BrandFormula

10 years' ago insurers and brokers were radically behind other sectors in customer management and in customer data. The major players have made significant improvements in customer management in the last decade, but most would acknowledge that they have some way to go to meet the full expectations of their major global clients.

The insurance market has been catch up mode on customer management, two of the many reasons are:

• The product orientation of the sector - results are presented (and staff largely measured) by product line - resulting in what is commonly referred to as 'product silos'.
• The inadequacies of systems and lack of reliable data to give customer facing staff a co-ordinated global view of the customer relationship.

Some players have long been committed to customer management, others who were strongly product oriented have gone more 'customer friendly'.

In assessing insurers' and brokers' capabilities, customers now give similar weight to Customer Management as Underwriting; Claims; and Risk Engineering.

One buyer summed it up their expectations nicely for us - 'In my company we speak for the Group and see data on our global relationship with our clients, so why can't our brokers and insurers do the same?'

Some Key Success Factors (KSFs) in Customer Management

Qualified full time Customer Managers are more effective in the role than insurance technicians asked to do customer management as an add-on job.

Customers want regular but relevant dialogue, not just around the contract renewal period. One customer said 'why do I only hear from my insurers and brokers when the renewal review comes up?'.

For global buyers the scope of the CM role should be the global relationship – 'insurers and brokers offer global programmes, so should engage with the customer globally'.

The more products and services the customer buys, the more sticky and profitable they are ('product density'). Potential partners should communicate their appetite for the customer's business.

Global buyers want insurers to deliver coordinated global capacity where the deal is transacted.

Customers are frustrated if insurers and brokers offer solutions and expertise elsewhere in their Group, which are not available to them. Customers don't expect CMs to be experts in everything, but CMs should know where the experts are and be able to put them in front of the customer.

CMs should act as troubleshooters on customer issues, to nip potential problems in the bud.

Customers expect CMs to have authority and influence to get things done and to be the customer's advocate.

CMs should follow through on service standards and not make commitments they can't deliver.

Summary

So no room for complacency then !!