Insurance has many specific characteristics that in time proved to be problematic for the implementing of
customer relationship management. Firstly many of the specific products require fewer after-sales service.
Once you have purchased a life insurance for example, the next significant event is the claim or the expiring
term. Therefore investing in additional services for such a product is not justified by an increase in profits and
therefore the cost of CRM implementation is also not justified. Secondly sales force in life insurance is more
inclined towards new purchases. Although in sales it is recognized that cross-selling is cheaper than the acquisition of new customers, the compensation structure and training of sales people in the field, encourages the acquisition of new customers to the detriment of developing the existing ones. Thirdly it is extremely important to understand that the correct data is not correctly shared across the supply chain, which is composed of several levels on the B2B2C model. For the customer relationship management system to be truly effective it must be able to provide a focal point of information, for all parties to see the interaction to the final customer. Finally, often, implementing CRM in insurance faces the problem of misidentification of the customer. Such a system considers distributors as being customers, completely neglecting the concrete result of the sale to the final consumer (BlueSun Inc., p.2).