INSURANCE VALUE THROUGH TECHNOLOGY, PART I:CUSTOMER EXPERIENCE MANAGEMENT - Building more effective relationships through technology

In this, the first of a series of four articles, David Holtzman of BusinessEdge discusses customer experience management (CEM). CEM's aim is to develop personalized experiences by providing a view into the insurance enterprise from the outside in.

Strengthening Producer Relationships

Studies have shown that the most common reason producers leave their current carrier is because of dissatisfaction with the service level (speed and quality of underwriting, effective use of technology to support sales and service). In the B2B2C insurance world, the agency distribution system is the main vehicle for generating sales as over 90 percent of sales are generated through the agent channel*. Because of this agency-centric model, Insurers must provide support to the distribution channel that is responsive, efficient and profitable. Understanding what producers value and, subsequently, meeting their needs is vital to building effective home office-producer relationships.

To realize this objective, insurers must develop a comprehensive strategy that includes all lines of business, product lines and distribution channels. This strategy should enable methods to penetrate new markets, increase sales & quality of service, and cross-sell to end-clients.

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