CRM IN LIFE INSURANCE

BY
B.Sandeep kumar
MBA
13251042

INTRODUCTION
Deregulation of insurance industry in the global
has resulted in increased number of players in the
market.

Government took a decision to dismount the

monopoly.
Reasons that competition would promote better
products, value and service to the customers

 Establishing the premium rates is an

important aspect of insurance business.
The goal is to set rates that reflect the risk
level of the policy holder.

The lower the risk, the lower the premium

rate.

 As an example consider a case where we have a

customer database of about 1,00,000. Out of the
1,00,000 customers, say about 10,000 are currently
holding a specific product and the balance 90,000 are
not holding the product.
We are interested in identifying about 20,000
customers out of the 90,000, the criterion being their
probability of responding to the promotion/ marketing
Campaign is the highest so that we do not waste time
and energy on those whose likelihood of buying is not
high.

Article 1
E-CRM Practices and Customer
Satisfaction in Insurance Sector

Dash Biswamohan and

Mishra Bidhubhusan

Absract
On a global scale a number of insurers are competing and offering
the customers a plethora of products. The customers are
demanding quick and better service from the service providers. For
the insurance companies to survive competition, they have to
upgrade the quality, transparency and integrity to acquire and
retain customers in long range. They need a set of offers and the
value proposition to be delivered to the target potential customers,
which needs a thorough market research to understand the needs
of the customers and accordingly launching the products to match
with customers expectation. Since the initiation of liberalization,
privatization and globalization, successive governments have tried
to keep pace with a rapidly changing global scenario. The doors for
private participation were opened in a number of sensitive sectors,
insurance being one of them. For the past few decades, insurance
was looked upon as a tax-saving investment product.

Introduction
Globalization of business, cut throat competition,
customers expectation, maintaining loyalty
among customers, to gain more profit, customer
retention and strategic customer care have
evolved the recognition of the importance of
customer relationship management (CRM) and
relationship marketing in the business
organization. Today the companies have to shift
from managing a market, to managing specific
customers. But managing the customers and
retaining them for long time is not easy task in a
competitive market

 These growing classes of Indians, who are

growing at the rate of 10% per yr, present a
different view of India with their changed life
styles, a more westernized attitude, more
secular thinking and trying to create a
meaningful life. This will obviously lead to
think for future.
For this reason they must think for saving
money, doing insurance policies or pension
plan or mediclaims, which can help them for
their health or education.

Research Methodology
A well structured questionnaire was prepared
to obtain the opinions from the respondents
having the insurance policies. In total two
hundred eighty four customers were selected
on random basis and views were taken for
analysis. The data are analysed and
interpreted by using the statistical tools like
factor analysis, ANOVA and t tests etc.

Results and Discussion

By implementing the factor analysis, factors have been
extracted which are all part of CRM practice. These are
brand popularity, innovative product delivery, quick
and honest response, Building relationship, financial
security. As far as effectiveness of factors across
organizations is concerned, all the factors are proved to
be the responsible and essential factors by delivering
financial security and innovative products to the target
customers and building the honest relationships. So it
is fact that, all the undertaken insurance companies are
getting success by practicing the above factors.

Conclusion
CRM will be able to manage the huge database of
customers. also will facilitates the online customer
interaction for the sake of quick access, better service
and delivering right offers at right time to the right
customers. CRM implementation is also a cost effective
and time saving activity, which will provide the long
range solutions to the insurance players. Thus, the
need to integrate customer data from multiple
channels, to increase sales force productivity (including
agents), raising service standard, customer satisfaction,
loyalty of customers, CRM soft wares will be always in
demand.

SERVICE SATISFACTION AND

RELATIONSHIP MANAGEMENT IN
LIFE INSURANCE COMPANIES : AN
EMPIRICAL VIEW

INTRODUCTION
Life Insurance is critical for the development of Indian
economy. Apart from a brief dip in the year 2009 due
to downturn, the industry has grown around 20 per
cent per annum. In the first decade of privatisation the
insurance penetration has doubled, which has all going
for it to only rise significantly in a country of 1.2 billion
people. Post the global financial crisis financial capital
infusion by foreign partners has considerably slowed
down; from Rs 8,170 core in 2008-09 to less than Rs
2,300 crore in 2010-11. For a capital intensive business
like life insurance, the trickling down of capital severely
impacts growth and also changes the strategy that the
company adopts with its business.

Objectives Of The Study

To analyze the factor wise significance to the
Customer Satisfaction
To provide suggestion to improve the
performance of life insurance business in
India.

DATA ANALYSIS & DISCUSSION

This present paper examines the various variables
influencing consumer satisfaction as regards to
performance of Life insurance companies . In
this process, the factoral relationship exist
among the variables have also been examined
during the process of study. Thus, the primary
purpose of factor analysis is to discover the
pattern of impact among the variables on
customer satisfaction . In particular, it seeks to
discover if the observed variables can be
explained largely or entirely in terms of a smaller
number of variables called factors.

CONCLUSION & STUDY FINDINGS :

In the analysis of customer satisfaction through the
services provided by their own insurer have been reported
that the following factors were most significant in response
to the satisfaction . These are mentioned below: as Service
is performed at right time in Customer Relationship
Management, Recommending the Company plans to
friends and relatives in Brand Loyalty, Modes of payments
are easier and faster and Online facility provides adequate
information's & provides easy access in Information
Technology , Employees provide information's time to time
for new products in Customer Orientation and Easy
payment through wide area network by Agents in Wide
Area Network Coverage as these values of these factors
holds a good fit to their responding factors .

SUGGESTIONS
The suggestion for the development and growth
of the life insurance business have been outlined
from the present research as : the companies
must adopt Customer oriented Plan coverage
through advisors , Easy settlement through wide
area network by Agents/Officers , arrangement
of more number of workshops/seminars for
customer orientation, their employees must be
instructed to maintain a good linkage with the
present customers , Staff should provide prompt
service to their customers

Article 3
CUSTOMER RELATIONSHIP MANAGEMENT
PRACTICES IN INSURANCE SECTOR A STUDY
ON LIC OF INDIA IN TIRUCHENDUR AREA

Mrs.C.Pappeswari
Mrs.S.Rajalakshmi

Introduction
Today, many business such as bank , insurance companies and other
service providers realize the importance of Customer Relationship
Management (CRM) and its potential to help them acquire new
customers retain existing ones and maximize their lifetime value. At
this point, close relationship with customers will require a strong
co- ordination between it and marketing departments to provide
long term retention of selected customers. CRM is a sound business
strategy to identify a company's most profitable customers and
prospects and devotes time and attention to expanding account
relationships with those customers through individualized
marketing, reprising, discretionary, decision making and customized
service delivered through the various sales channels that the
company uses.

Scope Of The Study

The study has been undertaken mainly to
highlight the customer relationship management
with insurance in Tiruchendur .The kinds of
policyholders like self employed, businessman,
agriculture, government employees, private
sector employee's people have included in the
study. This study includes the customer
relationship in life insurance sector and their
levels of perception only individual life customer
have been taken and other are excluded from the
study.

Objectives Of The Study

1. To know the policyholder perception and
expectation with CRM in life insurance of India.
2. To find out satisfactory level of policyholders with
CRM in life insurance.
3. To identify the main factor influencing perception
and expectation of policyholders about
insurance.
4. To find out the main problems faced by
policyholders
with
customer
relationship
management in life insurance
5. To analyze the gap between the expected
performance by the customer and actual
performance by the company

Findings
Most of the respondents were in the age
group between 30 35 years.
In gender wise classification 68 (54%)
respondents were female.
Regarding marital status, it was found that
74(59%) respondents were married.
24 (19%) respondents have completed
graduation. 5. 34(27%) respondent were
working private employees.

Suggestions
Charges of the insurance companies should be
kept low.
More personalized follow up by the companies
instead of sending couriers for information
because of rural areas about their investment and
all updates.
10. More branches should be opened in semiurban areas or rural areas.
11. Finally the largely underserved rural sector
holds great promise for both life and non-life
insurers.

Conclusion
There is low level of awareness and
understanding of life insurance products and
more generally of the operation of life
insurance companies in rural customers.
There is confusion in the minds of customers
between life insurance, general
insurance,
health insurance and some investment
products.

 Insurance
companies
in
India
are
consequently directing their strategies
towards increasing customer satisfaction and
loyalty through improved service quality both
for rural or urban markets.
It is becoming desirable for insurance
companies to develop a customer centric
approach for future survival and growth.