Adding value to insurance products: the AXA Irish experience

Abstract

Purpose – While competition within car and home insurance increases through more players and also unfamiliar entrants to the market (supermarkets), the purpose of this paper is to report on a study of one large insurer in Ireland which attempts to differentiate itself from its peers. Design/methodology/approach – The paper does this through a literature review of the insurance market and customer relationship management, and a detailed study of the company loyalty programme and its application to its customers. Findings – The loyalty programme employed suits the particular sector in terms of purchase intention and also gives the customer of the insurance brand a sense of belonging and relevance where they can avail themselves of savings on related products. Research limitations/implications – Information sourced is based on published data from the company and other peer reviewed journals. This is a study on a simple loyalty programme that can be applied to low frequency purchases. Practical implications – This simplified loyalty programme gives the brand high recognition values in terms of how the brand is made relevant to the customer through discounted related products. Originality/value – As loyalty programmes are not a usual feature of financial services, this paper highlights a unique programme in operation that is being replicated elsewhere.