About Henderson Insurance Broking Group (HIBL)

Question:

Discuss about the Strategic Alliances and Competitive Advantage.

The insurance broker negotiates, solicits or sells the insurance for the purpose of compensation. Generally the broker operates independently, that means they may offer the client with a host of products and services related to insurance for considering. They have higher level of responsibility regarding assisting their clients to select the best financial product as per their requirements[1]. The insurance broker is specialist in risk management and insurance. Brokers act on behalf of their clients and sometimes the insurance broker act as the agent of insurer. However, where this circumstance arises, the situations are fully stated to the client[2]. The broker assists in identifying the business risk of the client and helps him to take decisions regarding what is to be insured and how to mitigate the associated risks. Further, the insurance broker can provide technical advises that can be crucial for raising a claim. Generally, the brokers are conscious of the conditions and terms, exclusions, benefits and cost of various competitive policies of insurance. This report will focus on a particular insurance broking organization that is Henderson Insurance Broking Group (HIBL), their activities and how they use the customer data to winning new clients, retaining the existing clients and managing the complaints of the client. This report will further analyse the effectiveness of the usage of customer data to win new clients, retain the existing clients and manage the complaints of the client. Based on the analysis, this report will suggest some recommendation to HBIL for improving the way to use the customer data to win new clients, retain the existing clients and manage the complaints of the client.

WhenHenderson Insurance Broking Group(HIBL) was established about 30 years ago, their simple philosophy was to “be the best, getting it right in the 1^st attempt and looking forward to their staff and clients or somebody else”. In UK they are among the top most important independent brokers for insurance and they are operating all over UK through their 15 offices. They create the bridge for the gap among the big multinational corporations and small local brokers and their success is mainly based on their professionalism, commitment and independence to put their client and their interest at the place of topmost priority. They have various specialist divisions and employ the experienced staff and expertise for supporting the offerings with regard to genera insurance at all the offices of Henderson Insurance Broking Group[3].

Services Provided by HIBL

The account handlers from Henderson work hard for understanding the business of the client so that they can generate personalized packages for the individual clients based on the nature of their business and preferences. They provide their services to various sectors like contracts and constructions, manufacturing, public sector, wholesale and retail, SME, fire protection, drinks and foods, marines, agriculture and technology are few to be named.By selecting HIBL, the client is being assured regarding the expertise and commitment of their divisional teams and specialists operating over all the sectors and areas like construction bonds, risk management, healthcare, professional risks. The experience and knowledge assists in generating the customized services with regard to the challenges and changing requirements of the clients. The strong relationship among the leading companies providing insurance services and the team members of HIBL in association with the direct access they offers is the confirmation regarding how they secure the best available deals for their clients[4].

Most of the insurance brokers have the data of the customer preference, their behaviour and their trends that they initially collect before making any strategies to win customers. The most effective way to use the customer’s data is to recognize the sales opportunities through looking into the data in different ways[5]. The customer data assists to win new customers in the following ways –

• Understand the customer decision – more than 35% of the researches are carried out through online survey. The company can monitor the social media to understand the trend of customer’s purchase. Moreover, the customer data can be used to set-up the strong customized service packages that can be offered to the clients in personalized way.
• Refining the pricing and marketing approach – the analysis of customer’s data can help in monitoring the customer’s approach towards the competitors and to set up the pricing and marketing approach in better way[6]. Further, they can look into the fact regarding the preference of the potential customers[7]. Moreover, they can observe the level of claims on different types of policies and can adjust the premiums on the basis of the real-time data regarding risks.
• To identify the opportunities – most of the broking groups have the required data that they internally generate. Through analysis of the report, they know the key products and key markets. The fact they need to find out more is to the gap[8]. The most efficient way to use the customer’s data is to identify the sales opportunities.

Understanding the clients is more complex compared to what someone can think and it requires thoughtful analysis of how and where the data regarding the customers can be collected in a meaningful way. Through better definition of the customer behaviour approach are the most considerable thing of insurance broking business and the analysis can be started from measuring and analyzing the better way to engage them which in turn will assist in winning more customers. The following approaches are used to retain the existing customers –

• Key factors that set the customers apart – The customers from each service sector are different with their unique requirement and preference. The facts those make the customers under the insurance broking industry different from other sectors must be identified[9]. The fact may be geography, specific needs, business sector of the customers or the demographic details. Once the company understands these facts, they will be in the better position to set the target strategy.
• Real–time behaviour of the customers – for retaining the customers in better way, the insight to the customers must be obtained through the analysis of their actual behaviour[10]. Clients can be surveyed and generalizations can be drawn from the survey results[11]. However, in today’s competitive competitive world, businesses are required to collect as much data as possible for the clients with regard to their real-time behaviour. Survey questions may include – what are their expectation from the company, whether they have any previous positive or negative experience with the company, whether they are happy or unhappy with the service package and whether they are happy or not with the communication system of the company with the clients.
• Build trust through relationship – it is said that “you carry on business with the people you trust”. For insurance broking business building of trust through maintaining proper relationship plays an important role in retaining the exiting customers. Where trust increases, it increases the commitments also grow.
• Implement the anticipatory service – the anticipatory services are the proactive approaches to the customer services. It is suggested that instead of waiting for the problems to take place, the company that applies the anticipatory approach can minimize the issues before it takes place.
• Building online relationship – as the people now a days are very active in social medias, the company can create the social profiles on Facebook, Twitter and Linkedin. The customers will be able to state their views, lodge complaints regarding their services in the social Medias which in turn will assist the company to take better approaches for solving the problems.

The benchmark for the successful broker is the ability of the company to respond and administrate the claims irrespective of the size of the claim that is small or large. Their main objective is to deliver their clients with complete support throughout the total life of the claim. The mission statement of HIBL is o offer a proactive and professional claims service to their clients and deliver accurate and relevant advice[12]. Further, they handle the claims in the following ways –

• All the claims of the clients are handled from the original office.
• They offer total services started from the initial notification to the final settlement.
• They provide full analytical assistance for identifying the trends of clams
• They are always prepared to accepts the challenges related to insurer thinking
• They offer technical guidance and assistance for the major losses
• Informative reports are directly provided personally or through e-mail.

As the business is completely focussed on delivery of services, they understand the fact that the the emergencies can happen anytime and the time may not be the regular office timing. Therefore, they ensure that somebody is available round the clock to provide assistance to the clients[13]. For the emergencies that arise during out of hours, various account executives and telephone numbers are available in the company’s official website. Their claim team includes various experts, for instance, Laura Brelsford in Hull office, Francisco Sandoal in Harrogate office, Tom England in Leeds1 office, Paul Taylor in Kirmington office and Sharon Bulpitt in Newcastle office are few to be named.

Effective Usage of Customer Data

Risk management – The Company assures their client that they have the best cover for their business at the times of external pressures and crisis. As the independent broker, the group takes time out to get the details of the processes of companies. HIBL is equipped with the expertise and knowledge for reviewing and improving the risk position of their client’s business. Further they protect the assets of the client’s business and manage the exposure level to the risk areas like –

• Business continuity
• Fleet management
• Safety and health
• Disaster recovery

The highly experienced team recommends the client various ways to minimize the risk with best cost-effective prices while ensures the due diligence. Through minimization of risk, HIBL also ensures the retention of the customers.

Health and safety – As per the governmental regulation, safety and health maintenance is compulsory for all business sectors. HIBL is the major insurance broking service provider with regard to all sectors for health and safety related solutions that ensures the healthy and safe working environment

Training of the team –HBIL provides regular training to their management team for providing efficient services with regard to risk assessment of the business, environmental safety, fire risk and various other risks.

Experience of the customers with the company plays an important role in making their decision regarding whether to stick with the present company or to switch on to any other company. Therefore, the customer data can be used to make new strategies to retain the existing customers and build-up a long term relationship with the clients. Customer’s data helps in retaining the existing customers in the following ways –

• Customer’s experience – the experience of the customers are defined through the three sectors of the lifecycle of the customer. These are –

1. The marketing and sales efforts of the company that is followed by a support function of HBIL
2. The level of contact a client has with the company and its staffs regarding his service package and other required things.
3. Usage of the company’s service by the client itself

• Management process of customer’s experience –in order to efficiently manage the experience of the customer by HBIL, they required understand the underlying process of the management. it is as follows –

1. Able to identify the customer’s path through the lifecycle of the customer experience
2. Optimizing the internal procedures to focus on the preference of the customer and not on the preference of the HBIL’s business model[14].
3. Integrate the data properly from the external sources with the data generated from the own department of the insurance broker.
4. Bring the data from all channels and the touch point together to influence the lifecycle of the customer’s experience
5. Focussing on the improvement of overall quality of the revenue streams obtained from the customers within the experience lifecycle of client.[15]

HBIL carries on all the possible activities to ensure the best possible services to their clients. However, if the client is not satisfied with the service provided to them, he can make an attempt solve the issue as soon as possible through lodging a compliant. If the client thinks that he has a reason to complaint, he can do so by going through the procedure to lodge the complaint. He can lodge the complaint through contacting –

• E-Mail: [email protected]
• Telephoning – 0113 393 6300
• Fax – 0113 393 6300

The complaint handling procedures of the company are as follows –

• Their main objective is to resolve the concerns of the clients, as early as possible by closing the business on the very next working day. If this cannot be done, den the client will be acknowledged immediately in writing within five working days of receiving the complaint.
• If the complaint involves the provision of service by the third party authorised by Financial Conduct authority, like an insurer, HBIL will immediately refer the complaint to the third party in writing. In such circumstances, the client will be provided with the contact details of the third party, any other associated company and the final response of HBI regarding the matter. 
• In case of any complaint, the company always tries to investigate the subject matter thoroughly and send the final response to client in writing before the expiry of eight weeks after the receipt of the complaint[16].
• However, if before the expiry of eight weeks, the is not communicated, the company is liable to state the reason in writing form and will also state to the clients about what are the options available for them [17]
• If the client is not convinced about the handling of the complaint, they can always complaint to the complaint team at HBIL. Details regarding the complaint procedure is given in leaflet – “Your complaint – How we can help”
• In the event that the client is either a private individual or the enterprise associated with monetary movement that utilizes less than 10 people and has a turnover or yearly asset report that does not surpass €2 million, you may allude your protest to the Financial Ombudsman Service (FOS), if we have had a satisfactory chance to determine your protestation first. We will instruct you concerning as far as possible for making a referral to the FOS and supply a duplicate of the FOS logical booklet with our last reaction.

To increase the list of clients and retaining the existing customers, HBIL are recommended the following –

• Loyalty of the customers – In the competitive market, customers pays special attention to organizations giving better services with minimization of cost. Client Loyalty includes perceiving and compensating the existing clients who have been with the organization for quite a while. This would attract new clients so that they can adhere to their current organization with a specific end goal to get such acknowledgment and prizes.
• Forecasting the sales – HBIL shall conduct a complete analysis of its sales regularly and make their future plans accordingly. It shall takes into account the facts like-number of contenders and the services provided by them, consumer loyalty and their satisfaction level. This would enable them to use the information all together to get new customers and furthermore guaranteeing that their existing customers remain with them.
• Basket analysis – this analysis is also known as the similarity analysis. This investigation includes assessing the purchase trends of the customers or the potential customersbased on their past purchases.This analysis will enable HBIL in understanding the strategies that they may require soon so they can be drawn closer for the same. For instance if the customer has a skill of changing mobile phones or autos, at that point the insurance agency may utilize this information to offer their approaches for the same.
• Implementation of the feedback received from customer survey – Client’s complaints can be kept away from by just hearing them and helping them to solve the issues. With the execution of this sort of study the organization can accomplish its target of lesser shakes and also pull in new clients. The information gave by the overviews ought to be used in solving the grievances and improving the approaches.
• Market segregation – the market shall be segregated on the basis of income, type of business, age, requirements, preference and gender of the people. This data can be utilized to prepare the future strategies and approaches. This will enable the company to attract new customers and retain the existing customers.

Conclusion

It is concluded from the above discussion that the insurance broker is specialist in risk management and insurance. Brokers act on behalf of their clients and sometimes the insurance broker act as the agent of insurer. Generally, the brokers are conscious of the conditions and terms, exclusions, benefits and cost of various competitive policies of insurance. The most effective way to use the customer’s data is to recognize the sales opportunities through looking into the data in different ways. The analysis of customer’s data can help in monitoring the customer’s approach towards the competitors and to set up the pricing and marketing approach in better way. Through analysis of the report, they know the key products and key markets.

Reference and bibliography

Appleman, John Alan, Jean Appleman, and Eric Mills Holmes. Contract Concerns: Reinsurance Contract Formation, Validity, And Judicial Construction. Vol. 14. Appleman on Insurance Law and Practice, 2016.

Burton, Maureen, and Bruce Brown. The financial system and the economy: Principles of money and banking. Routledge, 2014.

Corlette, Sabrina, Linda J. Blumberg, and Erik Wengle. “Insurance Brokers and the ACA: Early Barriers and Options for Expanding Their Role.” Washington, DC: Urban Institute. https://www. urban. org/health_policy/url. Cfm(2015).

Edelman, Benjamin, and Julian Wright. Markets with price coherence. Harvard Business School, 2015.

Kiragu, S. M. “Assessment of challenges facing insurance companies in building competitive advantage in Kenya: A survey of insurance firms.” International journal of social sciences and entrepreneurship 1.11 (2014): 467-490.

Kirkbe?o?lu, Erdem, and John Hood. “An analysis of the carrying capacity and life process risks of UK and Turkish insurance intermediaries.” Journal of Risk Research (2016): 1-29.

Latorre, Miguel. “Shedding the Light on Insurance Brokers’ Remuneration: the Role of the Fees.” (2015).

Ostrager, Barry R., and Thomas R. Newman. Handbook on Insurance Coverage Disputes. Aspen Publishers Online, 2012.

Otieno, Linda Faith, and Martin Ogutu. “Perceptions of co-operative insurance group managers towards strategic alliances and competitive advantage.” Journal of Business and Strategic Management 2.3 (2017): 29-49.

Sharma, Pushpa Raj. “Mainstreaming Micro-Insurance Schemes: Role of Insurance Companies in Nepal.” Economic Literature 11 (2016): 40-46.

Starita, M., and Irma Malafronte. Capital requirements, disclosure, and supervision in the European insurance industry: new challenges towards Solvency II. Springer, 2014.

Tai, Yi-Ming, and Yi-cheng Ku. “Will Insurance Brokers Use Mobile Insurance Service Platform: An Integration of UTAUT and TTF.” (2014).

Tseng, Lu-Ming, and Yue-Min Kang. “The influences of sales compensations, management stringency and ethical evaluations on product recommendations made by insurance brokers.” Journal of Financial Regulation and Compliance 22.1 (2014): 26-42.

Vanderhoof, Irwin T., and Edward I. Altman, eds. The fair value of Insurance Business. Vol. 5. Springer Science & Business Media, 2012.

‘Welcome To Henderson Insurance Broking Group’ (Henderson Insurance Broking Group, 2017) <https://www.hibl.co.uk/> accessed 1 August 2017