What's Wrong with Insurance IT Sales Practice, and How to Fix it

March 11, 2005

Abstract

New York, NY, USA March 11, 2005

What's Wrong with Insurance  IT Sales Practice, and How to Fix it

Not getting the information you need from IT vendors during the sales process? You are not alone. Celent’s latest report, What’s Wrong with Insurance IT Sales Practice, and How to Fix It, examines the disconnect between what buyers want from the sales process and what they are getting. It discusses the results of a survey of insurer business and IT executives.

"There is a tremendous amount of frustration with the vendor community among insurance IT and business executives," says

Matthew Josefowicz, manager of Celent’s insurance group and author of the report. "Although insurers are continuing to buy vendor solutions and components, there is a general feeling that it’s too hard to find and evaluate a solution that might fit one’s needs. This is hurting productivity for insurers and sales volume for vendors."

The report reveals several important disconnects between what buyers value in the sales process and what their general experiences are. For final decision–makers, the areas of greatest disconnect were knowledge-related. Knowledge-related issues topped the list for lower-level decision makers as well, but nearly as important were two key communications areas: willingness to discuss pricing and ability to assist in internal communication.

The survey also examined the effectiveness of marketing channels, and included an open question about respondents’ best sales experience with a vendor. The report includes brief profiles of the sales practices and philosophies of ImageRight and CSC (Computer Sciences Corporation), the only vendors mentioned more than twice by respondents.

Celent believes that insurers can take positive steps to improve their vendor sales experiences by clearly explaining their business needs and technical environment to prospective solution providers, as well as outlining what kind of information they expect from the vendor before wasting time in an unproductive meeting. The report includes concludes with important points for both vendors and insurers.

The 26-page report contains seven figures and one table. A table of contents is available here.

of Celent Communications' Life/Health Insurance and Property/Casualty Insurance research services can download the report electronically by clicking on the icon to the left.  Non-members should contact info@celent.com for more information.

        

Send mail to info@celent.com with questions or comments about this Web site.

 

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned operating unit of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

 

New York, NY, USA March 11, 2005

What's Wrong with Insurance IT Sales Practice, and How to Fix it

Return to report Abstract

 

Executive Summary 3
Introduction 4
Lack of Faith 4
Failure to Communicate? 5
The Survey and Participants 6
You Can't Always Get What You Want 7
What Do Buyers Want? 8
What Do They Get? 10
The Disconnect 11
How To Make Friends and Influence People 13
Turning Customers Into Evangelists 15
Meetings: Less Is More 16
What Can Buyers Do About All This? 17
Best Vendor Sales Experiences: Why? 18
Best Vendor Sales Experiences: Who? 21
ImageRight: Doing Something Right 21
CSC: Broad Portfolio, One Face to the Customer 22
Concluding Points 22
For Vendors 24
For Insurers 24
Objectivity and Methodology 25

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