A key to developing and asserting competitive advantage is the information. In the virtual world, the striking feature is the lowering of traditional entry barriers such as broker franchise or retail branch networks. The e-commerce or the Internet are commonly used by intermediaries and end customers when transacting and dealing with the virtual business. The requirement of having physical distribution infrastructure is some occasions eliminated. Information about customers is collected by some agencies and use the data established to gain the market advantage. The insurance customer service representative addresses the issues that are faced by customers. The majority of firms which are threatened by the emergence of the internet, they are forced to redefine themselves in the process.
Virtual insurance’s theoretical model
A virtual insurance can be illustrated as a business organization in which each of the functions which are administration, marketing and investment are carried out by a different firm. The role of banking will be required in the collection of premium and claims being paid. One central data warehouse is the area where the business system evolves. Through various applications, the many agents can interface with the data storage. The basis of browser technology is what the applications and interface depend on. The following are some of the main business processes on how they will work;
Through customer database, the owner of the company will have good access to potential buyers of insurance products. As the marketing organization, the business owner will drive customer propositions’ development working with the risk agency. The underwriting insight will be lent by the risk firm, and profitability will be ensured. The admin providers will assist in the configuration of the service platform.
Underwriting and customer acquisition
Customers are usually notified about insurance offer through broadsheet advertisement, direct mailing or some other options which may be considered by the insurance firm. The details of the prospects are usually taken and entered into a quoting engine which is automated, and instant quotation will be provided. The multimedia center processes the information by sending out documents of policies.
The issue of exceptions which are policy applications is essential to be addressed. The volume of exceptions should not be assumed by any individual since it can be predicted and managed down through the efforts both from the risk firm and the marketing organization. In most of the cases, the insurance proposition will be assigned to a public and relatively closed market. One should avoid large volumes of exceptions. The calls to the insurance or risk agency underwriters should be redirected as a more accommodating option to be considered.