ever seen. Everyone is struggling

with dashboards. Even in those cases in

which KPIs have been defined, there are

still no dashboards. There are the most

intuitive tools imaginable out there, tools

with impressive dashboard capabilities.

But if they aren’t properly configured or

embedded, they won’t help.

HOW SHOULD IT ALL BE TACKLED

THEN?

In an ideal world it’s a continuous process:

1. define the strategy, 2. execute, 3. measure

and 4. learn and tweak the strategy. In

many cases, the first two steps are carried

out, and number three is sometimes done

too. But step four is one that’s rarely taken.

More often than not, it’s pre-digested for the

customer: what would work, what would the

customer appreciate. The point is, so much

experience and data has already been accumulated,

and these choices should be based

on this experience and data. Measure, learn,

adjust, measure, learn, adjust. I often come

across reports made by third parties. In the

most extreme cases 10 different reports can

be delivered about 10 different subjects by

10 different agencies. It’s hardly surprising

that nobody has a total overview!

‘Disruption

is

already

here’

SOCIAL MEDIA SCAN

Thanks to our annual survey into insurers’ use of Social Media, at ITDS we are often asked for our

expertise. The development of the Social Media Scan was a logical next step. Using this Scan,

we can show to what extent Social Media has been integrated in a company and how it’s used.

It’s much more than just advice about how to organise your Facebook page. It’s about choosing

the most appropriate channels, relevant content, clear KPIs, and the right reports. But most importantly

of all: it’s about embedding it in the company’s business processes. From Social Media

to Social Business. For more information about our Scan contact: k.mutsaerts@itds.nl

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INTERVIEW

DIGITISATION?

TRANSFORMATION

IS CRUCIAL!

“Digitisation is an essential prerequisite for succeeding in business. If you

don’t do it you’ll miss the boat. But it takes more than just a website or an

app. Digitisation calls for the transformation of the whole company. “We’re

working hard at it; but there’s still a lot to do.” The words are those of Frank

FRANK VAN WESSEL, DIGITAL OFFICER DELTA LLOYD

van Wessel, Digital Officer at the Dutch insurer Delta Lloyd.

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INTERVIEW

FRANK VAN WESSEL

F

rank van Wessel is responsible

for digitisation at Delta Lloyd

and he’s an enthusiastic proponent

of the process. He flags

up any changes that are necessary, and is

constantly aware of challenges that his organisation

faces.

AMBITIONS IN THIS AREA?

Today’s customers are almost continuously

online. At night we put our smartphone or

tablet next to our beds and during the day

we’re not averse to taking them to the toilet

with us either. Customers want one-touch

service and a high level of user-friendliness.

And companies like Picnic and Uber are

meeting that need by using modern technology.

Companies like these are also setting

the benchmark for the financial sector. At

Delta Lloyd we’ve some way to go, but our

ambition is really no different. Customers

expect it, and it saves money. That’s why

we’re investing in digital programmes. The

two brands in our group are in a different

phase. Customers of our direct label OHRA

can already do a lot themselves online and

on mobile. For the most recent customers

there is no longer a paper option; they have

to accept digital service. Thinking digitally is

also ingrained in employees’ DNA, because

at OHRA they are used to having direct contact

with customers and, above all, offering

simple-risk products. Delta Lloyd’s products

are more complex. For customers it’s wise,

even mandatory sometimes, to be helped

by an advisor. Here, the digital ambition is

no different but the transformation process

is a bit slower.

We’ve not yet reached the

tipping point in the financial

services industry.

WHAT ARE DELTA LLOYD’S

PERSONAL

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AND WHAT DOES DIGITISATION MEAN

FOR CUSTOMERS AND ADVISORS?

We’re seeing a shift in the behaviour and

the needs of both advisors and customers.

Advisors prefer to spend their time advising

customers, as opposed to doing administration.

Customers meanwhile, want to be

better orientated before asking for advice

and prefer to do the simple administrative

things themselves. The need for advice

is thus non-negotiable. Through digital

projects we are working hard on

providing digital support for the whole

customer journey, for both our customers

and our advisors. By the end of this year

Delta Lloyd wants to digitise 90 per cent of

all contact between customers and advisors.

WHAT KIND OF CHALLENGES DOES

THE INSURANCE SECTOR FACE?

A user-friendly digital process might seem

like a no-brainer, but even achieving

something relatively easy − like logging in

− can often be complex and requires a lot

As a 32-year-old Frank van Wessel belongs to the generation Y that grew up with the Internet.

As a trained economist he started up a web design company. Since 2009 he has worked for the

Delta Lloyd Group. Within the Group he worked for several brands: he joined ABN AMRO Insurance

and between 2010 and 2014 he was marketing manager with BeFrank. At the Young Professional

of the Year 2012 ceremony, he won an award for a marketing campaign that he developed.

of expertise. Straightforward is not necessarily

the same as simple. Above all, a digital

strategy entails more than just having a

user-friendly website and an app. Creating

a fully digital mindset and applying new

business models are real challenges. Ultimately

it’s about the transformation of the

whole company. “Digital” must be part of

the DNA of every employee. However, the

transformation of a company, that’s been

doing things differently for so long, calls for

a lot of energy. And it doesn’t make it any

easier if we continue to fall back on existing

business models, and neither does the mentality

of “doing nothing” does no harm in

the short term. But “doing nothing” when it

comes to digitisation is not an option; we’d

soon be out of business. It’s mainly about

being careful to find the right speed.

AND WHAT ABOUT ORGANISATIONS’

CAPACITIES?

It begins with ambition and there is enough

of that. A digital strategy is translated into

a digital agenda, complete with concrete

projects and deliverables. Among other

things Delta Lloyd is working on the modernisation

of logging in and of its tooling,

the improvement of portals, and the further

development of mobile apps. For example,

at the beginning of 2015 we developed a virtual

assistant, a smart tool that can answer

context-relevant enquiries without the involvement

of employees. In the meantime,

between 800 and 1,000 enquiries a day are

being processed, with a success rate of 90

per cent. We’ve also introduced “My Delta

Lloyd” in The Netherlands, a digital counter

that brings together all separate portals for

our customers and advisors. Then in July,

we were the first insurer in the Netherlands

to implement Touch ID in the OHRA App. A

few months ago we started using WhatsApp

at OHRA. Customers gave us a 9.1 appreciation

rating for OHRA via WhatsApp, higher

than we dared to expect.

But if I look around, I still think we need

to go faster. We’re used to thinking linearly

so we tend to underestimate the impact of

digital developments until it swings the

other way. And then we’re surprised at its

speed and impact. But by then it’s too late.

I don’t think we’ve yet reached the tipping

point in the financial services industry.

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WHAT WILL BE IMPORTANT DURING

THE COMING YEARS?

I think it’s crucial to acquire experience with

data, proactively identifying risks and notifying

customers. That’s why I’m interested

in insurance based on usage and behaviour.

It’s a fascinating concept because it marries

several developments. In it, customer

behaviour, digital services, data, technology,

privacy and direct feedback and the

application of insights all come together.

Customer demand is very strong, and as

soon as privacy can be guaranteed the


INTERVIEW FRANK VAN WESSEL

Asking for input has never

been easier. That’s the role and the

power of Social Media.

market will develop. Just look at the growth

of Oscar Health in New York. I also expect

a transition to “pay how you live” in the Netherlands.

WHICH APPROACH DO YOU

FAVOUR?

I believe in three development phases: inspiration,

testing and implementation. I think

an idea should be tested much more before

being implemented into our core systems.

We need to build prototypes, explain it to

customer panels and increase our skills and

knowledge through experience. If it doesn’t

work, we should stop, but if it does work

we should improve it and make it bigger. In

other words, we shouldn’t be too quick to fit

it into existing structures.

WHAT DO YOU MEASURE?

Like digitisation, taking measurements is not

a goal unto itself, but a key way of structurally

improving. My objective is to improve

our level of service, based on feedback received

from our customers and advisors.

One statistic doesn’t tell me much. I’d like

to know what customers and advisors really

appreciate, and what they think could be improved.

I prefer to measure real behaviour.

How many screens did the customer have

to navigate? How many clicks? How many

fields did he have to fill in? And what did he

think of it all? The responses we receive will

tell us which adjustments are necessary and

help us set priorities. Asking for input has

never been easier. That’s the role and the

power of Social. I regard Social Media as a feedback

channel, one that allows you to learn and

engage in dialogue. That’s what the technology

is for; advisors and customers want it, so

why shouldn’t we give it to them?

WHEN WILL YOU BE SATISFIED?

When customers and advisors are truly appreciative

of digital services, and see them

as the best option, of course. Another thing

I want to achieve is for employees to see

digital services as an intrinsic part of

business operations. I want to fuel a transition

from a focus on product to a focus on

digital services. Together with customers and

advisors, we want to develop products and

services and learn which risks customers

want to accept, reduce or defer. We want to

listen to customers’ needs and then deploy

modern technology in relevant ways. It

involves working structurally on user-friendliness,

improving service and reducing costs.

It means that people won’t just become

customers; they’ll want to stay customers.

Digitisation never ends.

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VISION

TO SURVIVE WITH

SOCIAL MEDIA

Insurers are feverishly digitising their processes, but contact with the

customer on Social Media and mobile still lags behind. And that’s

exactly where the future lies.

Vision, by Arjen de Boer, CCO at ITDS

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VISION

ARJEN DE BOER

TOWARDS A

SOCIAL COMPANY

New technology, changing customer behaviour and start-ups with

divergent business models will change the insurance industry. It’s only

by increasing and smartening their use of Social Media that insurers

will be able to survive in this brave new world. It’ll require a drastic

change in the internal organisation. The only chance of enduring is to be a

genuine Social Company. A few developments that play a role in all this

are sketched below.

STILL ALIVE, BUT…

The insurance industry will still be

around in 2020, but insurance companies’

business model will have undergone a seismic

shift. With local governments maintaining

legislation and regulation, the shift will be

slower than expected, despite insurers having

invested a lot of money in start-ups and

disruptors last year. Traditional distribution

models are still being used. In one

country the middleman is still very

much alive and kicking, in another many

old-school insurance agents are still used,

and in some parts of Europe much of the

distribution goes through banks. In response

to the threats, a lot is being done in the area

of digitisation. But there’s still not enough

focus on Social Media. Even start-ups are

not sufficiently exploiting the power of

Social Media. Hardly any company is taking

that vital step towards becoming a Social

Company.

SHIFT TO MOBILE, THE

FUTURE IS CONNECTED

Prospective, and even existing, customers

are going for absolute convenience. Not

four clicks, just one. But this calls for huge

investments in becoming familiar with a

mobile-only approach. The focus must

also be on Millennials; the elderly will

follow their example. Use Social to

generate quick methods of self-assistance.

Enhance agility and innovation. Go ahead

with innovation and implement it as

quickly as possible.

FROM SOCIAL HUB TO

SOCIAL COMMAND CENTRE

The big insurers are certainly all active

and they are investing heavily in innovation,

mobile and Social. There is also

activity on the Social platforms and

they are writing blogs. But as yet they

are nowhere near what you could call

Social Companies. While social is about

becoming a social business rather than

using social as a marketing tool. The current

business model is coming to an end.

Using Social Media doesn’t make it more

expensive. On the contrary, using Social

renders certain processes unnecessary,

so you can skip them. There is a huge

amount of ignorance about Social Media.

THERE IS NO “SOCIAL STRATEGY” ANYMORE,

JUST STRATEGY IN A SOCIAL WORLD

If the industry is to survive in future, insurers will simply have to change. The question

is whether old insurers will be able to reinvent themselves. Start-ups and new players

only employ young people and they adopt a “mobile-only” approach. Through social

they corporate trust and brand love. But does this all mean that these old insurers will

need to ring-fence the traditional parts and start new organisations alongside them?

Big players like AXA and Allianz are investing in start-ups, but they are also renewing

and sometimes dismantling the older parts. In some countries insurers are selling old

distribution channels, like working with banks and agents, to third parties and starting

a new organisations under their established brand.

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VISION ARJEN DE BOER

Making the organisation Social demands

a lot of focus. More often than not a

company’s management comprises shortterm

thinkers with other KPIs in their

sights, whereas the focus should be on

the long term. Many players have installed

a Social Hub, which again comprises

no more than a small group of believers.

There is still not yet a social command

centre. And if that small group of believers

walk away, Social falls by the wayside.

THE CUSTOMER IS BASHING

THE SILOS INTO ONE

That small group of believers is often

spread over the whole company, in different

departments, such as marketing,

online, branding, customer service, or

communications. An excellent customer

experience depends on the cooperation

between these departments. The customer

sees the insurer as one company and isn’t

bothered about its separate departments.

LEARN THINGS ON SOCIAL

MEDIA THAT THE CALL CENTRE

DOESN’T KNOW ABOUT

Social Media should not be seen as an

extra; it must be part of the organisational

culture. Insurers must be present to

listen and learn on the most popular Social

Media channels. You’ll learn more about

your brand and your services on Social

Media than you will through a call centre.

As soon as WhatsApp and Facebook

Messenger are integrated in a contact

centre, customer satisfaction increases.

Millennials not only want to get in touch,

they actually want to do business like this.

This doesn’t just mean claims handling,

but also going to WhatsApp and Facebook

Messenger for insurance products. Within

the past few years, messaging apps have

surpassed social networks. Launching

messengers as part of customer service

app, will cause a noticeable drop in

public complaints. WhatsApp is the consumers’

response to the complex world that

insurers have created themselves.

CUSTOMER RECORDS

MUST INCLUDE WHO

SOMEONE IS

ON SOCIAL MEDIA

Nowadays a one-to-one approach is actually

possible. During these past few years big

data has been very much on every-one’s

lips, yet hardly anyone out there is actually

implementing it. Walk the talk and

get on with it. Only then will you be able

to see what customers want, measure it

and give customers service. It is now a

SOCIAL IS REINVENTING THE ENTIRE CUSTOMER LIFE CYCLE

Social activities must be embedded in the insurer’s core business. It’s more than

just a new way of communicating. It’s about deploying Social in the insurer’s

services, like using WhatsApp for claims handling, and maybe in future for actually

taking out an insurance policy. It calls for a new organisational structure. So fully integrate

social within your organisational structure and culture. You have to start internally to be

successfully externally.

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VISION

ARJEN DE BOER

Customers will make choices that are

based on peer-to-peer and user reviews.

given that the insurers’ business model

will have to change. Data must be used

in the interests of better customer focus,

for which the integration of CRM and

Social data is crucial. The customer’s

behaviour and his or her behaviour on

Social Media must be aligned, by increasing

the integration of online and offline customer

data and webcare data. To really get

to know customers and implement a oneto-one

approach, spray and pay is dead.

Install a data-driven culture to drive better

decision-making. Don’t look at your

audience just as a sales target, it’s about

building a relationship. Long term relation

has more value than the short term sales.

A NEW MIND-SHIFT

Why do insurers focus so strongly on

customer retention? Clients won’t walk

away if you are transparent, have a good

product and offer excellent service. Make

sure your products are attuned to the

needs of customers and go in search of

new clients too. All this is a mind-shift

that has to take place. Social Media is the

channel of which insurers will acquire

new customers, new target groups.

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LTC − LOVE, TENDERNESS

AND CARE

It’s relevant to take the trouble to help

customers and to really care about your

customers, rather than just pretending to.

Insurance will never be sexy, but that doesn’t

mean it cannot be relevant. Social is

real-time, transparent and brutally honest.

Use it to showcase the human side of your

brand. The biggest pitfall is to terminate

the dialogue or undermine its importance.

BE AUTHENTIC,

BE HUMAN

Everything is also related to content. There’s

more to using Social than just webcare;

it’s also about conversation management.

Content starts with meaningful connections.

It must engage your target group.

All around us we see a shift to mobile and

video. Visuals and video are key to great

contentmarketing. Share positive, peoplecentric

content, co-created with your

customers, easy to absorb. Be authentic

and human, humanise your brand.

Millennials, in particular, will not thank

you for complicated and commercial

posts. At the same time you must pay

attention to user-generated content. It

opens doors to a real community, where

real discussions take place.

MILLENNIALS WILL DICTATE

THE FUTURE

Insurers have to become brand publishers.

It calls for a completely different skills set.

Snapchat, WhatsApp and Facebook Messenger

will turn the whole organisation

on its head, which will then need different

people to play different roles. The attraction

for school leavers to work in this industry

is minimal, yet it’ll be the well-heeled

Millennials that will dictate how the insurance

market will work in future, which

means that Millennials will have to be

deployed in the organisational embedding.

KEEP IT STUPIDLY SIMPLE

It all starts by improving the level of service

to the customers. Beware of window

dressing; customers will quickly

see through it. Customer service must

be simple and straightforward: keep it

stupidly simple. Insurers have made it far

too complicated. Be as open as possible and

be ready for a future in which everyone will

be connected. Develop on-demand insurance

and connected insurance. We’re

going to have to deal with the Internet of

Things, where premiums will be dictated

by behaviour and parameters that can be

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measured. It will lead to different forms of

property & casualty insurance. The more

information that’s available about the customer’s

activities, the greater the impact

will be on future products. This is already

evident in the retail sector. In the life and

pensions sector, young people are already

buying less. These products will certainly

need to be adapted.

ON-DEMAND INSURANCE

Under pressure from customers, particularly

Millennials, products will be quickly

changed or adapted to meet their requirements.

Millennials want insurance when

they need it and for as long as they need

it, such as when they borrow something,

for example. This will become one of the

pillars of the new insurance industry.

There will be much more short-term

insurance policies and, for the sake of

convenience, that calls for an excellent

customer experience. Most new insurance

models are to be found in the area of

property and casualty, but there is also

a growing market for life insurance

products. One of the cornerstones of the

future is wellness, a strong advantage of

which is that it’s also a loyalty concept.

STOP SELLING AND START TELLING

Social Media has become an integral part of the contact between customer and insurer,

but it’s continuously developing. New platforms achieve critical mass quicker than ever

before. And how should insurers respond? Stop selling and start telling. There are too

few reviews, ranking and ratings. And in those places where measurements are taken

there is insufficient transparency. In future, customers will increasingly make choices

that are based on peer-to-peer and user reviews.

INFOGRAPHIC

SOCIAL NUMBERS

SOCIAL

NUMBERS

ACTIVITIES OF THE 20 INSURERS IN 2016

100% 95% 100%

100%

The rankings and charts of the Social Media Insurance Monitor were

established by taking measurements and doing desk research. The measurements,

taken across the 20 insurers featured in the rankings, were

taken on the first half of 2016. An infographic, complete with additional

statistics, is presented on the following pages.

ACTIVE ON ACTIVE ON ACTIVE ON ACTIVE ON

FACEBOOK TWITTER

LINKEDIN

YOUTUBE

HOW MUCH CONTENT DID INSURERS POST IN 2016?

6.601

messages on Facebook,

Twitter and LinkedIn

Most Facebook posts - MAPFRE (ES)

Most Tweets - MAPFRE (ES)

Most LinkedIn posts - AXA (FR)

Most YouTube uploads - Geico (US)

5 12 2

Average number of

posts per week on

Facebook

Average number of

posts per week on

Twitter

Average number of

posts per week on

LinkedIn

394 7.606 3.717

YouTube uploads

responses to

responses to consumers

consumers via Twitter

via Facebook

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INFOGRAPHIC

SOCIAL NUMBERS

HOW POPULAR ARE THE INSURERS?

TOTAL NUMBER OF

TOTAL NUMBER OF

FACEBOOK FANS

TWITTER FOLLOWERS

7.573.595 695.571

WHICH EMERGING CHANNELS ARE INSURERS USING?

60% 0% 70% 55%

OWN

COMMUNITY

WHATSAPP INSTAGRAM PINTEREST

TOP 3 FANS FACEBOOK TOP 3 FOLLOWERS TWITTER

HOW MOBILE ARE THE INSURERS?

95%

2.157.790 1.837.867 670.310 236.586 82.494 74.859

has a mobile website

95%

has a mobile app

59.886 4.825

Great Eastern (MY): most Facebook fans

compared to population density

Aegon (NL): most Twitter fans

compared to population density

90% 30% 15%

56% 85%

OF THE GLOBAL PLAYERS

HAVE A GLOBAL FACEBOOK PAGE

ADDITIONAL PAGES

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OF THE INSURERS HAVE

A CAREER TAB ON LINKEDIN

THE 3 MOST IMPORTANT OBJECTIVES

OF DEPLOYING SOCIAL MEDIA

1 INCREASING BRAND AWARENESS

2 COMMUNITY BUILDING 3 HR / RECRUITMENT

refers to Social

Media channels via

the homepage

20% 15%

gives the opportunity

to provide

feedback on the

website

offers Social Media

as a service

channel via the

website’s contact page

gives the opportunity

to provide

feedback on the

Facebook page

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Special mention to:

Geico offers 24/7

service via its

Twitter account

offers chat on the

website

HOW MANY INSURERS GIVE CONSUMERS

THE OPPORTUNITY TO PROVIDE FEEDBACK?

Special mention to:

Aviva gives the opportunity

on its website to

provide feedback

COLOPHON

‘Content

is King,

it

still is!’

Compilation

Arjen de Boer

General coordination

Karlijn Mutsaerts

Content and Research

Daphne de Groot

Wouter Houtman

Lars Majoor

Jaap Smeeing

Robin Verkerk

Translations

John Widen

Final editing

KdB

Media & Communicatie

Artdirector

Ingrid van Dijk (DN30)

Photography

Hans de Kort

Lithography

Nefli

Printing

GrafiServices Utrecht

A research-based report about the use of Social Media by

20 international insurers in 2016. An initiative of ITDS

Business Consultants.

The research was carried out by ITDS Business

Consultants in 2016. The results are based on interviews,

desk research and measurements taken among 20

insurers, from all over the world.

ABOUT ITDS

With offices in the Netherlands and in Poland, ITDS is a

specialist consultancy for financial institutions such as

banks, insurance companies and pension funds. Over 15

years’ experience in the industry have given us in-depth

expertise of a variety of products and processes in the

sector. We combine up-to-date knowledge of the insurance

market with a practical vision on information technology.

Information technology is playing an increasingly

important role for insurers, while Social Media and today’s

consumers call for a different way of communicating. ITDS

can help insurers draw up a strategy for the successful

implementation of Social Media.

With our Social Media Scan our experts can measure where

a company is regarding the deployment of Social Media, in

other words, how social their business is.

© 2016 - ITDS Groep B.V. No part of this publication may

be reproduced and/or published by means of printing,

photocopying, microfilm, or through any other channels,

without the prior written permission of the owner of

the intellectual rights, namely, ITDS Groep B.V. in the

Netherlands. This also applies to complete or partial

reworking.

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ITDS Groep B.V.

The Netherlands,

www.itds.com


SOME

SOCIAL MEDIA INSURANCE MONITOR 2016 BY ITDS

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