Riding the Whirlwind

Strategic Interactive Marketing for the Insurance Industry

Key Points:

Nearly all new PCs now come with CD-ROM drives.

5 .3 CDs and Disks

5.3.1 One of the current barriers to many of the new mediums is they require a telecommunications infrastructure that is still for the European mass audience underdeveloped and expensive. In time these limits will be overcome. Meanwhile CD-ROMs and floppy disks (CD-ROMs from here-on) provide a useful means of transmitting information in the interim period.

CR-ROMs are ideal for delivering volume data, including video.

CD-ROM data can be supplemented by up-to-date information delivered via the Internet.

- Ideal for Historic and Multi-media Data -

5.3.2 The advantages of CD-ROMs include:

• hold large amounts of data. They are ideal for electronic glossy brochures that are full of colour pictures, video and sound. A new version, CD-I (interactive), holds 4 times the information. As it can hold full length feature films, it is likely to replace the video tape.
• they are now cheap to produce (note their proliferation in magazines)
• using telecommunications it is possible to supplement the static CD-ROM data with up-to-date information. Some of the new CD-ROM encyclopaedias use this technique without the user being aware of what is happening.
• using software, it is possible to present extracts that meet the specific needs of individuals - needs such as personal situation, breadth of product or service offering, depth of detail, complexity of language used, style of presentation, lifestyle.

Infotrade distributes software and historic financial information on CD-ROM. Current prices are distributed via the Internet.

Volume markets are ideal due to the high cost of authorship.

Educational programmes, historic data, and brochures are ideal applications.

- A High Cost of Authorship -

5.3.3 The main barrier to the use of CR-ROMs is the high cost of authorship (i.e. the creation of the content). Content needs to be accurate, current, meet regulatory requirements, informative, be presented in an interesting way, easy to use and easy to navigate. It requires a multi-disciplinary team approach.

5.3.4 CD-ROMs were not the focus of the interviews but many possible applications come to mind:

• distributing brochures (either direct to the customer or as an item on a magazine disk).
• making interactive brochures with:
• search facilities based on keywords (I need to insure my car).
• describing complex subjects using interactive video, sound and diagrams). This is an opportunity for an insurer to provide a value added education service.
• providing instant answers to customers' questions in their own time (even over time) without the expense of being on-line. When they are ready, a quick telephone call receives the latest rates, etc..
• distributing a newsletter.

CR-ROMs make it easier to provide customers with familiar 3D worlds which they then "walk" through.

Applications include product information, education, policy manuals, financial planning applications.

- Customer Choice of 3D Worlds -

• by distributing 3D images of banks and their contents, virtual branches can be "built" to meet customer preferences (gothic stone, modern steel and glass; formal or casually dressed staff).

Security First Network Bank presents a familiar face to its Internet customers. It offers insurance quotes from over 1,500 insurance companies in term, home, auto and other insurance products.

• distributing product information and compliance manuals to brokers, agents, financial advisors, and other staff.

• sponsoring further education, for example, course notes and lectures for those undertaking NVQ's and professional qualifications; or for teachers in schools.

• disseminating advertising and information to branch offices and retail outlets - see Kiosks in the next section.

Quicken is extremely popular. It is extending into home banking, tax advise and self-assessment

- Abbey Life Pensions Planner -

5.3.5 Some financial examples of distribution on CD-ROM or disk are:

• Abbey Life and their Pension Planner.
• Infotrade (owned by Mitsubishi Electric) provides on-line investment portfolio management and trading, insurance and mortgage quotes, financial news, prices and facts, e-mail, purchase of books, etc.. Besides holding the software, the CD-ROM also holds historic share prices, company data, and the user documentation.

- Teaching Accounting -

• Quicken home accounts software comes with extensive tutorials and manuals for teaching the basics of accounting as well as information on how to use the product.

Quicken has extensive help files to teach accounting principles.