1. Digital Marketing: New Models and Methods
04/22/2015
Bogota, Colombia
Sean Gilday, Vice President , Global Business Development, RGA

2. The US Individual Life Insurance Market is Slowing
(-1%)
(-3%)
(-3%)
A $13 billion shrinking market
Source: LIMRA’s US Individual Life Insurance Sales Trends, , 4/30/2014

3. There is an Insurance Protection Gap in the US
58 Million Uninsured & Underinsured Households
Only 44 percent of U.S. households have individual life insurance
Half of U.S. households (58 million) say they need more life insurance –the highest level ever
Among households with children under 18, arguably the segment with the greatest need for life insurance, 11 million have no life insurance coverage
Even affluent households ($100,000+ income) lack sufficient life insurance. One-third say they do not have enough coverage
LIMRA estimates the insurance protection gap for Gen X alone at $7.1 trillion
Source: Facts About Life 2010, LIMRA

4. Over 58M US households recognize need for more life insurance
US households needing additional life insurance
Millions of households
There is significant demand that is not currently being met, and this demand is growing
21% increase in US population with no life insurance from 2004 to 2010
45% of underinsured consumers have no life insurance
Persistent and growing unmet needs indicate room for an additional channel
1992
1998
2004
2010
SOURCE: LIMRA: Trillion Dollar Baby

5. Enormous Potential in the US Market
New term and permanent life insurance through all channels constituted a $13 billion market in 2013
We believe latent demand for individual life insurance is approximately equal to current market size ($7-14 billion)

6. Forces Creating the Need for Change in US Life Insurance
Traditional agency distribution is being challenged
Expensive to maintain
Aging distribution force (current average age = 57)
Difficulties recruiting new, younger agents in to the profession
Underinsurance (the “protection gap”) is an issue in many markets, and the need to tap in to the middle market is a focus for insurers
In the current economic climate, growth is difficult and insurers are beginning to recognize the need to diversify both in terms of target markets and distribution
The Affordable Care Act “Obamacare”
Generational changes (consumer demographics) are influencing consumer buying behavior and the way we do business

7. Key Directions for Innovation
Demand creation - asking new or existing customers to buy in new ways
Product innovation
Underwriting innovation
Better use of data
Enabling technology

8. What is a Private Exchange?
It is primarily a tool to be used by employers to allow employees to manage their insurance benefits on-line
These new exchanges offer decision support tools that can be used by employees to create a custom benefits package based on their needs and budget
The main benefits being selected by employees are:
Health
Dental
Disability
Life Insurance
Vision

9. Private exchange will provide preferred access to reach the underserved segment
Total active lives on private exchanges1
Why can exchanges help?
Exchanges provide preferred access to customers
Private exchange customers have more focus during open enrollment and life events – which is a distinct advantage when evaluating purchase of life insurance products
Exchanges provide closed environment which can lower competition for product offerings
$ millions
25-30 20 17 11 5 1
2014 15 16 17 18
2019
1 Forecast based on publically available disclosures
SOURCE: Accenture, Goldman Sachs, McKinsey & Company, CBO

13. What Do Private Exchanges Need?
“They need life insurance products and sales processes that best fit the on-line marketing strategy of the benefit exchanges”
Personal risks are never completely addressed by group and voluntary life benefits – individual life insurance must be a part of the solution
We can utilize accessible data to deliver improved, personalized offerings
Private Exchanges can offer employees holistic planning tools for all their financial planning needs including LIFE INSURANCE

14. From Proof of Concept to Future State
First prove that demand creation works, then optimize the model
Proof of Concept
Optimization
2-4 months
6 months
Build minimum viable offering
Iterate to create demand
Optimize customer journey
Future State
Yes
Success?
On-shelf product
Existing aggregator for fulfilment
Message
Media
Timing
Analytics
Response rate greater than 2.5%?
Product
Pricing
Underwriting
Technology
Analytics for targeted marketing

15. Digital Marketing of Life Insurance
SOME TRENDS
Banks
Aggregators UK, Canada, US
Digital Lead Generation for Agents
Buying from a mobile device?
BUY NOW –online fulfillment DOES it WORK?

24. Online Multi-Screen Life Insurance Life insurance fit for the new online age.

27. Life Insurance Search Traffic Canada Quarterly Update Last Quarter: Q2 2014

29. Globally email open stats look like this (Litmus):
Mobile - 47%
Desktop - 28%
Tablet - 25%
Nearly 25% of campaigns are later opened a second time -  70% on the same device, 30% on a different device.

30. Designed for your device.
Desktop Smartphone

31. Designed for your device.
Desktop Smartphone

32. Designed for your device.
Desktop Smartphone

33. Designed for your device.
Desktop Smartphone

34. Designed for your device.
Desktop Smartphone

35. Designed for your device.
Desktop Smartphone

36. QuickCover underwriting questions
30-50
Over 50
Alcohol/drugs
Seen doc in last 6 months
Having/waiting for treatment or investigation
Smoker
In the last 3 years :
Seen doc > 3 times for one condition
Taken any medication
Been off work for > 4 weeks
Go to areas of conflict/war
Hazardous pursuits
Had cancer, stroke, brain tumour, heart disease, HIV/AIDS
Had cancer, heart disease, diabetes, MS, mental illness, liver/stomach/kidney disorder, hepatitis, HIV/AIDS
Height/weight
9 questions
11 questions
All : smoker/non-smoker rates Ratings up to 100% for BMI > BMI < 42 else decline.

37. Questions?