Suncorp is the market leader in Queensland in Compulsory Third Party insurance, a major force in motor insurance and home and contents insurance and number two in Agribusiness lending. Suncorp also has a strong market share in personal and commercial insurance lines nationally and in New Zealand.
Suncorp has 233 retail and business banking outlets, predominantly in Queensland, GIO has 33 agencies in NSW and Victoria. Since the Promina acquisition, Suncorp has a total representation in 450 offces, branches and agencies throughout Australia and New Zealand.
The Challenge
The Suncorp Corporate Agent distribution channel comprises of approximately 75 independent agents dispersed throughout Queensland which provide insurance and wealth management products and services to their client base via a “tied” arrangement with Suncorp. Many of these Corporate Agents have built substantial independent businesses employing teams of up to 15 people.
In its current form, the Corporate Agent model was inherently structured for customer retention rather than growth. Whilst the distribution channel has contributed signifcantly to Suncorp’s presence and success, particularly in regional areas, Suncorp management identifed the opportunity to revitalise the channel to drive growth and proftability in the future. The challenge for Suncorp was to implement strategic initiatives that would reposition their distribution strategy through improving the performance of Corporate Agents on the front lines.
The Solution
As a large incumbent in a highly competitive market, Suncorp required a channel strategy that focused on customer acquisition while creating recurring revenue streams through cross-selling complimentary product lines.
The effectiveness of any channel is heavily dependent on the interaction and touch point between a business and the customer. Key to the engagement was not only developing a detailed understanding of the customer decision making process, but also an understanding of the motivations and drivers of Suncorp employees and agents at the coal-face.
Suncorp along with DC Strategy (DCS) identifed a number of key areas that impacted the ability of Corporate Agents to target and acquire new customers. Areas of focus included:
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Re-defnition of the product offer to target the SME market, creating a true business to business value proposition
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Evaluation and re-defnition of the sales process with a focus on relationship management to meet the customers needs and maximise cross-selling opportunities
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Design of coaching tools and fnancial models to be used by each business unit in facilitating implementation
The Outcomes
The result for Suncorp has been the development of a strategy for growing market share and developing more effective and proftable business units across the Corporate Agent network.
The channel’s focus is on ensuring each operator manages their business effectively, grows their business and asset value and provides a level of service consistent with the Suncorp value proposition. The principle strategic objectives of the business are to:
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Extend Suncorp’s share of Queensland’s general and life insurance market
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Growth of both market share and product coverage to existing clients
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Enhance the service capabilities of the Suncorp Corporate Agent network
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Implement a distribution model that recognises the ever-evolving needs of the SME business owner
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