Page 13 - WTW Asia Insurance Market Report
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Generating Ancillary Revenue and Increasing
Customer Loyalty

Businesses are increasingly being faced with a number        customer base through bespoke insurance programmes -
of challenges to their traditional business models and       supported by marketing services and technology.
are now looking for innovative ways to remain relevant to
their customers and generate ancillary revenue. Coupled      Affinity programs are linked to clients’ strategic objectives,
with the prevalence of mobile technology and widespread      often taking a sustainable and long-term view that benefits
connectivity, businesses now have the ability to provide     various stakeholders. An Affinity program is rightly
their customers with access to the benefits of insurance     positioned to benefit clients because it:
programs made available in a convenient manner.
                                                             ƒƒProvides access to insurance programs that may
In order to differentiate themselves from their competitors
in the marketplace, some businesses are focusing on             generate ancillary revenue streams
enhancing their value proposition and gaining insights
on customer behaviour in order to build relevant product     ƒƒRequires little capital investment
offerings. The past few years have witnessed an increasing   ƒƒCreates innovative programs that may help retain clients
number of clients looking to differentiate their offer,
increase customer loyalty and retention and monetise their      and increase loyalty

                                                             ƒƒProvides access to best-practice distribution strategies
                                                             ƒƒEnhances a client’s brand

                                                             Alternative      Looking
                                                             Source of        Beyond
                                                             Ancillary        Traditional
                                                             Revenue          Products

                                                             Service          Increase
                                                             Differentiation  Customer

                                                             Many clients that have chosen to implement Affinity
                                                             programs have been able to provide their customers with
                                                             value-added offerings and access to insurance products
                                                             that are relevant for their customers. We expect the
                                                             demand for Affinity programs to grow in the coming years.

                                                                              13Asia Insurance Market Report 2016
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