Transformation of merged insurance companies in Germany
Technologies: Customer Service, CRM
Objective of project
The merger of two German companies, one specialising in individual life and health insurance and the other in property insurance, has led to the creation of a business which is presenting a new offer for consumers.
Both companies had previously sold their products mainly through insurance agents and brokers, but found that the revenues generated by agents had been declining from year to year. Customers were increasingly buying insurance online. In addition, the outlook for insurance agents, who constituted a shrinking and ageing professional group, was deteriorating. The merged company decided to develop an electronic sales channel, build relationships and sell its products directly to consumers.
It chose to implement off-the-shelf IT solutions available on the market. The limitations inherent in such solutions and the lack of a coherent vision pertaining to the features needed led to the failure of that first initiative.
The CIO launched a new two-year project during which a solution which satisfied the company’s needs was created under our technical and executive supervision. As part of the project, we developed the implementation concept and design and established a competence centre to monitor and support the multi-stage work carried out by the five primary suppliers.
The new solution, based on Customer Service and CRM systems, made it possible to sell new products simultaneously through agents and directly to customers. The agents gained access to better accumulated and more transparent product information. The consumers were given the opportunity to customise the products offered to them.
The project resulted in an increase of more than 15% in the sales of individual products and their bundles in the first 12 months. The company was no longer obliged to rely on sales through insurance intermediaries. At the same time, it was possible to expand sales to younger customers on a significant scale.
In PMR, we advise and assist in the operations of your company
Head of Technical Solutions