Acceleration of digital in retail insurance acquisition · 2020. 9. 29. · (SEA, SEO,...

Acceleration of digital in retailinsurance acquisitionAn Efma research initiative supported by Roland Berger

October 2020

Management summary

For many European countries, the research online, purchase offline (RoPo) trend has kept on growing in retail insurance products distribution for several years. Even for relatively standard products such as motor, home and health insurance for individuals, the share of direct digital sales sits below 10% across the vast majority of European countries (e.g. Germany, France, Belgium and Spain, …). Yet a large share of customers will have searched for information online before making an insurance purchase, whether online, by call or physically through an agent. Insurers have been looking to capitalize on that trend and acquire customers digitally, developing various business models, from direct digital sales to omnichannel models, with different levels of success.

In light of this continued development, growing competition has built up among insurers and other intermediaries such as brokers and aggregators, with each player battling for digital visibility and customer attention. One of the main consequences has been an increase in the price of leads generated through SEA (search engine advertising) campaigns, which has threatened the economic model of digital customer acquisition in insurance. On the other hand, new sources of leads have also emerged in parallel, as well as new partners that offer services and tools to support insurers in their quest for digital visibility.

The Covid-19 crisis has also accelerated the digitalization of insurance customer acquisition, as customers have spent more time online during the lockdown period across Europe, giving a boost to players that are well positioned and visible online. Its full impact is yet to be assessed but is nonetheless expected to persist over time.

This joint Efma and Roland Berger study assesses the acceleration of digital in retail insurance acquisition and examines the key success factors involved in defining and implementing a sustainable model for digital lead generation and conversion. The study focuses on retail

insurance through B2C distribution models. The structure of the study is as follows: first, we provide an overview of the current trends that are impacting the digitalization of retail insurance customers acquisition, then we define the critical dimensions that insurers have to address to build a significant and profitable acquisition model. The purpose is to assess the best practices they have established or are looking to establish and share their vision on how insurers will adapt to an increasingly RoPo environment in most countries in Europe. To do that, we developed a comprehensive framework mapping out the eight key success factors in digital lead acquisition and conversion based on interviews with industry leaders, lead providers and insurer partners. These eight key success factors are: 1. Build a strong experience in paid lead generation2. Track the overall performance of paid leads3. Optimize all dimensions of SEO to gain organic traffic4. Redefine the brand positioning and its differentiation5. Develop an adequate product offer6. Strike the right balance between all channels7. Free up commercial time in the physical network8. Support the physical network centrally and locally

For each of these key success factors, the study assesses the various maturity levels and best practices currently observed in the market among insurers, offering a snapshot of the direction the insurance industry is taking and which levers an insurer can implement to reach the next maturity level.

Insurers can take concrete actions to overcome barriers, reach their ambition in digital acquisition and build a sustainable model. Having a clear vision of what a successful acquisition model can look like and designing an actionable plan should then be top priority for insurers. Ensuring economic sustainability and, hence, relevance in digital customer acquisition will remain a critical topic in insurance in years to come.

2 Acceleration of digital in retail insurance acquisition

Contents

1. New acquisition models in retail insurance .................................................................4

2. Key success factors in lead generation and conversion ................................... 10

3. Going forward: Strategic and operational implications for insurers ...... 18

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Acceleration of digital in retail insurance acquisition 3

New acquisition models in retail insurance

1

4 Acceleration of digital in acquisition models of retail insurance

As customers heavily search for insurance products on-line but few actually make their purchase online, insur-ers have been looking to adapt and increase their share of digital leads. A rise in digital acquisition competition has triggered the inflation of related acquisition costs, notably SEA campaigns.

This context has enabled new partners for insurers to emerge, either providing alternative lead sources or offering services in organic lead generation and digital visibility. Multiple lead generation strategies have emerged to complement (or replace) traditional ad-based online marketing, with various levels of expected impact.

1. RESEARCH ONLINE, PURCHASE OFFLINEAs customers predominantly search for information on insurance products online (to find out about coverage, the underwriting process or medical questionnaires, or for price comparison, etc.), insurers have been looking to capture part of that online traffic to generate leads. A cor-responding share of leads is now generated online for the most advanced insurers, amounting to 30% of their leads in some countries (excluding pure digital players). A

Research online, purchase offline (RoPo) refers to the customer trend of searching for relevant product information, including price, to support their buying decision ahead of their final purchase at brick and mortar retailers or selling points.

In Europe, although a large share of customers search for information online on insurance products, most will still finalize their purchase offline, except for a few outliers such as the UK and the Netherlands. For the most common insurance products in online chan-nels, such as motor, home and health insurance for in-dividuals, only a small share of customers (less than 10%) will purchase their product online end-to-end. They rely at some point on a call center platform or on a physical point of sales to finalize their purchase. B

Online channels are still mostly used by customers in several European countries to gather information and select the most appropriate insurance product, as well as to receive a quote in order to have bargaining power with traditional distributors and intermediaries.

2. DIGITAL ACQUISITION COST INFLATIONMany industries have been facing increasingly rising ac-quisition costs through SEA for several years. This has been a particularly visible development in insurance, with continuous cost-per-acquisition inflation linked to several factors:

A: Share of leads generated online for insurers (actual situation; highest share among interviewed insurers; %)

10-30%

Source: Roland Berger


B: Share of customers purchasing insurance online (Actual situation at national level; %)


Norway

United Kingdom

Netherlands

Belgium

Portugal

France

Germany

Switzerland Austria

Italy

Spain

>20%

8-10%

3-8%


C: CPA from lead generators and aggregators (2019; Europe)

• Major insurers have been looking to capture their fair share in digital lead generation and have invested sinifi-cant marketing budgets dedicated to SEA campaigns

• In parallel, aggregators have seen the efficiency of their TV ads decrease over time and have reverted to SEA campaigns to compensate for the stagnation of their leads generated through TV, adding pressure to overall SEA costs

• Finally, certain specificities of the bidding process for selected words in SEA, especially insurers' brands, have also contributed to the inflation of digital lead acquisition costs

3. DEVELOPMENT OF DIGITAL LEAD GENERATION ALTERNATIVES TO SEAThe surge in digital acquisition costs has paved the way for new lead providers that have started to offer alternatives to SEA methods – we mainly see three types of models emerging: aggregators, specialized lead generators and diversified, non-core lead generators.

Those alternative lead sources offer several benefits such as competitive cost-per-acquisition levels, poten-tially relieving pressure on digital acquisition costs in insurance and providing the opportunity for insurers to diversify away from expensive SEA campaigns. C

Aggregators have been selling leads to insurance-related players, sharing customer data gathered along the sales funnel when no purchase was made in the end. A large share of aggregator visits is related to simple products with comparable coverage, such as motor and home insurance.

Specialized lead generators' core business lies in the sale of qualified and cost-efficient leads to enterprises by optimizing their mix of lead sources, from both paid and organic sources. Several lead generators specialize in financial services and can also target specific customer segments or products such as professional insurance products.

COST PER ACQUISITION (CPA) THROUGH SEA PROVIDERS [EUR]

COST PER ACQUISITION (CPA) THROUGH LEAD GENERATORS AND AGGREGATORS [EUR]


1 Assumption: 3% conversion rate2 Strong heterogeneity country by country

Strong and continuous cost-per-acquisition (CPA) increase in Insurance linked SEA

New, emerging lead generation models have started to compete with traditional SEA levers, potentially relieving pressure on digital acquisition costs in Insurance> Aggregators> Specialized leads generators> Diversified, non-core lead generators

40-80SEA - Home insurance

120-400SEA - Health insurance2

130-300SEA - Motor insurance1

40-60Home insurance

150-180Health insurance

110-150Motor insurance


Some partners offer communication channel optimi-zation and support to branch networks, agents and brokers. These services range from social network vis-ibility, content posting and lead generation to commu-nication through text messages and apps, ensuring content and compliance management across channels.

Diversified, non-core lead generators such as classified ads platforms have also diversified their revenue sourc-es towards insurance leads, albeit at a potentially lower conversion rate and lead price. D

4. EMERGENCE OF LOCAL LEAD GENERATION PARTNERSParallel to the development of alternative lead genera-tion sources and partners, new types of partners have emerged to assist insurers in the development of local lead generation. Their objective is to provide local busi-nesses, including insurance agents and brokers, with the tools to drastically improve their visibility to local potential customers and increase their chance to gener-ate leads.

Search engines have developed offers, such as Google My Business, to increase their local search visi-bility and increase engagement with customers through the display of relevant information, photos and videos, and the option for customers to leave re-views. They can additionally increase SEA ad engage-ment and improve conversion by using local exten-sions in the ad, which allow a business's address to be displayed along with a map to its location, with cus-tomers able to click on the extension to get more de-tails about the business.

Generalist local web agencies offer services such as website creation and SEO management to branch net-work points of sale, agents and retail brokers. They can support the development of their digital brand aware-ness (through website creation and referencing), the acquisition of new customers online, as well as the tracking and measurement of the return and efficiency of local marketing investments through call tracking by ad and campaign. They also offer support at a more central level, such as to the head of an insurance agent network or the manager of a franchise network, to en-sure harmonious and standardized communications.

Their objective is to provide local businesses, including insurance agents and brokers, with the tools to drastically improve their visibility to local potential customers and increase their chance to generate leads.


D: Insurers' alternative paid lead sources

AGGREGATORS

INSURERS

SEA & DISPLAY

SPECIALIZED LEAD GENERATORS

DIVERSIFIED, NON-CORE LEAD GENERATORS

Insurance price comparison platforms, either directing customers directly towards insurers, or selling non-converted leads to insurers

SEA: search engines selling prime search visibility

Display: search engines or social networks selling ad space

Platforms optimizing their marketing mix (SEA, SEO, prescription, etc.) and selling qualified leads

as their core business

Platforms selling qualified leads for specific insurance products as an adjacent revenue stream (e.g. generalist

online classified ads, or specialized in real estate or cars)



Key Success Factors in lead generation and conversion

2


Across Europe, insurers have adapted to this new envi-ronment. They have built upon the trends and refined their acquisition model to increasingly capitalize on dig-ital leads and to optimize their conversion rate. The fol-lowing framework classifies the eight key success fac-tors that insurers have focused on, according to two dimensions:• Transversal vs. specific • Marketing related vs. distribution related

For each of these key success factors, different levels of maturity have been derived. They reflect insurers' ma-turity in customer acquisition effectiveness and effi-ciency, from an experienced level to current best-in-class practices. E

1. BUILD A STRONG EXPERIENCE IN PAID LEAD GENERATIONAs lead generation costs have continuously inflated for the past few years, insurers need to build experience to keep their marketing budget in check.

The first level of maturity consists in centralizing the management of SEA campaigns at a national/regional level to maximize experience effects, for example opti-mizing their internal costs with centrally located dedicat-ed teams and optimizing their marketing costs with web agencies. More importantly, a centralized setup fosters the development of shared experience in SEA campaigns and ensures it is sustainable. Centrally located teams of experts share best practices in a more convenient way, ensuring the harmonization of campaigns and improv-ing the monitoring of their KPIs and performance, ulti-mately stabilizing the costs of such campaigns.

The second level of maturity consists in moving beyond SEA campaigns to increase its volume in digital leads at a competitive price by sourcing leads from alternative providers. Aggregators have been selling leads to insurers, agents and brokers from customers not

making a purchase. Specialized lead generators can offer qualified leads for specific client segments such as professionals, SMEs. Classified ads platforms have also diversified their revenue sources towards insurance leads, albeit at a lower conversion rate and lead price.

The last level of maturity consists in progressively au-tomating SEA campaigns. It is achieved by continuously adjusting the parameters of campaigns with live moni-toring of their performance, refining their words selec-tion as well as the timing and the purchase volumes based on regular performance monitoring and reconcil-iation of price/conversion rate analysis.

2. TRACK THE OVERALL PERFORMANCE OF PAID LEADSThe economic sustainability of some digital acquisition models has been thrown into doubt because of the infla-tion of Cost-Per-Lead (CPL) and Cost-Per-Acquisition (CPA). Refining the monitoring of digital leads perfor-mance and considering all revenues generated from them can help perfect the economic model behind paid lead acquisition.

The first level of maturity consists in monitoring the performance of leads through CPA. As CPL monitoring provides a limited insight into the performance of paid leads, the monitoring of overall acquisition costs through CPA offers a more precise perspective of the performance of various SEA campaigns and lead sourc-es. CPA can be an efficient tool to assess whether sourc-es offering lower-cost leads provide a high enough con-version rate to be relevant. Including full conversion costs (e.g. also including call centers or physical distri-bution network) ultimately leads to efficient cost moni-toring of a digital acquisition model.

The second level of maturity consists in including the assessment of customer lifetime value (LTV) in mon-itoring the performance of leads. Beyond a pure cost perspective, the assessment of customer LTV casts light


E: Key success factors in lead generation and conversion for insurers

4

3

SPECIFICBuild a strong experience in paid lead generation

Redefine the brand positioning and its differentiation

Develop an adequate

product offer

Support centrally and locally the

physical network

Track the overall performance of paid leads

Optimize all dimensions of SEO to gain organic traffic

Strike the right balance between all

channels

Free up commercial time for the physical

network

DISTRIBUTION MARKETING

TRANSVERSAL

2

1

1

45

8

2

36

7


Example of positioning of an insurer


on the full benefits brought by digital acquisition. By taking into account the cross-selling potential and churn rate, it brings visibility on the full revenue poten-tial generated by paid leads over time, supporting the development of digital acquisition.

The last level of maturity consists in adding the cus-tomer risk profile and the potential assessment of tech-nical results into the overall monitoring system to pro-vide further granularity in the monitoring of lead performance and an estimate of the margin per lead. This final step brings additional visibility on the poten-tial return on investment for paid leads and SEA cam-paigns, supporting the deployment of a sustainable eco-nomic model for digital acquisition.

3. OPTIMIZE ALL DIMENSIONS OF SEO TO GAIN ORGANIC TRAFFICBrand visibility and SEO have become increasingly com-petitive and call for both marketing and technology investments.

The first level of maturity in addressing digital visi-bility and generating organic traffic is to generate tai-lor-made content on insurance-related topics, opti-mized for search engines and also appealing to potential customers. To that end, building of links, or netlinking, with other websites or partner websites will improve ref-erencing by supporting the relevance of the website pag-es in the eyes of search engine algorithms.

The second level of maturity consists in optimizing its website in a bid to improve search rankings, ranging from a smooth user experience to the website's technical performance. Search engine algorithms closely monitor a site's technical parameters. Optimizing the website's technical performance by focusing notably on page load-ing time but also on a consistent and organized architec-ture, alongside responsiveness and security, will improve search rankings. Constantly refining the user experience and reducing the bounce rate by optimizing website

speed along with how the site displays on mobiles and tablets, as well as reducing page errors and improving hosting performance will also help the website achieve better rankings in search result pages.

The last level of maturity consists in developing an ecosystem of services not directly related to insurance but ultimately leading to an interest in or a need for an insurance product. Such a development can support brand visibility and enable the generation of highly qualified leads well ahead of the customer purchasing act. Ping An in China is a good example of such an eco-system of service platforms. F

4. REDEFINE THE BRAND POSITIONING AND ITS DIFFERENTIATIONBrand positioning and differentiation is a major topic for insurers beyond their online visibility.

The first level of maturity consists in focusing on its digital visibility and on optimal lead conversion. Yet, key elements differentiating its own brand are at risk of becoming deprioritized.

The second level of maturity consists in asserting brand differentiation while implementing a digital lead strategy and is hence critical to avoid standardization among the competition. The definition of a clear brand positioning, with potential specialization on customer segments, products is a first step towards that goal. Promoting what makes the brand unique, such as ser-vices, product customization, level of coverage, or cus-tomer communities is another step.

The last level of maturity consists in focusing on the purpose of the company beyond value creation as it can also support brand differentiation and recognition among customers. The aim should be to develop into a responsible company based on value creation for all stakeholders, with the defined purpose spanning the whole of the value chain, including underwriting, mar-keting, distribution, providers and partners.


F: Case study – Ping An ecosystems (2019)


MAIN PLAYERS IN PING-AN ECOSYSTEM

HEALTH CARESMART CITY

AUTOMOBILEREAL ESTATE

More than 289 m users

More than 656,000 consultations per day

Integrated platforms to further China's reform; project examples:

Integrated business credit platform to predict risks

Smart agricultural traceability platform across multiple provinces, cities and regions

20 k new car dealers, 40 k second-hand car dealers

USD 1.6 bn of auto finance and insurance transactions

Contracts with 60 cities

Collaborative services platform for urban planning, real estate trading, design/construction

234 m customers, more than EUR 200 bn transaction volume

42 m customers 70 m customers

E-wallet

Good doctor

FINANCIAL SERVICES


6. STRIKE THE RIGHT BALANCE BETWEEN ALL CHANNELSAn efficient omnichannel model requires both efficient distant conversion and physical interactions for cross-selling and lower churn.

The first level of maturity consists in setting an opti-mal and fluid switch between underwriting channels. Enabling customers to switch channels according to their needs or requests for advice or explanations is the keystone of an efficient omnichannel model. On top of that principle, leveraging call centers to better qualify leads, convert them or redirect them towards the physi-cal network by directly booking appointments increases the efficiency of the operating model.

The second level of maturity consists in also giving a major role to the physical distribution network in that model through conversion and product cross-selling. A large share of the network can be involved in the omni-channel model to increase interactions with customers when needed, to cross-sell other products and ultimate-ly to reduce churn. Allocating digitally converted leads to the physical distribution network can also alleviate perceived competition between channels and help in-volve a larger share of the network.

The last level of maturity consists in developing a more granular prioritization of customers and channel allocation based on their conversion potential. Such pri-oritization can be defined according to the customer's commercial potential (e.g. a one-time buyer with high probability of churn, or a high-quality profile with po-tential for cross-selling) and maturity with regard to the product or channel. This can ensure more reactivity to-wards the customer when most required and further in-crease conversion rates. G

5. DEVELOP AN ADEQUATE PRODUCT OFFERAn efficient omnichannel distribution model relies on having a simple and unique product for all channels.

The first level of maturity consists in offering simple, customer-friendly online insurance products to shorten the underwriting funnel. A limited number of options and questions can drastically optimize conversion rates in an environment where customers are willing to quick-ly conclude underwriting. Consequently, the product description needs to be adapted with customer-oriented terms and details, and presented in a less technical, tra-ditional insurance-oriented manner.

The second level of maturity consists in making such products available in an identical form across all channels as it is also an important factor in conversion rate and customer satisfaction. The unicity of those products across all channels, in terms of design, fea-tures and prices, enables both the physical & remote distribution networks to support the conversion of leads generated on specific online products, without frustrating a customer looking to purchase a specific product at a given price. The adaptation of the product to the physical network, with the ability to potentially add some options depending on customer needs and situation, can steer the buy-in of physical sales forces.

The last level of maturity consists in broadening its product offering beyond traditional online products such as motor, home and health for individuals which can offer some development potential, for example:• Insurance for professionals (such as P&C, health)• Individual protection products (such as accident, loan

insurance)• Niche products (such as pet insurance)


G: Preferred distribution channel per product and customer's product maturity


Client product maturity

LOW

LOW

HIGH

HIGH

Product complexity

Offline channels(e.g. local agents, tied & salaried agents, brokers)

Motor

Loan insurance

Home

'Simple' protection (e.g. accident, funeral)

Health

Life insurance

'Complex' protection (e.g. dependency)

Call center

Online


7. FREE UP COMMERCIAL TIME IN THE PHYSICAL NETWORKTo achieve the optimal involvement of all channels in the target omnichannel model, distribution networks need to transform themselves to free up time dedicated to commercial activities.

The first level of maturity consists in digitizing administrative or repetitive tasks and automating processes for efficiency gains. Such optimization can be applied for example to the handling of incoming emails (e.g. partial answer automation for file transmission or for pricing explanations, automation of contractual up-dates upon customer request, automation of commer-cial offers, etc.) and to the management of appoint-ments (e.g. automated appointments, appointment preparation, automated meeting notes).

The second level of maturity consists in simplifying the underwriting process, notably by leveraging elec-tronic signature, online payments and customer need assessment tools. Support from call centers to qualify new customers, gather data and make appointments for the physical network based on assessment of prospect value can help achieve such efficiency gains.

The last level of maturity consists in additional le-vers such as the digitalization of tasks via AI-enabled solutions (e.g. AI-enabled next best offer/action solu-tions to gain efficiency in commercial activities) and the further delegation of administrative tasks and claim management at central level, which can be considered as a way to refocus the physical network on commercial value-added tasks.

8. SUPPORT THE PHYSICAL NETWORK CENTRALLY AND LOCALLYAs networks free up more commercial time, insurers need to support their physical distribution network in converting centrally generated leads and in generating additional local leads.

The first level of maturity consists in significantly involving its physical network in centrally generated lead conversion. Application of granular lead attribution rules to the physical network maximizes the conversion rate and should be based on a broad range of criteria, from geographical proximity and sales force skills regarding customer needs, to current sales and achieved targets by the branch or agent.

The second level of maturity consists in offering company-level support in centrally generated lead con-version. Deploying tools to participating branches or agents to efficiently convert leads, monitor performance and perform reporting is a first step. In parallel, the de-ployment of a dedicated force of digital inspectors to train the physical network to efficiently convert central-ly generated leads, share best practices and adequate commercial pitches and offer training on tools can serve to ensure optimal and long-term adoption by the net-work. Finally, selling leads to the physical network to financially involve the sales force can help maximize their performance.

The last level of maturity consists in offering support in local digital lead generation. Some insurers have start-ed to offer support to their physical network in develop-ing their digital presence and generating local leads on-line, notably through digital inspectors. This support includes partnerships and training to leverage digital media (such as Google My Business), central content production to be shared on social networks (Facebook for individuals, LinkedIn for professionals) and new tools and partnerships, such as local web agencies.


Going forward: strategic and operational implications for Insurers

3


We identify 4 main types of levers that can help insur-ers to accelerate their development in digital customer acquisition. H

1. PAID LEAD PERFORMANCE MANAGEMENTInsurers can increase the share of digital leads in their overall customer acquisitions by implementing efficient SEA techniques, notably through the creation of dedi-cated expert teams, and by optimizing the performance of their SEA campaign performance in an increasingly frequent manner. Insurers can also broaden the scope

of providers to gain access to a larger pool of qualified leads, sometimes focused on specific niches matching their development strategy.

Insurers can also improve the efficiency of their paid lead generation model by further refining their perfor-mance measurement to build a sustainable economic model. They can leverage initial results from campaigns and lead sources to estimate customer lifetime value and risk profile and gain more insights and perspective on how their digital acquisition model contributes to the development of their overall retail activity.

H: Levers to reach target vision in customer digital acquisition

SPECIFIC

DISTRIBUTION MARKETING

TRANSVERSAL

SEA performance management

Increase the share of digital leads in overall acquisitions through lead sources broadening and optimization

Refine paid lead performance monitoring to build a sustainable economic model

Physical network optimization

Transform the culture of the physical distribution network

Set up a team of digital inspectors to improve conversion rate and local lead generation

Brand value differentiation

Enhance all dimensions of SEO and brand investments

Develop services ecosystems

Adapt its brand positioning while developing digital acquisition models

Full omnichannel deployment

Strike the right balance between all channels and improve conversion rates

Develop an adequate omnichannel product offer, with up-sell or cross-sell potential

14

23



2. BRAND VALUE DIFFERENTIATIONIn an increasingly competitive environment for digital visibility, insurers should enhance all dimensions of SEO and brand investments to secure their visibility against aggregators and other insurance-related players. As search results are increasingly competing with paid ads on search engine results pages, insurers can also launch their products in services ecosystems or plat-forms to better anticipate customers' life events.

Besides visibility, insurers need to rethink and adapt their brand positioning to retain differentiation while developing their digital acquisition model, and ulti-mately increase their proximity and relevance towards customers beyond pure online visibility.

3. FULL OMNICHANNEL DEPLOYMENTInsurers can achieve the right balance between all chan-nels and improve the conversion rates of their digital leads by broadening the responsibilities of call plat-forms and accelerating their commercial role, reducing the gap between the effective lead generation or acqui-sition and the contact with the potential customer, and finally by optimizing the rules for allocating digital leads to the physical network. The value sharing model will need to be structured accordingly based on the roles of each of the channels.

In parallel, insurers can increase their conversion rate with an adequate product offer for an omnichannel model, as well as by training agents and branches to achieve up-selling or cross-selling of higher-margin products to newly converted digital leads. As insurers progressively build experience, they can expand to other, more complex products or niche products.

4. PHYSICAL NETWORK OPTIMIZATIONInsurers will need to transform the culture of the physi-cal distribution network to optimally involve the net-work in the omnichannel model by setting up incentives and positive competition, for example by:• Highlighting and rewarding best-in-class practices

among salespeople (including claim management delegation)

• Incentivizing the physical network to contribute to new acquisition models to increase adoption

As the physical distribution network is refocused on a more commercial role, insurers will be able to provide more support to the network-central lead conversion and local lead generation efforts by setting up a team of digital inspectors. Such a team should be able to im-prove the conversion rate and lead generation by coach-ing sales forces on underwriting and digital communi-cation tools, and by implementing best practices. This will ensure the harmonization and the full transforma-tion of the physical distribution network as a key pillar of the digital acquisition model in insurance.


The authors would like to thank all the insurance companies, solution providers and academics who participated to this research initiative for their valuable insights. Special thanks go to the 24 companies listed below1, without which this study could not have come into being.Ageas, Allianz, AXA, Aviva, Covéa, CSS, Ergo, Generali, Groupama, HDI, Hera Life, KBC Insurance, Macif, Mapfre, Mutua Madrileña, R+V, Reale, Sabadell, Sanitas, SwissLife, Uniqa, VKB, W&W, Zurich.

In this study, we cover individual business lines, including Motor, Home, Health, Protection, Savings & Pension. The study focuses mostly on specialized distribution:

• Brokers, IFAs• Tied agents• Salaried agents• Direct channels

This excludes models with employers as distributors (from small to very large enter-prises), as well as with businesses as distributors:

• Historic B2B2C partners such as banks• Classic & growing partners such as OEMs, card providers, retailers, travel agencies• Less occupied channels (e.g. utilities, telcos, neo banks, market places)

Acknowledgments

Appendix: Scope and methodology

1 Several companies listed participated across multiple countries


Credits and copyright

AUTHORS

This publication has been prepared for general guidance only. The reader should not act according to any information provided in this publication without receiving specific professional advice. Roland Berger GmbH shall not be liable for any damages resulting from any use of the information contained in the publication.

© 2020 ROLAND BERGER GMBH. ALL RIGHTS RESERVED.

CHRISTOPHE ANGOULVANTSenior Partnerchristophe.angoulvant @rolandberger.com

Christophe Angoulvant has been a Partner in Roland Berger's Paris office since 2003. He has more than 25 years of experience in strategy and transformation consulting and mainly advises clients in the insurance sector. Throughout his career, he has advised almost all of the top 20 multinational insurance groups as well as several domestic mid-size insurers. His experience covers a broad range of topics from marketing & sales effectiveness and customer value management to organization redesign and digital transformation. Christophe has directed several surveys in collaboration with Efma and the Institut Montaigne. He holds a Masters degree in Engineering from École Nationale des Ponts et Chaussées and an MBA from HEC Group.

AXEL BÖ[email protected]

Axel is a Partner in the Belgian office, focusing on insurance, retail banking and bancassurance. Over the last 15 years, he has advised >15 European insurers on a wide range of topics including corporate strategy, commercial performance, distribution, quality of service and innovation. In addition, he has managed many performance improvement and operational excellence programs for insurers in Europe, Middle East and Asia. Axel has (co)-authored several several studies on insruance together with EFMA .. He holds a Masters degree in Commercial Engineering from the Solvay Business School and also studied Finance at the Technische Universität Berlin and IMD business school in Lausanne.

GWENDAL LOUISSenior Project [email protected]

Gwendal is a Senior Project Manager in Roland Berger's Paris office, focusing on insurance and payments. He has extensive functional know-how in corporate & growth strategy, distribution channels, digital transformation, partnership development and private equity. He previously worked in the capital market industry in the United States. He holds a Masters degree in Engineering from Ecole Centrale Paris and a Masters degree in Financial Engineering from Columbia University.


Roland Berger, founded in 1967, is the only leading global consultancy of German heritage and European origin. With 2,400 employees working from 35 countries, we have successful operations in all major international markets. Our 52 offices are located in the key global business hubs. The consultancy is an independent partnership owned exclusively by 250 Partners.

Efma is a global non-profit organization, established in 1971 by banks and insurance companies, Efma facilitates networking between decision-makers. It provides quality insights to help banks and insurance companies make the right decisions to foster innovation and drive their transformation. It brings together over 3,300 retail banks, insurance companies and other financial institutions from over 130 countries worldwide.

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