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AAC / MIS 2003 Congress

AAC / MIS 2003 Congress. Carole Marcoux, Senior Sales Manager. Barbados December 2003. Marketing auto and property insurance to Desjardins credit union members: from a passive approach to a dynamic and successful approach. Topics. What is Desjardins? A bit of history

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AAC / MIS 2003 Congress

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  1. AAC / MIS 2003 Congress Carole Marcoux, Senior Sales Manager Barbados December 2003

  2. Marketing auto and property insurance to Desjardins credit union members: from a passive approach to a dynamic and successful approach

  3. Topics • What is Desjardins? • A bit of history • The early days of Desjardins General Insurance • From a distribution channel to a partnership and its results • What else is required to succeed? • Recent developments • Desjardins General Insurance Group today

  4. What is Desjardins? 89,9$ billion Total assets 39 252 employees Over 4 million members Population of Québec : 7,5 million 748 credit unions Fédération des caisses Desjardins du Québec Desjardins Financial Corporation Desjardins Cooperative network (credit unions)

  5. What is Desjardins General Insurance Group?

  6. Desjardins Group General Insurance 1 555 000 policies in force in 2002

  7. Desjardins Group General Insurance • Market • Share Rank • Québec • Individual 19.4% 1st • Commercial 2.2% 13th • Total 11.9% 2th • Canada • Individual 6.0% 4th • Commercial --- --- • Total 3.8% 8th

  8. A bit of history • Desjardins Group … distribution by brokers for over 40 years (1945 - 1985) • Not integrated to the credit unions • 1985 crisis : Grow or Die EFFICIENCY AND PROFITABILITY IS CRUCIAL FOR DEVELOPMENT

  9. September 1987 Desjardins Goes Direct and in the credit unions • Significant growth opportunity • More efficient business strategy • Must overcome legal constraints • Much pressure to succeed QUITE AN INNOVATION!

  10. Growth and success • Objective : 40 credit unions in 1988 • Achievement : 100 credit unions • End of 1989 : more than 300 credit unions! • Today : the entire province is served by 648 agents • 456 in the credit unions • 192 at the call centre

  11. Desjardins General Insurance

  12. The early days of Desjardins General Insurance (DGI)

  13. Building trust Obstacles : • Brokers discredited direct insurers • Brokers had developped personalized service • Fearing complaints, a number of credit unions hesitate to entrust their members to us • Have to build credibility IMPECCABLE QUALITY SERVICE NEEDED TO SUPPORT DESJARDINS

  14. Creating business relationships • Break business relationships between competitors and many credit union managers… • brokers sit on the board of directors • insurers are tenants of credit union buildings • family and friends... • Greatest successes : cooperation of managers • Employees follow their example... THE SUPPORT OF A CREDIT UNION MANAGEMENT : AN ESSENTIAL KEY TO SUCCESS!

  15. Financial incentives • General Agreement for operation and financial incentives • Each credit union's manager must approve and sign the Agreement with DGI • Commission per sale and renewal of policies • Costs of marketing, services and staff (OUR employee in THEIR premises) paid by Insurer TO BE INTERESTING TO THE CREDIT UNION, IT MUST BE IN THE CREDIT UNION INTEREST

  16. A preferred market … to conquer • Desjardins' visibility and access to members • Convince a network to let us solicit its members when it doesn't do it itself! • Credit union one by one... access to the list of members • Lists begin to be exchanged • fewer legal constraints than today SHAKE UP A CULTURE … SOMETIMES CRUCIAL TO SUCCESS

  17. A business agreement to be respected • Credit unions want an agent present, but not always willing to accept the inconveniences • Polite reminder : we're in business • Certain obligations accompany the payment • Greater access to members BALANCE COOPERATION WITH BUSINESS RELATIONSHIPS

  18. Convince credit unions of the benefits for everyone Credit unions don't always see the benefits of supporting the insurance affiliate • Danger from other insurers to attract members of credit unions • More financial products within same institution results in greater loyalty of members • Adjust and promote the benefits of compensation to encourage development • Better financial returns of the insurer benefit the principal shareholder • Member's right to receive comprehensive service EVERYONE COMES OUT A WINNER!

  19. Constant improvement and effeciency • Reduce the number of agents • Target number of policies per credit union • Attract members, not simply respond to their demands • Necessary to take a « Sales » approach in order to ensure profitable growth • Changing role of sales staff : from implementation to business development mode

  20. From a distribution channel to a partnership and its results

  21. 1997 : Implementation of an official partnership program • Based on principles used in the entire Desjardins network • Objectives of referrals FROM the credit unions • Objectives of referrals TO the credit unions • Systematic tracking of results related to DGI employee's performance evaluations

  22. Actions to consolidate partnership • Be proactive • Be convinced yourself : give referrals to the credit union • Give feedback of progress on a regular basis

  23. (Thank you note from insurance agents to credit union) Based on your referral, an insurance policy has been issued to your member.Employee's name : _________________________Member's name : _________________________Auto Insurance : _________________________Property Insurance : _________________________Commercial Insurance : _________________________Super !!!Your insurance agent(agent's name)

  24. Actions to consolidate partnership • Make referrals part of credit union employees' sales process • from a perception of too much work … to an automatic reflex • give employees examples of how to approach customers • Demystify the referral process • fears of credit unions' employees : lack of time and questions from members • use their privileged relationship with members to promote business opportunities • « only » a referral, not a sale

  25. Actions to consolidate partnership • Increase occasions to refer • other that loan (savings, account openings, current operations, etc.) • Evaluate DGI personnel on actions and results • Favour human contacts • a range of behaviours to intensify the relationship

  26. DGI referrals 24 977 13 940 13 985 23 729 25 144 26 445 125 946 150 240 164 733 104 653 155 550 178 745

  27. Sales from the Partnership Program 36% 33% 31% 28% 27%

  28. How to achieve successful partnership?

  29. Through perseverance • Be convincing and reply to objections • Repeat • Constantly remind credit unions' staff of our existence • Repeat • Be sure to offer thanks • Repeat

  30. What else?

  31. Systematic solicitation of members • Register and organize members' information in a database • Intensive segmentation of information • Contact members (in writing and by phone) per pre-established priorities (renewal dates, products held)

  32. Participate in promotional campaigns of Desjardins • Play a role in campaigns, either by product or by clientele • eg : « Hyper hypothèque » (mortgage)

  33. Participate to the credit unions' mobilization program • Beyond financial contribution, make the most of programs and their themes

  34. Involvement with the credit unions … again and again • Prepare personalized business plans in cooperation with the credit union • Secure the support of the credit union's management • Seek opportunities to speak to credit union's employees • Have the insurance agent become involved in the credit union value-added activities • social club • sales meeting • annual meeting • Contests and promotions at the credit union

  35. Recent developments

  36. Focus on quality of referrals FROM the credit unions • Emphasis on the quality of referrals and less on the quantity • Operational efficiency : do more with the same … or less • The principle of Tide laundry detergent : regular product or the concentrated version?

  37. Focus on quality …of referrals TO the credit unions • Become an opportunity seeker for the credit union (e.g. the sale of a property) • Focus more on the credit unions' business priorities (e.g. savings, investment funds) • Improve the tracking of results and benefits • Institute referrals procedures at the call centre

  38. Very performant telecommunication system • Main objectives : improve customer service and efficiency • Link agents in all credit unions and call centre

  39. Centre d’appels Agent libre Client répondu Agent libre Client répondu Agents « C.A. » A : 10 B : 10 C : 10 Montréal-sud Agents DAA « Gracia » A : 5 B : 5 C : 5 Tous les agents occupés Tous les agents occupés Débordement Agents DAA « Josée » A : 15 B : 15 C : 15 Appels en attente 10 sec Prise de message Lotus notes File Promotion Client accepte d’attendre Agents DAA « Sylvie  » A : 15 B : 15 C : 15 Agent rappelle client dans la ½ journée suivante Agent libre Client répondu Client appelle DAA « Gracia » 450-655-7416

  40. Desjardins General Insurance Group today • Number of insurance agents DGIG: 1 189 • DGI : 648 agents • Number of policies DGIG : 1 555 000 • DGI : 938 000 • Premium volume DGIG : $1 068 billion • DGI : $556 million • DGI contributed greatly to 10 consecutive years of underwriting profits of the Group • DGI success contributed to expansion outside Québec to rest of Canada

  41. Conclusion CREDIT UNIONS CAN BE REAL BUSINESS PARTNERS TO DEVELOP GENERAL INSURANCE

  42. QUESTIONS? Thank you! Carole Marcoux, Senior Sales ManagerDesjardins General InsurancePhone : (418) 835-8800 ext. 7879 Fax : (418) 833-3254carole.marcoux@spgdag.ca

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