Three-quarters (74%) of insurance providers believe that a multi-channel
strategy is essential to compete in today’s markets, reveals a new
research report released today. With substantial pressures to reduce management
charges on financial products, the insurance industry is more competitive
than ever and cost-efficient delivery mechanisms are vital if organisations
are to survive in the 1% world.
One increasingly attractive approach is worksite marketing across multiple
distribution channels, a method of selling to a focused set of individuals
through a convenient forum -- the place in which they work. The report
identified that the take-up of worksite marketing is already high. In
fact, nearly half (48%) of the insurance providers interviewed have already
embraced worksite marketing as an integral part of their business strategy.
Of these companies, two-thirds (67%) plan to implement it within the next
six months, which suggests a dynamic change is already taking place in
the way insurance providers do business with their customers.
Another approach to reducing distribution costs is online advice. In
fact, the survey reveals 56% will change their distribution strategy to
meet the challenge of online advice in the 1% world. One respondant commented,
“The whole concept of ‘Martini’ Banking … anytime,
anyplace, anywhere… is becoming prevalent. Consumers do expect they
can contact a company through mechanisms to suit them. It is almost an
entry-level requirement now.”
The report, Issues Affecting IT Deployment in
the UK Insurance Sector, was commissioned by leading IT services
provider CGI Group Europe Ltd. The research was carried out in March 2002,
by independent research company Metrica, with 100 major UK-based life
& pension and general insurance companies both by telephone and face-to-face
interviews.
Gavin Chapman, managing director at CGI Group Europe Ltd comments on
the survey, “The 1% world and customer demands are forcing the industry
as a whole to embrace multi-channel distribution and seek alternate and
more cost-effective methods of selling, and this is borne out by the high
proportion of companies planning to change their distribution model to
meet these demands.” As one respondent states, “A multi-channel
strategy is essential to compete in today’s market.”
“There is no question that this needs to, and is, beginning to take
effect now, with the two prominent emerging channels being worksite marketing
and online advice,” continues Chapman. “The significant number
of organisations planning to implement worksite marketing initiatives
within the next six months (67%) is indicative of the need to be prepared
for the enforced reality of the 1% world.”
Chapman concludes, “Worksite marketing and online advice present
themselves as exciting developments for financial services sales, albeit
for different reasons. Worksite marketing via the web, for example, offers
excellent up-sell and cross-sell opportunities in a low cost environment,
whilst the cost of providing consumers with advice online incurs a fraction
of the cost of more traditional face-to-face methods. The challenge of
implementing either of these approaches is not to be taken lightly, however
there are solutions, and significant benefits are there for the taking.”
Copies of the research report, Issues
Affecting IT Deployment in the UK Insurance Sector, can be obtained
by contacting Emma Howell on 01438 317966 or emma.howell@cgi-europe.com.
About CGI
Founded in 1976, CGI is the fourth largest independent information technology
services firm in North America, based on its headcount of 13,700 professionals.
CGI’s annualized revenue run-rate totals CDN$2.1 billion (US$1.3
billion). CGI’s order backlog currently totals CDN$10.7 billion (US$6.7
billion). CGI provides end-to-end IT services and business solutions to
more than 3,000 clients worldwide from more than 60 offices. CGI’s
shares are listed on the TSX (GIB.A) and the NYSE (GIB). They are included
in the TSX 100 Composite Index as well as the S&P/TSX Canadian Information
Technology and Canadian MidCap Indices.
Website: www.cgi.com.
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For more information:
UK PRESS ENQUIRIES:
Lisa Carter / Geraldine Grewal / Louisa Constable
Portfolio Communications Ltd.
Tel: 020 7240 6959
E-mail: lisa.carter@portfoliocomms.com
