property insurance...let us show you how our targeted customer marketing programs achieve maximum...
TRANSCRIPT
Life changes create policy opportunitiesA recent national survey by Trusted Choice®
agencies found that at least 32 million U.S.
households own insurance policies that aren’t
right for them.
The coverage needs of a household or family
change over time. Lifestyle changes such
as the birth of a child, divorce or retirement
can greatly affect a customer’s need for life
insurance. Major purchases such as buying
a home or refinancing for extensive
renovations may also affect a customer’s
need for life insurance coverage to help
surviving family members with
mortgage payments.
These changes provide insurance agents
excellent opportunities for cross-selling and
upselling using communications tools such
as a newsletter to connect with customers
and educate them about the need for periodic
policy reviews and changes.
M a r k e t i n g U p d a t e s
INSURANCE
Catastrophes trigger upheavalReinsurers studying 2006 renewals have
seen a “tale of two markets” unfolding. The
market conditions an insurance company
faces depend on the level of U.S.
catastrophe exposure.
Companies with lines of business directly
affected by hurricanes Katrina, Rita and
Wilma experienced significant increases in
pricing and decreasing availability, while
other lines not affected by the storms
remained relatively flat.
One observation is that many primary
insurers have not been inclined to accept
rate increases across the board for
reinsurance protection. Experts also predict
more willingness to accept reinsurers rated
slightly lower than the AA to A- range that
has been traditionally considered acceptable.
PROPERTY INSURANCE
Online auto insurance bill payment makes senseAccording to a new survey sponsored by
Computer Sciences Corporation (CSC),
73 percent of auto insurance customers
would be willing to pay their premiums
online. The survey, which points to a
significant opportunity for both electronic
bill presentment and bill payment,
indicates that 88 percent of car insurance
customers receive paper bills by mail.
According to the survey, 56 percent
of auto insurance customers pay their
premiums by cash, money order or paper
check. The remaining 44 percent pay
electronically by some means, with half
of these paying by automatic funds
transfer from their accounts.
AUTO INSURANCE
Welcome to our premiere issue!See inside for information and an offer you won’t want to miss.
CHRISTOPHER D MARSHALLPII One Hardman Drive Bloomington IL 61701
P R E M I E R E E D I T I O N
Are your agents ready for the future?
I n s u r a n c e m a r k e t i n g e x p e r t i s e w i t h t h e r i g h t p e r s p e c t i v e , e x p e r i e n c e a n d t e c h n o l o g y
CRM is not just software
Expand your customer understandingSee inside for a
FREE SPECIAL OFFER!
One Hardman DriveBloomington IL 61701
FIRST-CLASS MAILUS POSTAGE
PAIDFMC33069
6an59292_issent_common.indd, Spread 1 of 4 - Pages (8, 1) 7/7/06 1:28 PM
34678
T a b l e o f C o n t e n t s
Are your agents ready for the future?
The growing need for multicultural marketing
The fact is, insurance marketing requires more than just industry knowledge. It requires insight. It’s essential that you, as well as your agents, understand exactly who your customers are and utilize the most effective communications to keep your company “top of mind” for customers and prospects alike.
Let’s talk issentials …
34
Think CRM is just software?6Legislative Update7Marketing Updates8
Let us show you how our targeted customer marketing programs achieve maximum results through:✔ Education and cross-sell/upsell opportunities
✔ Loyalty rewards programs
✔ Channel marketing solutions for your agents
Let’s talk and see what we can do for you. Call me toll-free at:
1.800.736.0145
Legislative Update:
The Insure U Congressional briefing On June 2, 2006, at the Capitol in Washington, D.C., the National Association of Insurance Commissioners (NAIC) presented their new literacy and consumer awareness campaign, Insure U. The campaign is one of the most ambitious consumer initiatives in the history of the NAIC and has two objectives: to help educate consumers about insurance and ways to avoid being scammed by imposter insurance companies. The Insure U curriculum is available at www.insureUonline.org and includes a basic introduction to the four major types of insurance — life, health, auto and home.
Federal legislators seek to limit use of Social Security numbersTwo bills introduced in the U.S. House would restrict the widespread use of Social Security numbers as customer identifiers in an attempt to curb the exploding problem of identify theft. The bills’ opponents in the financial services and insurance industries say passage of either bill would deprive them of a method for reliable identity verification and force costly changes in internal business operations, while doing little to prevent ID theft.
Excise tax on life insuranceThe American Council of Life Insurers (ACLI) wants to impose a 100 percent excise tax on any arrangement entered into prior to the fifth anniversary of a life insurance contract by which consideration would be paid to acquire or continue an interest in a life insurance policy, including premiums, as well as separate payments and fees to the insured. The Life Insurance Finance Association (LIFA), a nonprofit, professional trade association, adamantly opposes any such proposal to tax the already taxable transaction of life settle-ments. The impact of this proposal would be particularly harmful to seniors who would be precluded from selling their life insurance policies or from using them as collateral for a loan to obtain cash to meet their changing needs at a critical time in their lives.
“share of wallet” — at every stage
of the relationship lifecycle. These
stages include:
n Bonding, helping customers establish
profitable habits and setting expectations
for the relationship
n Growth, using data collected about
the customer to cross-sell and upsell
n Retention, reinforcing the customer’s
choice and defining the value
of the relationship
n Reconciliation, saving at-risk customers
and winning back those who have left
Bonding: A warm welcome for new customersIt costs five times more to acquire a new
customer than to sell to an existing customer.
Therefore, giving new policyholders a
powerful welcome experience sets the stage
for a relationship that will expand and grow.
A welcome kit that includes components such
as a welcome letter, company newsletter and
educational product materials can reduce
customer confusion and anticipate questions.
You can also include special offers or gifts
that give policyholders a sense of how much
you value their business.
An independent research study showed that
of customers receiving welcome kits:
n 82 percent read the material
n 63 percent said the kit helped them better
understand the company’s offerings
n 20 percent reported that the welcome kit
convinced them to try additional products
and services
A warm welcome goes a long way toward
protecting your investment in new business
acquisition. Remember: Though these
statistics are impressive, they are just the
beginning of what you can achieve by
focusing on the “customer” and the
“relationship” in your CRM program.
In the next issue of issentials, we’ll discuss
the growth stage of the customer relationship
and how data mining can help you cross-sell
and upsell your policyholders.
issentials 7
About the PublisherSince 1992, Progressive Impressions International (Pii)
has worked with Fortune 500 insurance companies to
develop marketing tools that support sales representatives
to enhance their productivity. Pii has the resources to
design, implement and support complete marketing
programs configured specifically to meet the needs
of the insurance industry.
One Hardman Drive
Bloomington, IL 61701
www.WhateverItTakes.com
© 2006 Progressive Impressions International. All Rights Reserved
Bill SoddyiNiche President800.664.0444 [email protected]
Welcome to the fi rst issue of issentials, the new publication
from the Insurance Niche specifi cally designed for insurance
industry marketers. We’re excited about this opportunity to
bring you some of the latest news about trends in insurance
marketing that we hope will enhance clients’ and prospects’
relationships with agents and policyholders.
In this issue, we’re providing tips for reaching a multicultural
market with relevant sales messages. We’ve also included an
article on fostering the entrepreneurial spirit in agents, plus
news from the world of marketing and updates on legislation
that affects the industry. We’re also beginning a four-part
series on Customer Relationship Management (CRM) with
an article that discusses the bonding stage of the relationship
lifecycle and how you can use a welcome experience to begin
long-term, profi table relationships with policyholders.
I hope that you enjoy this fi rst issue of issentials and fi nd it
informative and useful. We will publish quarterly, so look for
future issues and stay in tune with industry trends. If you have
questions, comments or topics you’d like to see covered, please
call me directly or e-mail [email protected].
I’d love to hear from you.
printing that lets your agents order personalized marketing materials for more local appeal while giving you control of corporate brand consistency.
For more information about Conductor, e-mail [email protected] or call 800.736.0145.
At Progressive Impressions International,
we offer solutions that incorporate technology
and customer communications expertise
for every stage of the customer
relationship lifecycle.
For more information about how our
solutions can work for you, contact me
or call 800.736.0145.
6an59292_issent_common.indd, Spread 2 of 4 - Pages (2, 7) 7/7/06 1:28 PM
6 issentials
Changes in the insurance industry are bringing new challenges, one of
which is customer relationship management (CRM). In the next few
years, companies will pour billions of dollars into CRM software
and technology, but will you get your money’s worth? If installing
a software package is all you do, the answer is “no.” Software and
technology are tools that can help with the “management” in CRM,
but to take care of your “customer” and your “relationships,” you
need more than technology. The success of your CRM program
depends on using that technology to communicate with customers
and take advantage of the opportunity to build long-term,
profitable relationships.
Turning new challenges into long-term profitability
In the past, agents maintained close personal relationships with
their policyholders, and customer communication was simpler.
Now orphaned policyholders and agents who have more clients
than they can communicate with effectively make it more difficult
for many insurance carriers to communicate with customers through
traditional channels. But you can see a measurable improvement in
long-term profitability if you view these challenges as opportunities to
communicate with policyholders through the variety of new channels
made available by technology.
The core of your CRM is ongoing communication with customers
so that your company can meet their needs — and take more
First in a four-part series
If you think CRM is just software, you’re missing a golden opportunity
Make your agents your CRM partners Your agents are the face of your company. Most agents know how important it is to communicate with clients through multiple channels, but many do not have the expertise or the budget to support a CRM program of their own. They may also suspect the carrier of “going direct” with clients to cut their commissions. Here are some suggestions that can reassure your agents that your CRM program will be profitable for them as well:
• Communicate in advance. Agents should be fully informed about all communications to their clients with details about offers, timelines, commissions and typical questions they may need to answer for clients.
• Give agents control. If agents have the option to choose which communications their policyholders receive and to personalize these materials with their own messages, they are much more likely to be enthusiastic participants in the CRM program.
• Protect agent compensation. Even direct sales should allow the currently assigned agent to participate in commission revenue.
6 issentials
Help shape your future success:
Get your agents to think like entrepreneursSome fundamental aspects of the insurance
industry may barely change over time. But
organized chaos and change are the order
of the day in areas such as client service,
new exposures, new public opinion, fee
structures, risk management and technology.
The combination of the time-tested, static
foundation with the dynamic operational
aspects creates potential opportunities. To
help position themselves to take advantage
of those potential opportunities and not be
left behind, insurance agents should begin
by examining the methods, tactics and
processes they use. Thinking like
entrepreneurs may help agents improve
their prospects for future success.
Harness the entrepreneurial spiritThe characteristics that help shape a
successful entrepreneur are not always
inherent. Many can be learned. Consider
how the following ways of thinking may
help your agents strengthen their potential:
• Always focus on the customer — See
everything you do from the perspective
of your customers and prospects. Get
into their minds and hearts. Know their
values, priorities, needs and objectives.
Constantly remind yourself that acquiring
and retaining customers is your
primary purpose.
• Erase the concept of failure from
your mind — Never accept defeat. Look
for opportunities in the face of setbacks
and changes. Learn from your mistakes.
Maintain your optimism and enthusiasm.
You need to believe in yourself and what
you are doing if you want your customers
and prospects to share that belief.
• Expand your knowledge —
Continuously educate yourself
about your industry, your target
market and your competitors.
No matter how much you already know,
there is no limit to how much you still can
learn. Seek training to improve your skills,
expertise and competitive edge.
• Embrace all ideas — Keep an open mind
to your own ideas and those of others, no
matter how offbeat the ideas may some-
times be. Creativity and ingenuity open
the door to possibility and progress.
• Seek opportunities — Always be on the
lookout for potential possibilities to take
action, to network, to gain a customer, to
make things happen or to try something
new. Opportunities may happen anywhere
and anytime. One agent in a large
Midwestern market turned a $400
investment into $4,000 worth of
commissions recently. He ordered his
company’s newsletters and then distributed
most of them by hand … at the train
station. He saw the opportunity to speak
to this captive audience in person and in
print while they were waiting together for
their morning ride to work — and he
reaped the rewards accordingly with new
customers and new business.
Get them readyDeveloping a plan to prepare your agents
for the future is vital to survive — and
thrive — in the uncertain, ever-changing
world. Begin the process now by instilling
and fostering an entrepreneurial attitude in
your agents. Arm them with the advice, tips
and marketing communications tools
they need.
issentials 3
Thinking like entrepreneurs may help agents improve
their prospects for future success.Conductor from Progressive Impressions International is a Web-based online ordering system with variable, on-demand
6an59292_issent_common.indd, Spread 3 of 4 - Pages (6, 3) 7/7/06 1:28 PM
4 issentials issentials 5
Multicultural marketing:Are you communicating effectively in today’s diverse marketplace?Diversity is an integral part of America. People of various cultures come together in this “melting pot,” assimilating some aspects of American life while also retaining their own distinct cultural identities, their traditions, customs, beliefs, ideas, tastes and languages. In business, understanding the cultural distinctions of your market may prove vital to effective marketing communications and sales. The insurance industry in particular may benefit from marketing specifically to diverse subcultures.
Transcreation transcends cultural barriersThe nation’s growing diversity increases
the importance of understanding who your
customers are. The concept of the “typical”
customer is giving way to segmented markets,
each of which requires a customized strategy.
And that strategy may go well beyond
a language translation. Transcreation, or
adapting your message to your market’s
different cultures, is vital to getting your
message’s meaning across effectively.
In a direct translation, some English words,
phrases and concepts may be misunderstood.
The words and phrases could have different
meanings in another language, or some
concepts may not translate well because
of cultural variations.
This may occur even among people who
share a language, such as Spanish-speaking
minorities: The Hispanic population in the
United States comes from more than 20
countries worldwide, each with its own
cultural distinctions. Some Spanish words
and phrases may mean one thing to
someone of Mexican descent, something
else to an individual of Cuban heritage, and
have yet another meaning to a person with
roots in Spain.
Transcreation requires understanding what
is important to each subsection of your
target market so you may develop and
implement strategies to address their needs.
Potential opportunities in the changing landscapeEthnic minorities represented 33 percent
of the U.S. population in 2004, up from
30 percent in 2000, and are projected
to represent 50 percent of the nation’s
population by 2050.
Life insurance agents, in particular, aren’t
reaping the opportunities when it comes to
selling insurance to minorities. According
to a 2005 survey conducted by The Polling
Company, Inc., minorities and lower-
income households want and need life
insurance, yet are often overlooked
by life agents.
As for minorities’ ability to afford coverage,
the outlook may be improving. The Selig
Center for Economic Growth projects
significant increases in the purchasing
power of minority groups in the United
States from 2005 to 2010: It estimates an
increase in purchasing power from $761
billion to $1 trillion for African-Americans,
from $736 billion to nearly $1.1 trillion for
Hispanics, from $397 billion to $579 billion
for Asians, and from $51 billion to $69
billion for Native Americans.
A welcome changeIn general, multicultural customer bases
appreciate companies which understand and
embrace cultural differences. For example,
according to the American Marketing
Association, 50 percent of the nation’s
Hispanic market prefers to receive marketing
materials in Spanish versus English.
The introduction of a Spanish version of
an English newsletter may significantly
strengthen relationships and loyalty
between Spanish-speaking consumers
n Ninety-two percent of African-Americans and 82 percent of Hispanics believe that life insurance is essential, compared with 72 percent of Caucasians.
n Thirty-nine percent of African-Americans and 40 percent of Hispanics say that they own life insurance policies, compared with the national average of 47 percent.
n Fifty percent of Hispanics and 24 percent of African-Americans have never interacted with a life insurance agent.
and the newsletter sponsor. A recent study
found that when Hispanics who previously
received newsletters only in English receive
them in Spanish, an average of 70 percent
read the newsletters more frequently.
Explore your options, fine-tune your approachAs the country’s many diverse cultures
represent growing segments of the
population, savvy insurance marketers
should analyze and assess which marketing
techniques work best for the relatively
untapped market.
Demographic data suggests direct mail
and Internet-based communications are
effective media. Consider, for example, that
36 percent of Hispanic adults prefer
customer communications in the direct-mail
format. The Hispanic segment of Internet
users is only 37 percent, compared with 47
percent of African-Americans and 66 percent
of the general population. But new research
conducted by eMarketer predicts that online
usage by Hispanics will grow to exceed 20
million users by the end of the decade.
No matter what form of marketing you
choose to explore — direct mail, newsletters,
Web sites or e-mail — it’s essential to explore
it now. With diversity in mind, begin by
understanding who your customers are and
understand how market segmentation plays
a critical role in your marketing success.
Test your marketing methods and analyze
your results. Focus on your producer base
and who they’re serving. Is it the right match?
Are they “speaking the same language”?
Create communications programs that your
agents can use to drive your multicultural
marketing efforts.
When you target your customer base this
way, the numbers, as well your results,
may just astound you.
6an59292_issent_common.indd, Spread 4 of 4 - Pages (4, 5) 7/7/06 1:28 PM
4 issentials issentials 5
Multicultural marketing:Are you communicating effectively in today’s diverse marketplace?Diversity is an integral part of America. People of various cultures come together in this “melting pot,” assimilating some aspects of American life while also retaining their own distinct cultural identities, their traditions, customs, beliefs, ideas, tastes and languages. In business, understanding the cultural distinctions of your market may prove vital to effective marketing communications and sales. The insurance industry in particular may benefit from marketing specifically to diverse subcultures.
Transcreation transcends cultural barriersThe nation’s growing diversity increases
the importance of understanding who your
customers are. The concept of the “typical”
customer is giving way to segmented markets,
each of which requires a customized strategy.
And that strategy may go well beyond
a language translation. Transcreation, or
adapting your message to your market’s
different cultures, is vital to getting your
message’s meaning across effectively.
In a direct translation, some English words,
phrases and concepts may be misunderstood.
The words and phrases could have different
meanings in another language, or some
concepts may not translate well because
of cultural variations.
This may occur even among people who
share a language, such as Spanish-speaking
minorities: The Hispanic population in the
United States comes from more than 20
countries worldwide, each with its own
cultural distinctions. Some Spanish words
and phrases may mean one thing to
someone of Mexican descent, something
else to an individual of Cuban heritage, and
have yet another meaning to a person with
roots in Spain.
Transcreation requires understanding what
is important to each subsection of your
target market so you may develop and
implement strategies to address their needs.
Potential opportunities in the changing landscapeEthnic minorities represented 33 percent
of the U.S. population in 2004, up from
30 percent in 2000, and are projected
to represent 50 percent of the nation’s
population by 2050.
Life insurance agents, in particular, aren’t
reaping the opportunities when it comes to
selling insurance to minorities. According
to a 2005 survey conducted by The Polling
Company, Inc., minorities and lower-
income households want and need life
insurance, yet are often overlooked
by life agents.
As for minorities’ ability to afford coverage,
the outlook may be improving. The Selig
Center for Economic Growth projects
significant increases in the purchasing
power of minority groups in the United
States from 2005 to 2010: It estimates an
increase in purchasing power from $761
billion to $1 trillion for African-Americans,
from $736 billion to nearly $1.1 trillion for
Hispanics, from $397 billion to $579 billion
for Asians, and from $51 billion to $69
billion for Native Americans.
A welcome changeIn general, multicultural customer bases
appreciate companies which understand and
embrace cultural differences. For example,
according to the American Marketing
Association, 50 percent of the nation’s
Hispanic market prefers to receive marketing
materials in Spanish versus English.
The introduction of a Spanish version of
an English newsletter may significantly
strengthen relationships and loyalty
between Spanish-speaking consumers
n Ninety-two percent of African-Americans and 82 percent of Hispanics believe that life insurance is essential, compared with 72 percent of Caucasians.
n Thirty-nine percent of African-Americans and 40 percent of Hispanics say that they own life insurance policies, compared with the national average of 47 percent.
n Fifty percent of Hispanics and 24 percent of African-Americans have never interacted with a life insurance agent.
and the newsletter sponsor. A recent study
found that when Hispanics who previously
received newsletters only in English receive
them in Spanish, an average of 70 percent
read the newsletters more frequently.
Explore your options, fine-tune your approachAs the country’s many diverse cultures
represent growing segments of the
population, savvy insurance marketers
should analyze and assess which marketing
techniques work best for the relatively
untapped market.
Demographic data suggests direct mail
and Internet-based communications are
effective media. Consider, for example, that
36 percent of Hispanic adults prefer
customer communications in the direct-mail
format. The Hispanic segment of Internet
users is only 37 percent, compared with 47
percent of African-Americans and 66 percent
of the general population. But new research
conducted by eMarketer predicts that online
usage by Hispanics will grow to exceed 20
million users by the end of the decade.
No matter what form of marketing you
choose to explore — direct mail, newsletters,
Web sites or e-mail — it’s essential to explore
it now. With diversity in mind, begin by
understanding who your customers are and
understand how market segmentation plays
a critical role in your marketing success.
Test your marketing methods and analyze
your results. Focus on your producer base
and who they’re serving. Is it the right match?
Are they “speaking the same language”?
Create communications programs that your
agents can use to drive your multicultural
marketing efforts.
When you target your customer base this
way, the numbers, as well your results,
may just astound you.
6an59292_issent_common.indd, Spread 4 of 4 - Pages (4, 5) 7/7/06 1:28 PM
6 issentials
Changes in the insurance industry are bringing new challenges, one of
which is customer relationship management (CRM). In the next few
years, companies will pour billions of dollars into CRM software
and technology, but will you get your money’s worth? If installing
a software package is all you do, the answer is “no.” Software and
technology are tools that can help with the “management” in CRM,
but to take care of your “customer” and your “relationships,” you
need more than technology. The success of your CRM program
depends on using that technology to communicate with customers
and take advantage of the opportunity to build long-term,
profitable relationships.
Turning new challenges into long-term profitability
In the past, agents maintained close personal relationships with
their policyholders, and customer communication was simpler.
Now orphaned policyholders and agents who have more clients
than they can communicate with effectively make it more difficult
for many insurance carriers to communicate with customers through
traditional channels. But you can see a measurable improvement in
long-term profitability if you view these challenges as opportunities to
communicate with policyholders through the variety of new channels
made available by technology.
The core of your CRM is ongoing communication with customers
so that your company can meet their needs — and take more
First in a four-part series
If you think CRM is just software, you’re missing a golden opportunity
Make your agents your CRM partners Your agents are the face of your company. Most agents know how important it is to communicate with clients through multiple channels, but many do not have the expertise or the budget to support a CRM program of their own. They may also suspect the carrier of “going direct” with clients to cut their commissions. Here are some suggestions that can reassure your agents that your CRM program will be profitable for them as well:
• Communicate in advance. Agents should be fully informed about all communications to their clients with details about offers, timelines, commissions and typical questions they may need to answer for clients.
• Give agents control. If agents have the option to choose which communications their policyholders receive and to personalize these materials with their own messages, they are much more likely to be enthusiastic participants in the CRM program.
• Protect agent compensation. Even direct sales should allow the currently assigned agent to participate in commission revenue.
6 issentials
Help shape your future success:
Get your agents to think like entrepreneursSome fundamental aspects of the insurance
industry may barely change over time. But
organized chaos and change are the order
of the day in areas such as client service,
new exposures, new public opinion, fee
structures, risk management and technology.
The combination of the time-tested, static
foundation with the dynamic operational
aspects creates potential opportunities. To
help position themselves to take advantage
of those potential opportunities and not be
left behind, insurance agents should begin
by examining the methods, tactics and
processes they use. Thinking like
entrepreneurs may help agents improve
their prospects for future success.
Harness the entrepreneurial spiritThe characteristics that help shape a
successful entrepreneur are not always
inherent. Many can be learned. Consider
how the following ways of thinking may
help your agents strengthen their potential:
• Always focus on the customer — See
everything you do from the perspective
of your customers and prospects. Get
into their minds and hearts. Know their
values, priorities, needs and objectives.
Constantly remind yourself that acquiring
and retaining customers is your
primary purpose.
• Erase the concept of failure from
your mind — Never accept defeat. Look
for opportunities in the face of setbacks
and changes. Learn from your mistakes.
Maintain your optimism and enthusiasm.
You need to believe in yourself and what
you are doing if you want your customers
and prospects to share that belief.
• Expand your knowledge —
Continuously educate yourself
about your industry, your target
market and your competitors.
No matter how much you already know,
there is no limit to how much you still can
learn. Seek training to improve your skills,
expertise and competitive edge.
• Embrace all ideas — Keep an open mind
to your own ideas and those of others, no
matter how offbeat the ideas may some-
times be. Creativity and ingenuity open
the door to possibility and progress.
• Seek opportunities — Always be on the
lookout for potential possibilities to take
action, to network, to gain a customer, to
make things happen or to try something
new. Opportunities may happen anywhere
and anytime. One agent in a large
Midwestern market turned a $400
investment into $4,000 worth of
commissions recently. He ordered his
company’s newsletters and then distributed
most of them by hand … at the train
station. He saw the opportunity to speak
to this captive audience in person and in
print while they were waiting together for
their morning ride to work — and he
reaped the rewards accordingly with new
customers and new business.
Get them readyDeveloping a plan to prepare your agents
for the future is vital to survive — and
thrive — in the uncertain, ever-changing
world. Begin the process now by instilling
and fostering an entrepreneurial attitude in
your agents. Arm them with the advice, tips
and marketing communications tools
they need.
issentials 3
Thinking like entrepreneurs may help agents improve
their prospects for future success.Conductor from Progressive Impressions International is a Web-based online ordering system with variable, on-demand
6an59292_issent_common.indd, Spread 3 of 4 - Pages (6, 3) 7/7/06 1:28 PM
34678
T a b l e o f C o n t e n t s
Are your agents ready for the future?
The growing need for multicultural marketing
The fact is, insurance marketing requires more than just industry knowledge. It requires insight. It’s essential that you, as well as your agents, understand exactly who your customers are and utilize the most effective communications to keep your company “top of mind” for customers and prospects alike.
Let’s talk issentials …
34
Think CRM is just software?6Legislative Update7Marketing Updates8
Let us show you how our targeted customer marketing programs achieve maximum results through:✔ Education and cross-sell/upsell opportunities
✔ Loyalty rewards programs
✔ Channel marketing solutions for your agents
Let’s talk and see what we can do for you. Call me toll-free at:
1.800.736.0145
Legislative Update:
The Insure U Congressional briefing On June 2, 2006, at the Capitol in Washington, D.C., the National Association of Insurance Commissioners (NAIC) presented their new literacy and consumer awareness campaign, Insure U. The campaign is one of the most ambitious consumer initiatives in the history of the NAIC and has two objectives: to help educate consumers about insurance and ways to avoid being scammed by imposter insurance companies. The Insure U curriculum is available at www.insureUonline.org and includes a basic introduction to the four major types of insurance — life, health, auto and home.
Federal legislators seek to limit use of Social Security numbersTwo bills introduced in the U.S. House would restrict the widespread use of Social Security numbers as customer identifiers in an attempt to curb the exploding problem of identify theft. The bills’ opponents in the financial services and insurance industries say passage of either bill would deprive them of a method for reliable identity verification and force costly changes in internal business operations, while doing little to prevent ID theft.
Excise tax on life insuranceThe American Council of Life Insurers (ACLI) wants to impose a 100 percent excise tax on any arrangement entered into prior to the fifth anniversary of a life insurance contract by which consideration would be paid to acquire or continue an interest in a life insurance policy, including premiums, as well as separate payments and fees to the insured. The Life Insurance Finance Association (LIFA), a nonprofit, professional trade association, adamantly opposes any such proposal to tax the already taxable transaction of life settle-ments. The impact of this proposal would be particularly harmful to seniors who would be precluded from selling their life insurance policies or from using them as collateral for a loan to obtain cash to meet their changing needs at a critical time in their lives.
“share of wallet” — at every stage
of the relationship lifecycle. These
stages include:
n Bonding, helping customers establish
profitable habits and setting expectations
for the relationship
n Growth, using data collected about
the customer to cross-sell and upsell
n Retention, reinforcing the customer’s
choice and defining the value
of the relationship
n Reconciliation, saving at-risk customers
and winning back those who have left
Bonding: A warm welcome for new customersIt costs five times more to acquire a new
customer than to sell to an existing customer.
Therefore, giving new policyholders a
powerful welcome experience sets the stage
for a relationship that will expand and grow.
A welcome kit that includes components such
as a welcome letter, company newsletter and
educational product materials can reduce
customer confusion and anticipate questions.
You can also include special offers or gifts
that give policyholders a sense of how much
you value their business.
An independent research study showed that
of customers receiving welcome kits:
n 82 percent read the material
n 63 percent said the kit helped them better
understand the company’s offerings
n 20 percent reported that the welcome kit
convinced them to try additional products
and services
A warm welcome goes a long way toward
protecting your investment in new business
acquisition. Remember: Though these
statistics are impressive, they are just the
beginning of what you can achieve by
focusing on the “customer” and the
“relationship” in your CRM program.
In the next issue of issentials, we’ll discuss
the growth stage of the customer relationship
and how data mining can help you cross-sell
and upsell your policyholders.
issentials 7
About the PublisherSince 1992, Progressive Impressions International (Pii)
has worked with Fortune 500 insurance companies to
develop marketing tools that support sales representatives
to enhance their productivity. Pii has the resources to
design, implement and support complete marketing
programs configured specifically to meet the needs
of the insurance industry.
One Hardman Drive
Bloomington, IL 61701
www.WhateverItTakes.com
© 2006 Progressive Impressions International. All Rights Reserved
Bill SoddyiNiche President800.664.0444 [email protected]
Welcome to the fi rst issue of issentials, the new publication
from the Insurance Niche specifi cally designed for insurance
industry marketers. We’re excited about this opportunity to
bring you some of the latest news about trends in insurance
marketing that we hope will enhance clients’ and prospects’
relationships with agents and policyholders.
In this issue, we’re providing tips for reaching a multicultural
market with relevant sales messages. We’ve also included an
article on fostering the entrepreneurial spirit in agents, plus
news from the world of marketing and updates on legislation
that affects the industry. We’re also beginning a four-part
series on Customer Relationship Management (CRM) with
an article that discusses the bonding stage of the relationship
lifecycle and how you can use a welcome experience to begin
long-term, profi table relationships with policyholders.
I hope that you enjoy this fi rst issue of issentials and fi nd it
informative and useful. We will publish quarterly, so look for
future issues and stay in tune with industry trends. If you have
questions, comments or topics you’d like to see covered, please
call me directly or e-mail [email protected].
I’d love to hear from you.
printing that lets your agents order personalized marketing materials for more local appeal while giving you control of corporate brand consistency.
For more information about Conductor, e-mail [email protected] or call 800.736.0145.
At Progressive Impressions International,
we offer solutions that incorporate technology
and customer communications expertise
for every stage of the customer
relationship lifecycle.
For more information about how our
solutions can work for you, contact me
or call 800.736.0145.
6an59292_issent_common.indd, Spread 2 of 4 - Pages (2, 7) 7/7/06 1:28 PM
Life changes create policy opportunitiesA recent national survey by Trusted Choice®
agencies found that at least 32 million U.S.
households own insurance policies that aren’t
right for them.
The coverage needs of a household or family
change over time. Lifestyle changes such
as the birth of a child, divorce or retirement
can greatly affect a customer’s need for life
insurance. Major purchases such as buying
a home or refinancing for extensive
renovations may also affect a customer’s
need for life insurance coverage to help
surviving family members with
mortgage payments.
These changes provide insurance agents
excellent opportunities for cross-selling and
upselling using communications tools such
as a newsletter to connect with customers
and educate them about the need for periodic
policy reviews and changes.
M a r k e t i n g U p d a t e s
INSURANCE
Catastrophes trigger upheavalReinsurers studying 2006 renewals have
seen a “tale of two markets” unfolding. The
market conditions an insurance company
faces depend on the level of U.S.
catastrophe exposure.
Companies with lines of business directly
affected by hurricanes Katrina, Rita and
Wilma experienced significant increases in
pricing and decreasing availability, while
other lines not affected by the storms
remained relatively flat.
One observation is that many primary
insurers have not been inclined to accept
rate increases across the board for
reinsurance protection. Experts also predict
more willingness to accept reinsurers rated
slightly lower than the AA to A- range that
has been traditionally considered acceptable.
PROPERTY INSURANCE
Online auto insurance bill payment makes senseAccording to a new survey sponsored by
Computer Sciences Corporation (CSC),
73 percent of auto insurance customers
would be willing to pay their premiums
online. The survey, which points to a
significant opportunity for both electronic
bill presentment and bill payment,
indicates that 88 percent of car insurance
customers receive paper bills by mail.
According to the survey, 56 percent
of auto insurance customers pay their
premiums by cash, money order or paper
check. The remaining 44 percent pay
electronically by some means, with half
of these paying by automatic funds
transfer from their accounts.
AUTO INSURANCE
Welcome to our premiere issue!See inside for information and an offer you won’t want to miss.
P R E M I E R E E D I T I O N
Are your agents ready for the future?
I n s u r a n c e m a r k e t i n g e x p e r t i s e w i t h t h e r i g h t p e r s p e c t i v e , e x p e r i e n c e a n d t e c h n o l o g y
CRM is not just software
Expand your customer understandingSee inside for a
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