Portfolio of achievements in the professional module

PM.01 Implementation of retail technologies for retail sales in insurance

Completed by: Ekaterina Vitalievna Egorova

Student of group 1547

Specialty: Insurance

St. Petersburg, 2017

List of submitted works

MDK 01.01 Intermediary sales of insurance products

MDK 01.02 Direct sales of insurance products

1. Comparison of operating standards of agent and partner sales channels.

2. Matrix of cross-products in the retail sales channel.

4. Segmentation of the company’s clients by CASCO product.

5. Motivation based on the position of the agent acting in the company.

6. Script for an office sales manager working with a client (by phone) with a cross-product offer.

Work on MDK 01.01 and MDK 01.02 was carried out using the example of the insurance company "VSK"

MDK 01.03 Internet sales

1. Search the Internet for information about the insurance company Euroins.

2. Analysis of the use of online marketing tools and forms

Internet insurance on the website of the insurance company.

3. Analysis of the Internet product “Trips Abroad” by Euroins.

4. Analysis of the Internet product “accident” of the Euroins company.

5. Working with the Internet product “Apartment” in the Euroins company.

Intermediary sales of insurance products and direct sales of insurance products

1. Comparison of operating standards of agent and partner sales channels.

Indicators	Agent	Non-insurance intermediary
1.Minimum sales figures	From 10,000 rub./month	From RUB 500,000/month
2. Requirements that must be met to increase agency fees	Increasing customer base. The more clients found, the better for the insurance company. Increase in commission.	Conclude as many insurance contracts as possible.
3. Required level and stages of training for concluding an agency agreement (service agreement)	The agent is offered a set of documents. Then a contract is concluded. The agreement can be concluded: with an individual. persons, legal entities individuals, individual entrepreneurs No special level of training is required as the company offers distance learning courses on products.	An agreement can be concluded with an individual. persons, legal entities individuals, individual entrepreneurs No level required. Training is carried out at the partner’s site after concluding an agency agreement.
4.List of insurance products in the agent/intermediary portfolio	Motor types: CASCO, MTPL for both individuals and legal entities. VHI, IFL, Cargo insurance	Motor types: CASCO, MTPL for both individuals and legal entities. NS, VHI, VZR

2. Matrix of cross-products in the retail sales channel.

4. Segmentation of the company’s clients by CASCO product

Target segment of CASCO clients: drivers over 35 years old, with more than 10 years of driving experience. The younger the client’s age category, the more expensive the cost of the insurance policy.

5. Standard calculation of agent motivation based on the regulations on the motivation of agents operating in the company.

We will calculate the agent's salary for one CASCO policy sold
Car make: Ford Mondeo 2007

The cost of the car is 320,000 rubles.

19 year old driver with less than a year of experience

Insurance premium - RUB 104,819

An agent will earn 20,963 rubles per month for one such CASCO policy (104,819*20%=20,963 rubles)

6.Script of work of an office sales manager with a client offering a cross-product

Cross-selling to OSAGO (not CASCO)

"Name Patronymic name! Thank you for choosing our Company, I wish you good luck on the roads. Have you insured your liability on the road, and for your neighbors? Moreover, the price of the issue is minimal, while the cost of an average repair, according to statistics, is 3,000 rubles per square meter. Let me tell you in more detail"

"Name Patronymic name? Thank you for choosing our Company - a worthy choice for a worthy car! Look, we defended responsibility on the road in relation to OTHER people, but you and I have much more important things in life - OUR home, OUR family, OUR health. Let's discuss the beneficial solutions we can offer you regarding these most important things!"

"Name and Patronymic! Thank you for choosing our Company. The VSK company offers various protection options for its clients. I suggest you familiarize yourself with the offers. I am sure that you will definitely be interested in something."

1)Main products sold in the sales office:

Property

2) The VSK company establishes a daily, weekly and monthly plan for the office sales manager:

Daily -15,000 t.r.

Weekly - 75,000 rub.

Monthly - 300,000 rub.

Internet sales

The process of selling an insurance service is complicated both due to the complexity of the product offered and due to the actual separation of the seller and buyer in space and time. This necessitates the need for a link between them, which can be insurance agents. World experience shows that insurance relations are most developed in those countries where insurance intermediary activities have received the greatest development. All over the world, insurance agents are the main sales channels for insurance products. The organization of intermediary activities must be given close attention, as this is one of the most important channels for selling insurance products. The current state of the Russian insurance market reflects an insufficient understanding of the place and role of the agent network in the development of the insurance business.

An agent network is the fastest and most effective way to deliver insurance services to retail consumers. This direction, without a doubt, has great prospects for development in Russia.

The financial condition of the insurance company and the well-being of those who turn to it depend on the effective organization of the agent network, its support from staff, on the quality of professional training of each agent and the opportunity to constantly improve their qualifications, on corporate patriotism and the desire to protect the material interests of clients. In this regard, the study of the organizational foundations for the development of an agent network becomes particularly relevant. Insurance agents are traditionally classified as insurance intermediaries. There are different interpretations of this concept in the scientific literature.

According to Ermasova N.B., an insurance agent is an individual or legal entity who, on behalf of and on behalf of an insurance organization, is engaged in concluding insurance contracts (selling policies), draws up insurance documentation, and in some cases pays insurance compensation (within established limits ), collects the insurance premium. Kiselev M.V. believes that an insurance agent is an individual who enters into an insurance contract on behalf of the insurer (insurance company) for a commission; he is a freelance employee of the insurance company. Currently, many argue that an insurance agent is a specialist engaged in direct sales, that is, interacting directly with the buyer and consumer of the company's product. Therefore, both the communicative and financial results of their interaction depend on how the consumer perceives the insurance agent personally and as a representative of the profession.

The legal status of insurance agents is determined by Art. 8 of the Law “On the organization of insurance business in the Russian Federation”, according to which insurance agents are individuals or Russian legal entities (commercial organizations) permanently residing in the territory of the Russian Federation and carrying out their activities on the basis of a civil law contract, who represent the insurer in relations with the policyholder and act on behalf of the insurer and on his behalf in accordance with the powers granted.”

The activities of an insurance agent are carried out on the basis of a civil contract concluded between him and the insurer. Taking into account the increasing number of agents and the wide geography of their activities, insurers are developing a standard form of contracts with agents, which simplifies the procedure for concluding them. Of particular importance and importance is the section of the contract that defines the powers granted to the agent. First of all, we are talking about the powers to conclude insurance contracts. The agency agreement defines the types of insurance for which the insurance agent has the right to conclude contracts, as well as the amount of insurance amounts within which the agent has the right to conclude insurance contracts.

The list of types of insurance and the size of the limits on their conclusion depends on:

• -- on the insurer's strategy;
• -- organizing the company's underwriting system;
• -- the level of training of agents and the degree of trust in them on the part of the insurance organization.

If the client found by the agent agrees to conclude an agreement on other types of insurance or with insurance amounts exceeding the agent's limit, the agreement can be concluded either by an authorized officer of the insurance company or by an insurance agent on the basis of a special power of attorney.

When organizing work with agents, it is necessary to distinguish between agents:

• - already cooperating with the company;
• -- active agents who have no relationship with the company;
• -- potential agents who need to be selected and trained.

When organizing work with agents, the insurer must determine whether it will concentrate on one of these groups, or whether its influence will be directed to each of them. In any case, the practice of Russian insurers indicates the advisability of centralizing work with individual agents in one division, which, if necessary, organizes interaction with other divisions of the company. In federal-level companies with a large number of territorial divisions, it is advisable to create a center for organizing work with agents in the central office. This center has the following responsibilities:

• -- planning the main financial and non-financial indicators of working with agents;
• -- development of uniform standards for working with agents, as well as methodological recommendations for their implementation in the relevant departments of the company;
• -- monitoring the results of work with agents;
• -- preparation of proposals to improve its efficiency.

Functions of departments working with agents:

selection of agents or candidates to work as agents in accordance with the requirements established in the company (recruiting)

registration and accounting of agency agreements

training and advanced training of agents (training).

Training is usually carried out in several areas. The first is related to the characteristics of the insurance company, its financial stability and reliability, the history of the company, etc. As part of this area, the company's insurance products are studied. The second area is related to training agents in various sales technologies and psychological aspects of relationships with potential policyholders. In addition, agents are trained separately on the organizational aspects of interaction with the insurance company. Training is organized mainly by specialists from agency departments, with the involvement of other company employees, as well as external specialists. If necessary, specialists from other departments of the company are involved for operational support (conclusion of insurance contracts, loss settlement, financial block, etc.);

As part of this function, special programs for motivation and career growth of agents are being developed; agents are provided with information about processes and changes taking place in the company. An important task is to establish feedback between the agent and the insurance company. An insurance agent is not only a salesperson and representative of the insurer, he is also an important source of information about the needs and preferences of existing and potential policyholders. The collection, synthesis and analysis of this information allows the insurer to make timely changes to its product line, sales organization methods, external and internal communications system in order to ensure maximum satisfaction of policyholders and increase the company's competitiveness.

The effectiveness of agents’ work is significantly increased if they are positioned not as auxiliary participants in the processes taking place in the insurance company, but as an important and integral part of the team, contributing to the formation of the final results of operations. For this purpose, formal and informal events should be held with the participation of agents and heads of structural divisions, as well as top managers of the company. Agents should be involved in all important events in the life of the company, and company managers should take part in all important events occurring in the agent department, as well as in the lives of individual agents.

As noted above, it is advisable to differentiate the work of the agency division depending on the different categories of agents. Work with agents already acting in the interests of the company should begin with an in-depth analysis of the results of their activities. Based on this analysis, it is necessary to identify the most effective agents, in cooperation with whom the company is primarily interested.

Further work should be aimed at fidelization of this category of agents. Accordingly, the main function becomes motivational and communicative support for the activities of agents. Increasing the loyalty of existing effective agents does not require significant additional costs, but cannot provide a significant increase in agent sales.

Many insurers focus their work on attracting effective insurance agents already operating on the market.

Solving this problem allows you to quickly increase your insurance portfolio, however, it requires significant organizational efforts and, possibly, additional costs. First of all, it is necessary to find such agents and ensure their effectiveness. Most often it is a matter of either connecting with agents working for competitors or having effective independent agents offer that insurer's products along with others.

In any case, at the first stage, the main recruiting efforts should be concentrated on identifying existing agents in whose services the company is interested. The second important point is to create conditions for these agents that are more preferable than those offered by other insurers. The advantages should be concentrated, first of all, in the area of ​​operational support for the activities of agents (the content of the insurance product, product line, convenience of the agent when concluding insurance contracts, the amount and procedure for paying commissions, etc.).

Organizational efforts and additional costs to attract existing agents may not always yield quick and tangible results in the form of portfolio growth. In this regard, the insurer focusing on this work scheme must clearly define the sources and amount of financing, as well as the time interval for achieving the intended results.

This problem becomes even more pressing if the insurer plans to focus on creating an agent network of people who have not previously worked as insurance agents. If this problem is solved, the insurer can receive an agent network with a high degree of loyalty, trained in all the nuances of the company’s activities and organically integrated into its marketing mix.

Separately, the agency agreement should discuss the procedure for calculating the insurance premium by the agent, inspecting the insured object, as well as a set of documents that the agent must submit to the company after concluding the insurance agreement. Typically, insurance companies develop tariff guidelines specifically for agents, as well as documents regulating the procedure for inspecting insured objects, which are annexed to agency contracts. These documents define the specific actions that the insurance agent must take when calculating the insurance premium and inspecting the insured object, as well as the possibility of control over these actions by the insurer. Agency agreements usually stipulate the consequences of agents acting in excess of the authority granted or in violation of established procedures. These measures help protect the company from the consequences of erroneous or deliberate actions on the part of unscrupulous agents, which can lead to significant damage.

An important issue in the interaction between the insurer and the insurance agent is the procedure for document flow and mutual settlements between them. The document flow between the insurer and the agent includes the following main stages:

• -- transfer by the insurer to the agent of strict reporting forms and other documents necessary for concluding an insurance contract;
• -- acceptance by the insurer from the agent of documents confirming the fact of concluding insurance contracts and paying the insurance premium;
• -- collection of insurance premium received by the agent;
• -- control on the part of the insurer over the regime of use and storage of strict reporting forms by the insurance agent.

The transfer of strict reporting forms to agents must be carried out on the basis of a separate act. This document must contain complete information about the strict reporting forms transferred to the agent (type, series number, quantity, date of transfer, etc.). The insurer must pay special attention to the transfer of strict reporting forms to agents - legal entities. In this case, the transfer of documents under the act must be carried out either to the first person of the agent company, who has the right to act without a power of attorney, or to an authorized person who has a special power of attorney to perform these actions, while the act of acceptance and transfer of strict reporting forms must be sealed by both parties. In addition, it is advisable to regulate the procedure for distributing the insurer’s strict reporting forms among the employees of the legal entity’s agent. The contract must provide for sanctions against the agent for the loss of strict reporting forms.

As noted above, in the agency agreement it is advisable to clearly define a set of documents with which the insurance agent must confirm the fact of concluding an insurance contract and paying the insurance premium by the policyholder. Most often, this is the second copy of the insurance contract, inspection reports of the insured object, a receipt in form A7 for the receipt of cash or a payment order for the transfer of the insurance premium to the insurer's account by bank transfer. The agency agreement must establish deadlines for the agent to submit these documents. The period for which the agent reports should not be long, so that there is an opportunity to identify and correct mistakes. So, as currently, many companies set deadlines for reporting and providing documents on concluding an insurance contract for agents - legal entities at least twice a month, for agents - individuals at least once a week.

Since during the specified reporting period the agent may not use all strict reporting forms, a procedure must be in place to control the mode of use and storage of the remaining forms. As a result of this procedure, the insurer must ensure the availability and safety of strict reporting forms not used by the agent for the reporting period. This fact must be documented.

New strict reporting forms must be issued to the agent either after confirmation of the full use of those previously received, or if the remaining balance corresponds to the peculiarities of the organization of work of this insurance agent. In any case, the insurer must be convinced that each agent has on hand the number of strict reporting forms that he needs to work. An excessive number of strict reporting forms issued to agents is a factor of increased and unjustified risk for the insurance company.

Along with document flow, an important object for regulating the relationship between an insurance company and an insurance agent is the procedure for mutual settlements. Settlements between the insurer and the agent mainly include payment of the insurance premium (first installment) when concluding an insurance contract, payment of the next installment for an installment premium, and payment of remuneration to the agent. It was noted above that documents confirming the conclusion of an insurance contract by an agent must confirm payment of the insurance premium (down payment). Having received these documents, the insurer must, within a reasonable time, make sure that the funds have actually been deposited at the cash desk or entered the company’s bank account. Timely transfer of insurance premiums by insurance agents to the insurer is very important for the insurance company, since it is bound by the proper fulfillment of obligations under insurance contracts and affects the financial stability of insurance operations. Equally important is the timely payment of regular installments for installment premiums. The relationship between the insurer and the agent should include periodic reconciliations of mutual settlements, as well as constant monitoring of receivables. In the event of an overdue receivable, the insurer must require the agent to take immediate measures to repay it, and if impossible, to early terminate the insurance contract. The role of accounts receivable control increases in a financial crisis, when the solvency of many policyholders may be in question.

The organization procedure, terms of control of document flow and mutual settlements between the parties are established in the agency agreement. In cases where individual elements of this work cannot be included in the agency agreement, they must be enshrined in separate agreements between the insurance company and the agent, as well as internal documents of the parties. If the insurer detects abuse of authority on the part of the insurance agent, as well as violation of the established rules of document flow and mutual settlements, it is advisable to suspend interaction with this representative until all controversial issues are fully resolved. intermediary sale of insurance product

For performing the functions of the insurer's representative provided for in the agency agreement, the insurance agent is paid a remuneration. Its size is established by the contract as a percentage of the insurance premium, within the limits established by the structure of the insurer's tariff rate for this type of insurance. The amount of the agent's remuneration can be fixed when, for any insurance contract concluded by the agent, a single commission amount is established. Recently, insurers have increasingly used “floating” remuneration, when the base rate can be increased due to additional factors, such as the amount of premium collected by a given agent; number of concluded insurance contracts; financial results of concluded insurance contracts, etc. The agent's remuneration is paid on the basis of a work completion certificate, which indicates the details of the concluded insurance contract, the amount of the insurance premium and the date of its receipt, and the amount of the agent's remuneration. Approval of the act indicates that the insurer accepted the documents confirming the conclusion of the insurance contract by the agent and certified his receipt of the insurance premium.

The last few years before the onset of the financial crisis were characterized by a significant increase in remuneration for agents - legal entities, primarily associated with “imputed” insurance (banks, car dealerships, etc.). In pursuit of increasing the portfolio, some insurers were willing to pay commissions significantly higher than the market average (up to 40% of the insurance premium). This situation was not good for the market, and many insurance companies simply refused to participate in the business with such exorbitant costs. Currently, when most insurers tightly control their costs, and the flow of “imputed” insurance has dropped significantly, the average agent fee is returning to established market averages.

To achieve success in organizing agency sales, thoughtful design of relationships with insurance agents and building business processes within the framework of these relationships must be complemented by effective organization of work with various categories of agents, taking into account their specific characteristics and interests.

Considering the presence of agent networks as their own competitive advantage, insurance companies, at the same time, are aware of their vulnerability to the possible transfer of agents to competitors. Russian legislation does not regulate the procedure for organizing the work of insurance agents and their relationship with the employer. Insurers bear the cost of training and development of agents, but are not protected from their work for other companies.

The main proposals for changing legislation come down to the certification of insurance agents, which gives them the opportunity to work for only one insurance company and allows the formation of uniform standards for the professional activities of insurance agents. However, the adoption of such measures in the near future seems very problematic.

Currently, the insurer can “bind” the agent to itself with the convenience and benefits of cooperation. It's not just about the amount of commission. It should be noted that for agents, especially experienced ones with a stable portfolio and level of earnings, the size of the commission is not always the decisive factor for choosing an insurer. Moreover, as noted above, there are objective limitations on the size of the commission, both economic (permissible level of acquisition costs as part of the formation of the financial result) and regulatory (tariff rate structure) nature. Under the influence of these restrictions, despite possible fluctuations, the amount of the agent’s commission tends to the established average market indicators.

More attractive to agents are factors such as

• -- financial stability and reliability of the insurer;
• -- a process that satisfies the policyholder for settling losses upon the occurrence of insured events;
• -- positive image of the insurer;
• -- an insurance product convenient for sale;
• -- structured organization of work with agents in an insurance company.

Thus, the level of loyalty of individual agents is directly related to the level of organization of work with them. In support, we present the results of a study of the priority of motivational factors for insurance agents conducted by the National Insurance Group.

Work efficiency can be increased through high-quality recruiting, as well as regular training, closely linked to the agent’s motivation and career growth system. Recruiting must select candidates who are most suitable for future work as an insurance agent. First of all, it is necessary to rely on the psychological characteristics of candidates, as well as the social environment in which they have stable connections and position.

Selected candidates must be trained in both the basics of insurance business, the content of insurance products, and sales techniques. Training should also include practical experience, such as working under the supervision of an experienced agent. Trained agents should immediately be involved in practical work, and the process of becoming an agent is especially effective when the company can provide the agent with a potential insurance field and, accordingly, a certain income at the first stage. Potential fields can include groups of company clients transferred to an agent for service or new sales channels created by the company. This allows the agent to avoid psychological discomfort, feel the significance of the work being performed, and also overcome the difficulties of becoming a new agent.

Agents who have achieved certain success may, for various reasons, unite and create legal entities to perform the same agency work. The insurer's interaction with such agents - legal entities - is based on the same principles as interaction with agents - individuals. At the same time, on the one hand, this work is simplified due to the self-organization of agents, which presupposes a certain level of training and the presence of real prerequisites for the formation of a portfolio, as well as experience in organizing sales. By interacting with such agents, the insurer can pay less attention to issues of initial training and career growth, focusing on operational support and providing comfortable working conditions.

The independent status of agents determines that their interests are concentrated in a triangle: the amount of commission - the satisfaction of the policyholder (primarily when settling losses) - the company's image and the convenience of the product. Along with the desire to increase income, this category of agents constantly solves the problem of maintaining and expanding their own portfolio. This task is extremely difficult, since agents have practically no opportunity to directly influence the quality of the insurance product, and are in a state of intense competition with other intermediaries and the insurers themselves, who can offer their clients to renew insurance contracts at a lower price due to the agents’ commission.

On the other hand, working with agents—legal entities—requires the insurer to pay close attention to compliance with the requirements of the agency agreement. The lack of such attention leads to a weakening of personal responsibility for fulfilling these requirements. Many insurers are aware of unpleasant cases when agents stop working without paying for strict reporting forms and without transferring the collected insurance premium to the insurer. In this regard, when concluding an agreement with an agent - a legal entity, it is advisable to study its constituent documents, financial statements, as well as the powers of persons representing the interests of the agent in relations with the insurer. It is necessary to eliminate the practice of obtaining strict reporting forms by persons acting without documented authority, and to ensure full identification of these persons in the documents.

It is advisable to entrust the implementation of this work, as well as support of current activities, to the department for working with agents. It is a widespread practice to assign this work to specific employees of the agency department. For each agent, it is advisable to set maximum limits on issued strict reporting forms and receivables.

Among insurance agents - legal entities, a significant group can be distinguished, the motives and interests of which differ significantly from those discussed above. Agents in this group do not consider the conclusion of insurance contracts as their main long-term area of ​​activity. They, using their “embeddedness” in certain processes that accompany insurance, are, in fact, a working tool for ensuring the process of selling insurance policies and generating income from it. Such “embeddedness” is a consequence of the organization’s direct participation in the process requiring insurance (banks, car dealerships, leasing companies, etc.) or proximity (formal or informal) to similar organizations. Such agents are characterized by a homogeneous portfolio, including one or more related types of insurance, and do not aim to expand their activities as an insurance agent. The main interests of this category of agents are focused on maximizing income (commissions) and simplifying the operational process.

The insurer's main efforts should be focused on finding a mutually beneficial compromise on these issues. In many insurance companies, this work is carried out by departments that directly conclude insurance contracts for the types in which agents specialize.

Current legislation does not distinguish between agents - individuals who are employees (full-time or non-staff) of the insurer and agents - legal entities. The features discussed above, the specific motives of behavior, as well as the interests of these categories of agents give grounds to talk about the need for changes in insurance legislation. As part of these changes, it seems appropriate to the author to distinguish and clearly define the legal status and position of associated (organizationally with the insurer) and independent insurance agents.

The insurance market in Russia is developing more and more rapidly every year, which means that sales channels must also develop.

Along with agents, the insurance company also cooperates with insurance brokers.

It is known that in the modern world the insurance market is expanding its boundaries every year. Therefore, more and more people are wondering about finding new and studying old sales channels. In our work, we will study the main types of channels and also identify the most effective areas of sales. Before determining what types of sales exist, let’s define the concept of an insurance product. An insurance product is a service ready for sale by the insurer to the policyholder, drawn up in a package of documents and consisting in the fact that for an insurance premium the insurer undertakes to compensate for losses to the policyholder that occurred as a result of specified insurance events.

To better understand the topic, let’s look at the concept of sales channels. The sales channel refers to the method of communication between the insurance company and the client through which sales are made. There are several classifications of insurance product sales channels. Thus, at present, in insurance practice, direct and indirect (intermediary) distribution channels are used, and some scientists and practitioners identify a third type of sales - non-standard.

Direct channels include sales through the central office, representative office, branch and via the Internet telecommunications network. The main advantages of forming relationships with clients through a direct channel are: the cost-effectiveness of this channel for the company and the complete controllability of the channel. However, there are several disadvantages to this sales channel. So the main disadvantage is the limited audience: in order to come to the office, call the phone, order a policy on the website, the consumer must already go through several decision-making steps and show a high degree of readiness to buy a policy. This category of consumers constitutes a small number of consumers, since insurance is a product of passive demand, and it should also be noted that employees have low motivation to attract clients.

But let’s not forget that direct sales also include e-commerce. How are things going in this area? “The market is actively developing technologically, primarily in terms of online sales. In the first quarter of 2017, the number one topic for the entire insurance market was electronic compulsory motor liability insurance,” noted the president of the VSS. Thus, in the first quarter of 2017, 6.3% of insurance premiums for compulsory motor liability insurance were received via the Internet, while at the end of 2016 the share of electronic sales was less than 1%.

Let's turn to chart No. 1. According to which we can notice a sharp jump in the e-MTPL market in 2017. First of all, this is due to the introduction of mandatory electronic MTPL. So according to the changes, in paragraph 1.1. Article 22 No. 40-FZ “On compulsory civil liability insurance of vehicle owners”, insurers are obliged to ensure the uninterrupted and uninterrupted functioning of their official websites on the Internet information and telecommunications network in order to conclude compulsory insurance contracts in the form of electronic documents.

Graph 1. Dynamics of e-OSAGO sales volumes from 10/08/2015 to 07/17/2017

The total number of e-policies for 2015-2017 according to the portal OSAGOonline.info amounted to more than 2.4 million. And from April 16, 2017 to June 18, 2017, 1 million e-policies were issued. That is, only two months were enough to issue 1 million new policies, which shows the high efficiency of this sales channel.

Free agents, as well as non-insurance intermediaries, occupy the highest position in terms of overall percentage of product sales in the insurance market. For a sales channel such as a non-insurance intermediary, insurance is only an accompanying product for such goods as travel packages, cars, loans and the like.

Intermediary channels include sales through insurance brokers, non-insurance intermediaries (companies for which the sale of insurance products is not the main activity - banks, travel agencies, car dealerships, etc.) and sales through an agent network (representatives of the insurer who are its staff or freelancers). According to statistics, about 60% of all sales occur through insurance company agents. In the auto insurance industry, this percentage reaches 70%.

As mentioned earlier, the most productive sales channel is the agent channel. A.N. Zubets, Vice-Rector of the Financial University under the Government of the Russian Federation, notes their effectiveness when working with active and passive clients. The activities of insurance agents in the field of insurance are indeed very motivated; agents are also well trained, for example by insurance companies, and are technologically equipped.

Thus, the formation of an agent network is the main direction of insurance companies in the field of product promotion. An example of this is the Rosgosstrakh company, whose agent network is more than 65,000 people. Indeed, today companies provide serious support for the activities of insurance agents. For example, the implementation of the CrM system by Rosno. Such systems enable agents to study the customer base directly from a personal computer, which, in turn, allows them to offer the most suitable additional products to customers already familiar to the company.

However, in addition to the positive side, the agent network has a number of disadvantages. Firstly, this is an extremely expensive sales channel. In addition to the agent commission (which can reach up to 40% of the insurance premium, but the average level in 2017 in the Russian Federation was 16.6%), a significant amount of resources is required to maintain it.

Another serious drawback of the agent’s work is the very fact of the client’s relationship with the agent, and not with the direct insurer. Consequently, the policyholder’s impression of the company is based on the quality of the insurance agent’s work, which is not always ideal. This process makes it very difficult to build long-term contractual relationships between the insurance company and the policyholder. Additionally, if the insurance company decides to cross-sell directly to the customer, the insurance agent will perceive this as a way to deprive him of his insurance portfolio and will likely sever his working relationship with the insurance company. In this case and in other unfavorable situations for the agent, there is a high probability of him moving to another insurance company along with his clients.

If we consider this type of sales as insurance brokers, it will become obvious that there are still very few brokers on the Russian market who truly perform their function because, first of all, the broker must offer the most profitable option for the insurance policy, and must know almost all offers for this market. The share of insurance brokers' sales is only 10%.

The policyholder does not always think that car dealerships, travel companies, and banks will also be a sales channel for the insurance product. However, such companies act as non-insurance intermediaries. When mandatory compulsory motor liability insurance and mortgage insurance were introduced in Russia, this area began to actively develop. In the case of sales through a non-insurance intermediary, the main reference point of the insurance company is not the policyholder, but the intermediary, which in practice greatly saves the company’s resources on marketing and other forms of promotion.

But, like other types of insurance product channels, this channel entails a number of issues that are quite difficult to regulate. First, there are two aspects on which such cooperation is based: the commission paid by the insurer and the repair workload of the car dealer. A commission is a bonus for an intermediary when selling the company’s insurance product, and a discount for car repairs is a bonus for the insurance company. Thus, by receiving more customers from the dealer, the insurance company, for its part, provides a larger repair flow, which is also a profitable activity for the car dealer. But the relationship, which at first glance is extremely mutually beneficial, contains a number of disagreements between its participants.

One of these problems is pressure on the dealer from the insurance company to reduce the price of repair work, as well as car spare parts, materials and labor of service station workers. If the car dealer does not agree with the terms of the insurer, then the insurer, in turn, is able to reduce the number of cars sent for repairs and withhold payments on invoices for repair services provided. The dealer reacts, on the contrary, by inflating the cost of repair services, which will significantly reduce sales of insurance products in the form of policies from the partner insurance company. Since MTPL policies, which are the main product for the sale of which such relationships are built, are of an imputed nature for purchase by clients, the position of the car dealer becomes dominant compared to the position of the insurance company. The result of such a problem is complaints from insurers about the intermediary’s withholding of paid insurance premiums, errors in issuing insurance policies, inappropriate level of quality of repair services provided, etc. Complaints from insurers are followed by customer dissatisfaction. Such a vicious circle of disagreements significantly aggravates the situation of both participants: the insurer and the intermediary.

Also, another problem inevitably arises when using a sales channel through non-insurance intermediaries: difficulties in cross-selling. To clarify, we can consider the following model of interaction: a car dealership provides an insurance company with a good flow of clients in the field of CASCO sales, but a car dealer employee has neither the opportunity nor any special incentive to carry out sales for other types of insurance. If the insurer directly tries to offer its client a new insurance product, then a conflict of sales channels will occur, because it is unlikely that the client will enter into direct sales and contact a car dealership to renew an existing CASCO insurance product, which will reduce his commission collection.

The situation in the market of banking sales channels is practically no different from that described above.

Igor Yurievich Yurgens, president of the BCC, said that bancassurance will immediately take a leading position in the distribution of fees across sales channels. Thus, the banking channel has already caught up with the agent channel - according to the results of the first quarter of 2017, 37.9% of fees came from it and 37.8% from agents. And according to statistics on premium collections for life insurance, 84% in 2016 came through the banking sales channel.

Based on these indicators, we can conclude that indirect sales channels are becoming increasingly popular, in which customer management for an insurance company is quite difficult.

Of course, direct sales channels, when using which no commission is charged, are more profitable for both the insurer and the policyholder. But the main vector of insurers in modern realities is still aimed at developing relationships with intermediaries. It can be concluded that the insurer should shift its focus to marketing the insurance product and increasing the client’s awareness when purchasing it.

In addition to direct and indirect sales, some observers highlight a non-standard type of sales. Such sales include “Insurance machines”. Kazan developers from the Teremok-Finance company have created a terminal for quickly issuing MTPL policies. The first insurance machine is operating in test mode in one of the shopping centers in Kazan. Insurance allows car owners to obtain an MTPL policy within 10 minutes through a self-service terminal without visiting an insurance company. However, this channel did not become widespread due to its low relevance, which was reduced with the advent of electronic compulsory motor liability insurance in the Russian Federation.

Bibliography:

1. Civil Code of the Russian Federation (part two) [Electronic resource]: dated January 26, 1996, No. 14-FZ (as amended on October 19, 2011). - Access from the reference and legal system "ConsultantPlus". - Access mode: http://www.consultant.ru
2. On the organization of insurance business in the Russian Federation [Electronic resource]: Law of the Russian Federation of November 27, 1992 No. 4015-1. - Access from the reference and legal system "ConsultantPlus". - Access mode: http://www.consultant.ru
3. On compulsory civil liability insurance of vehicle owners [Electronic resource]: Federal Law of April 25, 2002 N 40-FZ. - Access from the reference and legal system "ConsultantPlus". - Access mode: http://www.consultant.ru
4. Information and analytical materials “Review of key performance indicators of insurers in the third quarter of 2017” [Electronic resource]. Access mode: http://www.cbr.ru
5. Sales channels for insurance products [Electronic resource]. Access mode: http://studbooks.net/1816188/ekonomika/kanaly_prodazh_strahovyh_produktov
6. Cross-selling in insurance [Electronic resource]/ Access mode: http://broker-ast.ru/novosti-i-sobyt/kross-prodazha-v-strahovanii/
7. Comparative effectiveness of various sales channels for retail insurance products based on the results of a survey of insurers in 2013 [Electronic resource]. Access mode: http://raexpert.ru/

Egorova Ekaterina Group 1547

Slide 2: Comparison of operating standards of agent and partner sales channels

Indicator Agent Non-insurance intermediary 1. Minimum sales figures 10,000 rubles / month 500,000 rubles / month 2. Requirements that must be met to increase the agent's remuneration Conclude as many insurance contracts as possible Conclude as many insurance contracts as possible 3. Required level and stages of training for concluding an agency agreement The Agent is offered a set of documents. Then a contract is concluded. The agreement can be concluded: with individuals, legal entities, individual entrepreneurs. Then the documents are sent for approval to the DMP. After approval, an agency agreement arrives, which is signed with the agent. Then a training plan is issued, which the agent must undergo; this is either distance courses or an insurance company school base. The intermediary is offered a set of documents. Then a contract is concluded. The agreement can be concluded: with individuals, legal entities, individual entrepreneurs. Then the documents are sent for approval to the DMP. After approval, an agency agreement arrives, which is signed with the intermediary. Then a training plan is issued, which the intermediary must undergo; this is either distance courses or the base of the insurance company school

Slide 3

4. List of insurance products in the portfolio of the agent/intermediary Motor types: CASCO, OSAGO for both individuals and legal entities. NS, VHI, ZK, OPO, OSGOP, VZR Motor types: CASCO, OSAGO for both individuals and legal entities. NS, VHI, ZK, OPO, OSGOP, VZR

Slide 4: Cross-product matrix in the retail sales channel

Basic product (options) Cross-product Package offer Cross-product Package offer MTPL Medical assistance in case of an accident Technical assistance on the roads NS in case of an accident No CASCO Boxed products No Property “Home” - apartments “Udachny” - dachas No

Slide 5: Rating of the Company’s closest competitors for 2016 for the entire company and St. Petersburg, indicating the name of the Company and the volume of insurance premium collected:

RF St. Petersburg Own company “VSK” 53,713,595 thousand rubles “VSK” 2,570,595 thousand rubles Competitor No. 1 “VTB Insurance” 62,096,404 thousand rubles “Liberty” 2,463,555 thousand rubles Competitor no. 2 "AlfaStrakhovanie" 62,768,547 thousand rubles "ERGO" 2,017,446 thousand rubles Competitor No. 3 "Ingosstrakh" 86,629,301 thousand rubles "Gayde" 1,825,638 thousand rubles Competitor No. 4 "Consent" 33,210,900 thousand .rub "Consent" 1,536,606 thousand rubles Competitor No. 5 "RESO-Garantiya" 88,347,700 thousand rubles "AlfaStrakhovanie" 3,960,015 thousand rubles

Slide 6: Segmentation of the Company’s clients by CASCO product:

Segmentation of clients of the VSK company by CASCO is carried out as follows: The insurance company VSK has “Stop Lists” - they provide for the company those areas that are not covered by insurance. Such as: - brands of expensive cars (Range Rover, Land Rover, Porsche, etc.) Target segment of clients for CASCO: drivers over 35 years old, with more than 10 years of driving experience. The younger the client’s age category, the more expensive the cost of the insurance policy

Slide 7: Standard calculation of agent motivation based on the regulations on the motivation of agents operating in the Company:

Insurance, which is often sold in the agent channel of the insurance company "VSK" is compulsory motor liability insurance - 45% of clients prefer to purchase insurance policies 25% give preference - CASCO 15% - NS The strategy for the development of the agent channel in the insurance company "VSK" is a direct increase in the number agent networks that help increase sales fees. OSAGO-10% CASCO-20 IFL-40% NS-35%

Slide 8: OSAGO cross-selling script

Slide 9: Analysis of online sales at Euroins

Egorova Ekaterina Vitalievna Group 1547

10

Slide 10: Forms of organizing online sales at Euroins

Type of insurance product You can send a request for a call from a specialist You can calculate the insurance premium online You can buy directly online Travel insurance + + + Accident insurance/life insurance + + + Motor vehicle insurance + - - Apartment insurance + - - Civil insurance before neighbors + - - Insurance of dachas/buildings + - - Compulsory motor liability insurance + - + Voluntary health insurance insurance for individuals + + +

11

Slide 11

1. How many products does it offer to buy directly online? (4 products) 2. What calculators does the company have? (travel, NS, VHI, CASCO) 3. What products can be ordered through the company’s website? (VZR, CASCO, apartment insurance, OSAGO ,dachas/buildings) 4. Conclusion on sales volume through the Internet channel.

12

Slide 12: Internet Marketing Tools

13

Slide 13: Organizing customer feedback

14

Slide 14: Comparative analysis of Internet products for insurance “Accident” of Euroins and Ingosstra x

15

Slide 15

Insurance products for accident insurance offered by Euroins 2. For an ordinary citizen, “Protection” - persons aged from 1 year to 65 years can be insured under two programs: “Standard+” and “Standard”, which differ in the selected set of risks. Sum insured from 50,000 rubles. up to 500,000 rub. selected by the policyholder individually. Insurance premium from 280 rubles. up to 2500 rubles depending on the chosen insurance option. Insurance coverage is valid 24 hours a day Product name For whom? Can I apply online? “Family” Individuals aged from 1 to 75 years Not allowed “Protection” Individuals aged from 1 to 75 years Not allowed Sports insurance from NS From 3 years to 70 years who plan to take part in competitions Possible

16

Slide 16

Advantage of the insurance program: Universality of the product - the ability to insure children and adults using one form Easy to fill out the policy No errors when calculating the tariff Low tariffs (No way to calculate online) 3. For an amateur athlete: “Sports accident insurance” The insurance premium can only be calculated with participation in competitions Total insurance amount With participation in competitions 50,000 rubles. Insurance premium 121 rub. Insurance rate 0.24

17

Slide 17

Insurance can be carried out for a period of: 5 days, 10 days, 20 days, 30 days or 1 year Insurance risks: Traumatic damage as a result of an accident Permanent loss of general ability to work or permanent loss of health of a disabled person as a result of an accident with the establishment of disability Death of the insured, in including those that occurred no later than a year from the date of the accident 4. For the family: “Family” Purpose of the insurance product, potential buyers Designed to insure family members Number of insured persons from 2 to 8 members Risks: Temporary loss of general working capacity by the insured person or temporary deterioration in the health of a disabled insured person; Permanent loss of general working capacity by the insured person or permanent loss of health by a disabled insured person with the establishment of disability; Death of the insured person, including that which occurred no later than a year from the date of the accident.

18

Last presentation slide: MDK 01.01 Intermediary sales of insurance products and MDK 01.02 Direct

Features: For the “Family” insurance product, at least 2 people must be insured Annual insurance rate - 0.23% of the insured amount Insurance premium - from 230 rubles. up to 1150 rub. depending on the chosen insurance option for each insured person, the insured amount is from 100,000 rubles. up to 500,000 rub. depending on the chosen insurance option for each insured person. Insurance validity period is 1 year. Insurance protection is valid 24 hours a day.

Topic 1. Technologies of active sales in insurance activities

Portrait of an insurance agent. Psychologists of the policyholder. Psychology of an insurance agent. Ways to attract a client. Rules for conversations and telephone calls. Appearance, emotional mood of the insurance agent when contacting the client. The art of negotiation. Rules for breaking up.

Topic 2. Development of the insurance market in Russia

The origin of insurance in ancient times. Development of insurance in Western Europe in the Middle Ages. The main stages of the insurance business. History of Russian insurance.

Organizational forms of reserve funds in Russia: centralized insurance fund, insurers' fund, etc. The concept of functions and characteristics of insurance. Insurance as a service industry.

The role of insurance in a market economy.

Topic 3. Analysis of the features of the functioning and management of an insurance company.

The structure of Russian insurance legislation. General legislation. Special legislation. Departmental legislation.

Classification of regulations of the Russian Federation on insurance. General insurance issues. Licensing of insurance activities. Insurance supervision.

Legal concept of insurance activities. The procedure for licensing the activities of insurance organizations. Licensing terms. The role of insurance supervision in state regulation and control of insurance activities on the territory of the Russian Federation. The procedure for issuing orders, restrictions, suspension and revocation of a license to carry out insurance activities. Legislative definition of liquidation of a legal entity. Insolvency (Bankruptcy) Law; bankruptcy procedure. Features of the bankruptcy procedure for insurance companies

Topic 4. Organizational basis for the activities of insurers.

Subjects of the insurance obligation: policyholder, insured person, beneficiary. Legal status of the insured. Responsibilities of the policyholder. Property interest of the insured.

Insurer: specifics of an insurance company as a special organization. The purpose of the insurance company. Licensing of insurance organizations. Foreign insurers. Tasks and forms of associations of insurers. Unions of insurers. Insurance pools.

Insurance companies as part of the economic system. Monopolization of the insurance business. Bankossurance. Insurance trusts. Multinational insurance companies. Diversification.

Forms of organization of insurance companies. Joint-stock insurance company. Agencies and branches of insurance companies. Affiliated insurance companies. Reinsurance companies. Mutual Insurance Society. Government insurance companies. State insurance companies. Private insurance companies. Captive. Concerns. Economic organizations. Consortium.

Insurance agents and brokers. Agent's commission. Agent agreement. Insurance broker. Insurance inspector.

Topic 5. Tariff policy of insurers in a competitive environment.

The essence and tasks of actuarial calculations. Insurance statistics indicators.

Features of the tariff policy of insurers in a competitive environment. The probability of an insured event occurring and determining the amount of expected insurance payments.

Methodological issues in constructing insurance tariffs. The concept of an insurance tariff, the structure of the rate and the purpose of its individual parts. General principles for calculating net and gross rates. Loss of the insured amount. Mortality table. Rate of return. Concept of insurance premium. Information base for calculating tariff rates. The influence of inflation factors on the calculation of tariff rates. Insurance tariff as an element of ensuring the recoupment of insurance operations.

Load calculation. Classification of insurance company expenses. Profit in the structure of the insurance tariff. Factors affecting the profit of an insurance company and the possibility of taking them into account in calculating premiums.