CUSTOMER RELATIONSHIP MANAGEMENT IN INSURANCE SECTOR

Presented ByAmisha, Ajay, Nishtha , Nitish and Vijender

NEED OF CRM IN INSURANCE SECTOR

BACKGROUND

Insurance products are becoming more commoditized. Presence of numerous players. Advertising efforts are being countered by comparison portals, insurance advisors and corporate alignments. A large share of business is driven through intermediaries where information challenges exist for effective management. Companies continue to face stiff revenue targets spread across too many stakeholders. Stakeholders struggle to deal with too many processes, systems and geographies.

CHALLENGES

Effectively collaborate with network of agents and intermediaries to get better visibility of sales processes, reduce cycle times and prevent revenue leaks? How to provide valid, up-to-date intermediary-wise performance data to help relationship managers drive revenues? How to influence corporate buying decisions, while working to forward relationship width? How to ensure optimal service quality to customers & intermediaries, across a multi-source eco-system?

CONTINUE..

How to evolve a complete 360 view of customers along with their policy holdings, risk profile, premium payments, claims history, to judge true value of relationship? How to tap complete household/ account potential to offer personalized products as per requirement and propensity, using cross-sell/ up-sell techniques? How to provide proactive real-time insights into processes for actions, with intelligent reports & dashboards? How to comply with ever changing insurance regulations?

MAX NEW YORK LIFE

The RATER strategy for its operations and for the customers

Reliability Assurance Tangibles Empathy Responsiveness

CUSTOMER LISTENING SYSTEMS

The company has a customer listening system The tools used for it are: Customer satisfaction surveys Agent satisfaction surveys Service scorecard (Customer touch point experience) Customer/Agent issues inventory Service monitoring questionnaire with policy pack Complaint questionnaires

VALUE CHAIN

Product development Customer acquisition Policy issuance Post policy servicing Collections/renewals Claim settlement

This process is supported by Customer Care/call centers, IT, F& A, Actuarial, HR & facilities, Marketing and legal processes.

LIFE INSURANCE CORPORATION

LIC has approximately 1million agents across the country It serves approximately 160 million policy holders. It has seven zonal offices, 100 divisional offices, and 2,048 branch offices.

CRM ACTIVITIES

Extensive network with a Web front-end to make policy detail and services more accessible. WAN in a hierarchical arrangement EPS (Enterprise Portal System) Voice-enable its WAN and video conferencing solutions.

BENEFITS

Streamlines processes Collections via the Web reduce time taken for transactions. Single stroke servicing of the customer. Option to drill down to any policy or any request pending (proposed) on any policy of the customer Single Window Operations for all products and services for a customer Customer ID links all policies of a customer from the branch data base.

SBI LIFE

SBI Life has recently shifted from its in-house CRM solution to CDC Softwares Pivotal CRM. With the new solution, SBI Life can efficiently service any query/compliant because they have a consolidated view of all the past payments and history of customer interaction at their finger tips allowing for faster resolution and immediate escalation for problem that require deeper investigation. With the new system, the company can record not just the queries of existing customer but also the initial interactions with potential customers. It also helps them understand customer behavior, what people are looking for, why they chose the solutions they do.

BENEFITS

With a central monitoring team, the management can deicide which complaints can be handled by the service agent and which need to be escalated to the next level. It allows a single view of the customer and follows it within the hierarchy, and offers a summarized view for the management to see. Improved transparency, brought down complaint resolution time and cuts across all customer touch points. It is one of the first insurers that is compliant with the new IRDA regulation, allowing for seamless transfer of information and transparency

HDFC ERGO GENERAL INSURANCE

It was born out of an initiative by HDFC Bank to enter into the general insurance sector. With a little over eight years in the industry, it is already the fifth largest private insurer in the country. It uses a centralized lead management system

HOW IT WORKS ?
With the new system in place, field executives can now upload leads generated from the market, third-party databases, and existing customers into a central repository. The sales team then uses the Lead Tracking and Reporting Mechanism tool to manage leads and track these leads across the customer lifecycle, and generate various reports for top management.

BENEFITS
The system has given the flexibility to customize the products according the user's needs. A single repository of data enables the company to closely track the sales pipeline and figure out where the gaps are, and how to close them out. Has lead to thrilled users as it has made life easier for them. An increased lead conversion rate which stands at 30%. A 30% conversion rate of 20,000 leads equals 6,000 policies.

DATA INTERPRETATION

No. of Policy Holders

25 20 15 YES , 24 10

Major Players

ICICI, 5
Babaj

allain z19% NO, 6

LIC, 12

5
0 YES NO

Timely access to information

Sources Of Information
Phon e Call, SMS, 14 12

YES , 16 16

15
10 5 NO, 14 0

15.5
15 14.5 14 13.5 13 YES

Email, 4

NO

Is the staff courteous and helpful?

Is the website friendly and interactive

25 20 15 10 5 0 YES NO, 6 YES , 24

20
15 10 5 0 NO yes no

yes, 11

no, 19

Timely response to queries and requests

Are the facilities provided adequate ?

16 15.5 15 14.5 20 18 16 14 12 10 8 6 4 2 0

no, 16 yes, 14 yes no

no, 20 yes, 10

14
13.5 13

yes

no

CONCLUSION

Insurance sector in India is a booming sector and has seen a tremendous growth in the past few years. Almost 80% of the respondents replied in affirmative about owning an insurance policy which proved that Insurance is the need of the day. Insurance companies have started developing specific CRM initiatives to retain their customers. Policy holders also acknowledge the presence of such CRM initiatives. Though many initiatives have been taken up by companies, still CRM in the Insurance sector is at a nascent stage