Life in the fast lane: life insurers use new tech tools to find customers and to leverage their existing client base.
Donald "Butch" Britton has described his company's online education-based sales technology tool as a "term vending machine."
The tool's actual name is ING for Life, which speeds the process of selling life insurance, provides leads to distributors and allows thousands of middle-market uninsureds, who are not called on by traditional agents, to get educated and buy much-needed life insurance.
"It's on 100% of the time, and it does the job if you get it into the right place," said Britton, the chief executive officer of ING's U.S. Insurance division.
Insurers, distributors and consultants are increasingly looking for ways to use websites and the many other tech tools available--smartphones, tablet computers, laptops, email, social media, texting and tweeting, for example--and consultants say that optimizing those resources requires some planning and coordination between insurers and distributors.
Britton seems sold on the value of ING for Life--so much so that in late January, the company launched a Spanish-language version. But like many of the industry's attempts to use technology, it was not an immediate success. One big challenge has been attracting prospects to the site. Another is that ING's established distributors focus on the affluent market rather than on the broader market that technology can help access.
ING for Life uses attractive streaming videos and lots of interactivity to teach visitors about the kinds of life insurance and why they might need a product. As visitors explore potential solutions to their risks by entering information about themselves, they also provide data an insurer will require in an application. Thus, they help to streamline the sales process A sales process is a systematic approach for performing product or service sales. The reasons for having a sales process include seller and buyer risk management, achieving standardized customer interaction in sales and scalable revenue generation. if they choose to buy.
Britton said ING's original vision was to embed em·bed also im·bed
v. em·bed·ded, em·bed·ding, em·beds
1. To fix firmly in a surrounding mass: embed a post in concrete; fossils embedded in shale. its sales technology tool not only into its own website, but also into the websites of its tens of thousands of independent distribution partners.
"The problem is, we found that simply putting it onto a website doesn't work," he said. "You have to find a way to drive traffic to it. So, along with our producers, we've been finding new ways to do that." One is placing a banner ad A graphic image used on Web sites to advertise a product or service. Banner ads come in numerous sizes, but are often rectangles 460 pixels wide by 60 pixels high. Also 460 x 55 and 392 x 72 sizes are commonly used. within a website that directs a visitor to it. Another is buying a list of email addresses and then "blasting" a message to everyone on the list, he said.
One distributor apparently has found a proven way.
"We have one ace in our strategic distribution channel that's been keeping his technique quiet because he doesn't want anybody to copy it," said Britton. "He's got a young agent working it who's writing about eight policies a week with an average premium of about $600."
Leveraging to Cross-Sell
In February, USAA Life Insurance Co. implemented a system integrated with USAA's property/ casualty and banking companies to cross-sell life insurance whenever a member is approved for a mortgage or buys homeowners insurance for their primary residence.
Using information about the member, the system generates a simplified-issue life insurance offer and notifies the member online. The online offer requires the member to answer about 15 health questions, but does not require medical testing, said Greg Blake, executive director at USAA Life.
"In a matter of minutes A Matter of Minutes is an episode from the television series The New Twilight Zone. Cast
USAA's member service representatives were scheduled to help fill applications on the phone beginning April 16, he said.
The company has also created a sweepstakes drawing to encourage policyholders to use social media to refer friends and family to USAA Life. "We have the best lapse rate lapse rate
The rate of decrease of atmospheric temperature with increase in altitude.
The rate of change of any meteorological phenomenon, especially atmospheric temperature with altitude. in the business, so we're asking members to leverage technology to engage that word-of-mouth capability and get friends and family familiar with USAA life insurance," Blake said.
The sweepstakes will offer a cruise for up to 20 family members. Referring members and respondents who start the life insurance quoting process will be entered into the contest.
One consulting firm Noun 1. consulting firm - a firm of experts providing professional advice to an organization for a fee
business firm, firm, house - the members of a business organization that owns or operates one or more establishments; "he worked for a that promotes cross-selling and up-selling is GMC GMC
See: Guaranteed Mortgage Certificate Software Technology, based in Switzerland.
Its customer communications management Communications management is the systematic planning, implementing, monitoring, and revision of all the channels of communication within an organization, and between organizations; it also includes the organization and dissemination of new communication directives connected with an technology enables an insurer to incorporate targeted marketing messages on transactional documents like bills and account statements.
"Transactional documents get more eye- and brain-time than any other document," said Douglas Cox, director of North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. Business Enterprise.
"One study showed a bill or a statement gets a minimum of two to three minutes "Three Minutes" is the 46th episode of Lost. It is the twenty-second episode of the second season. The episode was directed by Stephen Williams, and written by Edward Kitsis and Adam Horowitz. It first aired on May 17, 2006 on ABC. of study on average, and 80% retain the documents, so there is a repeat exposure."
A well-targeted message leads to enhanced participation, but a poorly targeted message produces a negative effect, he said.
The communication channel doesn't matter, so long as it is the channel the client prefers. Cox said print mail is still the dominant channel, but digital technologies offer opportunities for an immediate response.
While email is commonly used, Cox said text messaging Sending short messages to a smartphone, pager, PDA or other handheld device. Text messaging implies sending short messages generally no more than a couple of hundred characters in length. , mobile applications and social media are less about delivering transactional data and more about alerts and nontransactional target messaging.
Finding Clients Holistically
Finding new customers is a greater challenge than cross-selling or up-selling. Accenture, a consulting, technology and outsourcing firm, has come up with a strategy to prospect.
It says in a white paper that five new "disruptive technologies" (see box, above) enable insurers "to transform distribution and significantly grow sales."
Kevin J. Kraft, managing director in Accenture's Life Insurance Practice, said 58% of Americans perform online research before they buy a product, and 90% prefer multichannel options for interacting with a business.
Along with Steve Diamond, Kraft is co-author of the white paper Holism holism
In the philosophy of the social sciences, the view that denies that all large-scale social events and conditions are ultimately explicable in terms of the individuals who participated in, enjoyed, or suffered them. : Enabling High Performance Insurance Distribution. Consumer expectations already have been shaped for the better by other industries, he said.
Social media is an online place where people tell their stories. "We call them NARBS, short for narrative bits," said Kraft. Insurers can take advantage of this information by setting up what Kraft described as listening posts listening posts,
n.pl in craniosacral therapy, the places on the body from which the therapist can perceive the flow of cerebrospinal fluid or energy in the patient. The ankles or the occiput (i.e., the base of the skull) are the standard listening posts. .
"People are telling you this information all day," said Kraft. "In the past, insurers relied on agents to ferret out Verb 1. ferret out - search and discover through persistent investigation; "She ferreted out the truth"
discover, find - make a discovery; "She found that he had lied to her"; "The story is false, so far as I can discover" this information. A high-performing carrier will need to determine which life events they want to plug into, how best to listen in, and connect to the ones that matter for their market strategies."
Agents can use social media to set up a presence, much like a storefront in a community, he said. He calls that the "crawl stage" of using social media.
In the "walk" stage, agents ask their customers to recommend them to friends. "This allows an agent to build a community much faster than he did in the past," he said. "And new agents will expect a carrier to have these technologies in place for them to build a referral book."
In the "run" stage, the network is working for the agent.
"You, the agent, are sitting in the middle," Kraft said. "The network runs for me and is managing my book. It's viral. It's developing new sources of business for me."
Gathering with Games
Digital marketing and gaming, another new technology, encourages prospects to use online tools or games to test their ability to make financial-planning decisions. Information they enter can tell an insurer a lot about their goals and problems and can shorten the sales process.
"Companies and agents have already gotten the benefit of knowing the context of what that person has searched for, and they can immediately focus on their needs," Kraft said.
New York New York, state, United States
New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of Life Insurance Co. has incorporated its own spin on utilizing a game familiar to consumers by partnering with game company Hasbro to offer a modified physical version of Hasbro's Game of Life.
"The old Game of Life marches very well to the same lessons we regularly try to impress upon our clients: the importance of saving, of having protection in place," said Mark Pfaff, executive vice president, U.S. Life and Agency.
"So we thought it was a good fit, and everything we knew about Hasbro was that it's another old, well-established company with good values."
Pfaff said the game is not an integral part of the company's selling process, "but another tool we make available to help agents enhance their relationship with clients."
The game was initially available for a limited time through the New York Life website, and today agents can offer it directly to customers and prospects during sales calls.
New York Life's individual life insurance sales were up 38% in 2010, well above the industry's 4% increase.
* The Trend: Advances in information technology offer new ways for life insurers to connect with prospects.
* The Significance: Experience in other industries shows that people shop for products online and make recommendations to friends.
* Watch For: Whether life insurers can find ways to reach prospective customers using new technologies.
Five 'Disruptive' Technologies
These technologies enable insurers to transform distribution and grow sales, according to according to
1. As stated or indicated by; on the authority of: according to historians.
2. In keeping with: according to instructions.
(1) Mobile technologies and platforms
(2) Analytical capabilities
(3) Social media
(4) Collaborative technologies
(5) Digital marketing and gaming
ING Life Insurance and Annuity Co.
A.M. Best Company # 06895
Distribution: Independent and career agents, banks, broker-dealers
USAA Life Insurance Co.
A.M. Best Company # 07146
Distribution: Direct, salaried service representatives
New York Life Insurance Co.
A.M. Best Company # 06820
Distribution: Career and independent agents and brokers
For ratings and other financial strength information visit www.ambest.com.