One of the most important features of the insurance industry is organization. Because insurance companies deal with so many clients and stakeholders, accuracy and organizational procedure take center stage. This is why the insurance industry continues to be a heavy user of IT. Information technology and specialized software enabled insurance providers to accurately monitor, track and release insurance claims, as well as stay up to speed on legal requirements. At the same time, insurance companies are quickly realizing that they need a customer-centric approach if they are to succeed in the customer-oriented service market. In a competitive global economy, insurers must be agile enough to become customer-facing while at the same time reducing operating costs. For most insurance providers this is challenging because becoming more customer-focused means equipping field agents, brokers and service representatives with the resources to make this transition possible, an expensive and time-consuming task.
A well planned and executed customer relationship management (CRM) strategy can help an insurance provider reach its desired state. CRM does what most insurance companies are trying to do with their current legacy systems, although it does it better using less time and resources. CRM empowers insurance providers to consolidate their services into one organized workflow. It helps them focus on the things that matter—processes that impact costs, premiums, new business opportunities and renewal rates—instead of getting bogged down in procedural bottlenecks. CRM does this by giving the enterprise the best of both worlds: state-of-the-art software that can streamline workflow and improve efficiency, and all the marketing and communication tools needed to become client-facing.
The insurance industry has gotten a bad rap over the years. It lacks innovation and is slow to change. It’s reactionary as opposed to proactive. It doesn’t know its customers and, worst of all, doesn’t respond to the needs of its clients. With CRM, insurance companies can truly rebrand themselves. CRM allows them to optimize their call centers, adopt and automate flexible sales tools and integrate a range of new technologies including mobile sales and social monitoring.
The insurance landscape is changing. It’s becoming more complex and even more competitive. With more providers in the mix, finding new customers and keeping them long-term is becoming ever more challenging. At the same time, the general consumer holds a very negative view of the insurance industry. In order for any provider to succeed in this environment, they must change. CRM can make that transition much smoother. Whether through targeting marketing strategies, multi-level services and sales or efficient management of distribution, CRM gives the receptive insurance provider all the tools to stand out in a market that finds it difficult to differentiate itself from the competitors.
The general public might not like to admit it, but demand for insurance will continue to grow. As the population continues to age, insurers will need to respond to the challenges of a smaller workforce and more retirees, all of which will need insurance in one capacity or another. In an increasingly saturated market, CRM provides all the resources to make your company stand out for all the right reasons.