Insurance

Recent Developments

The German insurance markets remain very heterogeneous and unconsolidated. Apart from the major full-range multi-channel insurers, the industry includes full-range providers specialising in single distribution channels as well as insurers limiting themselves to specialist products and channels. In recent years, the independent agent/broker/financial service provider sector has established itself as the prime sales channel for new business in the insurance industry. Both insurance companies as providers and their financial agents as the point of sale are facing a number of different challenges. Central issues affecting changes in the entire industry include:

• The implementation of regulatory requirements (such as EU-VermRL, VVG, Solvency II).
• Mergers and restructuring.
• Globalization drives.
• Increasingly professional, knowledgeable and demanding customers.
• Eroding margins for convenience products like car insurances.
• The industrialization and automation of processes (outsourcing, off-shoring).

Furthermore, individual insurance providers need to consider specific questions concerning distribution, such as:

• What future can exclusive distribution concepts have in view of the continuing erosion of market share?
• What role will the internet play for the future provision of insurance products?
• How can the top-performing distribution channel of insurance agents/brokers be given efficient support?
• Which role will a generalist concept play in future insurance distribution?

The insurance industry is currently moving away from a longer period of cost optimization to a phase of revenue boosting. While considerable potential for lowering costs still lies dormant at many insurances, it is becoming clearer that the strategy of “slimming” the business can only go so far in view of the existing fixed costs. In this respect, many providers are faced with the still unresolved question as to how they should position themselves in these growth trends.

This also creates new challenges for insurance consultants. More and more, considerable technical know-how, a profound knowledge of the structures and particularities of the various distribution channels and a sense for the factors of operational success need to be introduced into projects in this industry. 
 

Our Consultancy Interests

With the Practice Group Insurance, Kienbaum Management Consultants covers the entire value creation chain for insurers and financial service providers. The focus of our work lies on the following aspects:

Strategic-conceptual issues with above-average attention being paid to understanding the factors for operational success (in particular IT and HR issues), such as

• The design of channel- and target-group-specific consultancy or sales processes.
• The expansion of the actual product portfolio away from the former composite-product-driven exclusivity concept. 
• Refocusing of the sales organization onto a future-proof agency model.

Considerable structural changes with substantial consequences for employees and the procedural organization, such as the

• Introduction of comprehensive procedural changes, e.g. the introduction of sales process software.
• Conceptual design of a new department structure for a sales directorate.

Topics that require in-depth expertise in the insurance business

• For strategic and conceptual questions relating to online distribution channels, e.g. for direct insurers or service centres.
• For strategic and conceptual questions concerning the changing circumstances produced by shifting regulatory requirements.

Topics that require thorough expertise in sales and market development

• For the definition of sales processes.
• For the design of sales-related leadership processes.
• For the conceptual design of compensation models for field staff.
• For the design of mobile sales units.
  

Client Portfolio

We can cover strategic questions in all sectors of the financial services market:

• Public insurance providers.
• Private insurers.
• Financial intermediaries.
• IT service providers specialising in financial services.
  

Project Samples

Sample Project 1: Sales Realignment at a Service Call Centre

Background Situation:
A formerly almost exclusively service-oriented call centre of an insurance company was to be realigned in a more sales-centric direction in accordance with its new sales function. The aim was to ensure a marked increase in reactive and proactive client acquisitions.

Our Consultancy Approach:
After the definition of the strategic parameters, we designed both an acquisitions and a qualification concept for the call agents. In parallel, we conducted a sales competence survey for the project participants in live calls, as a preparation for the subsequent sales training efforts in group training or individual coaching units.

Project Results:
Almost all participants showed a noticeable increase in sales activities in the sense of higher contacting and acquisition quotas.

Sample Project 2: Reorganization of an Exclusivity Concept

Background Situation:
A strongly composite-product-driven insurer pursued a stronger diversification of its sales concept and turned to us for the design of a blueprint for an improved and future-proof product sales balance.

Our Consultancy Approach:
After a thorough analysis of the markets, we identified the core drivers for a successful diversification of sales performance. Taking the corporate culture and the exclusivity-centric business processes of the client into consideration, we prepared and evaluated various scenarios for a repositioning of the exclusivity distribution model in collaboration with our client. Various distribution, management and leadership processes were designed and introduced to pave the way for the future sales organization.

Project Results:
Both the new sales organization and the sales processes were introduced successfully. The performance of the newly established sales function “Agency Pension Provision Specialist” exceeded the previous levels by a wide margin – while the market share for composite products was maintained at the same time.

Typical Consultant Profiles

Our team includes

Kai Rotermund (Senior Project Manager)

• Over twelve years of experience in strategy consulting in the banking and insurance business (previously with zeb/rolfes.schierenbeck associates) and in specialist and executive functions at the Deutsche Bank.
• Consultancy focus on insurers, banks and savings institutions as well as financial intermediaries.
• Degree in Business Management from Cologne University.
• Why Kienbaum: “Our culture at Kienbaum allows us to look beyond the confines of mere project work. This includes the active pursuit of new ideas, identifying and acquiring potential clients and covering a broad range of different tasks in the continued optimization and development of our organizational make-up.”
  

Contact

Burkhard Wagner, +49 172 253 69 21, burkhard.wagner@kienbaum.de

Kai Rotermund, +49 173 560 10 12, kai.rotermund@kienbaum.de