A lot of tools are available in customer service centers that allow insurers to reach out to their customers and be accessible to policyholders needs, but in-surers and analysts alike know that customers and CRM strategies often can be like the proverbial square peg and the round hole. Nevertheless, to succeed insurers must find a correct match.

For GE Employers Reinsurance Corp., interactive voice response (IVR) proved to be an ill-fitting square peg. By abandoning its IVR strategy and having customer service representatives answer incoming calls, GE ERC virtually eliminated its call abandonment rate and has sped up the process to deliver better service to its customers. That doesnt mean an IVR is wrong for all companies or that carriers will be abandoning other technology-based CRM functions. Many carriers are leveraging automated solutions to improve service. Insurers are faced with a dual strategy, says Cindy Saccocio, senior analyst for TowerGroup. They need to retain their existing customer base with high-touch type of services [while] they have another generation of new customers they are looking to attract that is going to demand high-tech-oriented services.

Datas the KeyAs with most insurance issues, the problem and the solution often revolve around the data. The answer to nearly every business problem is getting the data where it can best be used. The bane of many IT departments is finding a way for those who need the data to get access to it. That is particularly true with CRM because policyholders dont call their insurers or click on a Web site to get a weather report. Customers want specific information about their policies or their bills.