The Miriam Webster dictionary defines collaborate or collaboration as “to work jointly with others or together, especially in an intellectual endeavor.” Unfortunately, while many organizations recognize the need for collaboration, far fewer excel at actually doing it.
In a recent study, LexisNexis Risk Solutions sought to garner the thoughts and opinions of key decision makers from both the marketing and the underwriting/product management functions within the top fifty auto, home and life insurance carriers. As part of the research, the respondents were quizzed on the interrelationship between themselves and their counterparts. For example, insurance marketers were asked about the degree of collaboration they have with underwriters and product managers, and vice versa.
The results were clear: 94% of respondents acknowledged that working more collaboratively was either “extremely important” or “important”. This suggests a willingness to embrace closer working relationships to achieve business goals.
In an earlier blog post, we discussed the initial findings from the cross-functional study. The situation bodes well for carriers. Marketers, underwriters and product managers:
- Are driven by profitability; indicative of them all heading in the same direction
- Have a solid understanding of their own core business goals and the goals of their counterparts
- Are willing to embrace improved collaboration
It is only through alignment and collaboration, across multiple functions within the organization, that carriers can truly optimize their acquisition and retention efforts. However, is this the reality? Are carriers able to Acquire with Retention in Mind? Are they able to identify, attract, and convert prospects that are more likely to be retained for several years or are they inadvertently identifying, attracting, and converting prospects who lapse long before the acquisition cost can be recouped? Retention rates have an enormous impact on carrier profitability. With profitability being the number one metric for the almost everyone within the organization – it should come as no surprise that retention rates weigh heavily on the minds of many.
The next blog post in the series will delve deeper into the study findings – are carriers capitalizing on this willingness to collaborate more? Are carriers satisfied with their current acquisition and retention strategies? Are carriers able to Acquire with Retention in Mind?
Additional insights from the study will be shared in future blog posts. For more information, please refer to the white paper Collaborate Across Functions to Acquire With Retention in Mind