Perception of Insurance Tied-agents towards Customer Relationship by vivi07


									Perception of Insurance Tied-agents’ towards Customer Relation Management
Li-wen Chen1
1 2

Ko-hsin Oh2

Jae-man Shim3

Department of Technology Management, Chung-Hua University Department of Technology Management, Chung-Hua University 3 New Product & Planning Department, ING Antai Insurance Company No.707, Sec. 2, WuFu Rd., Hsinchu, Taiwan 300, R.O.C. Tel: +886-3-5186079 Fax: +886-3-5186593 E-mail: ABSTRACT Since Taiwan government opened up its insurance market to foreign countries, there have joined many international insurance companies in Taiwan market and, as the result, the competition in the market place has dramatically increased. In order to survive in such fierce competition, insurance companies were forced look into their own strategies and thereby seek competitive advantages. Considering it would not always possible, due to its high cost implication, for an insurance company to provide absolute competitive advantages in is premium, product features and better customer services, it should make some choices, out of many alternatives, that would most likely satisfy its existing and potential customer and thereby would attract them to be loyal to it. Then, what should it be done for more rational and successful decision-making? As a means to the purpose, insurance companies have introduced or are in the process of introducing CRM (Customer Relation Management) system. However, as more modernized CRM concept and system have deeper implication than just ‘learning’ about the customer and it has strong ties to ‘multi-channel’ strategies of insurance companies, a company that implements CRM system would exposed some degree of ‘channel conflict’ from the traditional distribution channel or tied-agency. In order to ensure successful CRM system, a company should minimize the channel conflict and also enable the tied-agency to maximize their benefits from the system. Thus, the primary goal of this research is on the study of the tied agency on their perception for CRM system. Therefore, the objectives of this research are:  to understand the general perception of the tied agents on the introduction of CRM system into a company

 to study the methods on how to minimize the channel conflict Overall, the research participants are thirty tied-agents recruited from one of the largest insurance company in Taiwan. Small group in-depth interviews are conducted in order to explore various perceptions about the CRM system. The implications of the findings will benefit those insurance companies who are suffering from channel conflict or who consider introducing CRM system in near future. Key words: Customer Relation Management, Insurance Tied-agents, Multichannel Strategy, Channel Conflict.

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