JakMar: Targeted Direct Marketing

Croatian Insurance Days 2011

Bogomil Marn Partner, JakMar

Established markets

Main Aims - focus on risk

add a new and profitable distribution channel: Direct Marketing
increase the level of clients

Premium
Per
Customer

Percentage
Risk
Premium

Profit

Direct Marketing: complementary

Targeted, personalized Direct Marketing
Complementary to other marketing channels, without being invasive

Agent

Broker

Bancassurance

Direct
Marketing

Feasibility Study
Partner:
Information
gathering

JakMar:
analysis and
consideration

JakMar:
Report and
Presentation

Questionnaires
Phone and email
follow-up
Data extract
Interviews
(if necessary)

Business
objectives
Regulations
Customer base
SWOT analysis
Marketplace
Database extract

Offers
Segment Targeting
Direct Marketing
Campaign
recommendation
Financial projections

Insightful, confidential, no cost and no obligation

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Project overview

Feasibility
Study

Campaign:
Testing

Campaign:
Rollout

Flexible Financial Structure

50%

50%

Insurer

JakMar

50%
Swiss Re

25% Allowance of Cession in Year 1 - Agents

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Direct Marketing of Risk Products

Generate additional business in cost effective manner
Up-sell / cross-sell commodity insurance products to non-life, health,
pension, bank

Some clients simply prefer to buy direct (10-20% growing)

Generate leads for agents
Improve persistency and client loyalty

Allow agents to concentrate on acquisition of new clients and on sizable

sales
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Economic crisis creates imbalance

Economic crisis has
caused a reduction in
cash value of Investment
products
An increase in revenue
from your Risk portfolio
can help to level out this
imbalance
Revenue from Risk
portfolio less vulnerable
to changes in the market

The psychology of Direct Marketing

The affinity that the customer has with the institution plays an important role
The customer is more likely to respond favourably to Direct Marketing if the
institution is held in high esteem

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The psychology of Direct Marketing

The quality of the communication will also effect the customers response

Recognition

Understanding

Expectation

Affinity

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The key to successful Direct Marketing

Direct Marketing can only be successful with the following:

Personalization + Relevance

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The key to successful Direct Marketing

Direct Marketing can only be successful with the following:

Targeting + Segmentation

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Core Risk Product Strategy

Target Population
100,000

Campaign

2
3

4+

Initial Product
10,000 (10%)

Increase Offer
3,000 (30%)

Further Product
600 (20%)

Month

Initial Product
90,000 (90%)

Increase Offer
7,000 (70%)

Re-mail #1
Increase Offer
1,260 (18%)

Re-mail #1
Initial Product
5,400 (6%)

Re-mail #1
Increase Offer
5,740 (82%)

Re-mail #1
Initial Product
84,600 (94%)

Re-mail #2
Initial Product
2,538 (3%)

Re-mail #2
Initial Product
82,062 (97%)

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New Products/New Services

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Cultivation of the YES customer

Tested strategy to educate customer into buying ever more sophisticated products
Critical illness

Term Assurance
Health Insurance
Hospital Expenses
Personal Accident
Accidental Death

High volume, commodity Risk products

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Post economic crisis strategy

Build in another entry level, of high value, low cost products
Critical illness

Term Assurance
Health Insurance
Hospital Expenses
Personal Accident
Accidental Death
HIGH VALUE, LOW COST ENTRY LEVEL

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High Value, Low Cost Products

Designed as a preliminary stage in the overall marketing process, in order
to maximize DM responders whilst being profitable in of itself
Products can be sold before traditional risk, or combined to form value
added packages
Products may include: (Life and Non Life portfolios)
Accidental Critical Conditions; Hospital cash
International Medical Second Opinion

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Accidental Critical Condition (ACC)

Covers critical conditions resulting from an accident
Lump sum payment of sum insured at end of survival period 30 days

Sum insured is limited to EUR 100,000 per life

Covered conditions:
Major burns; Blindness; Deafness; Coma; Major Organ Transplant;
Paralysis ;Loss of Limbs

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Medical Second Opinion (MSO)

Remote Medical Second Opinion Program
Partnered with a wide group of World Leading Medical Centers (WLMC).
E.g. Harvard M.S; John Hopkins; Londons Royal Marsden

Creates additional new clients with details (phone, address, etc.)

Spouse, Children, Parents

All claim administration handled by Third Party Administrator (TPA)

No age, gender or occupation restrictions; no underwriting

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Long term value & customer loyalty

Direct Marketing can

create a positive dialogue

with customers

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Juggling short-term with long-term goals

The crisis of short-termism

The problem is that the narrow focus of

short-termism does not maximize profits by
thoroughly tapping customer loyalty and
satisfaction opportunities, but instead leads to
customer churn, which destroys loyalty and
strengthens competitors
- Peppers & Rogers

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Juggling short-term with long-term goals

Immediate portfolio benefits
Profitable longterm distribution channel

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Skip the learning curve

Partners get the benefits of JakMar expertise from day 1

Time
Resources
Inefficiency
Ineffectiveness
Missed opportunities

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Our Projects in Croatia

First Campaign in Croatia done by JakMar in year 2004
Since then we have been successfully cooperating with 5 insurance
companies
11 campaigns implemented to date

Total premium generated amounts to greater than 1.3 million since 2004

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JakMar: Targeted Direct Marketing

www.jakmar.com
Find us on:

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