Riding the Whirlwind

Strategic Interactive Marketing for the Insurance Industry

Key Points:

Society is changing rapidly and people are having to adopt new behaviours. Whilst technology is an agent of change, it also provides enabling solutions, and there are business opportunities in helping customers.

If businesses are not proactive they will have problems in meeting customer expectations.

2.1 The Market Place

2.1.1 Society is changing rapidly in all dimensions but it is the pace of change and the unpredictability that makes the future difficult to deal with.

2.1.2 Technology is providing freedom and choice of place, time, methods (ways), and content. Society, and therefore consumers, are having to adopt new modes of behaviour. There are business opportunities in helping customers, and the same new technology mediums, like the Internet and Web-TV, can deliver this help.

2.1.3 As consumers gain confidence with the new mediums they will use them to define their requirements and their terms for doing business. We are entering an era of Pull Marketing. Companies will need to change their methods if they are to serve informed and pro-active customers. Collaboration with customers is the future for building trust and strong life long relationships.

- Meeting New Demands -

2.1.4 Businesses, including insurance, have a problem in meeting these new demands:

• customers will adopt the new modes of behaviour at different rates.
• existing infrastructures and distribution cannot be eliminated overnight.
• which mediums will dominate is unclear.
• new technology is risky.

2.1.5 Business needs to adapt, but there are many barriers to change:

• structural and image problems across the insurance industry.
• an emphasis on cost reduction, cost justification and on delivering results in the short term.
• internal problems with existing technology, the calibre of staff and culture.
• Unavoidable external pressures include Year 2000, monetary union and closer regulation.

2.1.6 There are numerous choices with technology, business models and organisational structures. There is a need for strategic decisions. Meanwhile, customers demand more!