Acceleration2012 insurance

Acceleration2012 insurance

• 1.
  SugarCRM in YourVertical Insurance Andrey Andreev Global Technical Programs Manager
• 2.
  Vertical Solutions –The Learning Process •  Understand the industry structure and vocabulary •  Understand the industry dynamics •  Understand the industry challenges •  Understand the industry processes •  Conceptualize and communicate the solution
• 3.
  Our Case –The Insurance Vertical •  What is an insurance company? •  How does it work? •  What is going on in the marketplace? •  What are the key challenges on the way of success? •  How do we remove them with Sugar?
• 4.
  What is aninsurance company? •  A financial services provider, that aggregates similar but separate risks across a large number of individuals, and distributes the risk exposure using sophisticated mathematics •  Charges premiums to collect the exposure share plus a margin •  Invests the money collected •  Indemnifies for claimed damages covered by a policy
• 5.
  How does itwork? •  Develop products –  Life –  Car –  Property and Casualty –  Liability –  Health –  Disability –  … •  Price them exactly •  Distribute •  Process claims & complaints
• 6.
  How does itwork – Products & Distribution
• 7.
  Products •  Siloed –carriers may be separated by law •  Complex – seriously complex •  Isolated – different processes, customers and channels
• 8.
  Distribution Channels •  Saleschannels –  Direct (e.g. online, over-the-phone) –  Captive agents (also called tied, exclusive, etc.) –  Independent agents/brokers –  Affinity-based (e.g. car dealerships, bancassurance) •  Other players –  Insurance pools/syndicates –  Comparison portals •  Common agency specifics – information hiding, regulation
• 9.
  The Insurance Dynamic(roadblocks included) •  Push for growth in a stagnant market –  Even shrinking markets •  Commoditized product, pressure on margins –  Save 15% or more by switching to… •  Active, demanding, empowered customers –  Talking to some of the most conservative companies out there •  Lack of customer trust, loyalty –  Average person has 5.2 policies, avg. carrier holds less than two of those
• 10.
  Tackling those roadblocks • Find new markets? –  Hard, but possible •  Decommoditize products? Price them better? –  Not really possible •  Better engage active (existing) customers? –  Good idea, sounds sensible enough! •  Treat customers with more transparency, service them better? –  Why not? •  So, then, it is the customer we need to focus on
• 11.
  How might thatwork for X?
• 12.
  The strategic dilemma • According to a study by the IBM Institute for Business Value, 90% of all insurance CEOs picked getting closer to the customer as their most important strategic initiative in the next five years. •  However: –  Insurances might never even talk directly to a customer –  When it happens, information is fragmented, due to the multi-channel, multi-equipment communication –  Agency complexity –  Information systems and processes revolve around products, rather than customers
• 13.
  CRM is thesolution! Some complications •  Agencies more often than not independent –  Info does not usually flow upstream –  Competitors working in the same system –  It’s not just attitude, it’s the law •  The data lives in ancient mission critical systems –  And you cannot touch it •  Complex “customer” relationship –  Insurance owner, insured person, indemnitee •  People don’t really talk to insurances that often –  At least not when they are in a good mood
• 14.
  MOTs? What MOTs?
• 15.
  Let’s see thedemo •  Germany based •  Founded 1820 •  Active in every insurance class •  3.5 million customers •  Revenue $5.2 billion •  System running out of IBM SCE in Ehningen