NIB Holdings Ltd · ASX:NHF
NIB — Investor Day (June 2014)
94 slides from NIB's investor day presentation, Jun 19, 2014
Slide 1: ASX cover letter: 2014 nib investor strategy briefing
nib holdings limited t 13 14 63 Head Office f 02 4925 1999 22 Honeysuckle Drive Newcastle NSW 2300 e [email protected] abn 51 125 633 856 w nib.com.au For personal use only 19 June 2014 The Manager Company Announcements Australian Securities Exchange Limited Level 4, Bridge Street SYDNEY NSW 2000 Subje
Slide 2: 2014 Investor Strategy Briefing
2014 INVESTOR STRATEGY BRIEFING 19 JUNE 2014 = = © @ Q = © ‘= S Q — @ oe = © UL
Slide 3: Strategic Update
STRATEGIC UPDATE Mark Fitzgibbon Chief Executive Officer & Managing Director = = © @ Q = © ‘= S Q — @ oe = © UL
Slide 4: Today's Agenda
MAIN HEADING GOES HERE IN UPPERCASE PLEASE For personal use only TODAY’S AGENDA Time Topic Presenter Duration Mark Fitzgibbon 30 mins 9.00am Welcome & strategic update CEO & Managing Director (10 mins Q&A) Michelle McPherson 30 mins 9.30am Capital CFO and Deputy CEO (10 mins Q&A) 10.00am Morning tea
Slide 5: The Jaws of Death
MAIN HEADING GOES HERE IN UPPERCASE PLEASE For personal use only “THE JAWS OF DEATH” Cumulative annual growth rates (from actual dollar expenditure) 20000% GDP growth Health expenditure growth Non Government health expenditure growth 18000% 16000% 14000% 12000% 10000% 8000% 6000% 4000% 2000% 0% 1964
Slide 6: Investment Thesis
MAIN HEADING GOES HERE IN UPPERCASE PLEASE For personal use only INVESTMENT THESIS 1. We’re spending more and more on our healthcare 2. Spending growth is probably sustainable but not Government’s current relative Australian Treasury projections share 8% 2009-10 2049-50 3. The private sector and pri
Slide 7: Business Strategy
MAIN HEADING GOES HERE IN UPPERCASE PLEASE For personal use only BUSINESS STRATEGY Grow our Australian residents health insurance business (arhi) organically at circa 10% annual premium growth (4-5% policyholder growth) through building national brand presence and with an emphasis on <40 market 1 (V
Slide 8: So Far So Good
MAIN HEADING GOES HERE INFAR UPPERCASE PLEASE For personal use only SO SO GOOD arhi policyholder growth Consolidated operating profit – split of earnings nib versus industry cumulative net policyholder growth arhi underwriting result Non-arhi Contribution to operating profit FY14 guidance range ($73
Slide 9: Guidance
MAIN HEADING GOES HERE IN UPPERCASE GUIDANCE PLEASE For personal use only FY14 • Latest forecast indicates that we will be at the lower end of the previously published range for consolidated operating profit of $73 million to $80 million Put a footer here if you need to. 8
Slide 10: For personal use only
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Slide 11: Capital
CAPITAL Michelle McPherson Chief Financial Officer & Deputy CEO = = © @ Q = © ‘= S Q — @ oe = © UL
Slide 12: Available Capital
MAIN HEADING GOES HERE INAVAILABLE UPPERCASECAPITAL PLEASE For personal use only nib • As reported in 1H14 results the introduction of the new PHIAC capital standards has resulted in a new internal capital target for nib health funds limited and has seen an increase in nib holdings limited group (th
Slide 13: Internal Capital Targets
MAIN HEADING GOES HERE ININTERNAL UPPERCASE PLEASETARGETS For personal use only nib CAPITAL The internal capital target at Group level is the greater of: • the sum of the Australian and New Zealand regulated entities’ internal capital targets, plus the liabilities for other group entities • the capi
Slide 14: Internal Capital Targets (cont)
MAIN HEADING GOES HERE ININTERNAL UPPERCASE PLEASETARGETS (CONT) For personal use only nib CAPITAL nib NZ limited (New Zealand Regulated Entity) • New internal target is 175% of the minimum solvency capital (previous target) plus NZ$10 million • The overriding objective underpinning nib nz’s capital
Slide 15: Gearing Targets
MAIN HEADING GOES HERE INGEARING UPPERCASE PLEASE For personal use only nib TARGETS Target gearing at the Group level set in order to achieve an optimal WACC is: • nib will raise debt up to a level that achieves a long term average gearing ratio of 30%, with a short to medium term target of 25% base
Slide 16: New PHIAC Capital Standards
MAIN HEADING GOES HERE IN UPPERCASE PLEASE For personal use only NEW PHIAC CAPITAL STANDARDS • The new capital standards have moved the focus of capital standards away from the previous calculations based standards to more principles based ones, with insurers needing to be more “in touch” with their
Slide 17: PHIAC Solvency Standard
MAIN HEADING GOES HERE IN UPPERCASE PLEASE For personal use only PHIAC SOLVENCY STANDARD Solvency Solvency Standard Liquidity test Liquidity management - Cash is not less than plan the sum of amounts below The cash management amount is the sum of the stressed net cash outflow amount* + 1% of the cen
Slide 18: New PHIAC Capital Adequacy Standard
MAIN HEADING GOES HERE IN UPPERCASE PLEASE For personal use only NEW PHIAC CAPITAL ADEQUACY STANDARD • The Capital Adequacy Standard (“Are the health fund’s assets large enough to ensure that it can survive a very bad year with its balance sheet intact?”) has two tests: 1. Test 1 – quantum of assets
Slide 19: PHIAC Capital Adequacy Standard
MAIN HEADING GOES HERE IN UPPERCASE PLEASE For personal use only PHIAC CAPITAL ADEQUACY STANDARD Assets must not be less than the greater of the amounts calculated under the two tests described below Capital Adequacy Standard Quantum of Concentration of Capital Management Assets Test Assets Test Pol
Slide 20: PHIAC Capital Adequacy Standard (cont)
MAIN HEADING GOES HERE IN UPPERCASE PHIAC PLEASE CAPITAL ADEQUACY STANDARD (CONT) For personal use only TEST 1 - QUANTUM TEST 2- CONCENTRATION • Stressed net margin estimate1, plus Stress test amount • Stressed investment income estimate, plus Capital adequacy default (98% PoS) • Stressed other inco
Slide 21: For personal use only
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Slide 22: Australian Residents Health Insurance
AUSTRALIAN RESIDENTS HEALTH INSURANCE Rhod McKensey Group Manager - Australian Residents Health Insurance = = © @ Q = © ‘= S Q — @ oe = © UL nib
Slide 23: Strategy: Our Areas of Focus
MAIN HEADING GOES HERE IN UPPERCASE PLEASE For personal use only STRATEGY…. OUR 5 AREAS OF FOCUS 1. Continue to focus our Direct-To-Consumer (DTC) efforts upon the under 40s segment (Virgin Green) 2. Look for additional growth and market share in the over 55s market via retail brokers and affiliatio
Slide 24: Brand Strategy
MAIN HEADING GOES HERE IN UPPERCASE PLEASE For personal use only BRAND STRATEGY In an environment of strong forecast industry growth and an increasing propensity of customers to switch, having a strong brand is critical nib Brand Health ‐ Current Current 65% 39% High‐level target is to Ad Awareness
Slide 25: Industry and nib Growth Has Been Strong
MAIN HEADING GOES HERE IN UPPERCASE PLEASE For personal use only INDUSTRY AND nib GROWTH HAS BEEN STRONG Annual policyholder growth – 12 months to 31 March nib has achieved above industry growth for over a decade Australian PHI growth drivers Government “carrots and sticks” Increasing wealth and
Slide 26: Distribution Strategy
MAIN HEADING GOES HERE IN UPPERCASE PLEASE For personal use only DISTRIBUTION STRATEGY nib policyholder sales (monthly) by channel (% of all sales) CCC Corporate Retail Broker Retail Network Web 100% 80% • Sales mix is changing based on optimising the cost of acquisition across channels • Recent red
Slide 27: Retail Brokers and New Channels
MAIN HEADING GOES HERE IN UPPERCASE PLEASE For personal use only RETAIL BROKERS AND NEW CHANNELS Retail Brokers • Retail brokers currently account for around 30% of all policyholder sales • Remain a low risk, profitable and scalable channel to target niche segments (over 55s) and new markets • Retai
Slide 28: Average Premium Income (API) Continues to Grow
MAIN HEADING GOES HERE IN UPPERCASE AVERAGE PLEASE PREMIUM INCOME (API) CONTINUES TO GROW For personal use only Monthly sales API (all products) New product range • API of our sales has significantly launched March 2013 increased, due to launch of new product range and an increased focus on over 55s
Slide 29: New Policyholder Cost of Acquisition
MAIN HEADING GOES HERE IN UPPERCASE NEW PLEASE POLICYHOLDER COST OF ACQUSITION For personal use only Effective commission* and cost per acquisition per policyholder - 12 months rolling Effective commission* by state • Competition from other health funds and retail brokers has NSW VIC QLD WA SA Total
Slide 30: Retention
MAIN HEADING GOES HERE IN UPPERCASE PLEASE For personal use only RETENTION nib policyholder lapse by classification nib policyholder lapse by demographic 60,000 Under 40 40-54 55+ • Retention (lapse and churn) is an industry 50,000 problem 40,000 Policyholders • Our lapse rate is in line with the in
Slide 31: Product Design Principles
MAIN HEADING GOES HERE IN UPPERCASE PLEASE For personal use only PRODUCT DESIGN PRINCIPLES Singles and couples cover 1. Value leading Design products to align to customer expectations rather than industry norms 2. Minimise cross subsidisation Price each product fairly and not subsidise loss leading
Slide 32: Gross Margin Challenges and Learnings
MAIN HEADING GOES HERE IN UPPERCASE GROSS PLEASE MARGIN CHALLENGES AND LEARNINGS For personal use only Net claims incurred as a % of all claims Hospital claims by speciality as a % of all hospital claims Hospital Medical Prostheses Hospital Benefits Ancillary Benefits State Levies Risk Equalisation
Slide 33: Claims Inflation - Our Areas of Focus
MAIN HEADING GOES HERE IN UPPERCASE PLEASE For personal use only CLAIMS INFLATION - OUR 5 AREAS OF FOCUS 1. Service costs • Rely more upon data and evidence of variation in contract price negotiation • Seek to avoid payment for medical misadventure • Expand preferred ancillary provider network 2. Ut
Slide 34: Competitor Activity
MAIN HEADING GOES HERE IN UPPERCASE COMPETITOR PLEASE ACTIVITY For personal use only Estimated PHI Advertising by fund (excluding online) Industry marketing and competitor activity nib Medibank/ahm Bupa iSelect $120 HCF HBF GMHBA Other $100 $80 Millions $60 $40 $20 $- FY09 FY10 FY11 FY12 FY13 Data s
Slide 35: Focus for Next 12 Months
MAIN HEADING GOES HERE IN UPPERCASE PLEASE For personal use only FOCUS FOR NEXT 12 MONTHS Net Promoter Score 1. Building brand awareness and consideration in 30% target market 25% 20% 2. Web improvements 15% 10% 3. Stabilisation of lapse 5% 0% 4. Delivery of claims savings Sep-10 Mar-11 Sep-11 Mar-1
Slide 36: National Commission of Audit
MAIN HEADING GOES HERE IN UPPERCASE PLEASE OF AUDIT For personal use only NATIONAL COMMISSION The National Commission of Audit Report (released in May 2014) outlined a number of recommendations aimed at reforming Australia’s healthcare system: Effective move towards compulsory PHI for those on hig
Slide 37: Federal Budget (2014-15)
MAIN HEADING GOES HERE IN UPPERCASE PLEASE For personal use only FEDERAL BUDGET (2014-15) According to the Government, the Health Budget (2014-15) was framed with four guiding principles: That taxpayer funds must be spent on programmes and services that improve health outcomes for Australians; T
Slide 38: Federal Health Budget (PHI) - What's Changed?
MAIN HEADING GOES HERE IN UPPERCASE PLEASE For personal use only FEDERAL HEALTH BUDGET (PHI) - WHAT’S CHANGED? Income tiers for the Medicare Levy Surcharge (MLS) and premium rebates will not be indexed for three years from 1 July 2015, saving government $1.5 billion over that period. This means
Slide 39: For personal use only
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Slide 40: Benefits & Provider Relations
BENEFITS & PROVIDER RELATIONS Justin Vaughan Group Manager - Benefits & Provider Relations = = © @ Q = © ‘= S Q — @ oe = © UL
Slide 41: Benefits Management
MAIN HEADING GOES HERE INBENEFITS UPPERCASE PLEASE For personal use only nib MANAGEMENT To more effectively manage utilisation and benefits outlays that lead to: • Best value healthcare (i.e. funding services that make a difference in the most cost-effective manner) • Lower claims and premium inflat
Slide 42: For personal use only
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Slide 43: Drivers of Health Care Costs
MAIN HEADING GOES HERE IN UPPERCASE PLEASE For personal use only DRIVERS OF HEALTH CARE COSTS Increasing capacity Lack of performance Payment systems offer little Improved survival induces demand transparency prevents financial incentive for patient rates imply more matching demand to the years of t
Slide 44: Overall Claims Costs
MAIN HEADING GOES HERE IN UPPERCASE PLEASE For personal use only OVERALL CLAIMS COSTS nib paid benefits and year-on-year change by calendar year $700 2010 2011 2012 2013 $600 2011 2012 2013 $500 Hospital/Medical 7.3% 10.1% 9.1% Millions $400 Benefits $300 Ancillary Benefits 9.7% 11.1% 15.0% $200 Net
Slide 45: Hospital & Medical Benefits
MAIN HEADING GOES HERE INHOSPITAL UPPERCASE PLEASE BENEFITS For personal use only nib & MEDICAL nib hospital drawing rate by benefit type and year-on-year inflation by calendar year $500 2010 2011 2012 2013 2011 2012 2013 $400 Private Hospital 1.6% 4.8% 3.7% $300 Prostheses -0.9% 0.4% 6.4% $200 Medi
Slide 46: Drivers of Hospital & Medical Inflation
MAIN HEADING GOES HERE IN UPPERCASE DRIVERS PLEASE& MEDICAL INFLATION OF HOSPITAL For personal use only nib high cost procedures by calendar year (by nib DRG grouping) $80.0 2010 2011 2012 2013 $60.0 Greatest growth in utilisation and overall claims costs = cardiac, orthopaedics and associated Milli
Slide 47: Unwarranted Variation: Knee Arthroscopy
MAIN HEADING GOES HERE IN UPPERCASE VARIATION PLEASE For personal use only UNWARRANTED Case study – knee arthroscopy Admissions for knee arthroscopy by Medicare Local and peer group, 2010-11 Number of knee arthroscopic episodes by age group (nib, FY13) 400 300 200 100 0 • nib benefit outlays >$1m pe
Slide 48: High Cost Claimers
MAIN HEADING GOES HERE IN UPPERCASE PLEASE For personal use only HIGH COST CLAIMERS Small proportion of our policyholders consume a large percentage of overall benefit outlays …we call them our “frequent flyers” Distribution of hospital benefits amongst nib insured customers (incurred CY13) $700 120
Slide 49: Hospital & Medical Benefits - Key Takeaways
MAIN HEADING GOES HERE IN UPPERCASE PLEASE For personal use only HOSPITAL & MEDICAL BENEFITS – KEY TAKEAWAYS Drivers across all areas: Utilisation more than unit cost Orthopaedic procedures and subsequent rehab are a particular issue Growth in cardiac and psychiatry also areas to watch Unwar
Slide 50: Ancillary Benefits
MAIN HEADING GOES HERE INANCILLARY UPPERCASEBENEFITS PLEASE For personal use only xxx nib nib paid ancillary benefits per ancillary person by benefit type and year-on-year inflation by calendar year $180 2010 2011 2012 2013 2011 2012 2013 $160 $140 Dental 3.1% 5.3% 10.9% $120 Other* 4.3% 5.7% 12.3%
Slide 51: Ancillary Benefits - Key Takeaways
MAIN HEADING GOES HERE IN UPPERCASE PLEASE– KEY TAKEAWAYS For personal use only ANCILLARY BENEFITS Utilisation more than unit cost Changes to Government funding contributing factor (e.g. Chronic Disease Dental Scheme ended Nov 2012) and supply induced demand Product design and adverse selectio
Slide 52: Risk Equalisation... Who Pays What?
MAIN HEADING GOES HERE IN UPPERCASE PLEASE For personal use only RISK EQUALISATION…WHO PAYS WHAT? Source: Private Health Insurance Administration Council – The Operations of Private Health Insurers Annual Report 2012-13 Current model does not incentivise preventative and other health manageemnt in
Slide 53: Benefits Management Priorities
BENEFITS MANAGEMENT PRIORITIES = = © @ Q = © ‘= S Q — @ oe = © UL
Slide 54: Case Study - Technology at What Price
MAIN HEADING GOES HERE IN UPPERCASE PLEASE For personal use only CASE STUDY - TECHNOLOGY AT WHAT PRICE Da Vinci Robot • Approximately 80% US prostatectomies performed robotically • Procedure costs ~$3,000 additional • Inconclusive proof of better outcomes • JAMA (Journal of the American Medical Asso
Slide 55: Our Areas of Focus
MAIN HEADING GOES HERE IN UPPERCASE PLEASE For personal use only OUR AREAS OF FOCUS 1. Service costs • Contract price negotiation supported by enhanced information • Seek to avoid payment for poor quality • Expand ancillary preferred provider network 2. Utilisation management • Contract with primary
Slide 56: Case Study - Consumer Engagement & Empowerment
MAIN HEADING GOES HERE IN UPPERCASE PLEASE ENGAGEMENT & EMPOWERMENT For personal use only CASE STUDY - CONSUMER • Value consciousness Transparency of information, Whitecoat, nib Options Narrow networks may suit segment of population Incentives for cost consciousness – overcoming moral hazard •
Slide 57: For personal use only
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Slide 58: New Zealand
NEW ZEALAND Rob Hennin CEO nib New Zealand = = © @ Q = © ‘= S Q — @ oe = © UL
Slide 59: For personal use only
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Slide 60: NZ Business Strategy
MAIN HEADING GOES HERE INNZ UPPERCASE BUSINESSPLEASE For personal use only nib STRATEGY 1. Build Direct-to-Consumer (DTC) channel and grow the market and our share 2. Recalibrate the adviser channel 3. Pursue increased share in group market 4. Build and execute “white labelling” capability 5. Reduce
Slide 61: Industry Structure & Overview
MAIN HEADING GOES HERE IN UPPERCASE PLEASE& OVERVIEW For personal use only INDUSTRY STRUCTURE NZ PHI is dominated by top three funds • There are currently 10 registered health funds in NZ • Top 3 PHI players represent 87% of the industry by premium Industry revenue premium • Majority of health insur
Slide 62: NZ Government Accounts for Bulk of Healthcare Spending
MAIN HEADING GOES HERE IN UPPERCASE LIKE AUSTRALIA,PLEASE NZ GOVERNMENT ACCOUNTS FOR BULK For personal use only Components of NZ healthcare spending OF HEALTHCARE SPENDING Components of NZ healthcare spending Currently NZ healthcare spending accounts for more than ~10% of GDP and is increasing at
Slide 63: PHI NZ Compared to Australia
MAIN HEADING GOES HERE ININUPPERCASE PLEASE For personal use only PHI NZ COMPARED TO AUSTRALIA Australia NZ Supportive Government policy (ie “carrots and sticks”) X Public Hospital (accommodation, theatre, etc), choice of specialist X Private Hospital (accommodation, theatre, etc), choice of spe
Slide 64: Our Success & Results to Date
OUR SUCCESS & RESULTS TO DATE = = © @ Q = © ‘= S Q — @ oe = © UL
Slide 65: nib New Zealand Strategic Framework
MAIN HEADING GOES HERE INNEW UPPERCASE PLEASE For personal use only nib ZEALAND STRATEGIC FRAMEWORK WORK IN PROGRESS Phase I Phase II Phase III Phase IV Creating Large Larger Contribution Franchise to nib Laying the 2017+ Foundation 2015-16 2014-15 • nib established as leader in health cover 2012-13
Slide 66: Building Our Brand
MAIN HEADING GOES HERE IN UPPERCASE PLEASE For personal use only BUILDING OUR BRAND Put a footer here if you need to. 65
Slide 67: nib Now in Conversation in NZ
MAIN HEADING GOES HERE INBRAND UPPERCASE NOW PLEASE For personal use only nib IN CONVERSATION IN NZ Spontaneous awareness (Target segment 25 – 39 year olds) Jan-14 Apr-14 55% 48% • Since launch in New Zealand in October 2013, nib is now ranked number 2 “top-of-mind” amongst consumers for health insu
Slide 68: DTC Is Contributing Strongly to Sales
MAIN HEADING GOES HERE IN UPPERCASE PLEASE STRONGLY TO SALES For personal use only DTC* IS CONTRIBUTING nib NZ monthly policyholder sales by channel nib NZ policyholder sales by demographic (as a % of all sales) (as a % of all sales) Under 40 40-49 50+ • DTC offering (launched October 2013 – refer h
Slide 69: Focus on Claims & Lapse to Grow Margin
MAIN HEADING GOES HERE IN UPPERCASE FOCUS PLEASE ON CLAIMS & LAPSE TO GROW MARGIN For personal use only Net claims as a % of all claims (Hospital surgical claims only) Hospital Anaesthetist Surgeon Prosthesis 100% • Growth and targeting better risk policyholders (<40) 80% through DTC, and an increas
Slide 70: Product Design Tailored for NZ Customers
MAIN HEADING GOES HERE IN UPPERCASE PLEASE For personal use only PRODUCT DESIGN TAILORED FOR NZ CUSTOMERS Value for money Simplicity and transparency Align customer expectations rather than Ensure product inclusions and exclusions are industry norms clear (e.g. one excess applied per year, s
Slide 71: Focus for Next 12 Months
MAIN HEADING GOES HERE IN UPPERCASE PLEASE For personal use only FOCUS FOR NEXT 12 MONTHS DTC • Choice, flexibility, affordability • 20-40 years of age target • Advertise benefits and price points Recalibrate adviser channel • Best in class products • Arrest lapse • Migration plans • Fidelity Life p
Slide 72: For personal use only
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Slide 73: International & New Business
INTERNATIONAL & NEW BUSINESS Mark Fitzgibbon Chief Executive Officer & Managing Director Justin Vaughan Group Manager Benefits & Provider Relations = = © @ Q = © ‘= S Q — @ oe = © UL
Slide 74: Non-arhi Contribution to Operating Profit
MAIN HEADING GOES HERE IN UPPERCASE PLEASE TO OPERATING PROFIT For personal use only NON-ARHI* CONTRIBUTION Contribution of adjacent businesses to Group operating profit arhi underwriting result Non-arhi Contribution to operating profit FY14 guidance range ($73.0m-$80.0m) Latest forecast at lower en
Slide 75: International Students (ishi)
MAIN HEADING GOES HERE INTERNATIONAL STUDENTS (ishi) IN UPPERCASE PLEASE For personal use only International students visas granted (500 class) in Australia International students (visas granted) - country of origin • International student market continues to show positive signs of recovery • Of the
Slide 76: ishi Business Strategy
MAIN HEADING GOES HERE INBUSINESS UPPERCASE PLEASE For personal use only ishi STRATEGY 1. Disrupt traditional distribution system and sell “upstream” 2. Focus direct to consumer efforts upon better risk, single policyholders 3. Reduce claims inflation 4. Place the customer at the centre of everythin
Slide 77: International Workers (iwhi)
MAIN HEADING GOES HERE INTERNATIONAL WORKERS (iwhi) IN UPPERCASE PLEASE For personal use only Number of 457 visas (primary visa holders) in Australia Subclass 457 students visas (primary) granted by sponsor industry • The number of primary visa holders in Australia on 31 March 2014 was • Majority of
Slide 78: iwhi Business Strategy
MAIN HEADING GOES HERE IN BUSINESS UPPERCASESTRATEGY PLEASE For personal use only iwhi 1. Focus efforts on direct-to-consumer with key emphasis on price 2. Escalate risk rating within the business 3. Reduce claims inflation 4. Place the customer at the centre of everything we do 5. Innovate, innovat
Slide 79: nib Options - Strategic Logic
MAIN HEADING GOES HERE INOPTIONS UPPERCASE PLEASE LOGIC For personal use only nib – STRATEGIC Global trend and growing market for The market conditions for people travelling across medical travel is relatively international borders for underdeveloped. While healthcare treatment the provider side is
Slide 80: nib Options - Key Strategic Pillars
MAIN HEADING GOES HERE INOPTIONS UPPERCASE PLEASE For personal use only nib – KEY STRATEGIC PILLARS 1. We focus the value proposition, product offering and client service around reliability, quality, safety and trust 2. Build a marketing and sales culture and systems which capture market attention a
Slide 81: nib Options - Strategic Milestones
MAIN HEADING GOES HERE INOPTIONS UPPERCASE PLEASE MILESTONES For personal use only nib – STRATEGIC 2013 – 2014 Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Phase 1 Phase 2 Phase 3 Phase 4 Phase 1 (June – November 2013) Announced plans to launch cosmetic and major dental Phase 3 – (March – J
Slide 82: For personal use only
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Slide 83: Innovation & IT
INNOVATION & IT Brendan Mills Chief Information Officer = = © @ Q = © ‘= S Q — @ oe = © UL
Slide 84: IT Strategy
MAIN HEADING GOES HERE ITIN UPPERCASE PLEASE For personal use only STRATEGY Mission Support the achievement of our Group business strategy and improve performance across business operations through the application of technology Core business processes meet user requirements, Customer engagement, are
Slide 85: Productivity & Scalability
MAIN HEADING GOES HERE IN UPPERCASE&PLEASE For personal use only PRODUCTIVITY SCALABILITY Hospital claims processing (electronic versus manual as a % of all claims) Electronic Manual 100% • Approximately 60% of medical claims (specialists, etc) today are processed 80% electronically (July 2008: less
Slide 86: The Pace of Technology
MAIN HEADING GOES HERE IN UPPERCASE PLEASE For personal use only THE PACE OF TECHNOLOGY Reaching 50 million users Telep hon e 75 years Radio 38 years TV 13 years Intern et 4 years Face boo k 3.5 years Ipod 3 years Draw someth ing 50 days Craz y birds app 35 days Put a footer here if you need Source:
Slide 87: World Class Customer Experience
MAIN HEADING GOES HERE IN UPPERCASE PLEASE EXPERIENCE For personal use only WORLD CLASS CUSTOMER nib online services Customer PMOC* 80% 45% Percentage of policyholders Percentage of policyholders 70% 40% 60% 35% 50% 30% 40% Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 • Almo
Slide 88: World Class Customer Experience: Mobile App
MAIN HEADING GOES HERE IN UPPERCASE PLEASE EXPERIENCE For personal use only WORLD CLASS CUSTOMER nib mobile app Customers claiming on mobiles 800 iOS Android 12,000 IOS Android 700 10,000 600 Launch of iOS (LHS) Number of claims Number of downloads Android (RHS) app 8,000 500 400 6,000 300 4,000 200
Slide 89: World Class Customer Experience: Retail App
MAIN HEADING GOES HERE IN UPPERCASE PLEASE EXPERIENCE For personal use only WORLD CLASS CUSTOMER • iPad app launched throughout retail network in April 2014 to allow customers to process claims in- store • Retail app has three main purposes: 1. Better in-store customer experience – quicker claims pr
Slide 90: Foundations, Reliability & Security
MAIN HEADING GOES HERE IN UPPERCASERELIABILITY PLEASE For personal use only FOUNDATIONS, & SECURITY • Core systems - challenges that can be overcome without some of the legacy issues of the financial services industry • System architecture - core is still key but must be supported with appropriate C
Slide 91: Foundations, Reliability & Security (cont)
MAIN HEADING GOES HERE IN UPPERCASERELIABILITY PLEASE For personal use only FOUNDATIONS, & SECURITY • Building greater resiliency through technology • The role of Agile and cross functional teams at nib • Our innovation culture - ‘FedEx Day’ or ‘Hack Days’ • Data sovereignty - a new consideration as
Slide 92: New Opportunities - What's Next?
MAIN HEADING GOES HERE IN UPPERCASE PLEASE For personal use only NEW OPPORTUNITIES - WHAT’S NEXT? nib claims processing and payment in 1950s nib claims processing and payment today nib claims processing and payment tomorrow • nib in discussion with joint venture partner • “Incubator” style innovatio
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Slide 94: 2014 Investor Strategy Briefing
2014 INVESTOR STRATEGY BRIEFING 19 JUNE 2014 = = © @ Q = © ‘= S Q — @ oe = © UL