PegaWorld 2014 Presentation: AEGON Revolutionizes the Policyholder Experience, While Reducing Costs

© 2013, Confidential, Pegasystems Inc.

TM

2 2 © 2014, Confidential, Pegasystems Inc.

AEGON Revolutionizes the

Customer Experience and

Reduces Costs

David Beattie – Customer Service Director

Iain MacKenzie – IT & Change Director


3

Over

26,500 EMPLOYEES1

EUR

1.9

billion

Underlying earnings before tax

in 2013

EUR 20

billion

Paid out in claims and benefits

in 2013

Revenue-generating investments

EUR 475 billion1

AA- financial

strength rating

1) As per December 31, 2013

Aegon at a glance

Over 150

years of

history

Life insurance, pensions

& asset management

Present in more than 25

markets throughout the

Americas, Europe and Asia


4

Around

2,400 EMPLOYEES1

£42

billion

Assets Under Administration

Lead Partner of British Tennis


Aegon UK at a glance

Retirement, Workplace Savings

& Protection

Founded in 1831

Award Winning

Platform


5


Scotland at a glance

Around

5.5M PEOPLE1

http://www.google.co.uk/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&docid=BBs5-6rKjzUZHM&tbnid=wl6FNYImqntuNM:&ved=0CAUQjRw&url=http://www.telegraph.co.uk/topics/christmas/christmas-food-and-drink/9743563/Video-The-best-whisky-to-buy-for-Christmas.html&ei=lpFwU-OsJOaU0AXQkIGwDg&bvm=bv.66330100,d.ZWU&psig=AFQjCNFik0Tff9IvDnvbvk1Vxp3wN_2kOA&ust=1399972573470343


Introduction to Aegon UK Significant scale as a

consistent Top 3 player Combined with best in breed partners

22,000 employers

800 FTEs servicing 150 person contact

center

1 million calls p.a.

1.85 million customers

1.3 million paper

transactions

150 Subject matter

experts

Business Processes Voice Platform

Print & Distribution

Platform Technology

PEGA Supply Partner

Strategic IT Partner Digital Consultancy

http://www.pega.com/

http://realhdwallpaper.com/wp-content/uploads/2013/04/Canon-Font-Red-Logo-HD-Image.jpg


Agenda

Why Bother?

Approach Results Where Next?


Customer Services Targets

Our People Our

Shareholders Our

Customers

Better Quality Customer Service

Higher Returns,

Lower Cost

Agile and Responsive

Compliant and Low Risk

Rewarding Careers


Why Bother? Customer Services Challenges

Independent functions, individually managed in

Silo’s

Same Processes, different procedures

Handoffs between areas

Limited Cross Functional

planning or resource sharing

Slow and inconsistent

Customer Experience

Operational Costs too high

Low Level of Staff Engagement


Customer Services 2014

Single CS Management

Team

Cross Functional Planning and Resource Sharing

Standardised Processes,

Multiskilling Reduced Handoffs

+10% Staff Engagement

7-10% Cost Reduction

Improved Customer

Experience +20 NPS positive increase


Why Bother?



Business Process Management

http://search.dilbert.com/search?p=R&srid=S3-USWSD01&lbc=dilbert&w=business process management&url=http://dilbert.com/strips/comic/2004-10-22/&rk=1&uid=872362687&sid=2&ts=custom&rsc=vp234oj5kbAdRtDR&method=and&isort=date&view=list&filter=type:comic


BPM Delivery Centre

Built a Foundation

Initially supplier led

General work

Single project

PEGA’s methodology

Internal Capability

Continuity of supplier resources

Inclusion of internal team

Integrated with Aegon methodology

Multiple Pega Projects

Delivery Center

Experts in technology

Roadmap creation

Responsible for all projects and BAU

Supports business / delegated rules

Creating new best practice principles and methodology


New Needs and Thinking

Drivers Approach


Evolving Approach to Automation

Change of Address

• Aimed for 100% STP

• 12 months+ delivery

• Achieved semi automation

Upgrade Claim

Process

• Targeted partial automation

• 9 month delivery

• 60% unit time saving achieved

Allocate Payroll

Payment

• 50% automation target

• 3 month Delivery

• 70% process fulfilment achieved


Business Empowerment

Increased Business Agility and Reduced IT Costs

Delegated Rules

Business Configuration

175 Delegated Rules Implemented….and Counting

Regular Releases, outside

of IT cycles

No additional IT spend

Business Configuration

Work Prioritisation Checklist and

Procedure Updates User Skill and

License Updates


Approach to PEGA

Objectives

Processes Structure Culture Delivery

Customisation versus “out of the box”

Clear Vision, Well Communicated,

Set Expectations Embed into future business planning

Do you understand them,

will you reengineer?

Define your TOM, build for

agility, BAU support?

Design this, don’t just

evolve, how to measure?

Core Team, Decide on Methodology, Performance Test against current infrastructure


Why Bother?



Current Pega Scope

10 Million Transactions

1000 Back Office CS Users

100 Pega Cloud Installation Users

12500 PEGA Project Days

150 Contact Centre Users

(CPM)

Retire Ready D2C Launched April 14


Claims

Processes

Servicing

Processes

New Business Processes

Policy Query Switch

Policy Change

Premium Change

Annual Review

Valuation

Increments

Letters of Authority

Retirement Quote

Internal Transfer

Controls

Transfers In

Annuitant Certificate

Surrender

Bankruptcy

Quick Hits

Transfer Quotes Refund Quotes

Transfer Settlements

Retirement Quotes

Retirement Settlements

Death Quotes

Death Settlements

PSO Quotes

PSO Settlements

Refund Settlements

Divorce Quotes

Divorce Settlements

Enquiries

CA Forms

Policy Alterations

Surrender

Quote New Member

New Policy

Transfer In

Increments

Handoffs

Premium Change

Controls

New Entrant

New Scheme

Allocate Payroll Payment

Policy Query

Policy Change

Packaged Business Platform Business Upgrade

Coach (Next Best Action)

Customer Process

Manager

Renewals Reconciliations

Leavers Policy Alterations

Controls Bankruptcy

Multi-Channel

Services

Old World New World


• Pension reform

• Contact centre

implementation

• D2C – rules engine

• Automated upgrade

process

• Cloud installation

• Customer DB

• Foundation build • Transformation

roadmap discovered

• BPM workflow engine

established

“Top of the T”

• Automated quality

model

• Get next work

• Quote System (Client-facing UI)

• CS roll out complete • Change of address

straight through process

• Resilience programme • RDR

• Automate policy upgrade

• Extending Pega platform to business

• Process automation for customer service

• CPM knowledge management

BPM Way Forward

2010

2011

2012

2013

2014 Beyond

• Contact center

optimization

• Pega version upgrade

• Extending Pega work

flow to business units

• Built “General Work” basic capability

and delivered quickly across CS

• Gave Aegon a platform to build upon

and move into automation

• Established an internal Delivery

Center to drive Aegon forward

through future projects

Roadmap


PEGA has Enabled - For Our Customers

Better Quality Customer Service

NPS increase from -18 to +20

First Call resolution increased from 50% to 80%

Improved, consistent experience through standardised processes

Service differentiation for large employee benefits consultants

Move from policy to customer level processing


Evidence of Continuing Improvement

2014 Employee Feedback Customer Feedback

• Engagement Score

• 49 (+10 from 2012)

• Enablement Score

• 52 (+7 from 2012)

• NPS

• +20 (2014)

• -17 (2013)

• -25 (2012)


PEGA has Enabled - For Our Shareholders

Higher Returns, Lower Cost

Average call times reduced from 8 mins to 6:30 mins

60-70% Unit time savings through Process Automation

Trading efficiencies improved

Improved Customer Level Data

Reduced Time to Market for new services

Compliant and Low Risk

Successful Sox Auditing through Quality Automation

Robust Regulatory Solutions

Improved Operational Intelligence


Claim Process Automation (Unit Time Reduction)

• 24.7 minutes Full Process (pre-automation)

• 12 minutes Automated Flow

• 10 minutes Auto Claim Health Checks

• 4 min Integrated Work Creation

84% Unit

Time

Reduction


PEGA has Enabled - For Our People

Agile and Responsive

Cross functional planning / sharing resources

Easy business configuration changes without IT development

Rapid development cycles (process automation, cloud installation)

Training simplification and reduction in effort

Managers focusing on staff development (get next work)

Improved communication (newsfeed)

Enhanced usability


Case Studies 2

28


Why Bother?


30 30 © 2014, Confidential, Pegasystems Inc. 30

Getting the UK ready for

retirement

Digital Service Experience A retail comparable, mobile first experience that gives you

access to an intuitive interface to manage retirement

planning

Simple Products, Pricing and

Investments Products and pricing that are transparent and simple to

understand with access to a range of funds that are designed to

provide choice while meeting risk attitude of our target audience

Support and Guidance An engaging user experience that encourages and

supports self service through interactive tools and our

‘Coach’ functionality

A Proposition Summary

Ongoing Engagement Straight talking but nurturing communications across a

number of different media channels including UX interface,

social, email and film


Add John Mac Video


Where Next?

PEGA is central to

all ongoing Aegon

development and

strategy…

Contact Centre Efficiency

Increase Digital Presence / Direct to Customer

Increased Self Service

More Process Automation

PEGA Upgrade


QUESTIONS & ANSWERS

PegaWorld 2014 Presentation: AEGON Revolutionizes the Policyholder Experience, While Reducing Costs

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Transcript of PegaWorld 2014 Presentation: AEGON Revolutionizes the Policyholder Experience, While Reducing Costs