In an era where cost control
is paramount, US insurers are turning to internet-based solutions.
Charles Davis examines two
innovative approaches, one adopted by MetLife with the objective of
slicing travel expenses and the other an aggressive online
marketing campaign launched by New York Life.
Go deeper with GlobalData
Managing in a recession means looking
for cost reduction across the enterprise. US life insurers are
engaged in enterprise-wise cost reduction campaigns these days, and
the search for expense reduction is generating real innovation.
The impact of the economy, ironically enough,
is to require a number of insurers to re-examine everyday
processes, from travel to agent relations, that can be more
efficiently managed through internet-based alternatives.
The result is that insurers, like all
businesses, are more willing to embrace change if it cuts costs –
even if the initial investment is quite substantial.
MetLife is a fine example of cost-cutting
experimentation. The insurer has embraced an emerging technology
called telepresence, a kind of virtual teleconferencing technology
marketed by technology giant Cisco, among others, to cut down on
the need for executive travel.
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By GlobalDataMetLife has deployed Cisco TelePresence in
three dedicated conference rooms in Chicago, New York and New
Jersey to enable employees to interact via high-end,
high-definition visual and audio communications in an integrated
environment.
MetLife's telepresence installation
cost just under $1 million to install, but the insurer reports
seeing direct cost savings from reduced employee travel – the
insurer expects double-digit return on investment in travel
savings.
The system involves an “immersive video
experience”, or technology that provides high-end, high-definition
visual and audio communications in a completely integrated
environment. The goal is to make anyone involved in these meetings
feel as if they are actually in the room with the other
participants, regardless of where everyone is physically based.
Users actually feel as if they are in the room
with the parties they are conversing with, sitting at the same
‘virtual table’, making direct eye contact, talking to and even
talking over other participants, as naturally as if they were
together.
Cisco, which markets telepresence as
the equivalent of face-to-face communication, replete with document
sharing, video and audio in real time, says the systems can be used
not only to replace costly business meetings, but for face-to-face
customer support and can be implemented with financial applications
such as virtual trading windows and remote bank branch or insurance
agency specialists.
Multiple applications
Cisco TelePresence Auto Collaborate allows
people in all rooms to instantly see and share information or
objects with others by simply plugging in a device such as a laptop
computer or a high-definition document camera. This feature
projects images automatically to all rooms in the meeting.
The objective is to make subject matter
experts, executives and other critical resources readily available
regardless of where they may be based – an application ideally
suited for life product design teams and far-flung sales staff, or
communication with agent sales forces.
Cisco can build systems that support
multipoint meetings of up to 48 rooms in a single call with the
same Outlook-based scheduling and in-room features.
The voice-activated switching and
interoperability capabilities bring standard- and high-definition
video conferencing streams into a meeting, while the system
provides built-in media and signalling encryption that adds
virtually no latency and settings for ‘non-secure’, ‘secure best
effort’, or ‘always secure’.
Other insurers are investing in
investment-based planning and educational materials, again with an
eye toward reducing the ongoing costs of producing print materials
that frequently become dated, requiring continuous investment.
New York Life Insurance Company recently
launched www.GuaranteesMatter.com, described by the mutual insurer
as a “rich media experience” that offers consumers educational and
planning materials in a timely, constantly updated environment.
“In a time when we believe more consumers are
looking to save rather than spend, to mitigate risk rather than
shoot for the big return, this site identifies a customised
solution set for consumers when there are no more important words
than ‘guarantees matter’,” said Ken Hittel, vice-president of New
York Life’s corporate internet department.
“We believe the company’s mutual form of
ownership, financial strength, highest possible ratings from all
four ratings agencies and robust sales growth show that, when
guarantees matter, consumers are choosing New York Life.”
‘Guarantees Matter’ uses videos, interactive
tools, and topical content to emphasise a ‘promise made is a
promise kept.’
The site features brief but detailed
interactive surveys that engage the consumer about their financial
goals and current financial situation. The ‘Retirement Maximizer’
and ‘Guaranteed Solutions Explorer’ provide personalised results
that guide users to tailor-made plans for achieving those
goals.
‘Navigating volatility’
A section entitled ‘Navigating
Volatility’ chronicles the events that led up to the 2008 financial
crisis, with an emphasis on the fact New York Life neither needed
nor accepted any government assistance and what this means for
policyholders.
In another section entitled ‘Guaranteed
Solutions’, New York Life explains the realities of today’s
difficult markets, underscoring its financial strength and
providing an avenue to explore a variety of ways to address the
negative effects of lowered 401(k) retirement balances and
retirement income difficulties.
A historical narrative, ‘A History of
Financial Strength’, details the success and perseverance of
mutually owned insurers and New York Life’s own 165-year history. A
final section, ‘New York Life Community’, turns to a video showcase
of the work of New York Life agents across the country, which
includes individual stories of the impact agents have on families
and businesses.
The entire package was produced online and in
segments, which can easily, and compared to traditional marketing
materials, inexpensively, be updated as New York Life’s story
unfolds.
