Existence in saturated markets
The insurance market is largely saturated. Customers are becoming more critical. Before signing a contract, many inform themselves via comparison portals or on interaction platforms (social media) on the internet. In addition, providers of substitute products such as bank or fund savings plans are increasing the competitive pressure.
Demographic change and changes in the preferences of potential policyholders require a revision of product policy and distribution. Offers must be reviewed in terms of their benefits for the customer, differentiated and repositioned. For example, instead of a rigid tariff scale, consumers today would rather have a modular system of basic and additional modules from which they can individually compile their insurance cover.
Reorganisation of the distribution
Direct sales via the Internet are gaining in importance, especially in the business with standardised services such as supplementary health, liability or property insurance. But products requiring advice can also be marketed online – for example by means of cobrowsing or chat functions on the provider’s website. Younger customers in particular also expect to be able to carry out simple actions such as reporting a claim via a mobile device.
Sales through banks, brokers and financial product distributors continue to increase at the expense of exclusivity. In order to leverage synergies and boost sales, it is necessary to develop an overarching marketing strategy including sales management, to network the sales channels and to support the sales partners according to their value contribution. This includes the introduction of a remuneration model that avoids conflicts between sales targets, advisory quality and compliance.
