Insurance carriers live in an imperfect and challenging world. Not every acquisition strategy will hit the mark at drawing in all the right customers. Nor will every retention program succeed at retaining valuable policyholders. However, it was eye-opening to discover that a large proportion of marketing and underwriting/product management teams responded that they were “not completely satisfied” with each other’s performance when it comes to developing and executing an acquisition and retention strategy.
In a recent study, LexisNexis Risk Solutions sought to garner the thoughts and opinions of key decision makers from the marketing and underwriting/product management functions within the top fifty auto, home, and life insurance carriers. As part of the study, the respondents commented on the interrelationship between themselves and their internal counterparts, and to specifically rate each other on how well each function executed on acquisition and retention strategies.
The results were very telling. Forty-three percent of marketers claimed that they were not completely satisfied with how underwriters and product managers executed acquisition and retention strategy. Meanwhile, when underwriters and product managers were asked about the marketing function’s ability to execute in the acquisition and retention arena, over half (46%) responded that they were not completely satisfied.
43% of marketers claimed that they were not completely satisfied with the A&R execution of underwriters and product managers.
These findings go hand-in-hand with other study results that point to disconnects between the two groups. For example, only four in ten teams report that they build their strategies together, yet an overwhelming majority (94%) rate working more collaboratively as “extremely important” or “important.”
While neither group disparages the other’s performance or efforts, the results clearly show that both camps are eager for improvement. And with good reason. Carriers are operating within a very challenging and competitive environment. A willingness to coordinate resources and work smarter to achieve longer-term business goals is essential.
Our study revealed other enlightening findings with respect to the degree of collaboration and interconnectivity between insurance marketers and their underwriting/product management counterparts, and where respondents believed they could do better together.
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.