Question:
what is the need for CRM in insurance?
selvarajpooja
2006-03-23 11:15:43 UTC
what is the need for CRM in insurance?
Two answers:
mrjo_ct
2006-03-23 17:26:36 UTC
Despite the resistance, insurance companies are finding they must turn to new, unexplored avenues for cost reduction.



The industry has not made an underwriting profit in almost a decade. Up until recently, insurers were able to survive -- and in many cases do quite well -- because they made up losses through investment and asset management income. But 2001 proved to be a turning point.



Last year was one of the most dismal underwriting years ever, and the asset management side of the insurance business began to falter due to the sinking stock market and volatility in the credit markets.



Moreover, there was increased competitive pressure on insurance firms from financial services companies.



Insurers are, of course, embracing all the prescribed measures for tough times, such as tighter underwriting requirements and participation in industry e-commerce endeavors.



Nevertheless, industry watchers and participants are witnessing a distinct movement toward CRM in the insurance sector as a novel way to beat the odds.



"An insurance company is always interested in avoiding loss, whether that loss is paid out through settlements or through excessive administrative overhead," Aberdeen Group research director Denis Pombriant told CRMDaily.
KillEmAll
2006-04-05 21:05:29 UTC
Insurance deals mostly with people.. these people need to be profiled properly, their buying habits and interactions with the Insurance company need to be carefully tracked.. This industry is based primarily on personal interactions, if the company is able to identify the best practices of its best agents, then it can cascade the knowledge to other employees, also when the agent transfers to another company, the insurance company can be sure that it has a clear understanding or the customers the agent left of in order to minimize the risk of them moving with the transferring agent.

Information gathered through all interactions would also be useful for cross-selling products that the company may offer..


This content was originally posted on Y! Answers, a Q&A website that shut down in 2021.
Loading...