Sun Life: innovating across the digital-savvy Asian market
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Digital transformation across the Asian landscape
WRITTEN BY
OLIVIA MINNOCK PRODUCED BY
NATHAN HOLMES
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Insurance giant Sun Life sees the Asian market as an important region to grow, innovate and experiment. Gavin Gollogley and John Trotter outline how the company uses digital tools, culture and partnerships to thrive in a rapidly changing landscape
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hile insurance giant Sun Life is headquartered in Canada – the company’s commitment to digital transformation and
innovation surpasses borders, and the exciting market of Asia is becoming an important region for developing new ways of working. Sun Life, which is present in seven markets across Asia – Hong Kong, Vietnam, Indonesia and the Philippines, with joint ventures in China, Malaysia and India – sees Asia as a tech-savvy market with huge opportunities for growth, not just geographically, but also in terms of the innovation and services it offers. “Asia is an important growth engine for many global businesses now,” comments John Trotter, Head of E-Distribution and Fintech at Sun Life Asia. Asia has several elements that come together to create a wealth of opportunity for a global insurer like Sun Life: a large and growing population, an emerging middle class, low insurance penetration across most countries, and a young demographic
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“ It’s important to understand how data, coupled with intelligent analytics, supports business needs” — Gavin Gollogley, Head of Digital, Sun Life Financial Asia
which is digitally savvy and used to leapfrogging technologies to take advantage of the very latest advancements. The company is highly enthusiastic about the region, and encourages the Asian businesses to drive their own developments for the local markets. “This is a really sensible approach,” comments Trotter. “Of course we share learnings across all our markets, but a one-size-fits-all model across countries rarely works – there are always local considerations that
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may mean something that works well in one country will not necessarily work in another: regulation, market maturity, culture etc.” As the company embarks on an ambitious journey to digitise its overall operations, Head of Digital for Asia, Gavin Gollogley, adds that Asia is the perfect place to experiment. “From an innovation perspective, there is a sense that people typically look toward the US, but there is equally as much going on this side of the world, particularly in China and India.” Gollogley adds that Sun Life’s ‘client obsessed’ CEO, Dean Connor, has put a lot of focus on digital and data to drive Sun Life’s cli-
CLICK TO WATCH : ‘SUN LIFE AND ME. PARTNERS FOR LIFE’ 07
ent strategy, actively encouraging our
building new business models, en-
transformation agenda, and new ways
hancing operational and value chain ef-
of operating in some of the world’s
ficiency, and creating best in class ex-
fastest growing markets.
periences, to building a digital culture and mindset – all enabled by the latest
FOCUSING ON DIGITAL
technologies, data-driven insights,
Gollogley highlights that digital trans-
skillsets, talent and change frame-
formation is not simply a matter of
works. When you look at it through
technology advancement and applica-
these lenses, it is a pretty large beast.
tion. “There’s a definite need to clearly
As we are a traditional life insurer, with
articulate what digital is, and how it
over 150 years of doing business, this
enables business strategy. It touches
requires taking transformation in bite
on many elements, some more trans-
size pieces.”
formational in nature than others. From
Sun Life Asia’s digitisation kicked w w w.sunl i fe. com
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off in earnest in early 2016. “We have
cluding building an integrated customer
made good progress across the region
engagement platform, developing
in advancing our Digital and Data
a point of sales and productivity suite
& Analytics agenda,” says Gollogley.
platform for advisors, improving our
“The core focus has been on digitising
digital marketing and social media
our current processes, creating a data
capability and creating a data analytics
& analytics centre of excellence and
center of excellence.”
embedding a digital friendly culture, with investment in upskilling our people
en their digital foundations to push
with key digital skills.
for differentiation. “There is a definite
The initial focus was on a three year
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In 2019, Sun Life will further strength-
awareness that we need to be vigilant
road map, its objectives having largely
on areas like talent, structure and culture
been achieved in developing a ‘com-
to achieve our goals,” Gollogley adds.
mon core’ across all business units; in-
E XECU T I VE PRO FI LE
Gavin Gollogley Gavin Gollogley is Head of Digital, Asia at Sun Life. He supports the organization’s digital transformation efforts, specializing in the digital portfolios which include marketing, experience and distribution, as well as overseeing their data & analytics centre of excellence. Gavin has over 25 years’ experience in digital roles spanning media, publishing and the insurance industry in Hong Kong, Australia and Ireland. He brings to his role a deep understanding of how digital transformation can create opportunities and be leveraged to solve inherent business problems. Currently based in Hong Kong, Gavin enjoys spending quality time with his wife and three daughters when not working.
GROWTH THROUGH PARTNERSHIPS
customers who may not have access
As part of the company’s digital
to Sun Life’s traditional channels,
transformation journey, Asia has also
the business is experimenting with
proved the perfect place to explore
new forms of distribution through
new digital distribution channels by
strategic partnerships. Currently,
collaborating with partners to en-
insurance penetration is around 3%
hance the experience for Sun Life’s
on average across all Sun Life’s
clients – for example, the business
Asian markets, so as Gollogley puts
has recently invested in startup Bow-
it: “There’s a huge opportunity,
tie, which will be Hong Kong’s first
a veritable ‘blue ocean’ out there
purely digital insurer. “Sun Life has
to navigate and explore.”
a proud history as a partnership
Telecommunication companies such
business,” says Trotter, explaining
as Malaysia’s U-Mobile have become
that in order to reach new groups of
an interesting component of Sun Life’s
E XE CU T I VE PRO FI LE
John Trotter John Trotter is Head of E-Distribution and Fintech at Sun Life. Within this role he is responsible for t wo t ypes of digital partnerships: developing strategic partnerships for new digital distribution, and working with startups and Fintech companies on innovative new initiatives. Trotter has over 30 years’ experience working in the banking and insurance industr y across Asia and the UK, largely in business development roles.
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growth plans. “We’re experimenting to see if we can sell insurance through non-traditional partnerships and ecosystems,” says Trotter, demonstrating Sun Life’s focus on pushing boundaries and extending its customer reach beyond traditional means. Additional telco partners already include Indonesia’s Telkomsel and Philippine’s Smart – both sector leaders in their respective countries with tens of millions of customers each. Sun Life has also recently formed another interest10
ing partnership with one of Southeast Asia’s major e-commerce platforms, Lazada, which itself has over 50mn customers in the region. “It’s a really interesting new model for us,” says Trotter. “We’ve simplified insurance to the extent that we can almost put the products on a supermarket (eCommerce) ‘shelf’ and observe how consumers respond. At this stage it’s still an experiment, but a good example of how we’re thinking – we need to push the boundaries to reach new types of customer.” Another element of the clientobsessed firm’s digital transformation journey is to offer products and solu-
“ The focus is on client experience: trying to understand needs and behaviour” — Gavin Gollogley, Head of Digital, Sun Life Financial Asia tions for those who may not be catered for by traditional insurance offerings. “We’re interested in helping increase the 3% penetration rate and appealing to new customers,” says Trotter. “We’re also very conscious about customer groups who may not have the same level of affluence or consistent income to afford our traditional products. We are redesigning our products in several markets to offer credibly priced on-demand value options. There are groups of consumers in Asia that don’t want to buy a 10-year insurance policy the first time they buy – they want to w w w.sunl i fe. com
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“ Asia is a massive growth engine for most global businesses now” — John Trotter, Head of E-distribution and Fintech, Sun Life Financial Asia
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dip their toe in and try something more
to such a vast landscape of consum-
affordable and short term. We’re trying
ers would prove costly, this is one area
to deliver that for them.”
where e-commerce and telco partnerships have been vital. “People are inter-
CONNECTING WITH THE CUSTOMER
acting anyway, so that gives us a good
In addition to getting the product right,
opportunity to put products in front of
it’s important to explore different
people and test what works, what price
avenues of bringing these products to
point and coverage are right for them.”
the customer. “We’re trying to reach
Across its business lines, Sun Life
that niche of customers who can afford
has been quick to recognise and
what we’re selling, value what we’re
leverage the benefits of social media
selling, and who want to get into the
marketing across Asia, having
protection market at a price point they
garnered over 2.5mn followers on
can afford.” Whilst advertising directly
platforms such as Facebook, LinkedIn,
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Instagram and Twitter. In doing so,
it is how we will be perceived by
the company makes up for its rela-
prospect and client alike.”
tively smaller footprint in some markets
Though Facebook isn’t advertised
with an amplified voice online. “Sun
as a customer service function, Asia’s
Life uses social media to reach out to
well-known thirst for omnichannel and
people who don’t know the brand or
choice is reflected in the way many
understand the insurance need,” says
users engage with Sun Life via the plat-
Gollogley. “We’re using it for educa-
form. “Our clients are saying that’s the
tion and a lot of creative engagement
way they want to engage so we have
supporting brand awareness and
to cater for this,” says Gollogley. “It’s
sponsorship. Social media and digital
the same with chatbot technology. We
marketing in general is a way in which
have a chatbot sitting in our Philippines
we can present who we are, and what
Facebook page – but we also under-
our purpose is – and in equal measure,
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for everybody. Some people want to call us, some want to speak to their advisor, some want to go through email or through Facebook. We have to build connected experiences that match our customer needs, behaviours and intent.” Social media is instrumental for an organisation like Sun Life as it aims to engage with customers at different stages of the client journey in order to
“ We have to build connected experiences that match our customer needs, behaviours and intent” — Gavin Gollogley, Head of Digital, Sun Life Financial Asia
provide ongoing support from initial awareness to sustainable retention. 14
Sun Life also uses celebrities, KOL and supports its advisors through social
LEVERAGING DATA IN CLIENT OBSESSION
selling workshops. Here, content and
Along the path to purchase, awareness
context are king. Gollogley poses a
of the right products and services
key element of content marketing as
available to prospects and clients, and
a question: “How do we reach users
the experiences they receive, can be
who are unaware their needs may be
enhanced using the most vital resource
met by a financial product, regardless
available to businesses today – data.
of the brand?” With creativity, trans-
Organisations worldwide are leverag-
parency and education highlighted as
ing as much information as they can to
key, Sun Life has created ‘life moment’
provide a more personalised, predic-
frameworks which target human expe-
tive and proactive service and Sun Life
riences – ‘Getting Married’, ‘Building
is no exception. Indeed, its centre for
a Family’ or ‘Enjoying Retirement’ –
data & analytics aims to accelerate the
in order to show prospective clients
capabilities and development of best
how its products may help them at vital
practice around data and analytic solu-
stages in their lives.
tions. The team works with Sun Life’s
A TRANSFORMATIONAL MINDSET Like any organisation embarking on a significant digital transformation journey, Sun Life is experiencing a large culture shift, and has had to keep a close eye on managing this change as employees adapt to a new mindset. Gollogley argues that this isn’t just about forming a digital mindset, but is also about transitioning into a transformational mindset. “People who are willing to change, learn and be comfortable with uncertainty — those are the individuals we’re trying to bring into the organisation. But we have to be conscious that this is a journey and we’re dealing with people who have been in the profession for many, many years. The organisation has put tremendous focus into creating digital leaders, with a focus on upskilling the practitioners leading the change, as well as key enablers across the region. This includes training and certification on design thinking, agile, digital leadership, digital marketing and change management. To reinforce this change, we’re dependent on our senior leaders
being very vocal and communicating that change is good for the client, the organisation and the employee. We require our leaders to create a movement, being our number one change agents, to foster and accelerate a digital mindset within the organisation — encouraging agile digital leadership, change and transformation. If the execution is correct, this will be extremely beneficial to our transformation journey.” 15
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1865
Year founded
£1.1trn+ Assets under management
10,000+
Approximate number of employees
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SUN LIFE ASIA SERVICE CENTRE HYPER-JUMPS ITS CULTURAL AND DIGITAL TRANSFORMATION
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In 2006, Sun Life formed the Asia Service Centre to build the foundations for its digital transformation, long before ‘digital transformation’ became a buzzword. More than a decade later, Sun Life’s Asia Service Centre is a fastgrowing innovation hub providing business processing, IT and investment research benefitting Sun Life’s global operations with offices in the Philippines and India and a combined headcount of almost 3,000. The Asia Service Centre’s core digital competencies are mobile, data analytics, visualisation and RPA. In the past three years, Sun Life has launched over 20 digital assets, including the Sun Life Mobile Application launched in 2016, a first of its kind in the Philippines and supported the company’s e-commerce partnership with Lazada, another first in the industry. Agility played a big role in this project as the team achieved 80% re-use of components to lower cost and launch in two months’ time, ahead of the six-month timeline. When it comes to emerging capabilities, Sun Life is currently focusing on cloud, data science and AI. In 2018,
RPA was implemented through the Intelligent Process Automation (IPA) program which involved automating 50 business processes within Sun Life through the use of over 100 bots. Automation reduced the rate of errors and provided a lower level of operational risk. It greatly improved customer experience, moving highvalue front line employees to performing more important tasks. After it was launched in Asia, ROI was achieved in less than a year. In the same year, the Asia Service Centre’s Intelligent Automation Program evolved into the Intelligent Automation Centre of Excellence pushing for more technology innovation. Both initiatives are driving Sun Life towards automation of business processes to provide faster and more efficient services to Sun Life’s businesses around the world. “We won’t stop. Our digital transformation will continue to streamline our processes, reduce risks and achieve ultimate efficiency, thereby assuring improved customer satisfaction,” concludes Gollogley.
the organisation’s data and analytics maturity and business priority. These use cases can be offensive in nature, focusing on growing our business (for example, client engagement), or defensive, focusing on increasing efficiency to lower costs.” The client experience is also digitised every step of the way in order to build and develop sustainable relationships. “Persistency is one example of how the application of insights from data can bring a lot of value,” explains Gollogley. “How do we deepen that relationship various business units to leverage
with the client so they don’t lapse their
machine learning and infrastructure
policy after a short period? After buy-
development, and also draw conclu-
ing the policy, they’re still with us – not
sions on how data and analytics can
for six months, or six years, but for
be applied across client, distribution,
a whole lifetime of value, for them and
operations and digital partnership.
their beneficiaries.” This year, the
“It’s important to understand how
company is focusing on two particular
data, coupled with intelligent analyt-
areas: what Gollogley refers to as the
ics, supports business needs,” com-
first and last mile. “The first mile is the
ments Gollogley. “Recently, we’ve been
data piece: understanding what data
leveraging data strategy workshops
we have and being able to access that
to develop a target state of how we
in the most digestible format” explains
maximise value from data assets – the
Gollogley. “In addition, from an external
outcome gives us the ability to develop
perspective, what data can we get our
a high-level data roadmap with new
hands on and what will bring true client
insights and use cases that reflect
outcomes?” The ‘last mile’ involves w w w.sunl i fe. com
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the business executing on insights. “There’s little point spending 80% of the time on modelling and analysis, and only 20% on the execution of the insights generated. What are those insights that have tangible business value? When our data scientists bring those insights back into the business, are they different than anticipated? If so, are we willing to execute on the results, and do we have the ability to do this at speed? This can be our formula for success.” 20
Data, just like all the other resources leveraged by Sun Life, always comes back to an obsession with clients – clients
“ There’s a definite ence: trying to understand the needs need to clearly and behaviours,” Gollogley emphasises. articulate what “We know expectations are not set by digital is, and insurance companies and banks, but by those companies with the large market how it enables caps – the Amazons, the Facebooks, business strategy” the Googles. Our strategy is to deliver whose expectations are increasing
every day. “The focus is on client experi-
experiences that are proactive, predictive and personal. An example of this would be offering clients a ‘next best offer’ – matched to their current needs, life segment or mirroring what people ‘like
— Gavin Gollogley, Head of Digital, Sun Life Financial Asia
Studio in Toronto as well as regionally with the creation of an Innovation Hub in Asia and active participation in the fintech community. Trotter stresses these burgeoning, disruptive startups shouldn’t be seen as a threat, but as an opportunity to collaborate and innovate. “We’re very comfortable looking outside the business for solutions that we can’t build ourselves. That’s something we’ll do in terms of core technology as well as emerging technology. Collaboration is really where the industry is going and businesses that do well with this will have a much better chance than those that don’t.” them’ purchase. This is only possible
Run by Accenture, the Fintech
through advanced analytics and target-
Innovation Lab Asia Pacific runs annual
ed marketing. That’s the lens through
12-week mentorship programs for
which we try to match customer expec-
startups. Launched in 2014, companies
tation, while supporting and fueling our
which have utilised the lab have raised
advisor and partner ambitions.”
a total of US$288mn to date. Sun Life is one of the principal partners of the
INNOVATION IN AN OPEN LANDSCAPE
lab, alongside other global organisa-
As the financial landscape changes
tions such as HSBC and Goldman
and develops, becoming ever more
Sachs. Ignite, meanwhile, is Sun Life’s
competitive with the advent of fintechs
own centre for innovation which
and insurtechs, Sun Life is focusing
opened in 2017 to act as a ‘living lab’,
heavily on upskilling and innovation
advancing innovation and collaboration
– on a global scale through its Ignite
between employees. w w w.sunl i fe. com
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Trotter also stresses that partnerships are often the best way to go to introduce innovation. “The idea that a startup could be a serious industry competitor is obviously unlikely – they understand that they need to partner with the incumbent in the industry, and likewise we as the incumbent understand these insurtechs have ideas that can accelerate our transformation. Whether that’s claims process, RPA, AI, facial recognition – they have specific talents and techniques we can 22
leverage and vice-versa.”
A CONTINUOUS JOURNEY As finance and insurance continues to evolve, particularly in the exciting and
of talent: “Transformation itself will
fast-paced Asian markets, Sun Life is
never cease, and will continue to rely
reaching out to new clients continu-
heavily on people. Building a team,
ously, and adapting new experiences
bringing in the right talent and capabil-
for its existing client base. “We’re only
ity is challenging, but it’s a challenge
three years into our digital journey. It’s
that the Sun Life team, and those at
a story that’s going to continue, with
the forefront of the journey across
perhaps a narrative that is challenging
the region are managing well. I read
but exciting,” says Gollogley. “I expect
somewhere that digital transformation
the word ‘digital’ may be out of fashion
challenges the very concept of career
in a few years’ time, as it becomes the
paths and traditional job profiles, with
standard way of doing business.” Gol-
the agility and innovative capacity of
logley goes back to the importance
organisations resting on the diversity
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of experience of those who comprise
culture. Our transformation efforts to
it. I believe this sums up pretty well the
date have been a real joint effort, led by
challenges before us on talent hiring,
our business units, supported by our
retention and increasing capabilities,
regional and shared service teams.
in today’s environment. “At Sun Life, we’ve been fortunate to
“We know Digital is no longer an alternative: it must be viewed as core
hire some brilliant individuals across
and the new way of doing or providing
the region. We constantly learn from
ease of business. Sun Life is well
each other, and there is a real sense of
positioned to embrace and succeed
purpose, co-creation and collaboration
in this disruptive and changing world.”
for our mission. As a whole, Sun Life is a great place to work, a friendly and encouraging environment, with a great w w w.sunl i fe. com
Sun Life 14/F Cityplaza 3 14 Taikoo Wan Road Taikoo Shing Hong Kong www.sunlife.com