MILAN, Italy, and Framingham, Mass. - September 15, 2005 - Global independent research and advisory firm Financial Insights, an IDC company, today announced the release of a new survey study focusing on CRM adoption in the Western European insurance sector.
In Western Europe, just over 60% of insurance companies have implemented
and are currently using a CRM application that includes sales automation,
marketing, customer support, and call center applications. In terms of CRM
adoption, the most advanced country is the United Kingdom, which is also
the biggest insurance market in Europe. The very high number of insurance
companies with huge size justifies this relevant data.
According to Mirko Corbetta, research analyst for Financial Insights' European IT Opportunity: Financial Services research, "The European insurance industry is expected to pay increasing attention to CRM solutions even if its main issue for 2005 remains cost efficiency. The greatest effort to improve CRM systems will be concentrated in the largest groups with large synergy opportunities. IT vendors targeting this business area need to build specific CRM solutions for insurance business and to satisfy a group insurance provider's requirements, such as a short ROI period."
Survey results also show the evolving scenario of CRM adoption. In fact, comparing 2003 and 2004 survey data, it is evident that the strategic relevance of Web interfaces in CRM operations increased strongly from 2003
to 2004. New CRM solutions will have to include Web capabilities to be an
attractive product in the European insurance market.
CRM strategies will be quite different across categories of insurance
companies such as pure insurance providers or bancassurance players and across the different insurance segments. Indeed, some segments are more mature and competition is stronger. As a consequence, CRM solutions can play a better role to create competitive advantage. In other segments, the different level of the maturity of the market or the peculiarities of the segment represent major constraints to CRM adoption in the near future.
The study, CRM Adoption in the Western European Insurance Market: Still a
Long Road Ahead (Financial Insights #FIN1639, September 2005), shows how
the CRM offering has changed and how implementation of CRM solutions will
evolve in the European insurance market. Following efficiency, customer
relationship is important for insurance players; however, it has not
reached the level of priority it has for banks.