CRM in Insurance sector

Presented By: Group-5

Gaurav Agarwal(10)
Harshvardhan Dabhi(13)
Allen Sangeeth(15)
Vaibhavi Vighne
Naveen Buddepu
Akash Sharma(62)
Jason Lloyd(63)
Objective
To study the impact of CRM as a process which is
enhancing the efficiency of the Insurance sector.
To study some examples of successful implementation
of CRM in insurance sector
Contents:
 Why CRM ……………………………………………….1
 Role of CRM in insurance …………………………………
2
 Benefits of CRM in insurance
……………………………..3
 Use of Analytical CRM in Insurance companies
…………….4
 Stages of CRM ……………………………………………5
 Trends ……………………………………………………6
 Challenges ………………………………………………..7
 Aviva’s example
………………………………………….10
 Case study: Keenan & associates
 Why CRM?
 It costs six times more to sell to new customer than to sell
to an existing one.
 A typical dissatisfied customer will tell 8-10 people
 By increasing the customer retention rate by 5%, profits
could
increase by 85%
 Odds of selling to new customers = 15%, as compared to
those for existing customers (50%)
 70% of the complaining customers will remain loyal if
problem is solved
 90% of companies do not have the sales and service
integration to support e-commerce

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 Role of CRM in Insurance

CRM is a catalyst in insurance industry growth.

Replacing the traditional in person encounter of door-to-
door sales.
Engages solid business relationships to meet customer
demands for better results.
Is proficient in qualifying leads, policy administration and
streamlines various work functions to successfully service
an insurance business.
Providing the customized solutions to satisfy consumers
and increase profits.

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 Benefits of CRM in Insurance
• Insurance CRM decreases the time required to make product changes
• A holistic integrated customer view
• Targeted marketing & Customer retention
• Increased growth, policy sales & insurance market share
• CRM Insurance integrates marketing with other operations
• Efficient distribution channels are secured
• CRM provides the chance to reduce operating expenses
• It provides for more affective and efficient communication
• It improves the response time
• It increases customers satisfaction
• Insurance application queries/ claim status queries can be answered sooner
• It reduces the time that is normally taken for printing
• Policy mailing time is reduced
• It decreases overall costs
• Aids the call centre activities
3 • Insurance CRM guarantees lead management
 Use of Analytical CRM in Insurance
companies
Cross- and up-selling capability to provide market
opportunities within an existing customer database.
Predictive capability to determine customer behaviour.
Information regarding customer retention or attrition helps
determine the likelihood of policy lapses and helps identify
customers worth targeting for retention campaigns.
Customer segmentation that leverages data to create
accurate categories for use in marketing strategies.
Market automation that combines analytics with campaign
management functionality to help drive a more effective
and efficient marketing campaign.

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 5
• Routine post sales transactions Post
sale
• Non routine post sales transactions
• Sales transactions Sales
• Customer research Pre
sale
• Pre sale transactions
Stages of CRM in Insurance sector
 Trend of CRM in Insurance sector
Operational CRM

Analytical CRM

•Initial investment of insurance sector is in operational CRM

suite
•Then slowly they are integrating efforts towards data
extraction and analysis for analytical CRM.

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 CRM Challenges facing Insurance Companies
Today
Moving from a direct to independent agent model
Offering a wider range of products to drive
revenue
Lacking a unified view of the customer
Accessing multiple legacy systems for key data
Having poor or ineffective tools to manage the
relationship with producers and clients
Regulatory Compliance

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10 10
 CRM software providers
Goldmine
HEAT
Terrasoft
Netsuite
Sage CRM
Salesforce.com
Siebel

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 Customer Success in Insurance

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 AVIVA and CRM
Aviva was one of the last entrant in the Indian insurance sector
It had to clearly focus its strategy to know its customers and
bring out products that were specific to their needs for their
survival
So they went for a complete enterprise wide launch of e-CRM
before it started its operations
The CRM suite was deployed in marketing, sales and services
CRM has enabled the organization to have real time
information about their customers, track customer details and
handle queries appropriately
It also enabled quick analysis of the data and marketing
initiatives taken by the company.

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 Contd.
Aviva can keep a track on the viability of its marketing
campaigns and can monitor them at every stage.
Based on the responses generated the customer service
can be efficiently handled.
 The integration of marketing, customer service and
backend
processes have clearly enabled Aviva to provide
superior service across varied channels.
With the help from CRM software Aviva can sell
multiple insurance policies and pension plans to right
customers.
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Case study: Keenan & Associates
Keenan & Associates is the 17th largest insurance consulting
and brokerage firm in the United States. Keenan is a full
service consultant and broker, dedicated to providing
superior insurance products and services for public agencies
and health care organizations

• INDUSTRY: Insurance
• EMPLOYEES: 675
• GEOGRAPHY: California
• # USERS: 120
• PRODUCT(S) USED: Salesforce CRM SFA, Service &
Support

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Life at Keenan prior to Salesforce CRM
No centralized contact management – need 360
view of client
Lack of accountability
Need integration with Enterprise data
Lack of pipeline and production visibility across
all lines of business (10 lines)
Lack of communication among business units
Inconsistent paper-based process for new business
Account knowledge lost with turnover
Customer Service disconnected from Sales team
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 The Solution – Life at Keenan after Salesforce CRM

 Salesforce CRM is now the database of record and integrates

with other systems providing single point of entry for much of
their data
 Salesforce CRM has enabled us to monitor the competitive
environment and give us insight into the market
 Salesforce CRM has enabled us to automated processes which
ensure that nothing falls though the cracks and has established
standardization across the organization
 Dashboards now provide visibility to both Sales and Service to
manage the account from the prospecting to implementation
stage
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 Conclusion
CRM is a new business philosophy based on trust
and value.
To stay in business it is not imperative to
maximize revenue from single transaction but
to build a lasting sustainable relationship with the
customer.
To survive in today’s competitive world every firm
should focus on customer.

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 REFERENCES
www.businessperspectives.org/BBS_en_2008_1_Khar
e.pdf
www.asengupta.com/AnalyticalCRMinsurancesector
.pdf
http://www.expresscomputeronline.com/20041011/cas
estudies01.shtml
assets.salesforce.com

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