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8BA 590BA 590

Guest Speaker John Jolliff

“Inside” development of Service-Oriented Products

Presentation (20-30 minutes)

Q & A Session (45-60 Minutes)

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The Delta Center Devils (Grand Ledge, Michigan Little League Champs 1968)

The Delta Center Devils (Grand Ledge, Michigan Little League Champs 1968)

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8John Jolliff Presentation OverviewJohn Jolliff Presentation Overview

Background

COUNTRY Insurance & Financial Services

Identifying Customer’s Needs

Testing and Screening

Regulation/Laws

Environmental

Implementation/Launch

Best Skills

Q & A

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8John Jolliff BackgroundJohn Jolliff Background

OSU Grad – Business Major

Three different companies during career

Positions in insurance industry

• Claims

• Research

• Underwriting (bulk of career)

• Agency and

• Operations

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8COUNTRY Financial OverviewCOUNTRY Financial Overview

Providing Financial Security… Property/Casualty

Life/Disability

Mutual Funds/Investments/Managed Accounts

Our Stats (Size/Companies) $2 billion in P/C premium (company)

607 in Fortune 1000

Top 10 low net cost life company

Operate directly or indirectly in 40+ states

Our Region $330 million in P/C premium

Six states (OR, WA, NV, AZ, AK, ID)

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8Identifying Customer NeedsIdentifying Customer Needs

Product

Service

Distribution Number of agents Location of agents

Internal Sources of information Agents Customers Employees

• Underwriters/Claims Adjusters

External Sources of information Focus Groups Competitor offerings Industry publications Demographic/Census data

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8Identifying Customer NeedsIdentifying Customer Needs

Examples - Product

Identity Theft

College Graduate Discount

Special Tenant Endorsement

Long Term Care Rider on Life Policy

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8Identifying Customer NeedsIdentifying Customer Needs

Examples - Service

Customer Service Center 24x7

Billing Call Center

COUNTRY Helpline

Credit card payment option

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8Identifying Customer NeedsIdentifying Customer Needs

Examples - Distribution

Now entering Idaho

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Concept Testing and ScreeningProduct and/or Service

Concept Testing and ScreeningProduct and/or Service

How Do We Know That it is Going to Work?

For product and/or service, often

–WE DON’T!!!

We discuss primarily with agents National Advisory Group

Front line sales-contact with customers

Seek feedback from employees

Evaluate competitive offerings

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Concept Testing and ScreeningProduct and/or Service

Concept Testing and ScreeningProduct and/or Service

How Do We Test It?

Generally, we will pilot a concept

Smaller local area or state-by-state

Measure and monitor results

Work out any bugs

Enhance or expand offering

Full rollout

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Concept Testing and ScreeningProduct and/or Service

Concept Testing and ScreeningProduct and/or Service

What Are Our Biggest Challenges?

Insurance is viewed as a commodity Many coverages are mandated

Hard to differentiate on product

Speed to market

ITS time to develop

Antiquated legacy systems

Consensus driven organization

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Concept Testing and ScreeningDistribution

Concept Testing and ScreeningDistribution

Where do we add more agents or

Where do we add new locations?

Much larger decision for us

Multi-line exclusive agents

Heavy financing costs

Vested interest in agent success

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Concept Testing and ScreeningDistribution

Concept Testing and ScreeningDistribution

Challenges to adding agents or agencies

Existing competitive market

Loss experience in area (if already there)

Hiring quality agents

Size and type of demographics

Location

Availability of leads

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8Challenges Due to Regulation/LawsChallenges Due to Regulation/Laws

Insurance/Financial is Different because…

Heavily regulated industry

All products and rates must be approved by state

“Adequate, not excessive and not unfairly discriminatory” is the criteria

Market conduct examinations

Notification to customers (FCRA)

Legislative or Statutory changes

Occasional ballot initiatives Prop 42 to ban used of credit-based insurance scores

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8Environmental IssuesEnvironmental Issues

Very competitive market

Competing with much larger players Resource disadvantage

How Do We Deal with Change? Investigate, evaluate and react “Fast followers” rather than “bleeding edge”

How Do We Get Info on Change? Industry publications Agents, Customers, Employees, Other external sources State Department of Insurance

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8Implementing and LaunchImplementing and Launch

How Do We Train

Internal training resources

Training for all who need it

• Employees

• Agents,

• etc.

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8Implementing and LaunchImplementing and Launch

How Do We Get the Message Out…

In Our Company

• Internal website

• eMail

• Company meetings

Outside Our Company

• Advertising/Brochures/Press Releases

• Materials sent to customers with billings

• Agents/Employees

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8Implementing and LaunchImplementing and Launch

Challenges in Implementation?

Did we hit the mark?

Getting agents excited about opportunity

• So many things to know and remember

Measuring and monitoring

Making changes

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8Implementing and LaunchImplementing and Launch

Best Launch and Why?

Customer Service Center 24x7

• Met customer and agent needs

• Well tested

• Revised as necessary

• Responsive

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8Implementing and LaunchImplementing and Launch

Worst Launch and Why?

Special Tenant endorsement

• Not understood by agents or customers

• Met a narrow market need

• No incentives for agents

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8Best Skills for New Product SuccessBest Skills for New Product Success

What Employees Need to Have… Know your business

Know your customers

Know and anticipate needs

Be creative

Act and react quickly

Be willing to abandon mistakes

Questions?Questions?