Tying The Marketing Function To The Business A.M. Best Company's 4th Annual Insurance Marketing & Advertising Summit November 5, 2009.

Tying The Marketing Function To The BusinessA.M. Best Company's 4th Annual Insurance Marketing & Advertising Summit

November 5, 2009

2

Key economic indicators show continued weakness in 2010

New housing starts, Millions unitsGDP growth, Percent

Auto sales, Millions units

General economic indicators

Sector specific indicators

Unemployment rate, Percent

Source: Bureau of Economic Analysis, Bureau of Labor Statistics, Freddie Mac June 2009 Economic and Housing Market Outlook, Chief Economist’s Economic Outlook #22

2.11.5

-2.7

0.4

2.12.73.1

05

06

07

08

09F

10F

11F

0.50.50.9

1.41.8

2.1

05

06

07

08

09F

10F

10.010.510.1

5.84.64.65.1

05

06

07

08

09F

10F

11F

10.510.010.313.0

16.017.017.0

05

06

07

08

09F

10F

11F

3

How Can Marketing Support The Business?

Get The Quote Rate Up, and Win More Quotes

Keep Retention High

Support Product Density

4

MARKETING OVERVIEW

The Goal Of Marketing Is To Create A Stronger Link With Customers As Well As Brokers

Customer

BrokerCarrier

Purchase decision / transactio

n

Integrated marketing influence

Integrated marketing Influence

5

Marketing Overview: We Have Three Main Objectives

Create and maintain a set of well-designed propositions that are the basis of Zurich's competitive advantage

Components:• Implement and maintain a

customer research program over time

• Build and manage a pipeline of propositions under development

• Calculate and maintain the vitality index at target levels

• Build Customer Industry Group views and strategies

Build understanding of the value of the Zurich brand among both customers and brokers

Components:• Optimize the value of

brand advertising• Develop strong, broadly

accessible content and thought leadership in a systematic manner

• Maximize the value of events and sponsorships

Create a universe of motivated buyers and sellers through support and execution of campaigns

Components:• Participate in broad sales

campaigns through selected brokerage locations, supported by Proposition Launch Leaders

• Execute customer-centric digital campaigns, which generate pipelines of prospective buyers

6

Customer Research – The TRI*M System

TRI*M Grid

Detailed diagnosis and identification of actions for improvement based on areas that have the

most impact for the business

TRI*M Grid

Detailed diagnosis and identification of actions for improvement based on areas that have the

most impact for the business

IMPACT ON RETENTION

CL

AIM

ED

IMP

OR

TA

NC

E

HighLow

Motivators

Hidden Opportunities

Potentials/Savers

Hygienics

Low

Hig

h

A01

A04

A6

A05

A10

A02

A09 A03

A08A07

TRI*MIndex

One number score that measures the overall

strength of stakeholder relationships against

industry benchmarks - a KPI for Senior

Management to follow

TRI*MIndex

One number score that measures the overall

strength of stakeholder relationships against

industry benchmarks - a KPI for Senior

Management to follow

Low Retention Year 2Year 1 Year 4

HighRetention

Year 3

90

70

50

30

TRI*M Index 51

48

6575

TRI*M Typology

Description of thecurrent situation in

terms of satisfaction and loyalty, identifying potential threats and

opportunities to market position

TRI*M Typology

Description of thecurrent situation in

terms of satisfaction and loyalty, identifying potential threats and

opportunities to market position

Apostles

Hostages

Rebels

Mercenaries

Overall Overall ratingrating

RecommendRecommendationation

RepurchaseRepurchase

Advantage Advantage versus versus

competitorscompetitors

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TRI*M Action Grid – Strengths And OpportunitiesTRI*M Action Grid – Strengths And Opportunities

Impact on Customer Retention

Sta

ted

Imp

ort

ance

HighLow

Low

Hig

h Motivators

Hidden OpportunitiesPotentials?/Savers?

Hygienics

Communicates Proactively

Impact on Customer Retention

Sta

ted

Imp

ort

ance

HighLow

Low

Hig

h Motivators

Hidden OpportunitiesPotentials?/Savers?

Hygienics

Delivers When it Matters

Impact on Customer Retention

Sta

ted

Imp

ort

ance

HighLow

Low

Hig

h Motivators

Hidden OpportunitiesPotentials?/Savers?

Hygienics

Knowledgeable Underwriters

Far above averageAbove average

Far below average

Below averageAverage

Performance Symbols:

Industry A 88

Industry B 86

Industry C 79

Industry D 95

Industry E 73

Industry F 84

Industry G 87

TRI*M Index

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The Zurich Way (TZW) Of Proposition Development

Identify opportunities

Post-launch review

Develop, evaluate and prioritize propositionconcepts

Prototype and plan

Design/ update proposition

Go to market Custome

r

Grow•Effective launch•UW capacity•Goal and appetite alignment•Marketing excellence•Distribution excellence•Underwriting excellence

Develop•Unique features•Full set of coverages•Likely economics•Distribution demand

Choose•Size of opportunity•Relative priority•Commitment to grow•Unmet customer needs

9

Proposition Development Extends Through Launch And Ramp Up To Peak Sales!

Key Elements of Revamped Process:

Concepts based on current economics and direct customer inputPrioritization via steering committee of BU heads

Cross functional team (UW, claims, risk engineering, sales and marketing) develops conceptsTested with brokers and customers

Focus on “bigger bang” launches by using sales campaignsDedicated Product Launch Associates to educate brokersEmerging digital and online capabilities

Focus on ensuring adequate underwriting capacity and consistent application of appetiteJoint accountability for success

Development LaunchConcepts In market

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Developing Zurich’s BrandKey Proposition Features For NAC Customers

Access to a world-class global network

Specialized claims service

• We provide tailored insurance solutions in more than 180 countries

• Zurich MIP ensures compliance globally• Access to a global knowledge base that is

unparalleled in breadth and scale (e.g., centers of expertise, Commercial Markets International Practice, Global loss-cost management expertise, virtual consultant)

• Proven, first-class CAT response• Dedicated customer claims liaison and team

(claims specialists) • Fair claims settlements that meet your

expectations• 24/7 customer service center with 24 hour

call back guarantee• Beyond settlement: access to Zurich Staff

Legal• An easy to use online tool to track claims

more openly and efficiently

Deep understanding of your unique business risks • Dedicated experienced underwriter & claims

handling give you relevant solutions for your most complex issues (includes Underwriting experts dedicated to small and medium sized businesses in P&C and Specialty lines)

• What ever your challenge we can find someone from our global pool of more than 900 risk engineers who has knowledge and insight into your specific industry

• Access to risk insight and benchmarking tools to help you manage your risks (e.g. ZRisk)

• Global insights for Automotive, Construction, and Real Estate

• Customer advisory meetings and industry involvement enhances communication

Tailored solutions to meet customers needs • Our customised products and solutions,

comprehensive and wide product range, and large capacity ensures we can meet the most complex/unique set of needs, e.g.:

−International network for Commercial forms−OPPI - Owners Professional and Protective

Insurance−Subguard - Insurance for surety−Environmental Services package - Fire &

Restoration firms−Middle Market Technology - P&C and

professional−Financial Enterprises - P&C, Crime and

Fidelity−Travel Assist (e.g. Beijing Olympics)

11

Leveraged 360° Marketing To Build Awareness, Consideration And Brand Value

CustomersIntermediaries

InvestorsMedia

Online

Annual ReportAdvertising

Airports/Outdoor

Digital Relationship marketing

Direct Mail &E-mail marketing

Events and Sponsorship

Public Relations/Media Relations

Marketing collateral

12

The Impact Of Zurich’s HelpPoint Campaign Has Been Very Positive

Ran

kin

g

Source: Brand Tracking 2008/2009 Based on cross country analysis total sample

Awareness among Medium Business Decision Makers

Consideration among Medium Business Decision Makers

2008 (Pre-campaign)

2009 (Post-campaign)

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Digital Marketing Overview

Attract initial interest; present an offer

Capture prospect information; screen to identify leads

Maintain dialog as leads approach time to

buyWebcasts

Email blasts

Paid Search

Banner Ads

Organic Search

Industry Group

Underwriting Appetite

Broker

Prospects Ex-dated

Leads

White Papers

Industry News

Sponsored Topics

Sponsored Topics

Hot Leads

Route Leads To SBUs, Regional

Sales

Refer to Broker

Accept Submission

Issue Quote

Win Business

1. Generate Customer Dialogs Through Digital Marketing

2. Convert Leads To Sales

3. Measure and Optimize

•Cost Per Lead•Improvement In Win Rate

•$Revenue/$Expense

Cloud-based CRM Environment

14

Can Marketing Support The Business?

Get The Quote Rate Up, and Win More Quotes

Keep Retention High

Support Product Density

YES!