The general insurance industry is at a crisis point particularly for personal lines home, motor, travel and health products. Insurance companies are hurting with high cost and frequency of claims.
The broker channels have an air of looming extinction and parallels are drawn with the travel agents of the 1990’s. The call centre direct, banking and internet players are obsessed with promoting cheap policies.
Some organisations are confused by this chaos and have not evolved a new strategy and operating model to cope with the new realities of the market.
Amid all this chaos there is a new model emerging.
A tribrid model that combines best of:
1. Core principles of the traditional brokerage model with
2. Best practice insurance telesales and customer service techniques (either in-house or outsourcing telesales) and
3. Integrated approach to using the Internet for sales and servicing of customers
These three elements combine to enable organisations to focus on good insurance products sold on value rather than price.
This emerging new model for general insurance is based on a number of fundamental building blocks in insurance telesales:
• The key skill set is the ability to professionally market and sell general insurance products
• Professional selling can counter commodity based selling
• The cost to acquire new customers is aligned to the value of the insurance premium
• The holy grail of financial services has been the selling of multiple policies to the same customer
o The theory has rarely worked out in practice
o The new model takes a very pragmatic approach to cross selling
We predict that this New Model for General Insurance deploying best practices in insurance telesales will facilitate the development of a pan-European Insurance industry where centralised multilingual operations will service customers across European borders for the first time.
So find out more about insurance telesales as a part of your outsourcing telemarketing services programme for your General Insurance customers.