Why Has CRM Failed In Insurance?
Incredibly, in this highly informed day and age, it is still news to some that denial is not a river in Egypt.

Customer relationship management–the idea that technology will enable us to determine the wants and needs of our most profitable customers, and develop products and services aimed at them–has been a buzzword in this industry for more than two years. Yet experts like Clarence Smith, assistant vice president at Conning & Company, a Hartford-based researcher, tell us that CRM programs fail between 55- and 70 percent of the time. The cost of such failures may range up to $100 million, says Conning.

Why are CRM programs so dysfunctional? According to Mr. Smith, the answer lies in the insurers culture and business model. In his study for Conning–”CRM in Personal Lines Insurance”–he notes: “Unfortunately, some p-c insurers view CRM as nothing more than a technology effort, rather than a fundamental strategy that helps establish and build customer relationships.”