Multi-network and Multi-channel Integration are Keys to Growth in a Changing U.S. Market, According to Findings of Capgemini’s World Insurance Report and Matching Gartner Research
Historically, insurance companies used a simple distribution model to get their products to market. The distribution network was typically through generalist, or perhaps multi-specialist, and the agent was the single point of contact for all customer needs. As customer needs have changed, so to are the distribution networks. Today, there are many different types of distributors competing for customers, and each is trying to differentiate itself to gain a competitive edge. As a result, distribution networks are walking a fine line: they seek to remain generalist enough to cast a wide net for customers, and specialist enough to provide good service to specific product segments. This paradox has created a challenge for insurers as they seek to identify the optimal distribution strategy. By managing and maneuvering multiple distribution networks, they hope to approach customers effectively and grow their share of customers' wallets.
The World Insurance Report 2008, published by Capgemini and the European Financial Management and Marketing Association (EFMA), sheds light on the strategic choices insurance companies must make to sustain growth in mature markets. This market research is based on a survey of more than 11,000 insurance customers (policy holders) and interviews with industry executives in thirteen countries. We surveyed customers on actual purchasing habits, expected future purchasing patterns, and their insurance-buying attitudes, preferences and perceptions.
In comparing the findings of our World Insurance Report with technology-trends research published by Gartner, we identified an interesting correlation: the recent emergence of multichannel integration (MCI). The Gartner study, which was conducted with 50 U.S.-based life and P&C insurers, "…found that MCI has become a major initiative. Insurers are making headway with their channel integration projects, including developing enterprise strategies and making IT investments in business process management and data management."¹
This newsletter presents findings from the research surveys conducted independently by both organizations, and concludes with insights to the actions insurers can take to help meet revenue and growth objectives in this increasingly competitive and volatile U.S. market. I believe you will find the information interesting and useful.
We are very interested in getting your perspectives on, or questions about, this topic. Please take a moment to send us your feedback.
Best Regards,
Scott Mampre
Vice President, Insurance
Capgemini Financial Services
¹Gartner Industry Research Note G00153088, Kimberly Harris-Ferrante, 26 November 2007