Rbc Case

Topics: Insurance, Damage waiver, Underwriting Pages: 19 (6859 words) Published: September 19, 2013
Royal Bank Canada is a financial institute that owns and operates RBC Insurance - a Canadian owned financial institute headquartered in Mississauga, Ontario. Operating globally, RBC Insurance has over 5 million clients in the United States, Canada, and in international markets. Through its operating entities, RBC Insurance provides a wide range of travel, life, health, home, auto, wealth and reinsurance, as well as creditor and business insurance services, to individual and group clients (Royal Bank of Canada, 2012). These products are distributed through third-party channels including independent life insurance advisors, travel agents, as well as through growing proprietary channels such as retail insurance, bank branches, call centres, online banking, and career sales force (RBC.com, 2012). Founded in 1996, RBC Insurance is relatively new to the marketplace. Nonetheless, “RBC Insurance has more than four million clients globally, and is one of the largest Canadian bank-owned group of insurance companies and among the fastest growing insurance organizations in the country” (RBC.com, 2012). Since its inception, RBC Insurance has seen a yearly growth rate of 20% through several mergers and acquisitions (M&A) and employs over 3,200 representatives around the globe. The organization continues to expand its insurance services and business offerings. RBC faces a competitive insurance market in the midst of stiff competition while keeping pace with today’s constantly changing business environment to surpass client expectations. Over the years, with the development of powerful technologies of connected devices such as smartphones and tablets, the new generation has found ways to communicate and exchange ideas, not only through traditional communication mediums such as television and radio, but also through social media such as Facebook, Twitter, and LinkedIn. These technologies allow individuals to access vital information at their fingertips. As such, in today’s dynamic environment, consumers have a variety of communication mediums available to them, providing them with interactivity and continuous dialog opportunities for insurance companies to entertain. These exciting new technological and social developments provide an opportunity for evolving traditional communication models to shift to ones which are more proactive in shaping messages directed towards a specific target audience. For instance, media formats such as video blogging, podcasting, RSS, and many others have since become prominent alternatives to traditional advertising routes such as billboards, magazines, and television. New social tools are especially effective towards the younger consumer market, also known as Generation Y. Social media tools now appeal to a much larger crowd than ever before, and it is vital that organizations reflect these sweeping changes. Some consumer industries, such as the automotive, entertainment, and hospitality industries, have all taken advantage of these new powerful mechanisms and what they have to offer, whereas others have remained traditional and much more hesitant when looking to adopt these mediums for business and consumer growth. For the insurance industry as a whole, including RBC Insurance, the world of collateral security had not changed much over the years. Insurers would charge a premium, if an individual’s risk of experiencing an accident was high, the premium would increase and vice versa. Advances in technology have enabled clients to compare rates immediately by going online as opposed to relying on static sources to obtain information. Furthermore, RBC realizes that in order to grow, they must acquire new clients, uphold retention rates, and create organic growth. Services must appeal to the public in new and exciting ways to compete with competitors such as TD Canada Trust, Standard Life, and Aviva where similar services and products are offered. Going forward RBC understands that social media is an...
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