Aon Benfield Competition
Now Viewing Aon Benfield's competition in: Insurance Agencies (primary)
Call Preparation Questions
Customers, Marketing, Pricing, Competition
Does the business sell mainly to commercial or individual customers? - Within a category, agencies may also specialize in selling to individuals, businesses, or groups. Agencies that sell to individuals provide highly personalized service that customers value because of their complex insurance needs.
How does the agency find new customers? - Referrals from existing customers are an important source of new business. Advertising and direct mail are also common. Many agencies also now use the Internet.
Does the agency or broker use different methods to recruit individual versus commercial customers? - Selling to commercial customers often requires presentation skills; selling to individuals is more personal.
Who are the company's competitors? - Insurance agencies face competition from the financial services industry as a result of deregulation and from companies with strong Internet presence.
What advantages does the agency or broker have over its competitors? - Agencies have an entrenched customer base, good prices, good personal service, and a variety of policies.
Competitive Landscape
Demand is related to consumer income and commercial business activity. When the economy grows, so does the demand for personal and business insurance. When the economy contracts, as it did in the late 2000s, demand for insurance falls.
Business Challenges
CRITICAL ISSUES
Revenue Depends on Economic Conditions - The revenue of many insurance agencies swings with economic conditions, especially in property and casualty insurance, because the volume of insurance-related transactions changes. A slower economy generally means fewer new homes built and sold, fewer cars bought, and fewer investment-type insurance products bought. Commercial insurance sales also decline along with economic conditions.
Competition from Direct Marketing to Consumers - Insurers can easily sell auto and term life insurance, the largest volume of insurance business, over the Internet rather than through an independent agent. Many insurance companies also sell a significant number of policies directly to consumers through direct mail and telemarketing. While the majority of insurance transactions still involve an agent or broker, experts expect that fewer of these transactions will go through an agency as consumers become comfortable buying insurance without an intermediary.
Industries Where Aon Benfield Competes
- Insurance
- Insurance Brokers(primary)
- Reinsurance
- Risk Management
- Financial Services
- Transaction, Credit & Collections
