1. © 2014 Fair Isaac Corporation. Confidential. This presentation is provided for the recipient only and cannot be reproduced or shared without Fair Isaac Corporation’s express consent. Insurance Customer Engagement Transforming Customer Engagement for Improved Customer Satisfaction and Retention Kate Winterflood Senior Product Manager FICO

2. © 2014 Fair Isaac Corporation. Confidential.2 Happy customers, reduced costs and improved efficiency…

3. © 2014 Fair Isaac Corporation. Confidential. Existing Models Often Prove Costly and Ineffective 3 Single-channel Labor-intensive Inconsistent 1 2 3

4. © 2014 Fair Isaac Corporation. Confidential. How Can Organizations Cope? The Changing Face of Customer Interactions 4 Timely notifications and interactions Customer contact preference Opportunities Optimize quality/quantity of touch points Heightened customer expectations Inability to manage Issues in real time Shifting compliance landscape Pressure to reduce costs and improve ROI Challenges

5. © 2014 Fair Isaac Corporation. Confidential. 88% of people ages 18-24 view their mobile phones as more important than deodorant and a toothbrush Source: NBC News, June 30, 2014 Which of these things is the most important to you? 5

6. © 2014 Fair Isaac Corporation. Confidential. We are living in the Mobile Phone era They only use mobile phones 4 out of 10 homes do not have land lines Source: NBC News, July 8, 2014 6

7. © 2014 Fair Isaac Corporation. Confidential. Customer behaviour is changing, resulting in heightened customer expectations… Source: Stephanie Tilenius, AppData, VP Commerce and Payments, Google. 3 feet Average distance smartphone user always is from device 150 Times a day the average smartphone user checks device 66% Of smartphone users who sleep next to their device 700 million Games of Candy Crush are played every day © 2014 Fair Isaac Corporation. Confidential.7

8. Expectations Will Evolve Rapidly 8

9. © 2014 Fair Isaac Corporation. Confidential. Mobile Evolution Mobile Engagement Evolution Mobile 1.0 Mobile 2.0 Mobile 3.0 ‘Mobilise existing processes’ ‘Personalise the mobile experience’ ‘Smart mobile ecosystem’ Customer Engagement Goals & Characteristics Increase convenience Build mobile front-end onto existing customer engagement processes Empower customers Develop new mobile-enabled processes to attract and keep customers through personalisation Transform the experience Create real-time systems of customer engagement through new mobile technologies Customer Needs Addressed Do what I do today on any mobile device – make my experience portable Improve my mobile experience by intelligently responding to my context Give me new and better experiences through my own mobile ecosystem 9

10. © 2014 Fair Isaac Corporation. Confidential. Consumers Have Become Savvy at Using Multiple Channels to Control How They Receive Select Information Preferred Communication Channel 10

11. © 2014 Fair Isaac Corporation. Confidential. Orchestrate Multiple Channels With a Single Platform Voice Email MobileDirect Online Social Media Text Contact the customer through the right channel at the right time… © 2014 Fair Isaac Corporation. Confidential.11

12. © 2014 Fair Isaac Corporation. Confidential. FICO ® Customer Communication Services DecideActResolveAssess 12

13. © 2014 Fair Isaac Corporation. Confidential. Proactively Manage More Customers and Events Typical results from FICO clients worldwide Improvement in average time-to-case 15 secs (from 20+ mins) Most customer contacts made within 30 secs Reduction in average contact time 50% Cases resolved within 20 mins 67% Clients leverage these efficiencies in different ways Cases worked 300% (same FTE) Most customer contacts made 60% (–30% FTE) 13

14. © 2014 Fair Isaac Corporation. Confidential. Scale your best agent… 14

15. © 2014 Fair Isaac Corporation. Confidential. Business Benefits ► Creates a positive, direct connection between predictive analytics, action, and reaction—closing the learning loop ► Energizes each customer experience, tailored to the communication and channel preferences of each individual ► SaaS-based offering provides greater flexibility and agility in resolving risk and securing growth ► Accelerates our clients’ ability to participate in the rapidly evolving mobile economy ► All supported by a world-class global services and support organization FICO ® Customer Communication Services © 2014 Fair Isaac Corporation. Confidential.15

16. © 2014 Fair Isaac Corporation. Confidential. Providing Continuity and Predictability Throughout ► The more that automated tools are used, the more familiar and responsive customers become Control Customer Lifecycle Interactions 16 Multiple lifecycle events require action…and benefit from interaction Policy Inception Marketing Policy Quote Claims Processing Renewal Marketing Terms Change Policy Change Online Data Entry Payment Reminder Customer Survey Renewal Event: Customer cancels their Payment Action: Engage with customer before they move to a competitor

17. © 2014 Fair Isaac Corporation. Confidential. The Challenge: Retention 17

18. © 2014 Fair Isaac Corporation. Confidential. The Challenge: Retention ►M►Marketing and sales consume about 15% of costs ►C►Competitive providers are refining retention strategies ►C►Customers demanding simplicity, transparency and speed ►S►Speed to engage the consumer dramatically affects the ability to maintain the relationship ►U►Up to 50% of customers whose policy lapses do not speak to a retention consultant © 2014 Fair Isaac Corporation. Confidential.18

19. © 2014 Fair Isaac Corporation. Confidential. Consumers Are Open to Increased Communication to Stay in Control 19

20. © 2014 Fair Isaac Corporation. Confidential. Early Intervention Increases Contact Rate and Retention and Reduces Costs Case is created and sent to FICO FICO Executes Customer Specific Contact Strategy Agent Connect Customer Cancels Payment Success! Companies have successfully used early intervention to increase their retention figures Takes Payment Customer Retained Use outcome data to improve future performance 20

21. © 2014 Fair Isaac Corporation. Confidential. Results/Benefits ► 20,000 Home Insurances lapse each month due to the consumer ceasing to make payment ► FICO made contact with over 75% of all customers using Retention Solution ► Over 30% of the consumers selected engaged with the interactive service ► 19.6% of calls resulted in the policy/customer being ‘won back’ ► FICO has no capacity constraints UK Bank Case Study 21 “Win back” strategies are cost effective compared with customer acquisition. Being able to further reduce cost against comparable or favourable results such as FICO Mobile meets and increases the overall ROI.

22. © 2014 Fair Isaac Corporation. Confidential. Providing Continuity and Predictability Throughout ► The more that automated tools are used, the more familiar and responsive customers become Control Customer Lifecycle Interactions 22 Claims Processing Policy Change Online Data Entry Customer Survey Multiple lifecycle events require action …and benefit from interaction Marketing Policy Quote Renewal Marketing Terms Change Payment Reminder Renewal Policy Inception Event: Customer wishes to make claim Action: Provide customer with simple multi- channels tools to submit and track claim

23. © 2014 Fair Isaac Corporation. Confidential. The Challenge: Claims Management 23

24. © 2014 Fair Isaac Corporation. Confidential. Existing Contact Models Often Prove Costly and Ineffective Claims Management Can I have an update on the status of my claim please?... 24

25. © 2014 Fair Isaac Corporation. Confidential. ► Initial Claimant Outreach and Status Updates ► Mid-cycle Claimant Knowledge Sharing and Requests ► Follow up Status and Event Notifications ► Inbound Claimant Care and Status Update Claim Notifications and Management 25

26. © 2014 Fair Isaac Corporation. Confidential. LIVE DEMO 26

27. © 2014 Fair Isaac Corporation. Confidential. Empower Customer to Report and Manage Claim Quickly and Efficiently Claims Processing FICO ® Customer Communication Services Customer uses mobile app and is guided through accident reporting. He is prompted to upload appropriate photographs and statements to report the claim (if required secure call placed to customer). Insurer provides updates and instructions directly to the mobile app. If the customer does not respond as necessary then Voice, SMS & Email utilised to prompt action. At any time, customer can call/SMS in and receive an automated status update Customer can use secure-call button in app to receive authenticated call from agent 27

28. © 2014 Fair Isaac Corporation. Confidential. In-App Customer Engagement Improves Speed and Flexibility—Increasing Participation and Data Enables the user to send, receive and respond to secure messages Enables the user to file a claim at the scene of an auto accident or property theft documenting scene and statements—and then track the claim Enables the user to apply for new products quickly and efficiently, supplying any necessary documentation Enables them to track the status of a new product application and receive updates when the status changes or additional information is required Enables the user to invoke authenticated secure call-back from a chosen party Enables the user to access a mobile version of their policy and forward it to an email address for printing if necessary Claims Manager Mobile Inbox Call Back Application Tracker Instant Application Policy Manager 28

29. © 2014 Fair Isaac Corporation. Confidential. Insurance Claims Tracker App Enables the user to receive and respond to push notifications Enables the user to track the progress of their Insurance claim Enables the user to retrieve, manipulate, package and submit documents Enables the user to invoke authenticated call-back from a chosen party Status Tracker Mobile Inbox Call Back Documen t Services 29

30. © 2014 Fair Isaac Corporation. Confidential. Status Tracker 30

31. © 2014 Fair Isaac Corporation. Confidential. Customer Support 31

32. © 2014 Fair Isaac Corporation. Confidential.32 Themarketingspot.com http://www.UnitedSalesPros.com/

33. © 2014 Fair Isaac Corporation. Confidential. This presentation is provided for the recipient only and cannot be reproduced or shared without Fair Isaac Corporation’s express consent. Kate Winterflood KateWiinterflood@fico.com Phone Thank You! 33

34. © 2014 Fair Isaac Corporation. Confidential. Learn More at FICO World Products in Solution Center ► FICO ® Customer Communication Services Experts at FICO World ► Kate Winterflood ► Gabriel Hopkins ► Adam Barrett 34

35. © 2014 Fair Isaac Corporation. Confidential. Please rate this session online! 35 Kate Winterflood KateWiinterflood@fico.com