DO CRM HAVE BECOME A NESSESITY IN INSURANCE SECTOR?
▫ What I you want to find out/ research?
I want to study the whole system of customer relationship management and its necessity in Insurance Sector. It will be an analytical research to find out whether Really the Insurance Sector requires CRM initiatives which fulfills the customers expectations or not.
Demand Side-In coming years rising customers expectations will force Insurance Sector to introduce more and more new CRM initiatives as it has got a serious impact on the sale of the insurance policies. Supply Side-Technological advances and decreasing cost of Information technology will reduce barriers to adopt IT based CRM initiatives.
As the profitability of the Insurance Sector is mainly depend on the services offered by the Insurance Sector and meeting the customers demand on regular basis ultimately suggests that the good CRM initiatives is the base of the insurance sector. So therefore the study of CRM becomes very important as I am into sales department working as a development officer where I am handling the team of 30 agents and round about thousand of customers.
The current scenario in the insurance industry is a complex and competitive environment tinged with little stability. The major hassle the industry faces is obtaining clients. This is due to the fact that the big fish in the insurance industry dominate the sector. It has become increasingly difficult for this particular sector to gain profits while curtailing costs. Acquisitions, mergers, have all contributed to the difficulty insurance agents and other professionals from this industry face.
Long considered a job only restricted to insurance companies, selling insurance policies has now become an option for banks as well. This has resulted in a lot of increased as well as unwelcome competition. Customers tend to lose out as they are not buying from the right provider. In addition to this the Internet has increased the pressure for insurance companies in capturing the market. All this has succeeded in making the insurance world more complicated.
What is required is a comprehensive database of information about customers who hold your insurance policies. The answer? Choosing a customer centric strategy can go a long way in achieving this. CRM - Customer Relationship Management holds the key. CRM helps insurance companies to ensure that the customer is understood better.
Right now insurers can achieve excellent policy administration; good billing systems etc but fall short on the customer front. However this alone is insufficient to survive on. Insurers have now realized that CRM is essential if they want to deliver high quality services since it satisfies current customers and gains new ones. This is because policies get sold only if relationships are built. CRM solves these problems with its user-friendly, web-based CRM tools that increase sales opportunities
Why Opt for CRM in Insurance Sector
Insurance CRM decreases the time required to make product changes 1) A holistic integrated customer view
2) Targeted marketing
3) Customer retention
4) Increased growth
5) Increased policy sales
6) Increased insurance market share
7) CRM Insurance integrates marketing with other operations 8) Efficient distribution channels are secured
9) CRM provides the chance to reduce operating expenses
10) It provides for more affective and efficient communication 11) It improves the response time
12) It increases customers satisfaction
13) Insurance application queries/ claim status queries can be answered sooner 14) It reduces the time that is normally taken for printing 15) Policy mailing time is reduced
16) It decreases overall costs
17) Aids the call centre activities