A customer Revolution in Insurance

In the last few years the insurance sector has experienced significant growth. The transformations in the market have meant increased capacity and probable change in the organizations of the sector. 

Insurance companies are working on: 

1. Opening new lines of business
2. Increasing market share
3. Getting into new distribution channels and new markets
4. Taking advantage of synergies and economies of scale that allow an improvement in efficiency and competitivity in an ever more global context

In the search for new markets and business opportunities, companies in the sector have benefited from having large customer bases on which to consolidate their growth. These portfolios, on the other hand, have been shared with agents and external mediators, but are of fundamental value to these organizations. As well, many of these companies, have a structures centered around objectives and results. Therefore a new economic reality requires them to change their business models in order to manage weaknesses and threats that are preventing them from adapting.

WHO OWNS THE CUSTOMER?

The rigid and barely flexible inherent structure of the insurance sector is one of the main barriers to growth. The inherent culture of resistance to change is worsened by the excess of sales channel participation. These external agents are shared increasingly amongst companies, with a decreasing professional profile, which is distancing them from the customer. The customer begins to feel less like he belongs with a company, which is more concerned with a product's configuration than it is with fulfilling certain needs. The user, also, feels lost between the company and the intermediary, who capitalizes on "owning" the customer and only comes into contact with them in the claims management process.

In a world where new channels are challenging the historic relationship with sales agents, many insurers lack the strategies for retaining the agents they have and acquiring new ones, in order to be competitive. The increase in supply and the inability to retain customers is fuelled by the low brand loyalty on the certain customer segments that switch companies to take advantage of special offers, generating little or no value.

NEW CUSTOMER STRATEGIES

It´s necessary to improve the models of customer acquisition in order to take advantage of new business opportunities in the market, but it has to be done constructively in the long term. Equally, companies must improve their relationship with their customers. This means that companies must expand the knowledge they have of their customers, analyze that information and use it to generate offers that are truly adapted to their needs.

Sporadic contact with the customers must be taken advantage of in order to develop potencial business opportunities, and technology can be an ally if the correct CRM & PRM strategies are applied. As well, insurers must learn to leverage themselves against their sales channels, designing channel strategies that link them more to the company, and increasing their professionalism.

THE CUSTOMER´S C.E.O. AGENDA

The market is maturing, but your company could remain behind if it does not evolve towards a new management model in which the internal as well as external processes are base on the strategic position of the customer. Those who do not reinforce their position may be jeopardizing their future. Is your company ready for change?

Do you believe that your Technologies are ready to meet the challenges, that your success only depends on advanced CRM, or that as many sales campaigns as possible will be the answer? If your answer is "no" then contact us and we will be your partner in success in the market. If your answer is "yes", Good Luck!

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