acceleration2012 insurance
TRANSCRIPT
SugarCRM in Your Vertical Insurance Andrey Andreev
Global Technical Programs Manager
©2012 SugarCRM Inc. All rights reserved.
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
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?
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
How does it work? • Develop products
– Life – Car – Property and Casualty – Liability – Health – Disability – …
• Price them exactly • Distribute • Process claims & complaints
How does it work – Products & Distribution
Products
• Siloed – carriers may be separated by law
• Complex – seriously complex
• Isolated – different processes, customers and channels
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
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
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
How might that work for X?
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
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
MOTs? What MOTs?
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