LMAbridged

Understanding Intangible Value Amy Batchu Marilee Bowles-Carey Preethi Lakshminarayanan Amanda McKown Shilpa Rao Nallieli Santamaria Gauri Verma Nanqian Xu

Everyone needs insurance. . .

Everyone needs insurance. . . so why does no one care about it?

Everyone wants personalized service. . .

Everyone wants personalized service. . . so why does no one see value in their agent?

How much of this can traditional insurance cover?

Stimulation & Variety

Efficiency & Manageability

Scarcity & Preciousness

Significance & Connection

Ability & Enablement

Credibility & Legitamacy Certainty & Control safety monetary stability awareness of risk security

Self-expression & Individuality

Stimulation & Variety

Efficiency & Manageability

Scarcity & Preciousness

Significance & Connection

Ability & Enablement

Credibility & Legitamacy Certainty & Control safety monetary stability awareness of risk security

Self-expression & Individuality

Stimulation & Variety

Efficiency & Manageability

Scarcity & Preciousness

Significance & Connection

Ability & Enablement

Credibility & Legitamacy Certainty & Control safety monetary stability awareness of risk security

Self-expression & Individuality

Today, insurance doesn’t have strong customer appeal because it doesn’t insure what people actually care about.

Liberty Mutual has the opportunity to redefine the industry. . .

Liberty Mutual has the opportunity to redefine the industry. . . . . . by viewing customers holistically.

It’s not just about possessions. . .

It’s not just about possessions. . . and it’s not just about loss. . .

It’s about knowledge, growth, goals, enjoyment and recovery.

LOSS

$$$$$ assessment

$$$$$ compensation

GAIN

LOSS

GAIN

LOSS

Guiding them through loss.

GAIN

Revealing their value to them.

LOSS

Guiding them through loss.

GAIN

LOSS

Supporting their growth.

Revealing their value to them.

Guiding them through loss.

GAIN

LOSS

Supporting their growth.

Revealing their value to them.

Sharing their risk.

Guiding them through loss.

GAIN

LOSS

Celebrating all of their values.

Supporting their growth.

Revealing their value to them.

Sharing their risk.

Guiding them through loss.

Celebrating all of their values.

Supporting their growth.

Revealing their value to them.

Sharing their risk.

Guiding them through loss.

We’ve seen the model work. Now let’s . . .

We’ve seen the model work. Now let’s . . .

Dive into each opportunity area.

We’ve seen the model work. Now let’s . . .

Dive into each opportunity area.

Experience future scenarios.

We’ve seen the model work. Now let’s . . .

Dive into each opportunity area.

Experience future scenarios.

Map Liberty Mutual’s strategic plan.

Opportunity areas

Revealing value.

Supporting growth.

Celebrating value.

Sharing risk.

Guiding through loss.

Strategic Roadmap

n& ulatio Stim ty Varie

Ab En ility ab & lem en t

Sc Prec arcity & ious ness

The Future

Efficiency & Manageability

Mon etar y Va lue

Significance & Connection

& tion aliza tion actu Self- Contribu

y& t n i rta rol e C nt Co

& ity cy l i ib ma d e Cr egiti L

In Se divi lf-e du xp alit res y & sio n

We see the future world characterized by: • Continual benefit • Specific and not generic • Integrated User expectations: Empathetic and human.

As insurance shifts to deeper values the consumer will see continual benefits from engaging with their insurance. As a result, they will expect a more human and personal inteaction.

Resulting channel: Demand for strong AGENTS.

After the recent acquisition, Liberty Mutual and Safeco have a combined 15,000 agents.

n& ulatio Stim ty Varie

Ab En ility ab & lem en t

Sc Prec arcity & ious ness

Now Now

Efficiency & Manageability

Mon etar y Va lue

Significance & Connection

& tion aliza tion actu Self- Contribu

y& t n i rta rol e C nt Co

& ity cy l i ib ma d e Cr egiti L

In Se divi lf-e du xp alit res y & sio n

The current world is characterized by: • Price differentiation and • Convenience User expectations: Fast and cheap.

The benefits of insurance are so far in the future and sometimes never felt that customers have no motivation to engage in a involved insurance process.

Resulting channel: Desire for DIRECT sales.

The current model pulls customers’ expectations towards a world of monetary value.

Independent agents are trying to provide humanistic service during a time when fast and cheap is all customers expect from the insurance industry.

Liberty Mutual brings data, reach, and brand recognition.

Safeco OpenSeas brings customer focus and innovative process.

With resources and process we can empower 15,000 agents.

This, in combination with a holistic insurance model, will shift customers expectations of the insurance industry.

In order to change expectations, we will need to overcome agent and customer current mindsets by encouraging dialogue.

Pride Presence Trust Trust

Mis-perception Doubt

Difficulty Confusion

Fear Insignificance

Agent

Customer

The future

Enhance

Celebrating all their values.

Assess risk

Sharing their risk.

Protect

Supporting their growth.

Measure value to them.

Respond

Revealing their

Guiding them through loss.

Now

The future

Enhance

Celebrating all their values.

Assess risk

Sharing their risk.

Protect

Supporting their growth.

Measure

Revealing their value to them.

Respond

Guiding them through loss.

Now

The future Insignificant I don’t care about insurance. Help me when help is really needed, create an emotional connection.

Enhance

Fear How can I help you in a way that direct cannot?

Assess risk

Protect

Sharing their risk.

Supporting their growth.

Fear Insignificance

Measure

Agent

Respond

Celebrating all their values.

Revealing their value to them.

Customer

Guiding them through loss.

Now

Now Loss Profile

Future Rapid Response

The future

Enhance

Celebrating all their values.

Assess risk

Sharing their risk.

Next Steps Select Users: Customers who have been through the claims experience.

Protect

Aggregate Data: Customers’ previous track record of losses.

Measure

Respond

Now

Future Steps Investment: Current claims and CSR process.

Train: Agents/employees to be responsive and prepared.

Create: Design a symbol that the customer can publicly display.

Collect Data: Prepare databases of local referral information to utilize for customer during loss.

Temperature Check: Customer Loyalty Do customers feel that we honor and accept their losses?

Agent Factor: Are agents able to immediately provide relevant, empathetic service to their customers in times of need?

Supporting their growth.

Revealing their value to them.

Guiding them through loss.

The future

Enhance

Celebrating all their values.

Assess risk

Sharing their risk.

Protect

Supporting their growth.

Measure

Revealing their value to them.

Respond

Guiding them through loss.

Now

I don’t understand insurance.

How can I help you see your information?

Enhance

How can I better educate myself to guide your decision making process?

The future

Display my information about

possessions, values, protection

policy, assist me in decision

making.

Assess risk

Celebrating all their values.

Sharing their risk.

Protect

Supporting their growth.

Difficulty Confusion

Measure

Agent

Respond

Revealing their value to them.

Customer

Guiding them through loss.

Now

Now Why I Am Lucky

Future Decision Tree Tool

The future

Enhance

Celebrating all their values.

Assess risk

Sharing their risk.

Protect

Measure

Next Steps Select Users: Customers who have umbrella policies.

Future Steps Investment: Current claims and CSR process.

Aggregate Data: Customers’ previous track record of loss and success stories.

Train: Agents/employees to be responsive and prepared.

Create: A small message and display for customers about their successes.

Respond

Now

Temperature Check: Customer Awareness Are customers surprised to see their success, enjoy seeing personal success?

Collect Data: Prepare databases of local referral information to utilize for customer during loss.

Agent Factor: Are agents able to immediately provide relevant, empathetic service to their customers in times of need?

Supporting their growth.

Revealing their value to them.

Guiding them through loss.

The future

Enhance

Celebrating all their values.

Assess risk

Sharing their risk.

Protect

Supporting their growth.

Measure

Revealing their value to them.

Respond

Guiding them through loss.

Now

I don’t think you can handle my unique situation now or in the future.

How can I reshape our relationship

Enhance

The future

Assure me that you welcome my unique situation.

now and take care of your network in the future?

Assess risk

Celebrating all their values.

Sharing their risk.

Protect

Supporting their growth.

Mis-perception Doubt

Measure

Agent

Respond

Revealing their value to them.

Customer

Guiding them through loss.

Now

Now Pre-insurance

Future Agent’s List

The future

Enhance

Celebrating all their values.

Assess risk

Sharing their risk.

Protect

Measure

Next Steps Select Users: Customers who have umbrella policies.

Future Steps Investment: Current claims and CSR process.

Aggregate Data: Customers’ previous track record of loss and success stories.

Train: Agents/employees to be responsive and prepared.

Create: A small message and display for customers about their successes.

Respond

Now

Temperature Check: Customer Awareness Are customers surprised to see their success, enjoy seeing personal success?

Collect Data: Prepare databases of local referral information to utilize for customer during loss.

Agent Factor: Are agents able to immediately provide relevant, empathetic service to their customers in times of need?

Supporting their growth.

Revealing their value to them.

Guiding them through loss.

The future

Enhance

Celebrating all their values.

Assess risk

Sharing their risk.

Protect

Supporting their growth.

Measure value to them.

Respond

Revealing their

Guiding them through loss.

Now

I don’t feel like you trust me.

How can you show me your local

context to accurately represent your personal opportunities and risks?

Enhance

The future

Lead me in the right direction, and stand by me when others may not.

Assess risk

Celebrating all their values.

Sharing their risk.

Protect

Supporting their growth.

Trust Trust

Measure value to them.

Respond

Revealing their Agent

Customer

Guiding them through loss.

Now

Now Stay Current Checklist

Future Global Identity

The future

Enhance

Celebrating all their values.

Assess risk

Sharing their risk.

Protect

Measure value to them.

Next Steps Select Users: Small business owners.

Future Steps Select Users: Gen X, international students.

Research: Local and national trends.

Aggregate Data: To initially select which customers to represent.

Create: A periodic display of the trends relevant to customers.

Temperature Check: Customer Acceptance Do customers avoid local risks after becoming more aware?

Respond

Now

Augment Brand: To ensure that LM credibility is apparent globally.

Test Factor: Do external people in customers lives trust LM as a credible source?

Supporting their growth.

Revealing their

Guiding them through loss.

The future

Enhance

Celebrating all their values.

Assess risk

Sharing their risk.

Protect

Supporting their growth.

Measure value to them.

Respond

Revealing their

Guiding them through loss.

Now

I don’t feel or see my insurance company.

The future

How can I support the positive experiences in your life?

Enhance

Revel with me, in the good times.

Assess risk

Celebrating all their values.

Sharing their risk.

Protect

Supporting their growth.

Pride Presence

Measure value to them.

Respond

Revealing their Agent

Customer

Guiding them through loss.

Now

Now Libby Community Capsule

Future Lock Box

The future

Enhance

Celebrating all their values.

Assess risk

Sharing their risk.

Protect

Measure value to them.

Respond

Now

Next Steps Select Users: Baby Boomers.

Future Steps Select Users: Gen Y.

Create: a website similar to the Responsibility Project.

Research: standard components that make an identity.

Message: introduce new offering in locations relevant to customers.

Create: a product that agents offer customers to safely store pieces of their identity.

Temperature Check: Customer Appeal Do customers contribute, and take actions to further protect meaningful possessions?

Agent Factor: Do agents display interest in protecting or storing their customers meaningful possessions?

Supporting their growth.

Revealing their

Guiding them through loss.

Thank you.