CRM in intermediated financial services markets: COMPANY BACKGROUND

As one of the UK’s biggest insurance companies, the Insurer operates in most sectors of the market and via most channels. The Insurer provides insurance through partners in financial services and some leading retailers, many of whom have added financial services to their traditional product range. The Insurer provides a wide range of insurance products and services. These include household (buildings, contents and joint); motor; travel (single trip and annual); health (personal accident, hospital cash and private medical); extended warranty; and creditor. These products are typically marketed under the partner’s own brand. The Insurer ‘manufactures’ the products and these are then ‘retailed’ through partners’ existing channels or through channels set up specifically to support their personal financial services product range.

The relationship between the supplier and end customer depends on the type of agreement between the insurer and partner. The supplier-partner relationship takes the form of either ‘block’ or ‘individual’ contracts. These terms refer to the way the insurance business is written. In the case of block business, a household contract might relate to insuring 100,000 properties associated with individual mortgages provided by a bank or building society partner. In this case the insurer does not know the names of customers until they make a claim, and consequently full CRM by the insurer is not possible. The customer has virtually no direct contact with the insurer. For individual business, the customer contracts directly with the insurer, who holds all customers’ personal details. For example, the partner gives the customer a call centre number, and the insurer runs the call centre. This allows normal CRM to take place by the insurer, although usually only with the permission and usually the cooperation of the partner

In either case, it is knowledge of customers — their behaviour (responsiveness, buying and claims patterns), their needs, and so forth — that provides the foundation of CRM. The customer database is the source of this customer knowledge, as it is where information on the customer is stored. Proper use of the database not only allows individual customers to be managed better, but also allows suppliers and partners to evaluate market potential, assess market penetration and to match their products to their customers or prospects. Of course, both supplier and partner may have multiple customer databases. For example, the supplier and the partner may have separate customer databases for each line of business that they do. The supplier may also have one or more customer databases for business done through other partners.

CRM is important to the Insurer because it can achieve greater profit by improving the value of the business to the partnership (both the supplier and the partner). Many partners have several insurance service suppliers (for example, banks and building societies often employ a panel of insurers), so suppliers compete to get more business from each partner.

The supplier needs to demonstrate to partners that partnership with them offers a commercial advantage.

Representative APR 391%

Let's say you want to borrow $100 for two week. Lender can charge you $15 for borrowing $100 for two weeks. You will need to return $115 to the lender at the end of 2 weeks. The cost of the $100 loan is a $15 finance charge and an annual percentage rate of 391 percent. If you decide to roll over the loan for another two weeks, lender can charge you another $15. If you roll-over the loan three times, the finance charge would climb to $60 to borrow the $100.

Implications of Non-payment: Some lenders in our network may automatically roll over your existing loan for another two weeks if you don't pay back the loan on time. Fees for renewing the loan range from lender to lender. Most of the time these fees equal the fees you paid to get the initial payday loan. We ask lenders in our network to follow legal and ethical collection practices set by industry associations and government agencies. Non-payment of a payday loan might negatively effect your credit history.

Calculate APR