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Marketing managers are concerned with increasing the company’s premium sales. To do that, they must follow up on new policy sales, existing policy lapses and the number of clients and agents.
Marketing management can be further complicated by the great diversity of insurance products and complex distribution channel structures typically found in insurance companies.
InsFocus BI’s marketing management solutions include:
FEATURES INCLUDE:
Analysis of sales volume, growth, lapses and commission ratios by agent, branch office, or alternative distribution channel. Due to the structure of most distribution channels in insurance companies, such reports often produce very long lists of data. The system provides filtering and highlighting tools to enable effective analysis of such lists and a focus on best/worst cases.
The system enables periodic monitoring of many measurements such as premiums, new premiums, average premiums, sums insured, commissions, and number of policies, new policies, clients, and agents. Reported values can be compared to sales targets or previous periods. Daily monitoring provides early warning of negative developments, and enables management to take corrective action. Monitoring is also available by specific policy activity type (i.e. new, renewal, endorsement, cancellation).
Changing organizational structures (e.g. branch office closure, reallocation of agents to other branch offices) can lead to major distortions in reports. The system’s data structure and query methods take such changes into account, and also enable “as-if” and “as-is” reporting.
The system produces report lists at the client or policy level based on cross-selling (e.g. client has product X, but doesn’t have product Y) and up-selling (e.g. policy has cover A and B, but not cover C) conditions. These types of reports can be very useful for conducting proactive marketing and increasing sales to the company’s existing client base.
Insurance companies frequently engage in massive marketing campaigns. The system provides tools for following up on business generated by marketing campaigns and measuring their long-term value.
The system measures the number and premiums of policies up for renewal that were not renewed, and tracks new insurance portfolios over several years. Most insurance products are sold on an annual renewable basis. Lapse ratio monitoring by product and distribution channel is as important as monitoring new sales. Lapse ratio measurement needs to take into account non-annual policy periods as well as insurance products that are not renewable such as contractors and travel. Attrition measurement requires aggregation of policies by the year they were first taken out.