Many insurers currently are involved in seven or more strategic alliances, which were most likely initiated through peer networking. This analysis is drawn from findings from a Inter-Company Marketing Group’s (ICMG) recent survey of more than 70 insurance companies.
For its “Strategic Alliances Survey 2011-12” ICMG defines strategic alliances as partnerships, product distribution agreements, private-label products, third-party administration agreements, joint ventures, and other multiple-company efforts that generate revenue.
According to the company’s 70 percent of insurance executives look to their peers to find their next strategic alliance opportunity, and 56 percent seek out the opportunity at industry events. Other responses included insurance trade media organization directories, Web searches and LinkedIn.
Once the insurers have found the potential business partner, they also look to peers when conducting due diligence. Nearly 80 percent look to peers when conducting due diligence and approximately 70 percent look to the potential partner's marketing or other materials. Financial statements, annual reports and related documents are the next most popular sources of information.
"Strategic alliances decision-makers turn to people they know to find others looking for deals," said Frank Osborn, marketing manager, MWAGIA Inc./Modern Woodmen of America, and ICMG president. "These survey results bear out that reality: Networking, with peers and at industry gatherings, is the most-frequently-used path to find and create strategic alliances."
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