Direct Line Insurance. The investigations focus was the decision to cease writing their own bespoke software in favor of purchasing an off the shelf CRM (Customer Relation Management) solution

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FO Degree Networking

Case Study Direct Line Insurance

21st March 2006


Contents

GROUP  WORK        3

INTRODUCTION        

REPORT        4

CONCLUSION        12

BIBLIOGRAPHY        13

APPENDIX …………………………………………………………………………………………………………  14

Group Work

The team (three members) was tasked to investigate Direct Line Insurance. The investigations focus was the decision to cease writing their own bespoke software in favor of purchasing an off the shelf CRM (Customer Relation Management) solution. As part of the investigation the team considered the situation prior to the purchase of the software, the effects or influences of kaizen on any solution, Direct Line Insurance acquisitions’ and the customer experience.

The task was broken down into a number of parts:

  • Initial investigation of Direct Line Insurance
  • Investigate Kaizen
  • Investigate Chordiant and CRM software
  • Produce a CRM diagram
  • Produce individual reports

An initial meeting to delegate responsibilities was held and the report author was designated as project manager. It was agreed that as individuals we would investigate all the major components of the task (this would facilitate individual learning). Following the initial investigation, further meetings would then take place as necessary to correlate information, agree further investigation and decide the report format including the CRM diagram. (Appendix)

Introduction

Direct Line Group is one of the success stories of Britain’s new economy. Wholly owned by The Royal Bank of Scotland it has been selling insurance since 1985. Direct Line did away with the indirect insurance sales model, with its high street branch broker network, exorbitant commission fees and customer unfriendly attitudes, and set out to offer low-cost motor insurance direct to the consumer via the telephone.

Focusing on achieving customer satisfaction at all costs, the company quickly became known for its helpful, accessible and easy-to-understand approach. From its origins in Corydon with 63 staff selling motor insurance over the phone, the company has expanded steadily over the last 15 years. It now services three million customer accounts and its six call centres in England and Scotland handle around 1.5 million calls per month. The Direct Line product range has also grown to include home insurance, personal loans, mortgages, ISAs, savings accounts, life insurance, roadside recovery (Green Flag) and a credit card.

The following case study, describes how Direct Line moved from in-house bespoke software to Customer Relations Management software to improve the company’s acquisition and retention of its customer base.

Report

Direct Line History

The Direct Line story is short but eventful. In less than two decades Direct Line has built an organisation of over 9,000 employees, offering six products to more than five million customers across the UK and Europe. On 2nd April 1985, Direct Line became the first UK insurance company to use the telephone as its main channel of communication. It was a revolutionary event. Out went the middlemen, the fat commissions, the forms and the jargon. In came speed, simplicity and a common-sense human touch.

But the revolution didn't end there. Next came claims by phone… then the launch of home, travel and pet insurance, loans, mortgages and pensions… and the list goes on.

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Every year since 1985, the number of policies in force has grown, as has the range of products on offer. For instance:

  • December 1993, Direct line had become the UK's largest insurer of privately-owned motor vehicles
  • October 1995, Direct Line opened its first Accident Management Centre in Wakefield
  • In September 1999 it launched directline.com, the UK's fastest quote-and-buy Internet service, which offered instant online decisions on car, home and breakdown insurance.
  • April 1999, Direct Line launched the first ever credit card to be applied for, and granted, over the telephone.

Along with the organic growth came ...

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