Creative Versioning Boosts Efficiency

1. Creative Versioning Boosts Efficiency

2. New York Life Founded in New York City in 1845

3. Unparalleled Tradition of Financial Strength • Financial Strength – NYL has a history notable for steady financial growth. Reaching a record of $280 billion in assets under management* as of 12/31/07. • Conservative Tradition- To keep our “promise to pay,” New York Life has historically maintained a prudent management philosophy and a conservative investment strategy. Almost three quarters of our assets are held in bonds, and 92% of that bond portfolio is comprised of investment grade bonds. • Mutuality - Being a company solely owned by policyowners allows NYL to look past short-term goals and manage for the long-term interest of its clients. • * Assets Under Management consists of assets the Company’s domestic and International insurance operations and assets the Company manages for third party investors, including mutual funds and pension plans.

4. Group MembershipAssociation Division • Recognized leader in providing life and health insurance products to membership associations with over 50 years of experience and commitment to the marketplace. • First case written in 1955 (Still a valued business partner!) • Diversified Portfolio of Products • Long term commitment to Affinity/Association market • More than 600 Association/Affinity Group endorsements • Distribution Primarily Through 40+ Broker/TPA organizations

5. Group Membership Client Profile • Types of Groups Insured • Professional Associations • Military Associations • Union Groups/Labor Unions • Alumni Associations • School Districts • Financial Institutions • Educational Associations • Employer Groups

6. The Marketing Reality • 600+ Association/Affinity relationships • Marketing collateral all over the board • Lots of product customization • Multitude of creative packages • Clients develop their own direct mail packages • Time intensive development and review process • Workload heavy for key internal resources

7. Examples of Creative Variables • Even within a single product… • Client name, address, contact info, logo – Standard versioning • General State disclosures and NYL specific state requirements • Royalty language • Domestic partner • The 4 NOTS - GLB (financial institution clients) • Client look and feel requirements • Plan benefits (i.e. Underwriting limit max $1MM, $2MM - termination age) • Grace period – pay your premiums… within the grace period ORthe end of the grace period. • Where marketed – excluded states or addition jurisdictions (PR and Canada) • Creative for different channels/purposes– fulfillment package, direct mail, desk drop

8. Traditional Process Existing Product Submission Submission NYL Client Services NYL Compliance Changes Comments Broker/Third Party Administrator (TPA) Creative Agency Changes Re-submission Submission Approval Review for filed form compliance and NYL requirements Advertising Review Submission Association Client Imagine..this multi-step process for 500+ packages per year!

9. Creative Development and Review Process Product proposal, filed/approved application and group policy New Product NYL New Product NYL New Product Information Education Submission Submission Submission Broker/Third Party Administrator (TPA) Changes Comments NYL Client Services NYL Compliance Changes Creative Agency Re-submission Review for filed form compliance and NYL requirements Advertising Review Approval Submission Association Client

10. There’s got to be a way to streamline • So, I started asking myself… • What would be the benefits of driving improvement in the process? • What results would I want to deliver in this process? • Here’s what I came up with… • Time – Compress cycle time from product launch to marketing launch • Regulatory- Ensure compliance • Cost – Reduce both soft dollar and hard dollar costs • Simplify review process • Financial – Earlier marketing date means product sales start earlier…and so does premium collection

11. OK, But How???? I began with a basic innovation principal…”related worlds”* …..identifying situations or events that in some way mirror your creative challenge. The principals or stimuli of another’s approach can be identified and reapplied to your own challenge. “Where in the world has my challenge (or anything like it) been faced before? What can I learn and steal from it?” Concept Regulatory filings are done with bracketing and a memo of variability ?WHAT IF!, Ltd. Sticky Wisdom - How to Start a Creative Evolution at Work. West Sussex, UK:Capstone Publishing, 2002

12. Making it REAL in an established organization The Process • 1) Develop straw man for concept • 2) Garner buy-in key internal stakeholders • Executive sponsor • Compliance/Legal – Defined parameters/limits • Client Services – Reviews creative for regulatory compliance of materials and NYL specific requirements

13. Making it REAL in an established organization (cont’d) • 3) Meet individually and… • Speak their language • Tailor the benefits/value prop to each stakeholder • Decrease workload - All stakeholders • Simplify - Defined parameters pre-approved – Client Services & Compliance • Shorter time cycle from product regulatory approval to marketing launch – Executive & Client Services • Campaigns drop sooner, revenue booked earlier- Executive & Client Services • Cost controls – Same creative template customized for each product/affinity partner – Executive, Client Services and Compliance • Tenacity – don’t give up APPROVAL!!!!!!!

14. Implementation • Launching the initiative was a learning and iterative process • Creative development with Insurance Direct Marketing focused agency (Norris Creative and JCG Group) • Master Creative approach – Drive relevancy for diverse affinity base in a cost efficient manner • Kitchen sink Template – Can always take things out, but putting things in can require redesign of layout ($$$ and Time) • Share draft creative with Client Services for feedback • Write memo of Variability to Compliance and submit with creative package for review. First creative package approved for marketing!

15. Even More Benefits • Additional process streamlining- Once compliance approves Variability memo and creative – no need to review each Affinity partners’ version of the creative package. Provide final mailed piece Process for Master Template Process for Client Versioning TPA NYL Client Services Submission Submission NYL New Product NYL New Product Comments Submission Submission of client information Approval NYL Compliance Education Submission NYL Client Services Creative Agency Imagine..these streamlined processes for new product marketing

16. Even More Benefits (cont’d) • Develop alternative uses of creative - fulfillment, statement insert, web • Printer partner with direct mail production, creative services and distribution expertise drives cost and time efficiencies. We’re not standing on our laurels….We see an opportunity to increase variability options for text and tag lines to target product offers to specific demographics / lifestages/ psychographics

17. Results and Advice • WIN-WIN-WIN • Achieved all benefits initially identified…plus some • Word spreads….Additional buy-in from affinity partners • Success requires a strong foundation • Strong partnership with internal stakeholders • Clearly articulated strategy/vision document, directing benefits to your audience • The right external direct mail experts and partners make all the difference • Industry and marketplace knowledge • Creative, Printing and Distribution expertise