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| Case Studies |
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All work undertaken by LSOS is treated as highly confidential and unless specifically authorised by the client, no specific details are ever disclosed to any third party. These case studies intend to demonstrate that many companies experience similar problems and hopefully, highlight how LSOS provides appropriate solutions. Although circumstances are factual no activity related to any specific company, client or organisation and no specific details are ever disclosed in these case studies.
CITICORP LIFE'S SUCCESSFUL
RETENTION OF MATURING INVESTMENT FUNDS LSOS was contracted to provide an experienced technical person to join the client services team and actually telephone clients with impending maturing investments. His discussions were firstly, to establish the client's intended purpose of the maturing funds and then, where appropriate, suggest and offer the company's alternatives. While this produced an immediate increase in the retention rate, it became evident that technical issues did not play a major role in retaining business. It was clearly more important to have a highly qualified sales and marketing expert and with Citicorp's consent, LSOS quickly changed its business adviser. In consultations with Citicorp, the new business adviser set up and led a small team, dedicated to the retention project. The results were outstanding immediately and the project was extended by 3 months. Each succeeding month's results eclipsed the previous record. The project was delivered on time and well within the budget and Citicorp elected to retain the newly formed retention team. Versatility and Feedback Another important benefit that arose for Citicorp was the identification of critical yet apparently unrelated issues that clearly impacted on the policyholders' opinion of their Fund Manager and their decision to reinvest or to move their funds to a competitor. Citicorp's continuing association with LSOS reflects the exceptional results achieved. FAI LIFE ACTS TO STEM EARLY EXITS The senior management at FAI Life was concerned that while their new business was flowing at a healthy rate, the discontinuance rate of a very specific class of business had been worsening consistently, over a number of months. Here, LSOS's role was to identify the underlying cause(s) and to develop high level strategies and specific implementation plans to assist in stemming the discontinuance rate. Following research within and outside the company, some clear reasons emerged. A comprehensive report was produced, on time and within budget, which suggested a choice of three alternative courses of action as well as the recommended course and the reasons for the recommendations. The report also included a plan encompassing internal and external activities involving the Management, Staff, Advisers and Policyholders. One of the most evident issues to emerge was the fact that, over the years, in developing strategies for the acquisition of new business, the need to highlight and enforce the importance of business persistency appeared to have taken a back seat. This resulted in a large portion of the staff being unaware of the effect that early exits have on the profitability of business and the ultimate impact of the exits on the shareholders' returns. The management undertook to implement many of the recommendations put forward in the LSOS report, including the addition of "Business Persistency" in the staff training program. This has contributed a 32% reduction in the Investment Business discontinuance rate, since the conclusion of the project. Churning is an Industry
Problem However, with the enormous growth of investment-related policies, where exits rates have only a marginal effect on adviser remuneration, there is little incentive for good persistency or for new business to stay on the books for long. Indeed, a period of low investment returns or a competing product with lower management fees can, and often does, become the catalyst for business to be moved. Early exits are costly, and unless these are controlled, the client usually ends up paying the price.
NRMA FINANCIAL SERVICES ENSURES
APPROPRIATE LIFE COVER COMPLEMENTS ITS SUPER PRODUCT The product manager at NRMA Financial Services was developing a modern and innovative Superannuation product for clearly defined markets. The client sought external resources in addressing only the requirements of the Life and Disability Cover aspects for this product. LSOS's first task was to develop the initial draft Product Specifications relating to the Life and Disability Cover and to participate in the appropriate product development team meetings. Another objective of the project was that the Life and Disability Cover should complement the overall approach of the Superannuation CIB and here the LSOS Business Adviser contributed a number of valuable suggestions and recommendation. The LSOS Business Adviser also attended all technical meetings with NRMA's reinsurers during the development of the scope of the Life and Disability Cover and in the number of benefits offered (including the various definitions). He also made significant contributions to the design and market competitiveness of the product's Risk aspects. Following a number of discussions and meetings, the Final Product Specifications were duly signed-off by all the interested parties, on time and within the budget. LSOS continued to supply "after-sale" support until the final productions stages of the Customer Information Brochure, ready for the product launch. Multi-Discipline Support While traditional Risk expertise applied to the Life & Disability Cover, the Superannuation aspects involved specific technical issues, the product's competitiveness required market intelligence and at times, the product pricing issues crossed into the actuarial arena. The successful completion of this project highlights the unique benefits provided to all LSOS clients; whereby access to the complete LSOS team's expertise is available as the need arises.
"Chris Medin
of LSOS undertook the project and delivered a most comprehensive and detailed
report with numerous practical reccommendations, many of which we will
adopt. His report was delivered on time, within budget and in a most professional
manner. I will have no hesitation in seeking LSOS for future projects
and I can reccommend Chris to any potential client who may be considering
utilising the outsourcing services of LSOS". "In his capacity
as manager for Advance Life Insurance Limited, Chris Medin designed a
range of Risk Products including Term Life, Mortgage Cover and Trauma
Insurance contracts. These competitive products were set to become the
mainstay of the Life Company's product range, before the merger of Advance
Bank with St George Bank". "In the role
of Product Manager - Risk Products, Chris Medin successfully reviewed
the entire range of Zurich's risk products and developed some of the most
competitive and profitable Risk products for Zurich Australia". "Some of the
most rewarding and personalised overseas conventions I have attended over
the past 20 years were those convened and managed by Chris Medin in his
capacity as Marketing Manager at Associated National Life. His ability
to converse in many languages and his flair for negotiation benefited
not only his company but also most of the Convention Delegates whislt
in foreign lands. He negotiated conventions in many countries inclduding
the Philippines, the USA, Hong Kong, Greece and Italy". |