Increase on sales for insurance industry

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welcome to the penny io offices here in copenhagen today we are going to talk about digital insurance partnerships and why it makes so much sense for self growth we're going to have a visit from a distribution partner fdm and actually two insurance carriers as well so what led us to build penny connect two things one is that insurance sales is moving online and the other is based on the fact that no one lies in bed at night and dreams about an insurance you think about buying a tesla a house and that's where insurance becomes relevant and that's why you want your insurances embedded out in these distribution channels and that's actually what led us to build a digital platform that solves just that and now we're going to hear from casper from fdm and his experiences around establishing a digital distribution solution for insurance fdm is a membership organization or a mobility club we try to help car owners and car users and they seek us for advice and also for good deals and in that way we try to make the life as a mobilist easier my role is i'm responsible for the insurance offerings we have at fdm towards our members in a private household so we try to help our members get access to affordable and good coverages today we have a rather large size of membership database which consists of household owners and car owners and pet owners and families which are considered i will say rather attractive for most insurance companies so in return of getting access to that database we get really good prices and also best-in-class coverages we started out by offering these insurances to our members and with a rather somewhat passive role for fdm so it was this access to our members and then the insurance partner did most of the work i think our members have responded really well to to our insurance offerings um first of all is really relevant to a car owner there's it's a it's by law something you need to have on your car so so it's definitely a relevant value proposition for fdm to have but also we can see that our members tend to stay longer with us when they are also making use of our of our insurance offerings so what we can see now is actually that we're getting many new members to fdm because of the insurance so not only are we adding value to existing members but we are also getting new members who seize this insurance offering as a reason to be part of fdm family so two things penny have helped us with is that we have or they have created some quick calculation tools so it's really fast to get to that point of what's in for me and second by using widgets we have been able to embed these calculation tools in no time into a lot of different and relevant touch points for car owners we have a continuous improvements on a daily basis and that is especially with help from penny that we have made split testing and campaign tracking much more easy i have two advices that's on top of my mind for a good partnership first of all customer centricity may be a very basic advice but nevertheless very important as it's often forgotten in the process so keeping the keeping the customer and the customer experience at top of your mind makes discussions and negotiations much more easier second i would say flexibility customer demands are changing and challenging and so is tick and operations so i think creating a an agreement and you can say a way of working that is where it keeps an open mind and also making sure that processes can be flexible during the the time of your cooperation is key to success so having an agreement that is not setting a lot of boundaries is key to that as well thank you very much to fdm that was really interesting to hear their experiences in in working with digital distribution of insurance and simon why is this so important for insurance carriers to be embedded digitally with distribution partners so i think we need to start with the the end customer so there's a change in how end customers behave uh how they engage with the with the distribution partners is typically more and more digital and a crucial concept here is transactional proximity so how close can you embed insurance to a product or service that the end customer is actually really interested in is waking up in the morning and actually interested in and and when you're getting close to the product or the service that the in customer wants then you're actually you're eliminating uh customers seeking for second opinions on on prices for insurances and stuff like that so you basically you're selling more and that of course leads to the distribution partners requiring those solutions for from the from the risk carriers from the insurers if you do this right in establishing this solution what are some of the results that the the carrier and the distribution partner can expect your acquisition costs are going down your cost of sales are going down um because now you're placing the product where the customer instead of trying to move the customers and and to move customers digitally is extremely expensive uh and um and i think that's one thing and then then everything is focused around what we see when we look at our data is that everything is focused around context so and and even to a point where that matters in terms of conversion rate that matters a lot more than the price of the insurance so the context of where in a certain flow at a distribution partner's website or digital channels that you are exposing insurance it's that matters more than the price of the insurance in terms of how much you're selling in your view what are some of the consequences if they do not move this to a to a digital context to a digital uh customer journey so i think basically because of the end customer trends they are they're devaluating the the partnership so what you're saying essentially that they'll be losing customers exactly if they don't move the distribution partners yes digital because the the distribution partners that actually now are engaging with the customers digitally more than they are offline could could they risk losing distribution partnerships as well i would assume so that at some point that some distribution partners would focus on saying all right so we have this add-on to offer for for our customers uh but why should that be offline when our core products or our core services are everything is is is digital uh so i would assume so that that distribution partners at some point are going really aggressive looking for for risk areas that can actually provide them with a with a really nice online embedded digital customer journey right so if i'm an insurance carrier listening listening to this today um what um what could i do to make this to move a step forward in terms of digital distribution through partners yeah so we'll have to of course there's two ends here uh you have a product that typically uh residing in some sort of core system um and of course we need to have uh apis to build that or to actually move that up the chain if you wanna say like that and those apis should actually be developed so they might match a standard e-commerce feature and then you should spend a lot of time looking at the distribution partners and their various digital environments so that might be website it might be a classic e-commerce it might be apps it might be whatever and and find out what is the customer journeys going on in there and how do we actually place insurance into that customer journey and that's why it's really important that you actually build a fairly flexible api that is modeled towards e-commerce and not towards supporting risk modeling uh of course it should support that but it should not start with that point sure so so what you're essentially saying is invest in apis yes kind of to to sell insurance and the other thing is find out how to provide a digital platform that caters for the customer journey of the distribution partners yes to plug it in and embed it out there one of the observations um that that i i've done in the market is that you know a few insurance carriers have tried to establish these solutions for distribution partners um but some have failed and and some have built very bespoke solutions integrated into into the distribution partners which can can come with some challenges what's your view on that so so i've i've seen the the same things and and that that has two major implications when we see in in insurance carriers that that are making very bespoke or custom solution to each distribution partner that is of course that what what are you going to do when you cannot use the data across all your platforms because they look different all of them that you have offered to your distribution partner and the second one is you're never gonna get scale in this that's you're not gonna get scale in when you're building your solution so it's every time it's gonna be a huge investment and you're definitely not gonna get scale in maintenance afterwards and optimizing of course yeah and that's actually really relevant for the next part of this session where we're going to hear from trek the danish insurance company and how they're working with digital distribution through partners trick is a big nordic insurance company we are number one in denmark and we are the second largest in the nordic region and we deliver insurances for all segments private consumer and are very big in partnerships in the total nordic region it's very important to be relevant for the customers and when you enter into partnerships we have a chance to talk with these partners what is relevant for their customers or their members and with that knowledge we can tailor the offerings we have for their customers or their members so so it is a way for us to be relevant for the customer and for having a better access and an easier access to these customers and therefore we get the best customer experience we get a lot of new customers and the partner we have entered the partnerships with get get very happy customers as well the benefits for trick with working with the partnerships is of course the access to a group of customers that things alike so we have the chance to tailor the customer offering for them and that we have seen gives very very high customer satisfaction we have high conversion rates the customers says yes to us a lot they stay here longer than the normal insurance customer because we have the the partnership and the insurer so the customers are more happy and accepts and likes the partnership and the offering that we give them so they stay longer so that is very very big advantage the conversion rates are much higher than than in our normal business and of course it's because we tailored the offering for the customer it's because of the relationship that the partner has with the customer and of course it's because it's trick so the combination of a good comp a good partnership and the best offering for the customer it makes the conversion rates very high but it also makes the customer stay for a lot longer than a normal insurance customer will i think trick has for some years put innovation in as a very very specific area that we want to focus on so we we do not only have it in our normal business we have a different areas intric that only focuses on innovation how to look into new products what about distribution and all these things but what we are missing now is the the total focus on the digital way of selling as well so so we are ready we feel we know what we want to sell and what products we would like the customers to buy so now we need to find a way not only to distribute by phone by web pages or by an consultant in the the home of the customer so the next step is getting all this innovation falls into people's customer journeys digitally as well our expectations was actually to get the the council to get the knowledge of penny and letting penny helping us with how the customer thinks and that is one of the most important things with entering this partnership is that we need the expertise on not only the solutions but how do customers think what is their behavior our expectations has 100 been met with our cooperation with penny i think we are still in in the beginning where we have gone live with some of our solutions and we have a lot more to come but i think one of the most important things is that we needed the knowledge of penny around customer behavior so the expectations there has been met fully more than fully i would say thank you to toek i think there was some really interesting points made there and one thing it made me think of is what to your view simon are some of the benefits that insurance carriers can can get from working with a solution provider in establishing these digital customer journeys one thing that is uh uh very crucial is is time to market um so so the speed in in how fast we can provide a solution we've done this many times we do it basically every week right and and we we have a standard module so as an insurance company you can you can tell your distribution partners that within a month your your solution would be live we have this digital offering for your customers that we can embed into your channels within a month um and and that comes of course from from the experience of having done this and it comes from having the product that actually makes us model uh a lot of things technically and then the second thing is of course performance of the solution so we we use our entire pool of solutions to do uh split tests that is for for everyone's benefit they all get access to the executed insights of the data so we actually know today uh how broad uh how many pixels a shadow on a cta should be in when you're offering insurance products online and i doubt that many insurers actually know that and even if they build a solution and they manage to get it live and and and it's actually up and running then they're going to spend half a year to get the sample size to actually get that knowledge and we're constantly optimizing on this for everyone's benefit and and the third thing then is of course flexibility in this so the distribution partners have a lot of different digital touch points and apps and stuff like that so you have to have the flexibility to cater to all of them with basically the same core um and that's pretty much what we do so that's why we're really good at it yeah interesting so so what you're saying from from working with a solution provider they'll get you know faster to market on the digital side they'll they'll get higher performance essentially selling more insurances at the end of the day i guess and and they'll get the flexibility to actually uh you know making sure that this work for the distribution partners out there that have quite high digital requirements on their insurance carrier you work with distribution partners every day in establishing these distribution solutions what is it you see are there requirements for such a solution fundamentally they just want a solution that fits their digital environments their digital ecosystem that the customer interacts with them around and that actually means that that you need a product that actually matches their styling and their logos their colors their buttons shapes stuff like that and and of course when you when you do a a platform solution then it's extremely easy to scale this one of the things that has changed the way we all work is coronavirus and and that has obviously also changed the way we work with our clients a great example of that is i work with the french company april in a minute we're going to hear what has their experience been in in working with us we've needed to change to a full virtual way of working with april and i'm really intrigued of hearing about their experiences in doing work with penny despite never meeting us the name of my company is april there is the first broker in in the insurance market in france and we commercialize a lot of products in insurance like moto insurance insurance for construction insurance for health i mean that i am french you you are working from from denmark and we never met uh during this project and in four months the beginning is really the rfp uh the request for our proposal when we we met for the first time and in four months we were successful to put the project alive it was really challenging but always in a good spirit and uh yeah yeah it's not an easy it was not an easy project because as uh as we said that it it's really difficult to to develop all the projects from the beginning on the rsp then on the design part then on the pro development part and then on your uat part and without any physical contact i mean face to face the the key element was first of all the the trust between us because when we decide to go together on this partnership we trust uh together a lot the the transparency yeah the the expertise i mean that you are expert on your on your market and uh you you you are efficient and the structuration of the product and i i really hope that after uh after uh all these difficulties and this particular context of corona i really hoped to to come in in denmark and to share a face-to-face moment and to drink with you guys and to celebrate our project together yeah thanks amir it would be great to have a drink with you in the future soon as well thanks uh for listening in we hope you enjoyed the contributions go to our website and download our white paper and looking forward to engage more with you in the future bye