The Business of Pure General Insurance - Essay Example

 The Business of Pure General Insurance Introduction The business of Pure General Insurance (PGI) was established in the year 1922 by Andy Purfect along with Bill Reeves. The company is a service provider of insurance policies to various affinity groups as well as bigger trade union groups offering full range of motor insurance policies to the group members along with sharing commissions with them. In the paper, the Pure General Insurance (PGI) case study will be studied in relation to the data reduction process while conducting interviews along with carrying out a situational analysis of the concerned business. Various recommendations along with valuable advices are prescribed regarding the promotion and marketing strategies of their product towards the customers will also be taken into account in this paper. Question 1a The “large sheet of paper” method is one of the appropriate methods to carry out a process of data reduction based on interview data to a definite extent. After the completion of the interview process, the required results or the interview goals are listed as column captions across the top of a large sheet of paper. For each item down the left hand side of the page, certain specific questions are identified that are intended to be asked in order to achieve the interview goals or objectives. These are considered to perform the data reduction techniques as they are developed over long periods of trials and errors (O’Connor, Bronner, & Delaney, 2007). The data reduction method by using “large sheet of paper” techniques is demonstrated below: Questions Interview (1) Interview (2) Interview (3) Interview (4) 1) Would you be prepared to buy a household contents policy from a group which you are a member of?   From trade union   From mortgage lender Competitively priced From the web           2) What would you expect to find in a household contents policy?   House insured   Fire, accidental damage and theft Fire, accidental damage and theft Fire & theft   3) What features do you think are important in a contents policy?   Accidental insurance cover   Legal expenses   Easy settlement or claim system Fire & theft replacement 4) What features do you think are unimportant in a household contents insurance policy? Replacement product thing and robotic voices Anything   Legal advice and repair help lines wear and tear reduction or lack of a no-claims discount           5) Where would you find information about household content policies? TV, newspapers and letters   TV   Internet broker   Internet   Questions Interview (5) Interview (6) Interview (7) Interview (8) 1) Would you be prepared to buy a household contents policy from a group which you are a member of? From Union   Insurance known people From union   From trade  union           2) What would you expect to find in a household contents policy?   Fire, theft, accidental damage, legal expenses and telephone help lines Everything   Fire, theft, accident legal and telephone Housing damage 3) What features do you think are important in a contents policy?   All of them   Fire , theft, accidental damage, travel insurance. All of them   All of them 4) What features do you think are unimportant in a household contents insurance policy? Telephone answering systems   Some wording of the policy   One monthly premium   All important             5) Where would you find information about household content policies? Bill (Shop Steward)   Local insurance broker   Dave (brokerage)   Internet & TV   In the interview process certain questions are asked to the participants relating to the topic of their interests. As the participants’ response with certain answers, those certain answers can be written on cards or on a large sheet of paper. The importance of implementing “large sheet of paper” method in the interview process is mainly for the purpose of data reduction as well as for the arrangement of the interview process in a proper sequence so that the process is accurately and comprehensively portrayed (Webapp, n.d.). Question 1b Basically, the economic health of the motor insurance businesses of a particular company affects both in its attractiveness towards the investors and the likelihood of investment in road safety activities. As the case study is mainly concerned with the motor insurance sector, it is advisable that the Pure General Insurance (PGI) should focus upon conducting road shows or seminars among others in order to promote their products to the customers (Thomas, 2002). Apart from the issue of road safety activities, the company in order to promote its product to the customers can highlight the ‘bonus malus’ system which refers to the use of premium discounts for ‘claim-free driving’ and surcharges for crash involvement. However, these ‘claim- free driving’ discounts in relation with this issue proved to be a popular one in certain cross border regions and hence it can be a successful marketing procedure for the company in order to promote its products towards the customers (Thomas, 2002). Along with these factors or issues, the company can also utilise a few significant marketing aspects like paying the customers’ claims quickly; treating the customers fairly and changing customer expectations to easy access along with providing cheaper premium rates. These are certain advisable features for the promotion of their product towards the customers (Thomas, 2002). Question 2 In order to determine a situational analysis using the Pure General Insurance (PGI) case study, several significant audits are conducted within the company. One of the several audits prevailing in any organisation is customer audit. Customer audit demonstrates not only the customers who are being satisfied by the services that are provided by the company but also identifies the different areas of dissatisfaction regarding various aspects of customer service towards which the organisation can work better to change and improve (Furnham & Gunter, 1993). In this case study, the Pure General Insurance (PGI) provides quality services to their customers by responding to their claims quickly along with cheaper prices and offering cheaper premium rates. At the same time, the company also identifies their unsatisfied criteria towards the customers for improvement and for this particular reason a customer audit is conducted in any company and PGI is not an exception either (Furnham & Gunter, 1993). Internal audit of a company is crucial while transacting their business processes. Internal auditing can be regarded as a free and consulting activity which significantly improves the overall operations of the company. The internal audit of this case study includes increasing in the supplier led commoditisation of motor business. It determines the low penetration of affinity group membership by offering single product in order to enhance the structure of the company (Gansberghe, 2005). In this case study, the internal audit is also very much essential for the company such as Pure General Insurance (PGI) in order to meet various desired goals or objectives along with maintaining disciplined approaches while transacting business operations in future. Generally, the macro environment of any company comprises of technological, socio-cultural, competitive, political, legal and economic environment among others. In this particular case study, the macro audit from cultural aspect lies in the stagnation in affinity group membership that ultimately provides a meaningful benefit towards the members (Ghuman, 2010). Apart from the process of macro auditing, the company also laid emphasis upon the process of micro audit. The micro environment of any company comprises of customers, employees, suppliers, shareholders and media among others. However, the micro environment of the company also includes the motor policyholders along with the insurance agents who contribute towards the company at a significant level (Ghuman, 2010). The competitors’ audit is also one of the essential factors for any company in order to increase its knowledge and identify towards the business risks especially of its competitors. The significant competitors of Pure General Insurance are Mills, Sable, Bullring and Cherry Ash among others. While comparing with the competitors, it has been recognized that in the year 2010, the annual growth rate of PGI is lesser compared to its competitors (Ghuman, 2010). Question 3 From the perspective of marketing planning framework, there are several marketing strategies available that are suitable for the Pure General Insurance (PGI). One of the marketing strategies of the company should be towards generating exceptional customer awareness through integrated and various medium of channels like mail, fax, phone and web among others so that the prospective customers could perform business operations with the company at any time along with their own choices. The benefit of offering the various medium of channels will encourage the consumers and also provide the company a greater chance to differentiate their products and services with others (Genesys Telecommunications Laboratories, Inc., 2008). In this connection, after the offerings of various call centre channels, when the customers of the Pure General Insurance (PGI) uses those channels, ‘the Interactive Voice Response’ (IVR) system would provide relevant information of policies of the company to the customers. These features could be an emerging as well as innovative ones for the company from marketing planning and strategic point of view (Genesys Telecommunications Laboratories, Inc., 2008). Moreover, using the web self-service feature, various individuals who are prevailing within the company such as members, providers, agents and brokers among others can interact with the company at any time in any situation. Along with this quality feature, the call centre agents can also efficiently manage and concentrate effectively on selling activities rather than responding to routine calls that can be easily automated (Genesys Telecommunications Laboratories, Inc., 2008). The other significant marketing strategy for Pure General Insurance (PGI) lies in providing varied information to the agents who need to incorporate such information in their operations. The activities like the integration of back office system helps the agents in order to resolve calls more quickly and effectively. Thus, the back office integration with the call centre along with workflow management eventually would reduce the average usage time and also would help to address several arising issues. The customer satisfaction also becomes higher to a certain extent and the costs are lowered with the proper implementation of this back office system (Genesys Telecommunications Laboratories, Inc., 2008). In lieu of this, as the customers do not interact with the contact centre on a frequent basis, the Pure General Insurance (PGI) should consider initiating proactive contact in order to stay in touch with the customer. This particular feature is a useful form of mechanised telemarketing which eventually increases the cross-selling and up-selling activities of the company (Genesys Telecommunications Laboratories, Inc., 2008). Moreover, the company should also make more effective use of customer data and segmentation in order to maximise the lifetime value of customers through the functions of cross-selling and up-selling activities along with optimising its business development operations. By directly optimising and incorporating the business flow, the call centre eventually converts into a dynamic participant in driving business operation efficiency (Genesys Telecommunications Laboratories, Inc., 2008). Thus, these are certain recommendations that are focused upon the marketing strategies for Pure General Insurance (PGI). Conclusion The general insurance companies that are prevailing in today’s economic environment are recognised to be in severe position as the global financial market is changing drastically. However, the Pure General Insurance (PGI) is still on its way in order to maintain its market position among others. In this case study, a method called “large sheet of paper” for data reduction is taken into concern along with a brief discussion upon the situational analysis of the company. Certain recommendations along with valuable advices were made for promoting the product of the company Pure General Insurance (PGI) towards the customers and certain suitable outlined business strategies of the company are also prescribed from the marketing planning framework’s point of view. By following these strategies or advices, the company might perform better amid the upcoming financial market trends. References Furnham, A., & Gunter, B. (1993). Corporate assessment: auditing a company’s personality. UK: Routledge. Gansberghe, C. N. V. (2005). Modern internal audit. Retrieved from http://siteresources.worldbank.org/WBI/Resources/Internalaudit.pdf Genesys Telecommunications Laboratories, Inc. (2008). The strategic role of the contact centre in insurance. Retrieved from http://www.google.co.in/url?sa=t&rct=j&q=the%20strategic%20role%20of%20the%20contact%20centre%20in%20insurance.%20%2B%20genesys%20telecommunications%20laboratories%2C%20inc&source=web&cd=3&ved=0CCwQFjAC&url=http%3A%2F%2Fenterprise.alcatel-lucent.com%2Fdocs%2F%3Fid%3D19882&ei=raz6Tr3SJ8bYrQfR4oDdBA&usg=AFQjCNHnKH4PAMBfM2uTsw-qRG0qmFvW3g&sig2=upkVqQSAfk11u6i7mowJHg Ghuman, K. (2010). Management: concepts, practice & cases. India: Tata McGraw-Hill Education. O’Connor, B. N., Bronner, M., & Delaney, C. (2007). Learning at work: how to support individual and organizational learning. US: Human Resource Development Press. Thomas, A. A. (2002). Market profitability. Retrieved from http://www.dfid.gov.uk/r4d/pdf/outputs/R8012.pdf Webapp. (n.d). Preference ranking. Retrieved from http://webapp.ciat.cgiar.org/asia/how-to/PART_B2.PDF Read More