Growth is back again at the top of the management agenda of insurance companies, once again raising the familiar question for which there is no easy answer...

How do I attract, retain and grow my customer base and achieve this profitably?

Approach this challenge with our customers and growth wheel - this concept is designed to help our clients ask the pertinent questions relating to analysing the existing and desired customer base and customer profitability.

Financial institutions of every shape and size, including insurers, are likely to face a continuing challenge to grow their top line – even following large acquisitions. The markets reward financial institutions for achieving the best relative growth in their revenues. For instance, in our global analysis “Glittering Prize”, the five financial institutions with the fastest revenue growth saw their stock price soar by an average of 91 percent over a four year period - performing four times better than the industry average. Going forward, there may be reduced headroom for growth in most mature western economies, the game will likely be to solidify existing relationships, steal market share and increase share of wallet by retaining the growth habit through innovative practices.

Answering the growth conundrum

There are a number of key behaviours that growth orientated companies will have in common. They will:

• Have a clearly articulated growth strategy (where and how)
• Understand the needs of their target client groups (what does this segment want / need)
• Have defined the customer proposition to meet these, profitably (how do we want to treat / serve these customers to ensure we are attractive)
• Understand what changes are required within their organisation to deliver – people, process, technology (how is it delivered)
• Execute consistently against the plan (making it real)

Our approach

To achieve immediate and sustainable growth, you need a comprehensive understanding of the environment and how it is changing, a compelling market strategy to respond to that environment, a well articulated customer experience, and an integrated plan for marketing, sales and service effectiveness. At Deloitte, our insurance practice combines the breadth of expertise required to answer the growth agenda question. We have deep industry expertise, strong consulting and actuarial capabilities, and a practical, collaborative approach. Together, we will help you address this critical business challenge.