Crm Practices in Indian Insurance Sector

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CRM Practices in Indian Insurance Sector

By Aitbar Ahmed Khan

CRM Practices in Indian Insurance Sector

In today’s dynamic environment, the insurance industry has witnessed many spectacular changes in terms of advancement in technology, strengthening of the existing customer base and acquiring new customers. In this age of information and uncertainty, more and more people have started recognising the importance of insurance. However, the present situation in the insurance industry is characterised by complexity and competitive situations. At present, insurance industry is one of the leading industry in India. There are about 30 players operating in both life and non-life segments and one is reinsurer. Today, the main
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➢ The whole organization must recognise the fact that customer needs are of prime importance to them. This fact should be well-endorsed by the top management, individual employees and their supporting staff.

➢ The practices should be implemented in a phased manner as it is very easy and less time-consuming and also reduces the cost.

➢ The benchmarks against which the performance has to be measured should be well-established, thereby ensuring the required success in the implementation of CRM insurance.

➢ Well-trained staff will ensure the success of CRM.

➢ By adopting CRM, insurance companies will have a basic understanding of the customer’s requirements, and helps them to know how many are likely to remain and leave. This helps in taking proper corrective steps to prevent the loss to the company.

Process of CRM

The following figure depicts the steps involved in CRM in insurance sector in a nutshell.

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1. Identification of Potential Customers

It includes:

• Customer Lifetime Value: A customer after buying profitable products in the future also serves as an ideal reference for more profitable customers.

• Customer Value Propositions: Insures must offer better value packages, suitable finance options to the customers in order to be close to them. The insurers must offer to the customers the information and services they want before hand and should also offer more options and fewer choices.

2.
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