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Gary Dallero Senior Vp

FPIC INSURANCE GROUP, INC. 225 Water St Ste 1400

Jacksonville FL 32202-5175 One Hardman Drive

Bloomington, IL 61701 FIRST-CLASS MAIL US POSTAGE PAID FMC 33069

Discover a profound business impac t from

a surprising source … your customer data!

Make customer data work in ways you never imagined with MindRamp, a

marketing-focused research and analytics provider. Using cutting-edge research and behavioral

data analysis, we create sophisticated, customized strategies to improve targeting,

lead generation, market expansion, and campaign efficiency as well as customer

acquisition and retention. For more information, visit

www.mindramp.com

or call

312.558.4393.

Record profits

reported by

property/casualty

insurers

After a year with fewer natural catastrophes, positive development in loss reserves and a favorable pricing environment, property/casualty insurers in the United States report record net profits, according to a report by global rating agency, Fitch Ratings. Though some price softening has already been seen and is expected to continue in areas not affected by natural disasters, the agency reports that premium rates remain high enough to support attractive underwriting returns. The report also concludes that the predicted above average Atlantic hurricane activity in 2007 may result in negative rating actions for organizations with too much exposure to catastrophic losses.

Florida Senate

committee

extends Personal

Injury Protection

requirement

In a move opposed by most insurance carriers, the Florida Senate Banking and Insurance Committee has unanimously approved a bill extending the requirement for car insurance holders to purchase Personal Injury Protection (PIP) until January 2009 and includes some reform measures. Also called the Florida no-fault law, PIP provides protective medical coverage for drivers injured in an accident regardless of who is at fault. Insurers say the requirement promotes a system that is easily defrauded and costly for consumers. Besides extending PIP, the new bill would reform the measure with new caps on medical reimbursements paid by insurers. If Florida lawmakers take no action, PIP is set to expire in October 2007.

Online game lets

consumers play

with the future

As part of a newly launched marketing campaign, the American Council of Life Insurers (ACLI) has redesigned its Web site to include an interactive game called “Picture Your Future.” The game encourages consumers to learn combinations of insurance protection, savings and guaranteed income products needed to maximize their financial potential. “Picture Your Future” presents important information about financial security in a way that is humorous and easy for consumers to understand. To play the game, visit www.acli.com.

LIFE INSURANCE

PROPERTY INSURANCE

M a r k e t i n g U p d a t e s

AUTO INSURANCE

Free

white paper

See Inside

I n s u r a n c e m a r k e t i n g e x p e r t i s e w i t h t h e r i g h t p e r s p e c t i v e , e x p e r i e n c e a n d t e c h n o l o g y

customer

Strategies for sharpening

focus

Microsegmentation:

Think smaller to grow sales

Win-back strategies to

target at-risk customers

Reaching affluent

Asian-Americans

FREE

WHITE PAPER!

Translating

Customer Insights

See business reply card inside.

(2)

An affluent ethnic market

you should be targeting

Grow sales by thinking small!

Don’t just wave goodbye –

How to win back lost customers

Politics & Policies

Marketing Updates

T a b l e o f C o n t e n t s

3

4

6

7

8

The fact is, insurance marketing requires more than just

industry knowledge. It requires insight. It’s essential that you, as well as your agents, understand exactly who your customers are and utilize the most effective communications to keep your company “top of mind” for customers and prospects alike.

Let’s talk

i

ssentials …

Let us show you how our targeted customer marketing programs achieve maximum results through:

Education and cross-sell/upsell opportunities

Loyalty rewards programs

Channel marketing solutions for your agents Let’s talk and see what we can do for you. Call me toll-free at:

1.800.736.0145

Politics & Policies

never purchases additional policies or

coverage, annual costs associated with selling and servicing the policy generally go down over time while revenues and profits remain constant or increase. Finally, your company’s history and your agent’s relationship with lost customers may make it easier to win them back than it is to attract a new prospect you know little or nothing about. And by regaining the loyalty and goodwill of lost or unhappy customers, the negative word-of-mouth associated with defecting customers is minimized.

To win them back, start by asking

Some companies assume that the reasons customers leave are beyond their control. Actually, one survey found that nearly 70 percent of defecting customers leave for “no special reason.” You might save many of these customers by simply asking for their business again and communicating how important their relationship with your company is to you. Here are some other strategies that can help:

• Identify at-risk customers before they defect. Look for customers who’ve had negative experiences such as premium increases, claim denials or customer service issues. Make an extra effort to communicate with those customers and fix any problems you uncover. Customer satisfaction surveys can help, but you should also conduct surveys of inactive or lost customers to understand their motivations for leaving, and suggest tactics for repairing at-risk or broken relationships.

• Stay in touch.If losing the customer is inevitable, try to part on a friendly note and leave the door open for future business. Then, continue to communicate regularly. Your newsletter or occasional targeted e-mails can help keep your company top-of-mind and educate lost or inactive customers about new products or special offers. By providing opportunities

to respond, these communications allow you to gather additional information about lost customers and make it easy for customers to return if their needs have changed or they’ve changed their mind.

• Make coming back worthwhile. Win-back promotions often feature discounts, but the long-term effectiveness of discounting is questionable. Customers you win back with a lower price may be customers you’ll lose again to a lower price. Instead, use your major competitive advantage — the information you have about your customers. With the personal data, purchase histories and other information acquired throughout the customer lifecycle, you can create sales messages or offers that are more relevant to individual customers. Personalized messages also remind lost customers that your company knows them and understands their needs.

• Celebrate their return. A “welcome back” communication can create excitement, reemphasize the value of the relationship and let customers know that you appreciate their business. It can also communicate how you’ve solved any problems and offer additional avenues of access for expressing future concerns.

Though some customer attrition is inevitable, relationship marketing strategies can help you win back many lost customers. In addition, the process of reconciliation may provide new information and insights that allow you to develop a deeper understanding of the returning customer’s individual needs and communicate with even more personal, compelling messages. As the lifecycle begins again, you have new opportunities to grow profitable, loyal customer relationships. Progressive Impressions International offers customer communications expertise combined with the latest technology to provide marketing solutions for every stage of the customer lifecycle. For more information, please contact [email protected] or call 800.736.0145.

Commission recommendation would mean fewer choices and higher rates

The Property Casualty Insurance Association of America (PCI) says repealing the industry’s exemption from antitrust liability provided by the McCarran-Ferguson Act would reduce competition and leave consumers paying higher rates with fewer insurance choices. According to PCI, a recommendation by the Antitrust Modernization Commission to review the exemption shows that commissioners don’t understand the exemption’s limits. The McCarran-Ferguson exemption only allows insurers to share specific loss data without which small- and medium-size companies would be unable to compete with larger insurers. ■

Insurers support tax-free disaster savings

A proposal introduced in Congress that would allow homeowners to create tax-free savings accounts for natural disasters is receiving strong support from the National Association of Mutual Insurance Companies (NAMIC). The proposed accounts would be structured like the current health savings accounts with tax-free contributions allowed up to specified limits and a rollover feature for unused balances. Homeowners could withdraw the funds without tax penalty to pay for qualified disaster expenses. The proposal would also reward consumers who purchase higher deductible policies with higher limits on tax-free contributions. ■

New rule will require Electronic Stability Control on all cars

By 2012, Electronic Stability Control (ESC) will be required on all new passenger vehicles sold in America, according to a rule announced by the Department of Transportation. ESC uses a computer-aided braking system to help drivers maintain control and reduce deadly vehicle rollovers. The government estimates that the new requirement could save up to 10,000 lives each year. Manufacturers will be required to begin equipping passenger vehicles in model year 2009. ■

i

ssentials

7

About the Publisher

Since 1992, Progressive Impressions International (Pii) has worked with Fortune 500 insurance companies to develop marketing tools that support sales representatives to enhance their productivity. Pii has the resources to design, implement and support complete marketing programs configured specifically to meet the needs of the insurance industry. The company specializes in maximizing customer relationships through education, cross-sell/ upsell and channel marketing solutions to enhance the lifetime value of our clients’ customers.

T 800.883.1156 One Hardman Drive Bloomington, IL 61701 www.WhateverItTakes.com

2007 Progressive Impressions International. All Rights Reserved

Bill Soddy iNiche President 800.664.0444 X6207

[email protected] They call this the information age, but sometimes it can seem like the “too much information” age. We have all kinds of data available to us about customers, competitors and the market, but if we don’t have the structure in place to organize all that data and understand its implications, the information is useless.

In this issue of

i

ssentials, we discuss how data analytics can help you make sense of your information and use it to more precisely target extremely small groups of customers and prospects with relevant, timely sales communications. You’ll also fi nd a feature on targeting the affl uent and growing Asian-American market. Additionally, in the last installment of our series on maximizing profi tability through every stage of the customer lifecycle, we focus on reconciliation with tips to help you win back lost or inactive customers.

Finally, you can be among the fi rst to see the results of our latest national survey on customer relationships in an important research white paper by Dr. Adina Wasserman,

“Are you asking the right questions? Translating customer insights into loyalty-building strategies.” To take advantage of this special, limited-time offer, return the enclosed reply card, e-mail us at [email protected] or call me directly at the number above.

(3)

How much are lost customers costing your company? If your company experiences the industry average customer attrition rate of between 10 and 15 percent, you’re waving goodbye to significant premium income and market share. You’re also losing customer goodwill and the opportunity to learn how to improve your products and services for increased customer satisfaction and retention in the future. As billionaire businessman Bill Gates advises, “Your most unhappy customers are your greatest source of learning.”

Relationship marketing strategies are designed to help win back the loyalty of at-risk customers and those who have already left, as well as to use information from unhappy customers to grow more profitable relationships at every stage.

Those stages include:

• Bonding - helping customers establish profitable habits and setting expectations for the relationship

• Growth - using data collected about the customer to cross-sell and upsell

6

i

ssentials

• Retention - reinforcing the customer’s choice and defining the value of the relationship

• Reconciliation - saving at-risk customers and winning back those who have left

Reconciliation — Winning at win-back

Our first three installments of this series have focused on marketing strategies for bonding with new customers, growing your relationships and retaining profitable customers. In this issue, we examine how effective strategies for reconciliation, or win-back, can also improve customer profitability.

Breaking up means losing more than profits

The financial implications of losing customers may be more far-reaching than you think. First, replacing lost customers by acquiring new ones is expensive. According to a Gartner survey, insurance companies and other financial service organizations spent an average of $280 to recruit a new customer while the average cost of keeping an existing customer was only $57.

Second, the longer you keep your customers, the more profitable they become for you. Even if the customer

Final installment of our four-part series

Ethnic maRkEting

with

Asian

flavor

Asian-Americans have the highest

median income of any ethnic group.

connect with respect

Politeness, formality and respectfulness are qualities most Asian-Americans admire and respond to. Here are some general principles to follow when marketing to this group:

• Hard-sell messages are best replaced with more subtle, information-rich content.

• Emphasizing the quality of the coverage and how it can enhance the family’s financial security will generally be more effective than focusing on low cost.

• Creating ethnic-specific sales materials for Asian-Americans is one way to demonstrate the value you place on their business.

• Consider translating sales materials or using bilingual materials in areas where there is a dominant culture and language, such as Vietnamese. This not only shows respect for the culture, but can also be helpful for communicating with recent immigrants who may not be as proficient in English.

• Communicate online. More than 41 percent of Asian PC users report obtaining information about financial services, investment and insurance online. To learn more about how your company can target Asian-Americans and other important market segments, contact us at [email protected] or call 800.736.0145.

i

ssentials

3

hen you first think of ethnic marketing, you probably think of marketing to Hispanics. Many ethnic advertising and sales messages are directed to Hispanics because they represent the largest ethnic minority in America today. But if you want to reach the most affluent, fastest-growing ethnic group, your marketing needs a different flavor, one that appeals to Asian-Americans.

a lucrative market segment that’s growing rapidly

According to U.S. Census Bureau estimates, more than 14 million people living in the United States are of Asian descent. Asian-Americans already represent more than 5 percent of the U.S. population and their numbers are growing by more than 3 percent a year, faster than any other ethnic group. Besides their growing numbers, Asian-Americans are an especially attractive market because they have the highest median household income of any ethnic group, surpassing the non-Hispanic white majority by more than $5,000 a year. One reason for their higher incomes is that Asians also are the best-educated ethnic group with 44 percent having earned at least a bachelor’s degree. Highly educated, high-income Asian-American families are very likely to have property and financial assets that need insurance protection. Asian-Americans are also more likely than other groups to own small businesses, which may make them good prospects for business coverage as well.

Diverse cultures, shared values

Asian-Americans are not a homogeneous group. Representing more than 17 different countries of origin, Asian-Americans have many different cultural traditions and languages. Despite this diversity, understanding certain shared values held by most in these communities can help you target this market more effectively. In general, Asian-Americans place a high priority on providing financial security for one’s family. They also believe strongly in the value of education. And, when making purchase decisions, they generally look for quality in a product or service and better value, rather than simply low price.

Insurance companies spend, on average, almost five times more to recruit new customers than to keep an existing customer.

(4)

Think smaller

4

i

ssentials

To get the right sales message to the right customer at the right time, you may need to think smaller. Today’s consumers see themselves as individuals and they expect a personally relevant, individualized customer experience through all your sales channels. Microsegmentation is a strategy that divides customers into a larger number of smaller, homogenous groups to allow you to deliver a more personalized interaction with customers and prospects. By increasing the number of segments you interact with across all channels, this approach helps increase the relevance of your sales message.

No one - size - fits - all solution

Microsegmentation goes far beyond traditional demographic segmentation to identify multiple separate constituencies within a targeted audience by behaviors and attitudes as well. For example, instead of a general sales message about long-term care targeted to seniors, what if you could reach married females, ages 55 to 60, who exhibit risk-averse attitudes with a long-term care message that addresses their special concerns? That level of specificity in segmenting the market is now becoming possible through sophisticated data analytics. Curt Powell, president of MindRamp, Inc. in Chicago, explains how data analytics contributes to the increased relevance of sales messages delivered to smaller and smaller segments of your target market. “Using information gathered from demographic, attitudinal and behavioral segmentation, companies can create a series of data filters that enable them to drill down, level by level, from the general population to a segment of one.”

Once targeted microsegments are identified, specific messages can be developed for each and specific communication channels chosen based on segment preferences. Today’s computer technology offers systems that can help you and your agents

i

ssentials

5

Help agents take aim at customers

Marketing technology can make it easier for agents to target customers and prospects with personalized sales materials created for smaller segments. Offered by Progressive Impressions International (Pii), Conductor is a Web-based technology that combines online ordering with print-on-demand and variable data printing.

Conductor allows agents to order personalized marketing communications materials from the Web site as needed while you control available materials to maintain consistent brand standards.

For more information on Conductor, e-mail [email protected] or call 800.736.0145.

More ef ficient, more ef fective, more measurable marketing

Targeting small segments with highly customized sales messages is more efficient because you deliver your message only to those most likely to respond. Microsegmentation also makes it easier to measure the effectiveness of your communications while your campaign is in progress. You can determine not only how many

sales you make, but whether one offer drew more responses or one group responded at a higher rate than another. That allows you to make mid-campaign adjustments and invest your resources in the tactics that work best.

MicrosegMentation

offers big potential

manage these multiple campaigns simultaneously and automate responses to key customer behavioral triggers. With variable digital printing, virtually any portion of a direct mail or e-mail marketing piece can be personalized with individual customer information. A precisely targeted sales message can also be customized in addition to the local agent’s personal message and contact information.

(5)

Think smaller

4

i

ssentials

To get the right sales message to the right customer at the right time, you may need to think smaller. Today’s consumers see themselves as individuals and they expect a personally relevant, individualized customer experience through all your sales channels. Microsegmentation is a strategy that divides customers into a larger number of smaller, homogenous groups to allow you to deliver a more personalized interaction with customers and prospects. By increasing the number of segments you interact with across all channels, this approach helps increase the relevance of your sales message.

No one - size - fits - all solution

Microsegmentation goes far beyond traditional demographic segmentation to identify multiple separate constituencies within a targeted audience by behaviors and attitudes as well. For example, instead of a general sales message about long-term care targeted to seniors, what if you could reach married females, ages 55 to 60, who exhibit risk-averse attitudes with a long-term care message that addresses their special concerns? That level of specificity in segmenting the market is now becoming possible through sophisticated data analytics. Curt Powell, president of MindRamp, Inc. in Chicago, explains how data analytics contributes to the increased relevance of sales messages delivered to smaller and smaller segments of your target market. “Using information gathered from demographic, attitudinal and behavioral segmentation, companies can create a series of data filters that enable them to drill down, level by level, from the general population to a segment of one.”

Once targeted microsegments are identified, specific messages can be developed for each and specific communication channels chosen based on segment preferences. Today’s computer technology offers systems that can help you and your agents

i

ssentials

5

Help agents take aim at customers

Marketing technology can make it easier for agents to target customers and prospects with personalized sales materials created for smaller segments. Offered by Progressive Impressions International (Pii), Conductor is a Web-based technology that combines online ordering with print-on-demand and variable data printing.

Conductor allows agents to order personalized marketing communications materials from the Web site as needed while you control available materials to maintain consistent brand standards.

For more information on Conductor, e-mail [email protected] or call 800.736.0145.

More ef ficient, more ef fective, more measurable marketing

Targeting small segments with highly customized sales messages is more efficient because you deliver your message only to those most likely to respond. Microsegmentation also makes it easier to measure the effectiveness of your communications while your campaign is in progress. You can determine not only how many

sales you make, but whether one offer drew more responses or one group responded at a higher rate than another. That allows you to make mid-campaign adjustments and invest your resources in the tactics that work best.

MicrosegMentation

offers big potential

manage these multiple campaigns simultaneously and automate responses to key customer behavioral triggers. With variable digital printing, virtually any portion of a direct mail or e-mail marketing piece can be personalized with individual customer information. A precisely targeted sales message can also be customized in addition to the local agent’s personal message and contact information.

(6)

How much are lost customers costing your company? If your company experiences the industry average customer attrition rate of between 10 and 15 percent, you’re waving goodbye to significant premium income and market share. You’re also losing customer goodwill and the opportunity to learn how to improve your products and services for increased customer satisfaction and retention in the future. As billionaire businessman Bill Gates advises, “Your most unhappy customers are your greatest source of learning.”

Relationship marketing strategies are designed to help win back the loyalty of at-risk customers and those who have already left, as well as to use information from unhappy customers to grow more profitable relationships at every stage.

Those stages include:

• Bonding - helping customers establish profitable habits and setting expectations for the relationship

• Growth - using data collected about the customer to cross-sell and upsell

6

i

ssentials

• Retention - reinforcing the customer’s choice and defining the value of the relationship

• Reconciliation - saving at-risk customers and winning back those who have left

Reconciliation — Winning at win-back

Our first three installments of this series have focused on marketing strategies for bonding with new customers, growing your relationships and retaining profitable customers. In this issue, we examine how effective strategies for reconciliation, or win-back, can also improve customer profitability.

Breaking up means losing more than profits

The financial implications of losing customers may be more far-reaching than you think. First, replacing lost customers by acquiring new ones is expensive. According to a Gartner survey, insurance companies and other financial service organizations spent an average of $280 to recruit a new customer while the average cost of keeping an existing customer was only $57.

Second, the longer you keep your customers, the more profitable they become for you. Even if the customer

Final installment of our four-part series

Ethnic maRkEting

with

Asian

flavor

Asian-Americans have the highest

median income of any ethnic group.

connect with respect

Politeness, formality and respectfulness are qualities most Asian-Americans admire and respond to. Here are some general principles to follow when marketing to this group:

• Hard-sell messages are best replaced with more subtle, information-rich content.

• Emphasizing the quality of the coverage and how it can enhance the family’s financial security will generally be more effective than focusing on low cost.

• Creating ethnic-specific sales materials for Asian-Americans is one way to demonstrate the value you place on their business.

• Consider translating sales materials or using bilingual materials in areas where there is a dominant culture and language, such as Vietnamese. This not only shows respect for the culture, but can also be helpful for communicating with recent immigrants who may not be as proficient in English.

• Communicate online. More than 41 percent of Asian PC users report obtaining information about financial services, investment and insurance online. To learn more about how your company can target Asian-Americans and other important market segments, contact us at [email protected] or call 800.736.0145.

i

ssentials

3

hen you first think of ethnic marketing, you probably think of marketing to Hispanics. Many ethnic advertising and sales messages are directed to Hispanics because they represent the largest ethnic minority in America today. But if you want to reach the most affluent, fastest-growing ethnic group, your marketing needs a different flavor, one that appeals to Asian-Americans.

a lucrative market segment that’s growing rapidly

According to U.S. Census Bureau estimates, more than 14 million people living in the United States are of Asian descent. Asian-Americans already represent more than 5 percent of the U.S. population and their numbers are growing by more than 3 percent a year, faster than any other ethnic group. Besides their growing numbers, Asian-Americans are an especially attractive market because they have the highest median household income of any ethnic group, surpassing the non-Hispanic white majority by more than $5,000 a year. One reason for their higher incomes is that Asians also are the best-educated ethnic group with 44 percent having earned at least a bachelor’s degree. Highly educated, high-income Asian-American families are very likely to have property and financial assets that need insurance protection. Asian-Americans are also more likely than other groups to own small businesses, which may make them good prospects for business coverage as well.

Diverse cultures, shared values

Asian-Americans are not a homogeneous group. Representing more than 17 different countries of origin, Asian-Americans have many different cultural traditions and languages. Despite this diversity, understanding certain shared values held by most in these communities can help you target this market more effectively. In general, Asian-Americans place a high priority on providing financial security for one’s family. They also believe strongly in the value of education. And, when making purchase decisions, they generally look for quality in a product or service and better value, rather than simply low price.

Insurance companies spend, on average, almost five times more to recruit new customers than to keep an existing customer.

(7)

An affluent ethnic market

you should be targeting

Grow sales by thinking small!

Don’t just wave goodbye –

How to win back lost customers

Politics & Policies

Marketing Updates

T a b l e o f C o n t e n t s

3

4

6

7

8

The fact is, insurance marketing requires more than just

industry knowledge. It requires insight. It’s essential that you, as well as your agents, understand exactly who your customers are and utilize the most effective communications to keep your company “top of mind” for customers and prospects alike.

Let’s talk

i

ssentials …

Let us show you how our targeted customer marketing programs achieve maximum results through:

Education and cross-sell/upsell opportunities

Loyalty rewards programs

Channel marketing solutions for your agents Let’s talk and see what we can do for you. Call me toll-free at:

1.800.736.0145

Politics & Policies

never purchases additional policies or

coverage, annual costs associated with selling and servicing the policy generally go down over time while revenues and profits remain constant or increase. Finally, your company’s history and your agent’s relationship with lost customers may make it easier to win them back than it is to attract a new prospect you know little or nothing about. And by regaining the loyalty and goodwill of lost or unhappy customers, the negative word-of-mouth associated with defecting customers is minimized.

To win them back, start by asking

Some companies assume that the reasons customers leave are beyond their control. Actually, one survey found that nearly 70 percent of defecting customers leave for “no special reason.” You might save many of these customers by simply asking for their business again and communicating how important their relationship with your company is to you. Here are some other strategies that can help:

• Identify at-risk customers before they defect. Look for customers who’ve had negative experiences such as premium increases, claim denials or customer service issues. Make an extra effort to communicate with those customers and fix any problems you uncover. Customer satisfaction surveys can help, but you should also conduct surveys of inactive or lost customers to understand their motivations for leaving, and suggest tactics for repairing at-risk or broken relationships.

• Stay in touch.If losing the customer is inevitable, try to part on a friendly note and leave the door open for future business. Then, continue to communicate regularly. Your newsletter or occasional targeted e-mails can help keep your company top-of-mind and educate lost or inactive customers about new products or special offers. By providing opportunities

to respond, these communications allow you to gather additional information about lost customers and make it easy for customers to return if their needs have changed or they’ve changed their mind.

• Make coming back worthwhile. Win-back promotions often feature discounts, but the long-term effectiveness of discounting is questionable. Customers you win back with a lower price may be customers you’ll lose again to a lower price. Instead, use your major competitive advantage — the information you have about your customers. With the personal data, purchase histories and other information acquired throughout the customer lifecycle, you can create sales messages or offers that are more relevant to individual customers. Personalized messages also remind lost customers that your company knows them and understands their needs.

• Celebrate their return. A “welcome back” communication can create excitement, reemphasize the value of the relationship and let customers know that you appreciate their business. It can also communicate how you’ve solved any problems and offer additional avenues of access for expressing future concerns.

Though some customer attrition is inevitable, relationship marketing strategies can help you win back many lost customers. In addition, the process of reconciliation may provide new information and insights that allow you to develop a deeper understanding of the returning customer’s individual needs and communicate with even more personal, compelling messages. As the lifecycle begins again, you have new opportunities to grow profitable, loyal customer relationships. Progressive Impressions International offers customer communications expertise combined with the latest technology to provide marketing solutions for every stage of the customer lifecycle. For more information, please contact [email protected] or call 800.736.0145.

Commission recommendation would mean fewer choices and higher rates

The Property Casualty Insurance Association of America (PCI) says repealing the industry’s exemption from antitrust liability provided by the McCarran-Ferguson Act would reduce competition and leave consumers paying higher rates with fewer insurance choices. According to PCI, a recommendation by the Antitrust Modernization Commission to review the exemption shows that commissioners don’t understand the exemption’s limits. The McCarran-Ferguson exemption only allows insurers to share specific loss data without which small- and medium-size companies would be unable to compete with larger insurers. ■

Insurers support tax-free disaster savings

A proposal introduced in Congress that would allow homeowners to create tax-free savings accounts for natural disasters is receiving strong support from the National Association of Mutual Insurance Companies (NAMIC). The proposed accounts would be structured like the current health savings accounts with tax-free contributions allowed up to specified limits and a rollover feature for unused balances. Homeowners could withdraw the funds without tax penalty to pay for qualified disaster expenses. The proposal would also reward consumers who purchase higher deductible policies with higher limits on tax-free contributions. ■

New rule will require Electronic Stability Control on all cars

By 2012, Electronic Stability Control (ESC) will be required on all new passenger vehicles sold in America, according to a rule announced by the Department of Transportation. ESC uses a computer-aided braking system to help drivers maintain control and reduce deadly vehicle rollovers. The government estimates that the new requirement could save up to 10,000 lives each year. Manufacturers will be required to begin equipping passenger vehicles in model year 2009. ■

i

ssentials

7

About the Publisher

Since 1992, Progressive Impressions International (Pii) has worked with Fortune 500 insurance companies to develop marketing tools that support sales representatives to enhance their productivity. Pii has the resources to design, implement and support complete marketing programs configured specifically to meet the needs of the insurance industry. The company specializes in maximizing customer relationships through education, cross-sell/ upsell and channel marketing solutions to enhance the lifetime value of our clients’ customers.

T 800.883.1156 One Hardman Drive Bloomington, IL 61701 www.WhateverItTakes.com

2007 Progressive Impressions International. All Rights Reserved

Bill Soddy iNiche President 800.664.0444 X6207

[email protected] They call this the information age, but sometimes it can seem like the “too much information” age. We have all kinds of data available to us about customers, competitors and the market, but if we don’t have the structure in place to organize all that data and understand its implications, the information is useless.

In this issue of

i

ssentials, we discuss how data analytics can help you make sense of your information and use it to more precisely target extremely small groups of customers and prospects with relevant, timely sales communications. You’ll also fi nd a feature on targeting the affl uent and growing Asian-American market. Additionally, in the last installment of our series on maximizing profi tability through every stage of the customer lifecycle, we focus on reconciliation with tips to help you win back lost or inactive customers.

Finally, you can be among the fi rst to see the results of our latest national survey on customer relationships in an important research white paper by Dr. Adina Wasserman,

“Are you asking the right questions? Translating customer insights into loyalty-building strategies.” To take advantage of this special, limited-time offer, return the enclosed reply card, e-mail us at [email protected] or call me directly at the number above.

(8)

One Hardman Drive Bloomington, IL 61701 FIRST-CLASS MAIL US POSTAGE PAID FMC 33069

Discover a profound business impac t from

a surprising source … your customer data!

Make customer data work in ways you never imagined with MindRamp, a

marketing-focused research and analytics provider. Using cutting-edge research and behavioral

data analysis, we create sophisticated, customized strategies to improve targeting,

lead generation, market expansion, and campaign efficiency as well as customer

acquisition and retention. For more information, visit

www.mindramp.com

or call

312.558.4393.

Record profits

reported by

property/casualty

insurers

After a year with fewer natural catastrophes, positive development in loss reserves and a favorable pricing environment, property/casualty insurers in the United States report record net profits, according to a report by global rating agency, Fitch Ratings. Though some price softening has already been seen and is expected to continue in areas not affected by natural disasters, the agency reports that premium rates remain high enough to support attractive underwriting returns. The report also concludes that the predicted above average Atlantic hurricane activity in 2007 may result in negative rating actions for organizations with too much exposure to catastrophic losses.

Florida Senate

committee

extends Personal

Injury Protection

requirement

In a move opposed by most insurance carriers, the Florida Senate Banking and Insurance Committee has unanimously approved a bill extending the requirement for car insurance holders to purchase Personal Injury Protection (PIP) until January 2009 and includes some reform measures. Also called the Florida no-fault law, PIP provides protective medical coverage for drivers injured in an accident regardless of who is at fault. Insurers say the requirement promotes a system that is easily defrauded and costly for consumers. Besides extending PIP, the new bill would reform the measure with new caps on medical reimbursements paid by insurers. If Florida lawmakers take no action, PIP is set to expire in October 2007.

Online game lets

consumers play

with the future

As part of a newly launched marketing campaign, the American Council of Life Insurers (ACLI) has redesigned its Web site to include an interactive game called “Picture Your Future.” The game encourages consumers to learn combinations of insurance protection, savings and guaranteed income products needed to maximize their financial potential. “Picture Your Future” presents important information about financial security in a way that is humorous and easy for consumers to understand. To play the game, visit www.acli.com.

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References

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