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Sugar in your verticals - Insurance


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CRM Acceleration London, September 2012, Presentation Sugar in your verticals - Insurance Industry

Published in: Economy & Finance, Business
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Sugar in your verticals - Insurance

  1. 1. SugarCRM in Your Vertical Insurance Andrey Andreev Global Technical Programs Manager
  2. 2. Vertical Solutions – The LearningProcess•  Understand the industry structure and vocabulary•  Understand the industry dynamics•  Understand the industry challenges•  Understand the industry processes•  Conceptualize and communicate the solution
  3. 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. 4. What is an insurance 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. 5. How does it work?•  Develop products –  Life –  Car –  Property and Casualty –  Liability –  Health –  Disability –  …•  Price them exactly•  Distribute•  Process claims & complaints
  6. 6. How does it work – Products &Distribution
  7. 7. Products•  Siloed – carriers may be separated by law•  Complex – seriously complex•  Isolated – different processes, customers and channels
  8. 8. Distribution Channels•  Sales channels –  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. 9. The Insurance Dynamic (roadblocksincluded)•  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. 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. 11. How might that work for X?
  12. 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. 13. CRM is the solution! 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. 14. MOTs? What MOTs?
  15. 15. Let’s see the demo•  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