Upload
christopher-boone
View
219
Download
0
Tags:
Embed Size (px)
Citation preview
Irish Life Retail
Denis Casey, CEO
Irish Life Retail
Market Overview
Retail Business Profile
Horizon Transformation Programme
Market OverviewRetail Life and Pension sales have
grown strongly over the last 4 years
C.A.G.R.
20%
27%
C.A.G.R.
20%
27%
1998
€m
408
1,647
1998
€m
408
1,647
1999
€m
462
2,587
1999
€m
462
2,587
2000
€m
552
3,550
2000
€m
552
3,550
2001
€m
707
3,418
2001
€m
707
3,418 Regular
Single
Regular
Single
23%23%563563 721721 907907 1,0491,049 APE APE
Market Overview
Favourable demographics
Sound economy
Public policy support for private pensions
Shift in savings pattern
Medium term outlook remains favourable
Market Overview
Company
Irish LifeArk LifeLifetime*Hibernian (CGNU)Canada LifeNew Ireland*Standard LifeEagle StarFriends FirstScottish ProvidentRoyal Liver
2001Market Share
17.5%17.1%12.7%12.3%9.2%6.9%6.6%5.2%5.1%2.0%2.0%
Distribution Method
Bancassurance IFA DSFBancassuranceBancassuranceIFAIFA DSFIFA DSFIFAIFA Tied AgentsIFA First ActiveIFADSF IFA
* part of the Bank of Ireland Group
The rise and rise of bancassurance now 40% of the market
Consolidation Big 4 now control 66% of market
Margin Pressure Competition Consumer / Media attention Government : Price capped pensions (PRSA)
Market Overview - Trends
Irish life Retail
Outperforming a Buoyant Market
* 2001 sales exclude Government SSIA contribution
C.A.G.R.
31%
25%
C.A.G.R.
31%
25%
1998
€m
56
303
1998
€m
56
303
1999
€m
67
460
1999
€m
67
460
2000
€m
85
747
2000
€m
85
747
2001
€m
* 125
593
2001
€m
* 125
593 Regular
Single
Regular
Single
29%29%8686 115115 160160 184184 APE APE
Irish life Retail
Multi-Channel : Significant shift in Distribution Mix
20012001
20002000
19991999
Bancassurance IFA DSF Partnerships
20022002(est.)(est.)
35%
9%
9%
16%
9%
33%
31%
42%16% 26%
26%
29%
25%
29%
18% 45%
DSF : Problem Child to Poster Child Distribution
Poor productivity, low moraleWeak management (processes & people)Concerns about qualityNew business unprofitable
16 week industrial relations disputeFundamental overhaul of salesforce - “Poor Die”
Rigorous and relentless management processes operateProductivity trebled over 4 yearsTargets exceeded for each of last 4 yearsNew business profitableHome Service disposal February 2002
2002:
1997:
Intervention:
Brokerage : A time of Upheaval
Broker business restructured following 1999 Progressive Life merger
New faces - renewed focus and enthusiasm
Plugged Product gaps investment manager choice (e.g. Fidelity) With Profit bond (Winterthur-Credit Suisse)
Some rationalisation of broker numbers inevitable as changing regulations impact
Will remain the gateway to High Net Worth customers
Franchise offering launched in 2001
Bancassurance : The Rising Star
Fastest growing and most profitable distribution channel Success Factors
Fully integrated with bank structure Core bank activity MIS and reward systems share and acknowledge success Leveraging resource base
- 800 counter staff licensed for “simple product” sales - Consultants focus on high ticket sales
Deployed lifeco sales management practices/know-how Attractive, simple products Prescriptive sales and advice processes to overcome branch
staff confidence issues
Branch Savings & Investment Planner
Advantages of Multi Channel Approach
Reach- access to all customer/product segments
Flexibility - to grasp opportunities
Choice - for our customers
Synergy - sharing knowledge & expertise across channels
Scale - through aggregation
The next Phase in the Journey
Irish Life Retail
Product Development & Underwriting
Enablers : HR, Finance, IT
SalesProcess
TransactionProcessing
CustomerRelationship
Mgt
DistributionChannel
Mgt
A radical programme to transform Retail into a world class life assurer
Sales Process
A strength often over-played by life companies Over emphasise the sale - poor ongoing relationship mgt History of inappropriate product sales All art, no science - huge seller failure rate
Prescriptive technology based sales/advice process (Siebel)
Selling :
Sales Process
A strength often over-played by life companies Over emphasise the sale - poor ongoing relationship mgt History of inappropriate product sales All art, no science - huge seller failure rate
Prescriptive technology based sales/advice process (Siebel)
Predictable outcome, consistent experience
Engaging and value adding for customers
Value creating for Irish Life - size, quality of sale
Targeting seller productivity of €250,000 per capita
100% usage by controlled channels by year end
Selling :
Transaction Processing
Creates cost and friction - adds no value Weakness in most life companies Irish Life no exception
Acquired the expertise / know how Standardisation & Simplification - the new religion Joined up technology Plan Replacement of back office systems New business underwritten and accepted at Point of Sale State of the Art web-enabled technology
Transaction Processing
Creates cost and friction - adds no value Weakness in most life companies Irish Life no exception
Acquired the expertise / know how Standardisation & Simplification - the new religion Joined up technology Plan Replacement of back office systems New business underwritten and accepted at Point of Sale Reduce new business processing costs by 66% Reduce inforce processing costs by 50% Stripping out layers of “follow on” costs
Customer Relationship Mgt
Traditionally the customer has no voice in a distribution dominated industry
Little real attention paid to customer satisfaction and customer retention
Horizon delivers a radical improvement in our customer experience: - advice process - new business acceptance - ongoing relationship management New remote call centre established for inbound and outbound calls - centre of excellence Siebel platform supports annual customer contact & review Pay linked to customer experience/satisfaction
Distribution Management
Traditional life company model - “hero worship” Focus on outputs - no measurement of inputs Over reliance on a single management lever - €
Huge emphasis on process - sales and activity management
“Tacograph” management enabled by Siebel technology platform
Targeting €250,000 per capita salesforce productivity
Re-alignment of remuneration and rewards
Broker segmentation exercise completed
New distribution initiatives : Franchise =
: Worksite =
WORLD CLASSBUSINESS
UNDER CONSTRUCTION