1. JakMar: Targeted Direct Marketing
Croatian Insurance Days 2011
Bogomil Marn – Partner, JakMar

2. Established markets

3. Percentage Risk Premium
Main Aims - focus on risk
add a new and profitable distribution channel: Direct Marketing
increase the level of client’s…
Percentage Risk Premium
Premium Per Customer
Profit

4. Complementary to other marketing channels, without being invasive
Direct Marketing: complementary
Targeted, personalized Direct Marketing
Complementary to other marketing channels, without being invasive
Direct Marketing
Agent
Broker
Bancassurance

5. Insightful, confidential, no cost and no obligation
Feasibility Study
Partner:
Information
gathering
JakMar:
analysis and consideration
JakMar:
Report and Presentation
Questionnaires
Phone and 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

6. Project overview
Feasibility Study
Campaign: Testing
Campaign: Rollout

7. Flexible Financial Structure
50%
50%
Insurer
JakMar
50%
Swiss Re
25% Allowance of Cession in Year 1 - Agents

8. 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

9. 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

10. Credit/Debit Card Provider
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
Utility Company
Checking Bank
Credit/Debit Card Provider
Savings Bank
General Insurer
Pension
Life Unit Linked
Life Conventional

11. The psychology of Direct Marketing
The quality of the communication will also effect the customer’s response
Recognition
Expectation
Understanding
Affinity

12. Personalization + Relevance
The key to successful Direct Marketing
Direct Marketing can only be successful with the following:
Personalization + Relevance

13. Targeting + Segmentation
The key to successful Direct Marketing
Direct Marketing can only be successful with the following:
Targeting + Segmentation

14. Core Risk Product Strategy
Campaign Month
New Products/New Services
Target Population
100,000
Initial Product
10,000 (10%)
Initial Product
90,000 (90%)
Increase Offer
3,000 (30%)
Increase Offer
7,000 (70%)
R #1
Initial Product
5,400 (6%)
R #1
Initial Product
84,600 (94%)
Further Product
600 (20%)
R #1
Increase Offer
1,260 (18%)
R #1
Increase Offer
5,740 (82%)
R #2
Initial Product
2,538 (3%)
R #2
Initial Product
82,062 (97%)

15. High volume, commodity Risk products
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

16. 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

17. 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

18. 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

19. 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; London’s 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

20. Direct Marketing can create a positive dialogue with customers
Long term value & customer loyalty
Direct Marketing can create a positive dialogue with customers

21. 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

22. Juggling short-term with long-term goals
Immediate portfolio benefits
Profitable long–term distribution channel

23. Skip the learning curve
Partners get the benefits of JakMar expertise from day 1
Time
Resources
Inefficiency
Ineffectiveness
Missed opportunities

24. 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

25. JakMar: Targeted Direct Marketing
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