1273636, Sanjay Kumar, F2, Q29 Comment on Customer service in Insurance sector.

Introduction

Insurance is the equitable transfer of the risk of a loss, from one entity to another in exchange for payment. It is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss.

According to study texts of The Chartered Insurance Institute, there are the following categories of risk:

1.     Financial risks which means that the risk must have financial measurement.

2.     Pure risks which means that the risk must be real and not related to gambling

3.    Particular risks which means that these risks are not widespread in their effect, for example such as earthquake risk for the region prone to it.

It is commonly accepted that only financial, pure and particular risks are insurable.

Growth

Over FY03–FY12, total gross written premiums increased at a CAGR of 19.6 per cent.

Penetration

Motor insurance forms the largest non-life segment, with 43.1 per cent share in FY13.

Growth

Over FY03–FY12, life insurance premiums expanded at a compound annual growth rate (CAGR) of 20.1 per cent.

Market Share

LIC is the market leader, with 70.7 per cent share in FY12.

DISCUSSION

The insurance industry has discovered in today's multi-tasking, multi-device world, customers want to resolve their issues on the go, via their mobile or tablet device, and in between text messages. As a result, this industry has evolved its business models to ensure a high-touch, interactive and engaging customer experience.

The Evolution of the Insurance Policyholder Value Chain

When analyzing how the value chain has evolved over the past decade, it becomes apparent that technology has enabled insurance companies to have a high touch, interactive, and engaging relationship with its policyholders; ultimately deepening customer relationships exponentially relative to the past. It's no longer about how to sell the best policy at the cheapest rate. Instead, it's about how to provide the best policyholder experience.

Consumer Research

An increasing number of consumers are using social media to research their buying decision and insurance is no different. When deciding what insurance carrier to go with, what policy is best, and whether to purchase through a broker or an agency, consumers will turn to the internet and social media channels to do their research. They will leverage complaint forums, consumer review sites, read blog posts, and most importantly ask for recommendations from their Facebook friends. At the end of the day, consumers trust peer recommendations more than they trust advertisements.

Purchasing Process

Traditionally, brokers and agents market to a defined geographic territory around their brick and mortar office because consumers preferred buying insurance from someone they Knew and trusted.

Service

Every moment of hold time, hunt and search time, or IVR frustration will put customer loyalty to the test. Today's smartphone customers expect on-demand access to phone, web, apps, social media and video. Before developing a customer service app, think of the customer experience from start to finish and brainstorm ways to give customers every opportunity to get help or help themselves. Here are some functional ideas for mobile apps or optimized mobile sites that will enhance the mobile customer support experience for policyholders. Self-service options via a mobile app or optimized mobile website:

·         View your insurance ID card

·         View your different policies

·         Pay your bill

·         View your discounts and coverage

·         Quote adding a vehicle

·         View driver and vehicle information

·         Update your contact info

·         View your agent's contact info

·         Access your doctor's office info

·         Check the status of your deductible and out of pocket spending

·         Check your Heath Savings Account balance

·         Address questions, issues and complaints

·         Inform and communication with policy holders about claims process

·         View your life settlement options

Social Media

·         Let policyholders know about catastrophic events or weather approaching, while directing them to help services

·         Connect with a registered nurse 24/7 for any medical question

·         Create and share holiday cards with social media contacts

·         Create boards for each line of business on Pinterest, then pin pictures and articles about the topic, such as tips on taking care of a boat, great places for motorcycle rides

·         Hosting a live Twitter chats to answer insurance related questions

·         Offer Birthday Life opportunities

Mobile Apps

·         When customers are shopping for a car, provide them with crash test ratings and vehicle recall info or allowing them to compare insurance costs by scanning 2 or more VINs

·         Use GPS to find healthcare specialists in their area

Using GPS to locate the nearest taxi, rental car or roadside service (flat tire, low on gas, locked out of car, closet gas stations)

·         Locate urgent care and ER facilities in the area

·         Change life beneficiaries

·         Provide an accident guide checklist

Claims

Technology has revolutionized the claims process. Armed with smartphones, policyholders who get into car accidents now have the option to take photos of the car damage; video the location and traffic signs in the area; make note of the other person's license plate and VIN number; capture the police officer's name while showing them their mobile insurance ID card; and lastly call or email their insurance company all in real-time. Another example is with home owners insurance. Homeowners are now downloading apps that they can use to access the inventory of their home's assets. They'll use the app by taking photos of the assets in each room, assigning a value, and gauging an estimate of the home's worth in case of a catastrophe or natural disaster.

Customer Feedback

Customer feedback is critical to assessing the current customer experience and finding new ways to make it better. It's important to hear first-hand what customers think of your company, its employees, and insurance plans. The great part about social media feedback is market research has never been easier!

Conclussion

In conclusion we can say that india insurance industry grew faster rate. The customer care service is very important for the insurance sector because customers are the ain part of the insurance sector. They are taking many steps to improve and grow insurance facilties. All type of insurance that is life insurance and non life insurance play significant role. The insurance sector has gone through a number of phases by allowing private companies to solicit insurance and also allowing foreign direct investment of up to 26% (as of 2013 there have been proposals to extend the FDI up to 49% to strengthen the Insurance Market even further). However, the largest life-insurance company in India, Life Insurance Corporation of India is still owned by the government and carries a sovereign guarantee for all insurance policies issued by it.