THE UK CONSUMER DIRECT INSURANCE INDUSTRY - A ROLE-MODEL FOR RELATIONSHIP MANAGEMENT

This article analyses the reasons for the rapid growth Of the direct i nsurance industry. it examines the value chain in insurance and shows how the approach taken by Direct Line simplified the value chain, redu cing costs and accelerating the process of meeting customer needs, usi ng an innovative relationship marketing approach, The article then ana lyses the state of direct insurance today, and how traditional insuran ce companies have tried to cope with the inroads made by direct insure rs. it examines whether the direct approach to managing customers nece ssitates disintermediation, considers whether the presence of intermed iaries in the value chain hinders companies' attempts to manage relati onships with their customers, and recommends how to overcome some prob lems that arise in this situation. (C) 1997 Elsevier Science Ltd.