SERVICE TRIANGLE FOR INSURANCE SECTOR
“Enabling Promises” “Making Promises”
Services Marketing can be explained with the help of the Service Industry Triangle. There are three entities in the whole transaction process. They are explained as below:
Customers refer to the persons who have certain needs, wants and desires. For the Insurance sector, the customers refer to those persons who feel the need to secure their life and assets from any unanticipated calamities. The customers are further classified as Individual and Institutional.
The company is the dreamer and the offerer. The company dreams up an idea of service offering which will satisfy the customers’ expectation. In the case of the Insurance Industry, the company refers to a player in the industry that dreams up an idea of an Insurance Policy. These are service offerings are designed to satisfy the consumers’ need for safety and assurance from a wide range of unforeseen calamities. The company first designs the Insurance Policy and then communicates to the customers about the benefits and the features of the new policy.
These are finally the persons who interact with the customer. They are the ones who carry out the final transaction. In the Insurance Industry, the providers are the agents that interact with the prospective customers and communicate to them the attributes and features of a new policy. The agents reach out to the wide spread of customers and their job is to convince them to buy the policy. Hence, the agents are in the last chain in the distribution of the Insurance service.
MARKETING THE SERVICE
The company does External Marketing directed at the customers talking about the benefits, utility, of the Insurance product and services. It tries to understand the customer needs and tries to satisfy these needs by offering the service product (Insurance Policy). The company “Makes Promises” about what its service product will achieve. The external marketing is carried out through promotions using relevant mass media.
The company also does Internal Marketing directed at the providers. Internal marketing includes internal customer education. This is done in the Insurance Industry by training the providers (Insurance Agents). It is carried out to facilitate and enable the agents to provide the services required. The company “Enables Promises” by enabling the provider. The training imparted is carried along the following lines.
As per Section 42 of the Insurance Act, 1938, one of the conditions for issuing of license to an Agent is practical training for a period not exceeding 12 months. However, the Authority has made Agents’ Regulations and defined ‘approved institution’ and also prescribed the qualification required for a candidate to become an Insurance Agent. At present, any candidate desirous to become an Insurance Agent shall be required to have, from an approved institution, a practical training of minimum of 100 hours for the first time and 25 hours before renewal of license. 1. The Authority has constituted some Committees. Each committee has officers of the Authority, who will be authorized to inspect the training institutions. 2. The Committee shall inform the applicant (desirous of being called an ‘approved institution’) before visiting the place of institution to inspect the requirements etc., and those, which are mentioned in the application, submitted to the Authority. As such the applicants are requested to cooperate with the officers of the Authority when they make such visits for this purpose. 3. The Committee (officers) also may make surprise visits afterwards to inspect the quality of practical training that is being imparted to the trainees. 4. After inspection of the applicant, the Committee shall report to the Authority for the purpose of an approval to the...
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