Permission to prosper in a tough market

The UK insurance sector is characterised by high customer churn. Last year, just over a quarter of insurance customers in the UK had switched provider over a 12-month period. Insurers are now beginning to deploy online strategies to gain competitive advantage and improve efficiency. But according to Andy Wood, managing director of marketing consultancy GI Insight, there is significant room for improvement before insurers properly master this channel. In a recent GI Insight research survey which asked respondents to score different industry sectors as to how well they felt customer relationship management was delivered over e-channels such as email, the insurance sector was rated below average and came in only just above credit card companies in the index. With heightened levels of competition in the sector, in part as a result of the credit crunch and an impending recession, Mr. Wood argues that now is the time for the insurance industry to re-examine channel strategies, whether for cross-selling or for affinity activity, to stay ahead of the competition.