By having insurance planned out, it will help protect one’s wealth without having to worry about paying for the accident with their own money, therefore, understanding that paying a premium for an insurance is still an excellent way to safeguard one’s wealth. However, there are many insurance companies that offer protection for their premium rate, but we would recommend another way that RBC can provide with the premium, as well as investing some of the premium into stocks, mutual funds, or GIC. Our recommendation consists of offering an investment plan with the purchase of the insurance bundle, and (15-20%) of the premium going towards an investment. By investing early, the goal of this investment is to help our customers build their wealth by receiving dividends from their investments after 20-40 years.
Implementation Plan for recommendation _
Phase 1: find some consulting firms to compare the product and service they provide as well as the price if possible.
Internal training as consulting firms offers such as, Unlock customer value through data driven insights. Shift up to 40% of transactions to self service. Scale vision by combining intelligent technologies and insurance talent with next-generation skills. Improve decision making by using the right resource at the right time. (https://www.accenture.com/us-en/services/business-process-services/insurance-bpo
cost: consulting fees reference, they are basically charged by project based.
Timetable: as the insurance company, how long it is gonna take for issuing a new insurance. how many departments would be involved,
Phase 2: Look for some partnership for our bundles insurance, whether it is a luxury store gift card, pc optimum points; premium membership of entertainment such as netflix, spotify podcast, amazon prime etc.
Phase 3: By hiring senior actuaries to calculate the premium for insurance bundles, we can calculate the amount of premium to charge based on statistical percentage of accidents it might happen for each insurance, as well as a lower premium when taking the three insurance into the same bundle while still being competitive with other competitors. Moreover, by calculating the amount of new customers that can be generated, RBC will offer a % of their premium to go to their investment account with the purchase of these insurance bundles. With the offer of car and home insurance from RBC to new customers at a 15% discount, when adding life insurance to the offer, instead of giving the customers a % discount, offering them a chance to be able to invest the % to grow their investment account can help them build their wealth in the long term through passive income/ dividends over the years.
Phase 4: in order to achieve this new approach new packages are proposed:
(issuing new insurance process)
https://wiki.scn.sap.com/wiki/display/ESpackages/Insurance Policy Issuing and Underwriting
Creating an Insurable Object
Creating an Insurance Application
Creating an Insurance Contract