Webinar - Making change happen within insurers

Making change happen within

insurers

Making change happen within insurers

Presenter:Gildas N’Zouba

Directeur Central Opérationnel

SUNU Assurances Vie

Facilitator:Aparna Dalal

Senior Research Officer,Impact Insurance Facility

Presenter:Omosolape Odeniyi

Unit HeadDistribution and Support Services

AXA Mansard

Presenter:Paul Musoke

Director, Competitive StrategiesFSD Africa

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FSD Africa

Paul Musoke

Director, Competitive Strategies

Change Management in SSA Financial Sector

Contents• The Need for Change Management

• Effective Change Management

• ILO Impact Insurance Change Management Project

The Need For Change Management

• Financial Sector is Critical to Inclusive Economic Development

• SSA Facing Some of the Most Difficult Real Economy Challenges

• SSA is also on the Leading Edge of Disruptive Trends in the Financial Sector

• Leading in Mobile Technology Consumer Adaption Globally

• Pressure on Leading FSPs & Regulators to Quickly Develop New Business Models

• Large FSPs Have the Scale and Regulatory Mandate to Make a Big Impact

• FSPs Currently Fall Into Three Broad Categories

• Established FSPs fighting for Sustained Profitability in mature Markets

• Mid Tier FSPs Driving Towards Growth Diversification into New Segments

• Telcos Seeking to Expand Beyond Airtime Revenues Through New Services

The Need For Change Management

• Repurposing Established FSPs to Address Underserved Markets Will Require significant Organisational Change

• New Entrants will Require Support to Manage Change as They Grow

• Leadership Development, Training and Technical Services Will Be The Required Support Services

• Technical Assistance to Support Processes of Innovation and Organisational Change will be Key to Capitalisation of Opportunities in Underserved Markets

• FSDA Prioritises Programmes or Institutions that Can Reach Scale and Have Impact

Effective Change Management

• Visionary Leadership

• Exploring & Committing to The Right Ideas

• Set Out a Clear Strategy For the Change Capability

• Develop Ideas Into Sustainable Designs

• Enabling The Organisation Through the Implementation Phase

• Manage Perceived Gaps in Internal Capabilities

• Sustain Change on a Continuous Basis

• Manage Availability & Prioritisation of Funds

• Leveraging and Experience with Professional Services

Effective Change Management

• Knowing When and How to Ask for Assistance

• Supporting the Change Process Through Executive Coaching

ILO Impact Insurance Change Management Project

VALUE TO FSDA

• Market Building

• Transformative

• Targets the Underserved

• Regional

ILO Impact Insurance Change Management Project

GOALS• Spur innovation and Build Capacity Within Leading Insurance Players in SSA

• Work with Partners to Scale Innovations Quickly to Achieve Sustainability

• Identify Related Organisation Changes Within Selected Partners

• Gradually Improving Customer & Shareholder value

• 1 Million MSMEs and Low Income Persons Reached with Micro Insurance

• Develop Change Management Toolkits

• Demonstration Cases That Can be Shared with the Broader Industry

Change process1.Identify(validate)thedesiredfuture

• Identifyproblemoropportunity

• Specifyvisionforchange

2.Securebuy-in

•Communicatevision

•Createsenseofurgency

3.Organizeforchange

• Formx-functionalcoalition

•Removeobstaclesforchange

4.Implementchanges

• Setstrategicpriorities

•Performactivitiesinpillars

5.Communicatesuccess

•Maintainbuy-in

•Communicateshort-termwins

6.Mainstreamchanges

•Anchorchangesinculture

• Institutionalizeprocessandstructuralchanges

AXA Mansard

Omosolape Odeniyi

Unit Head

Distribution and Support Services

CONTENTS

1. Key Activities

2. Key Learning

1KEY ACTIVITIES

Compulsory (Loan-tied)

Voluntary (Deposit-Linked)

Benefits are tied to bank

offerings

OPT-IN PROCESS

MFBs

Affinity Groups

DISTRIBUTION CHANNELS

Life

General Business

PRODUCT CLASS

Product was launched in partnership with MicroEnsure

First EC product that was launched targeted at MFBs Life Cover

Hospitalization Cover

Property Cover

Permanent Disability

Family Cover (Death)

Distr. Channels select

relevant benefits

PRODUCT BENEFITS

PRODUCT DETAILS

LAUNCH OF KEY MICROINSURANCE PRODUCT (MFB-TIED)

World’s first Microinsurance intermediary

Began operations in 2002 (Premium collection and claims management)

Provides protection against the many risks faced by those living in poverty

Specializes in building products that meet the technical demands of underwriters but are simple enough

for customers to understand

Key Activities – Collaboration with Microinsurance Expert (MicroEnsure)

MicroEnsure

Partnership

Product/Process Design

Operational Setup

Data Management

Prospecting

TargetMicroFinance Banks

Affinity Groups

Result

Sign up of 1 MFB

Continued discussion with others

Launch of 1 product

KEY ACTIVITIES – MICROINSURANCE DRIVE (CUSTOMER INSIGHTS & SUPPLY

SIDE)

TELCOS Strategy sessions with MTN

Repositioning of previously existent EC product

Microinsurance product approval process

Market research activities

Ideation workshop (fallout of the market research)

Change management workshop

Capacity Building – ILO Market research training

Involvement in:

women-focused project

Agric-focused project

INTERNAL ACTIVITIES

3RD PARTY PAYMENT AGGREGATORS Discussions with Paycom

Discussions With Teasy Pay

Strategy sessions with GTBank

Strategy sessions with Diamond Bank

Partnership launch with Bosak MFB

Discussions with Accion MFB

Discussions with Advans MFB

BANKS/MFBs

Since the launch of the Emerging Customer initiative, there has been an awakening within the organization on

MicroInsurance.

The team has been involved in a lot of discussions with prospective partners who want to partner within the EC

space.

Some of these activities include.

2KEY LEARNINGS

KEY LESSONS FROM ACTIVITIES EMBARKED ON

Increased Interest in Emerging Customers within the organization

Increased activity around promoting financial inclusion within several key sectors

Increased need for progressive regulation within the EC space

SUNU Assurances Vie

Gildas N’Zouba


Why we did it

Significant size change

• Merger-takeover in Nov-15;

• Now #1 Life insurer in Cote d’Ivoire (CIV) and the CIMA region

Significant operational readjustments needed.

Competitive intensity increasing

• First insurer to launch mobile insurance in CIV in 2011 with Orange.

The top 4 insurers in CIV now do it as well;

• Market saturated in large cities New challenge: Inner country.

Changing environment

• Booming medium class, and 92% of the working population

vulnerable, calling for an increased financial protection;

• A technology gap that must be bridged quickly.

1

3

2 Low-cost life insurance:

$0.9/month + Tailored savings

product

Both operable on the mobile,

via Orange Money

+

30 STAFF

70 STAFF

117 STAFF

+ interns

How we did it – A strong core

Extended diagnosis phase

Becoming familiar with the company, the people and the environment.

Top Mgmt on board right from the start

Strong internal communication plan rolled-out – formal and informal:

- Language switched: “change” → “improvement”, “evolution”;

- Internal paper rerun;

- Town halls and regular roundtable.

Structured and nimble methodology adopted

Building capacity to move from implementing to streamlining change:

- Merger New scale Professionalization required;

- Project mgmt structure implemented 4 clusters of excellence.

→ Managing change while running business as usual required new skills.

1

3

2

We determined

precisely where we

were

Prior to defining

where to go

Desired future

Internalreorganisation

Product&Distribution

Informationtechnology

Pilot

CM process ref.:

How we did it – 3 shifts

Product-centricity Customer-centricity

- PACE analysis (ILO tool);

- Marketing team created;

- Market research and focus group discussions;

- Prototype testing prior to product launch.

Distributors Strategic partners

- Understanding their business model and challenges;

- Partnership proposal highlighting potential adjacencies.

Technical process-oriented Customer experience-oriented

- Customer journey mapping (CGAP tool);

- Rationalisation of the operational procedures;

- Gravity centre shifted from Production and Claims to Marketing,

Sales and Customer care.

1

3

2

CustomerValue

PACEassessmentMarketresearchClientprofilingCustomerjourneymapping

Distribution&Operations

DistributormappingProcessmappingSalespitchfocusedonvalueproposition

BusinessCase&RiskManagement

Mappotentialrisks(reputations,operations,solvency)

Governance&People

NewunitsetupRolesandperformancemeasuresrelatedtolow-incomehhsCustomerValue






Governance&People

NewunitsetupRolesandperformancemeasuresrelatedtolow-incomehhs

CM framework ref.:

AVANTSOUSCRIPTION SOUSCRIPTION APRESSOUSCRIPTION

Siteinternet

Faceàface

Téléphone

SMS

visuels

Presse

6- Demandedesituationsursapolice

7- Invitationautirage

8- Vérificationdesonnuméro

detirage

9- Dépôtdudossierderachat/

Gagnant

10-Règlement

1- Prise deconscience

2- Recherchedesolutions

3- Approchecommerciale

4- RemplissageduBIAavecla

CNI

5- RéceptionduBIA

CustomerValue






Governance&People


CustomerValue






Governance&People


CustomerValue






Governance&People


What we’ve learnt

Implementing is the moment of truth

• Content produced during the diagnosis and design phases requires staff appropriation;

• Progressive methodology and best practices uptake is essential;

• The reality check is when the project meets with business as usual.

Failing to convince the staff is a deal breaker

• Identify a core project team, ambitious, nimble and flexible, including opinion makers;

• This core team must achieve quick wins Bring tangibility;

• Tangibility is a strong contributor to convincing the inner circle, who will then convince

the outer circle.

Challenging the status-quo must be supported by training

• Dealing with vulnerable customers requires a new business model;

• This new business model requires significant changes to the operational procedures;

• Some job description evolve, others are created from scratch HR involvement and

early training to match this new need of skills is essential.

1

3

2

CM process ref.:

Transverse agility is

key to be successful

in managing change

Core

team

Peripheral

team

All staff

Making change happen within insurers

Presenter:Gildas N’Zouba


SUNU Assurances Vie

Facilitator:Aparna Dalal

Senior Research Officer,Impact Insurance Facility

Presenter:Omosolape Odeniyi

Unit HeadDistribution and Support Services

AXA Mansard

Presenter:Paul Musoke

Director, Competitive StrategiesFSD Africa

Q&A

Government & Nonprofit

Webinar - Making change happen within insurers