A strategic framework for relationship development in a South African short-term insurance intermediary company

Abstract

South African short-term insurance intermediaries are finding it increasingly difficult to retain clients and remain viable in an industry that has become highly competitive. Understanding the unique long-term relationship needs of clients in such a challenging market is now more important than ever before. The main objective of this study was to construct a strategic framework for long-term client relationship development within a South African short-term insurance intermediary company context. The aim of the framework is guide to the short-term insurance intermediary industry on how to facilitate authentic and successful long-term relationships with clients. A case study of an established short-term insurance intermediary company provided an opportunity to study the underlying drivers of successful long-term client relationships. The methodology consisted of a qualitative approach to explore a case study to develop constructivist grounded theory. Case company statistical data and the document analysis of available client claim feedback forms was used as the first phase of data analysis with the assistance of ATLAS.ti (v9). The potential gaps in the data were filled with in-depth interviews conducted with the staff, underwriters, and clients of the case company. Based on the results, this study proposes a strategic framework that can guide South African short-term insurance intermediaries in the development of long-term client relationships. The literature review provided additional information to support the identified codes and themes. The findings of the data analysis and the literature review were integrated to develop the OrchARDZ strategic framework that consists of twelve relationship drivers and specific action steps to guide the planning and implementation of each relationship-focussed driver. The limitation of the study was rooted in the fact that it consisted of a single case study within a specific context. This provides an opportunity to test the strategic framework in future research. It is recommended that short-term insurance intermediaries should use the framework developed in this study with a view to improve the overall effectiveness of their long-term client retention and relationship marketing strategies.