Profitable Growth - This Corporate Cliche Can Now
Become Reality
What is Actuarial
Marketing?
Actuarial marketing is the alligning of
marketing campaigns with the results from your statistical /
actuarial departments.
What is the
value?
Enormous value is added through clear
communication between your Actuarial Department
and
- Marketing
Managers
-
Proposition Managers
-
Underwriting
Managers
This is through
-
Identification of profitable
niches
-
Monitoring the effect of a marketing campaign (conversion
rates, volume in terms of premium, policy numbers, etc.,
Quality of new business vs renewal business by Source,
etc)
-
Understanding of premium ranking against competitors in
niche areas.
Why do many Insurance Companies
lose out?
-
The communication between the departments are often
limited.
-
Actuarial resource is scarce and
stretched.
-
-
Pressure to produce compulsory reports such as
reserves takes
priority
-
Complex Actuarial
results needs an actuary to
understand, especially if it needs further adjustment
to make it practical and
useful.
-
Marketing professionals tend to avoid technical work and
find actuarial presentations painful to
attend.
-
Actuaries tend to be passionate about technical work rather
than the selling process.
-
Valuable information does not reach the
marketing department. When it does, its use is limited to
the understanding.
-
Marketing department aims for business
volume vs Actuarial department
concern for profitability.
The result:
-
-
Marketing is not focussed on
profitable niche
areas.
-
The effect of marketing
campaigns are not
measured.
-
-
Unprofitable areas are also
targeted.
The
Solution
A consulting actuary passionate about the sales
and distribution process in your marketing department
liasing with the actuarial department!
-
Existing marketing
campaigns are calibrated - aligning
them with
profitability.
-
New campaings are highly targeted and their success
monitored.
-
Reduced marketing leakage - The marketing budget is spend
on profitable targeted business.
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