Knowledge Management

Perspective from a continuous

changing organisation

October 2007
 Presentation - Sketch
z India Economy & Industry
z India Life Insurance Industry
z ICICI Prudential Life Insurance
z Market Standing
z Growth
z Challenges & Need of the hour
z Decision support system
z Impact of DSS
z Journey so far & Way forward

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 One of the fastest growing economies

GDP Gro w th Rates (2006)

12.0%
10.7%

10.0% 9.4%

7.9%
8.0% 6.8%
5.9%
6.0% 5.0%

4.0% 3.3%
2.7%
2.2%
2.0%

0.0%
China Ind ia Sing ap o re Ho ng M alaysia Ko rea US UK Jap an
Ko ng

India: FY 2007, others: calendar 2006

Source : International Monetary Fund, The Economist and the
OECD

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Indian economy: Key drivers of growth
10.0 9.4 9.3
9.0
9.0
8.0 7.5
7.0
GDP growth(%)

6.0
CAGR
5.0 during
4.0 1990s: 5.2%
3.0
2.0
1.0
0.0
2005 2006 2007 Q1 2008 E

Services sector Industrial sector

Globalisation
growth momentum
Favourable Knowledge capital Rural potential
demographics

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 India life insurance opportunity

Only a third of the target population of 400 mn is insured

Life insurance penetration & per capita (2006)

6000 1 4 .0 %
13.1%
Insurance pe r capita (U SD )

5000 1 2 .0 %

Insurance pe ne tration
5, 140
9.2%
8.3% 1 0 .0 %
4000 7.9%
8 .0 %
3000 2, 829
2, 456 5.4%
4.0% 6 .0 %
4.1%
2000 1, 617 1, 480 3.2%
4 .0 %
1.7%
1000 2 .0 %
1, 790
189 34 33
0 0 .0 %
UK Jap an Ho ng Ko ng US Sing ap o re Ko rea M alaysia China Ind ia

Source : Swiss Re

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India life Insurance: An overview

z Population: 1.12 bn
Country
z Insurance penetration 4.1%

z Pre 2000: Public monopoly

z Market deregulated in 2000
Industry z ICICI entered in 2000 through
partnership with Prudential Plc, UK
z Distribution through agency only;
2000 offices, 0.8 mn agents
Pre
z ‘Push’ sales approach: Tax saving
Liberalization objective
Era z Traditional product offerings
z Pensions: Small part of savings

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Evolution of industry since liberalisation

FY 00 FY 07

Number of players 1 16

NB premium (Rs bn) 64.00 CAGR of 42%

754.00
CAGR of 30%
Total premium (Rs bn) 270.00 1,696.00

Penetration (as a
1.2% 4.1%
% of GDP)

Insurance premium ~1,510

~280
per capita (Rs )

Source: IRDA, Swiss Re

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 Industry growth
Y-O-Y Growth 16% 17% 34% 92% 49%
450. 00
400. 00
350. 00
300. 00
Rs bn

250. 00
200. 00
150. 00
100. 00
50. 00
0. 00
FY 03 FY 04 FY 05 FY 06 FY 07 5m FY 08
LIC Private

Source : IRDA, Weighted New Business Premiums for individual business

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Sustained private market leadership
FY 03 FY 04 FY 05 FY 06 FY 07 5m FY 08

9
Policy base

5 months
5
5. 00
4
5 months
4. 00
3
8 months
3. 00
Mn

16 months
2
2. 00
44 months 1
1. 00
0
0. 00
Dec 00 Oct 04 Feb 06 Oct 06 M ar 07 Aug 07

Rapid expansion of policy base

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Rapid distribution ramp-up
We continue to create a nationwide agency network,
complemented by increased focus on non-agency
distribution

Mar 05 Mar 06 Aug 07

Locations 74 132 535

Branches 107 177 717

Advisors (‘000) 57 72 226

Non agency share 30% 37% 37%

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 Growth Coupled with Challenges
People Products

25% Attrition 10 new products 39 Total products

60% of frontline are freshers

45 discontinued Products
* Time Period – 07-08
Im
Process pa Transaction Survey
ct
¾232 processes for each
product
¾Only 138 documented
¾Servicing for
discontinued process to * Time Period – Nov – Dec, 06
be provided

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 Need of the hour

z A solution, which will enable us to continuously

stay competitive by:
z Store all business logic in a centralized repository
z Supporting increased complexity of the business
z Leveraging the available skills of our employees to
consistently provide superior customer experience
z Increasing the efficiencies of operations
z Thereby, all employees can
z Anticipate, understand and deliver on the
customer promise
z Shift their focus externally towards their customers
z Not grapple with overwhelming and constantly
shifting complexity
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 Objectives – Decision Support System

z Support Frontline in decision making process by use

of technology
z Reduce dependency on senior professionals for
complex service requests handling
z Release bandwidth of specialists
z Bring standardization, consistency and efficiency in
service delivery function
z Facilitate and accelerate the learning program
z Reduce the cost of training

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 Aligning Knowledge Pockets

Experts

Legacy Systems
Process Notes

Reason Total % Cum %

Med Pickup 15 33% 33%
Additional Req 13 28% 61%
Delivery Delay 5 11% 72%
Cascading Delay 5 11% 83%
Branch Delay 3 7% 89%
Dispatch Delay 3 7% 96%
CUW delay 1 2% 98%
Issuance Delay
Grand Total 46
1 2%
100%
100%
Vendors’
Applications & data
Spreadsheets
Knowledge
Required

Every single customer interaction requires interaction with multiple knowledge

pockets
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 DSS Design Architecture

Service
Call Center Branch CSE
Points Email Team

Identification
of the complexity HEAT
of customer
problem
Simple Lack of understanding
Issues Complex
Transactions Transactions of process/product

DSS
Rules Engine + Workflow Online Knowledge Base
Resolved
Chat with expert using Case Based Reasoning Solution
through Collaboration Tools for exceptional cases

Learning Management System

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 Impact on processes
Tools Highlights
Process: Annuity -Crashed Learning curve from 20 to 3 days
Annuity Automation
- Bulk annuity kit preparation instead of individual kit
preparation
Process: Misselling -Complex process with multiple decision points
Misselling Diagnostic
-No dependence on seniors for decision making
tool
- 90 % accuracy vis-à-vis manual decisions
Process: e-Mail - Automated template management tool
Easy E-mail
- Search module hinting at right resolution ensuring
accuracy
Process: Fund - Accuracy is critical as high Financial impact for
Allocation
customers
Unit Journal calculator
- Over 11,000 NAV calculations - 100 % accurate
- Enabling Descaling of centralized UJ calculation

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 Overall Impact

Tools Highlights
Processes Relook at each process put in the system
Process changes on the fly made possible
Resources One central locus for all resources

Learning tool Part of Lesson plan in induction training

¾Strain on buddy training reduced
¾New joinee productive in shorter span
¾Policy Admin and CRM system training relevant to
the job
¾Job specific Training

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 Journey so Far & Way Forward
Journey So far Way Forward

Commenced system development Initiated development for

- June ‘06 remaining service teams

System launched in central Branch & Contact

processing team – November ‘06 Centre – November ‘ 07

Monitored success over 6 months Claims –January ‘08

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 Thank You

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 Unit Calculator

Auto picked up Financial impact

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Process - Annuity

A brief Description
Quotation Preparationof the Kit
Decision basedActioning
on information
Decision
in available
Decision
CRM Criteriain data base
Criteria
Preparing Dispatching
Letter - Required
the KitTemplate
– Process provided
completed

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