Around  the  GlobeCHRIS  SAMUELKEVIN  PLEDGE  FIA,  FSA13  Oct  2015

Session  115

2010

“We  can’t  issue  our  business  fast  enough  – can  you  help  us?”

2

Where  is  the  UK  with  Online  distribution?

3

“The future is here, it’s just not very evenly distributed”

Online  Life  Insurance  Beagle  Street  Case  Study

4

Chris  SamuelTCP  LifeSystems

5

UK  New  entrant  – not  really  an  insurance  company

Not  encumbered  by  existing  distribution

Online  only

No  advertising  for  first  two  years

The  Traditional  Approach

6

Indicative Quote zApply

Underwrite

IssueOfferAdd’l Q’s

Modify Application

Underwrite evidence

Further Questions

The  Beagle  Street  Approach

7

Indicative Quote

Buy

Apply and UW

Fully UnderwrittenNo fluids or additional evidenceCover up to £750kBetter lapse experienceAve issue time 12 minutes

• 5,000x  faster

• 1/10  of  the  cost

• ∞  scalable  

(85%  of  the  time)

Accelerate  existing  processes

8

What  about  barriers  to  entry?• Not  an  insurance  company• Focus  on  distribution• Partnerships  – Reinsurer,  Traditional  Insurer,  Software

• No  complex  systems• Focus  on  distribution  – outsource  the  rest

• Fresh  approach  to  branding…

9

10

11

www.acceptiv.com/SOA2015

Can  the  lessons  from  Beagle  Street  be  applied  here?

12

Kevin  Pledge  FIA,  FSAAcceptiv

Market  research

13

“Almost half of participants found the value proposition [to buy directly online] very appealing (rating of 8 or more out of 10); these results are encouraging.

Years ago, when evaluating consumer interest in the ING Direct value proposition, our goal was to find interest in only half as many target group members (who we defined as innovators).”

14

Term, CI, Joint and Single Life Term, single life only

Coverage up to 1.5m Coverage up to $500k

10 – 50 Yr Term 10 – 40 Yr Term (originally 10 - 30)

Coverage age range 18 -70 Coverage age range 18 -70

Fully underwritten Fully underwritten

No medical evidence referrals No medical evidence referrals

On cover in 15 minutes or less On cover in 15 minutes or less

Online, with offline support if needed

Online, with agent support if needed

Full UW + Lower cost = Lower premium

T10 - $13.42T20 - $21.08

Online Quote, Application and BuyAutomated underwriting immediate decision including rating if applicable

T10 - $18.65T20 - $24.80

Online Quote and ApplicationSimplified and Manual Underwriting

T10 - $20.00T20 - $26.04

Online Quote and ApplicationBasic auto and Manual Underwriting

T10 - $20.10Online Quote and ApplicationBasic auto and Manual Underwriting

T10 - $20.30T20 - $30.69

Online QuoteManual Application and Underwriting

Where  did  this  put  Teachers  Life?

Insurance

Turn  Key  Solution  for  Canadian  FraternalsA  Complete  Solution:  Full  go  to  market  solution  for  online  fulfillmentAdministration  support  Product  and  underwriting  designed  for  online  sales

Faster,  less  costly,  more  agile:  Fast,  economical  solutionBenefit  from  Teachers  Life  experience  Pay  for  results

Final  Thought…

18

www.acceptiv.com/SOA2015

Thank  You  &  Discussion

20

Kevin  PledgeAcceptivwww.acceptiv.com/soa2015