Simplifying Advised Protection: Adopting Digital Techniques to Accelerate Sales

by Jamie Macgregor, September 19, 2016
Case Studies
EMEA

Abstract

Celent has released a new report titled Simplifying Advised Protection: Adopting Digital Techniques to Accelerate Sales. The report was written by Jamie Macgregor, Senior Vice President of Celent's Insurance practice.

In March 2015, Openwork (a UK network of advisors) chose to implement a new digital solution designed to support the sale of protection products alongside mortgages. By mid-2016, Openwork experienced:

  • An increase in new business client conversion rates by circa 8 percent, from 27.5% to 35.5%.
  • An increase in income protection sales of circa 104%.
  • An improvement in straight-through processing between the adviser and insurer by 30%.
  • A reduction in time spent on modeling and quoting of 45%.

As has been seen in retail personal lines (within non-life insurance), comparative quoting and modeling techniques have been in existence by consumers for over 15 years, and have often been seen as the catalyst for rapid adoption of digital sales and servicing. However, within life markets, we are yet to see mass adoption of direct sales for what is still a relatively complex product with low levels of everyday engagement (albeit for a critically important product for those with dependents). Solutions such as Openwork’s go some of the way to removing some of these blockages in an advised world and pave the way to greater success in conversion.

“Openwork have started to apply many of the digital practices and techniques that we take for granted as consumers when shopping online for vacations, for products and services on platforms such as Amazon, and for financial services and utilities using comparison websites,” says Macgregor. “The only real difference here is that Openwork have created their solution for a specialist audience of advisors.”

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is part of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

Executive Summary

1

 

Key Research Questions

2

Introduction

2

 

About Openwork

3

 

About this Case Study

3

 

Key Research Questions

4

Accelerating Advised Protection Sales

5

 

The Challenge and the Opportunity

5

 

The Solution

6

 

Implementation Considerations

8

The Results

10

Conclusion

11

 

For Insurers

11

 

For Distributors

11

Leveraging Celent’s Expertise

12

 

Support for Financial Institutions

12

 

Support for Vendors

12

Related Celent Research

13

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