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| Line 1: |
Line 1: |
| − | Best practices :
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| − | from e-insurance to e-takaful
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| − | 1st e-takaful seminar
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| − | Sami Guellouz Dubaï 06-04-2005 1
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| − | Overview
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| − | E-business definition
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| − | E-business strategy road map
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| − | E-insurance overview
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| − | E-takaful
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| − | Dubaï 06-04-2005 2
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| − |
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| − | E-business
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| − | E-Business
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| − | Electronic commerce
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| − | m-commerce
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| − | Dubaï 06-04-2005 3
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| − |
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| − | E-business
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| − | Use of of electronic means to conduct
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| − | an organization’s business internally
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| − | and/or externally
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| − | Internal e-business
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| − | Better info sharing, knowledge dissemination
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| − | management reporting
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| − | External e-business
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| − | Formulation of a sales promotion,
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| − | Collaboration with partners
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| − | Dubaï 06-04-2005 4
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| − |
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| − | E-commerce
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| − | Focus on facilitating transactions and
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| − | selling of products and services online,
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| − | By internet or any other telecom
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| − | network,
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| − | Encompasses all trading steps :
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| − | Online (marketing, ordering, distribution), e-
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| − | payment
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| − | Buy-side activities (suppliers)
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| − | Selle-side activities (customers)
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| − | Dubaï 06-04-2005 5
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| − |
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| − | m-commerce
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| − | Subset of e-commerce
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| − | Similar online activities
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| − | Underlying technology is more specific
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| − | Limited to mobile telecom networks
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| − | Accessed through wireless hand-held devices
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| − | (mobile phones, hand-held computers, personal
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| − | digital assistants)
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| − | Dubaï 06-04-2005 6
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| − |
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| − | Overview
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| − | E-business definition
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| − | E-business strategy road map
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| − | E-insurance overview
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| − | E-takaful
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| − | Dubaï 06-04-2005 7
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| − |
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| − | E-business strategy roadmap
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| − | Vision formulation
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| − | Business objectives definition
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| − | Customer value creation
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| − | Market segmentation and targeting
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| − | Organizational set up
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| − | E-business model formulation
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| − | Dubaï 06-04-2005 8
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| − |
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| − | Pre-requisites
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| − | Managers need to be «catalysts of change »
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| − | Combine positive traits of both the « visionary »
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| − | and the « efficient performer »
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| − | High levels of both creativity and analytical ability
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| − | Know that ideas by themselves are not enough to
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| − | build a profitable business
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| − | Able to find new ideas by analysing state-of-the
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| − | art cies within their industry and across other
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| − | industries
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| − | Dubaï 06-04-2005 9
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| − |
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| − | Vision formulation
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| − | Twofold goals :
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| − | Focus attention and effort of top
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| − | management and employees around a
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| − | common task
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| − | Encourage creativity and innovation by
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| − | expanding your thinking beyond the
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| − | existing boundaries of the cy and its
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| − | environment
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| − | Dubaï 06-04-2005 10
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| − |
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| − | Business objectives definition
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| − | Objectives have to be measurable
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| − | Allow progress tracking
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| − | Ex : % of savings amount due e-
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| − | business strategy implementation
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| − | Dubaï 06-04-2005 11
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| − |
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| − | Business objectives definition
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| − | Objectives have to be measurable
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| − | Allow progress tracking
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| − | Ex : % of savings amount due e-
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| − | business strategy implementation
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| − | Dubaï 06-04-2005 12
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| − |
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| − | Customer value creation
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| − | Low price
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| − | Become cost leader within the industry
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| − | Differentiation advantage :
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| − | Superior brand name, high service quality,
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| − | broad product selection,
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| − | Leverage information available to create
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| − | benefits for your customers (by data
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| − | mining techniques for instance)
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| − | Dubaï 06-04-2005 13
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| − | Market segmentation
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| − | Closely linked to value creation
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| − | Two steps :
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| − | Select criteria for dividing you market into
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| − | segments
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| − | age, income for instance
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| − | Consumer (personal lines), corporate (commercial
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| − | lines)
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| − | Decide which segment to target
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| − | Segment’s needs driven products and services
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| − | Dubaï 06-04-2005 14
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| − |
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| − | Organizational set up
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| − | What scale?
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| − | Analysis of expected cost structure of e-business
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| − | activities
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| − | Analysis of each activity of the value chain
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| − | Analysis of its underlying cost drivers
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| − | What scope?
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| − | Products scope
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| − | Leverage the internet to establish partnerships with
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| − | complementors
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| − | How integrated?
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| − | Which e-business activities to perform in-house and
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| − | which ones to outsource?
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| − | Dubaï 06-04-2005 15
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| − |
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| − | Organizational set up
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| − | How to align physical-world strategy with e-
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| − | strategy?
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| − | Stragtegic decisions
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| − | Branding, pricing, IT and channel conflict
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| − | What structure?
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| − | Integrated into the existing organization
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| − | Leverage brand to attract customers to online channel
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| − | Multi-channel offering becomes possible, cross
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| − | promotions, shared IT
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| − | Set up inside a separate entity
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| − | Dubaï 06-04-2005 16
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| − | Business model
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| − | Cost structure?
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| − | Consider individual parts of te value chain
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| − | Production, IT, marketing, sales an after sales service
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| − | How can we use internet to lower costs across the value
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| − | chain?
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| − | Revenue structure?
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| − | Transaction fees, advertising revenues,
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| − | subscription fees (in B2C e-commerce)
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| − | Assess sustainability of business model
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| − | Intensity of competition, substitutes, etc.
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| − | Leveraging data mining techniques to analyse customer
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| − | information
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| − | Dubaï 06-04-2005 17
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| − |
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| − | Overview
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| − | E-business definition
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| − | E-business strategy road map
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| − | E-insurance overview
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| − | E-takaful
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| − | Dubaï 06-04-2005 18
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| − |
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| − | Business models for e-
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| − | insurance
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| − | Insurance cy’s websites
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| − | homepages of individual insurers
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| − | Products portals
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| − | Comprehensive standard websites for insurance
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| − | Aggregators
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| − | Internet insurance brokers
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| − | Online risk markets
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| − | Large risks placed with trading partners
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| − | Point of sale portals
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| − | product marketing through various theme-based pages
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| − | Dubaï 06-04-2005 19
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| − |
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| − | E-insurance difficulties
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| − | Complexity of some products
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| − | Claims settlement difficult to
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| − | standardise
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| − | Internet suited for products where the
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| − | contact with the cy is more frequent
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| − | Internet viewed as insecure medium for
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| − | high amounts
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| − | Regulation (licences)
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| − | Dubaï 06-04-2005 20
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| − |
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| − | Internet-product suitability
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| − | * Large commercial risks
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| − | High
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| − | * Health insurance
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| − | * Commercial motor
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| − | Transaction volume
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| − | * Annuity products
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| − | * Motor
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| − | * Index linked life
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| − | * Household products
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| − | * Term life
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| − | Low
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| − | Low Product complexity High
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| − | Dubaï 06-04-2005 21
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| − |
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| − | E-insurance advantages
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| − | Important market share gain potential
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| − | Standardised personal lines insurance
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| − | Limited suitability for sale via internet
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| − | Most life and pension products, health insurance,
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| − | commercial insurance
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| − | Enormous potential for improvements in
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| − | quality and service levels
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| − | Better tailored products
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| − | Shorter reponse times
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| − | Greater flexibility in cover structure
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| − | Better risk management support
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| − | Dubaï 06-04-2005 22
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| − |
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| − | E-business increases efficiency
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| − | Sales, administration, claims settlement,
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| − | claims payment expenses
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| − | decrease for both personal and commercial lines
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| − | Personal lines cost cut potential >
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| − | Commercial lines cost cut potential
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| − | High level of advisory services and tailor made
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| − | products
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| − | Dubaï 06-04-2005 23
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| − |
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| − | Market entry barriers lowered
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| − | New entrants can avoid long and expensive
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| − | setting up of traditional sales network
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| − | “Lateral” from other sectors benefit from
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| − | easier access
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| − | Financial services, internet cies, banks, online brokers,
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| − | internet service providers
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| − | Internet presence and brand name to add insurance to
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| − | their product range
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| − | More efficiency
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| − | Established insurers face growing competitive
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| − | pressure
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| − | Dubaï 06-04-2005 24
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| − |
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| − | Towards more integrated e-
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| − | business models
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| − | E-business makes it possible to
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| − | disseminate information quickly and in
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| − | large volumes
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| − | Traditional value chain is deconstructed
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| − | and certain links are outsourced to
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| − | specialist providers
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| − | Dubaï 06-04-2005 25
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| − |
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| − | Internet impact on value chain
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| − | Product development & rating
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| − | Standardisation, data availability and analysis, new
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| − | risks
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| − | Marketing
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| − | New marketing opportunities, deintermediation,
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| − | reintermediation
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| − | Administration
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| − | Standardisation, automation
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| − | Asset management
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| − | Better information
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| − | Claims management
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| − | Automation, proximity to the customer, additional
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| − | services
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| − | Dubaï 06-04-2005 26
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| − |
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| − | Potential providers
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| − | Product development & rating
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| − | Actuarial firms
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| − | Marketing
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| − | Trading cies, financial services providers, virtual
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| − | brokers and markets
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| − | Administration
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| − | Policy administrators, IT companies
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| − | Asset management
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| − | Asset managers, funds, banks
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| − | Claims management
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| − | Professional claims managers, call centres, Repair
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| − | companies
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| − | Dubaï 06-04-2005 27
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| − |
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| − | Role of traditional brokers is
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| − | shifting
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| − | Standard products
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| − | Considerable competition
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| − | Products that need more advice and for
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| − | which prices and benefits are not easy
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| − | to compare
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| − | Using e-business, more finance management
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| − | and risk consulting services
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| − | Ex : complex pension products, commercial
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| − | lines
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| − | Dubaï 06-04-2005 28
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| − |
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| − | Customers benefits
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| − | Greater transparency, lower prices and
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| − | improved services
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| − | E-business opens up new ways of reducing
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| − | costs
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| − | Hardening competition ensures that these
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| − | benefits are passed on to the customer
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| − | Internet offers a number of possibilities of
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| − | increasing the value creation for customers
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| − | by means of increased transparency and
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| − | improved services
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| − | Dubaï 06-04-2005 29
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| − |
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| − | E-insurance conclusion
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| − | From purely info and communication medium
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| − | to important distribution channel
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| − | Focus from selling products to consumers
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| − | (B2C) to selling to commercial clients (B2B).
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| − | Internet does not only impact the distribution
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| − | but the entire business process
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| − | Challenge of continuously optimizing the
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| − | business processes
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| − | Dubaï 06-04-2005 30
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| − |
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| − | Overview
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| − | E-business definition
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| − | E-business strategy road map
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| − | E-insurance overview
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| − | E-takaful
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| − | Dubaï 06-04-2005 31
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| − |
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| − | Insurance not permissible
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| − | Uncertainty (Gharar)
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| − | Gambling (Maisir)
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| − | Interest (Riba)
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| − | Dubaï 06-04-2005 32
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| − |
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| − | E-takaful
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| − | Prevent al-gharar, uncertainty and ambiguity
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| − | in the transaction
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| − | Provide to the consumers with comparative
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| − | informations between products available
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| − | Lead to more informed decision by
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| − | consumers
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| − | Scope of the cover, benefits and exclusions
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| − | Rate of tabarru’ for takaful vs saving
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| − | Dubaï 06-04-2005 33
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| − |
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| − | E-takaful
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| − | Young industry
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| − | Can leverage on the conventional insurance e-
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| − | experience
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| − | Comprehensive e-business strategies should be
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| − | built (eventhough takaful is a high level brand)
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| − | Takafulconcept & internet suitability
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| − | E-business enhances the transparency (involved
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| − | by the takaful concept)
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| − | E-business favor the participant’s empowerment
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| − | (involved in the takaful concept)
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| − | Dubaï 06-04-2005 34
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| − |
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| − | Thank you
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| − | Sources
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| − | Swiss Re, Sigma n° 5/2000
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| − | Strategies for e-business, Prentice Hall,
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| − | Financial Times
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| − | Sami Guellouz Dubaï 06-04-2005 35
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