CRM Final Project Report Group 8 SecA

8/10/2019 CRM Final Project Report Group 8 SecA

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CRM Practices at

Insurance

CompaniesA Customer Relationship ManagementProject

By: Group 8 - Section A1. Archit Garg 13P011

2. Divya Yadav 13P020

3. Robin Bansal 13P035

4. Rohit Halder 13P036

5. Saurabh Kumar 13P045

6. Tejas Shah 13P046

7. Lovlesh Rai 13P080

Under the Guidance of:

Prof. Neelu Bhullar



CRM Practices at Insurance Companies

Page1

Contents

ABSTRACT ................................................................................................................................... 2

1. Customer Acquisition Strategy ........................................................................................ 3

a. Identify the best customers ........................................................................................ 3

b. Measurement and review cadence ......................................................................... 3

c. Accelerating the shift to an omnichannel experience ................................................ 3

2. Customer Retention and Development Strategies .......................................................... 4

a. Gaining a 360-degree view of the customer: .............................................................. 4

b. Marketing and Lead Management System ............................................................. 4

c. Identifying those customers most likely to lapse or cancel policies: .......................... 4

3. Customer Relationship Management Practices Followed at Some of The Major

Insurance Companies In India .................................................................................................... 4

Edelweiss Tokio .......................................................................................................................... 5

Tata AIA Life Insurance Company .............................................................................................. 6

HDFC Standard Life .................................................................................................................... 7

ICICI Lombard GIC Ltd ................................................................................................................ 8

LIFE INSURANCE CORPORATION ................................................................................................ 9

4. Shortcomings in the CRM strategy ................................................................................ 10

a. Standard Customer Communication ......................................................................... 10

b. Increasing consumer involvement and building loyalty: ....................................... 10

c. Adapting to changing environment: ......................................................................... 10

5. Opportunities for improving CRM practices .................................................................. 11

a. Educating the consumers about the insurance industry .......................................... 11

b. Social media content strategy ............................................................................... 11

c. Partnering with institutions offering complementary services: ............................... 11

d. Effective cross-selling capability ............................................................................ 11

REFERENCES : ........................................................................................................................... 12




Page2

ABSTRACT

Customer relationship management is an old concept. It’s all about how you treat your

customer after the sale. Businesses that handle well succeed referrals and repeat sales are the

lifeblood of business. They are also a direct result of effective customer relationship

management. Customer relationship management (CRM) is a practice that puts the customer

at the centre of the equation. Over the years myriad software applications have sprung up to

simplify and streamline this process. In simple terms CRM involves organizing and tracking

all contacts with prospective and existing customer and in a simple scenario it involves:

1. Recording all customers and interactions details in an organized manner into a database.

2. Providing the tools to view selected customer or prospect data in a desired manner.

3. Generating alerts for pending actions such as follow ups, service calls and marketing

contacts.

This project is intended to analyse the Customer Relationship Management (CRM) practices

followed in insurance sector. The project begins with a brief discussion on how/why CRM is

important in insurance sector, and in the subsequent paragraphs, the customer acquisition,

retention, and development strategies generally followed at insurance companies. The project

ends with a brief discussion on shortcomings in the CRM strategy and opportunities for

improving CRM practices.




Page3

1 Customer Acquisition Strategy

Life insurers around the world face a difficult challenge. A new Accenture survey reveals that

although the majority of customers are reasonably content with the service they receive,

satisfaction levels have declined. What is more, customers are more able and willing than

ever to switch providers.

Companies focus on selecting the right customer segments, offering them a tailored

proposition, then delighting them with innovative products and superior service at the key

moments of truth. They earn customers’ loyalty. And loyalty, in turn, will creates better

economics, as customers who are promoters of their carrier are worth seven times more in

lifetime value than those who are detractors.

a. Identify the best customers

Their insurance customer value-analysis ranks and segments customers to inform marketing

campaigns and tiered-service programs. This ensures targeting the right types of customers,

thereby improving customer acquisition and satisfaction.

b. Measurement and review cadence

(i) Market and customer research studies are conducted both in house and through third

party research groups to capture insights on evolving customer needs

(ii) Balanced scorecards of all departments have a significant weightage assigned to

satisfaction of their internal and external customers.

(iii) On boarding, i.e., enrolment as a customer where efficient, hassle free policy

processing and medical (if required) are conducted as per/beyond customer expectations

c. Accelerating the shift to an omnichannel experience

Insurance customers want to be able to use the channel that’s convenient to the moment,

whether that’s a website, a mobile app, an in-person meeting or a video chat with an agent.

Thus all the companies are focusing on uniformity and standardisation across all channels.




Page4

2 Customer Retention and Development Strategies

a. Gaining a 360-degree view of the customer:

By consolidating all policy, claims and billing data in one place, regardless of format;

cleansing the data; the company has transformed it into a complete picture of the entire

customer relationship.

b. Marketing and Lead Management System

Increased touch point unification of call centres, branches, through emails and SMS. A

single system for managing leads - New Acquisition Leads, Cross-sell Leads and developed

models for Intelligent Cross-selling.

c. Identifying those customers most likely to lapse or cancel policies:

By using predictive analytics company identifies behaviours that signal attrition so you can

do something about it before it happens – not when it’s too late.

3 Customer Relationship Management Practices

Followed at Some of The Major Insurance Companies

In India

Let us now study some of the CRM practices being followed at some of the major insurance

companies across the country. Some of them have been discussed as follows






Page6

Tata AIA Life Insurance Company

Tata AIA Life Insurance Company Limited (Tata AIA Life) is a joint venture company,

formed by Tata Sons and AIA Group Limited (AIA). Tata AIA Life combines Tata's pre-eminent leadership position in India and AIA's presence as the largest, independent listed

pan-Asia life insurance group in the world spanning 15 markets in Asia Pacific. Tata Sons

holds a majority stake (74%) in the company and AIA holds 26% through an AIA Group

company.

CRM PRACTICES BEING FOLLOWED :

Tata AIA key is to align processes and data so as to deepen customer insight, predict

customer behaviour and develop capabilities to profile and segment customers.

a. Targeting the right types of customers through their insurance customer value-analysis

b. Churn-analysis retention analytic model correlating customer behaviour thus predicting

the probability of customer defection.

c. Effective cross-selling, increased premium income and higher customer satisfaction via

the customer buying analysis model

d. Tie-up with group companies like selling rural policies through the Bridge Foundation

which has a relationship with large number of non-government organizations

e. Use of social media such as Facebook, Twitter and custom apps to increase the reach of

the consumer and also provide a platform for the consumers to come forward with their

grievances so that the company can serve them better.

f. Development of Integrated customer service process across Touch-points like call

centre, branch, email, web, mail, SMS, portal, etc as well as across different request

types such as enquiry, Complaints, Requests, Feedback.

g. Implementation of a single system for Branch, operations, agents, etc for better visibility

& control on opportunity pipeline across channels

h. A single system for managing leads - New Acquisition Leads, Cross-sell Leads and

developed models for Intelligent Cross-selling




Page7

HDFC Standard Life

HDFC Life is a joint venture between Housing Development Finance Corporation Limited

(HDFC), India's leading housing finance institution and Standard Life plc, the leading

provider of financial services in the United Kingdom.

HDFC Ltd. holds 72.37% and Standard Life (Mauritius Holding) Ltd. holds 26.00% of equity

in the joint venture, while the rest is held by others.


Over the last few years, HDFC Life has invested in setting up a multi channel infrastructure

to allow customers to contact as per their convenience. 3 main areas of focus have been

Achieving Customer Lifecycle Orientation, Redefining Customer Experience & Inducing

Customer Oriented Culture.

a. Market and customer research studies are conducted both in house and through third party

research groups to capture insights on evolving customer needs

b. Dedicated teams like Welcome team, Complaint resolution team and Marketing teams

to apprise customers of the product features and benefits, reduce the resolution time andkeep the customers engaged with regular status updates and conduct coordinated multi-

channel campaigns to educate prospective customers.

c. Tools such as “Financial Planning” and My Account” facility helps customers plan

investment and insurance based on life stage needs and enables customers to seek policy

information and complete transactions online via the website

d. Service Excellence Council, SEC is formed with the objective to make customer

experience as one of the brand differentiator, create a customer focused culture, increase

profitability through retention, repeat purchase and referrals

e. To minimize complaints, the company uses ‘PDCA’ approach and works on areas leading

to high dissatisfaction thus addressing the complaint management system




Page8

ICICI Lombard GIC Ltd

ICICI Lombard GIC Ltd. is a joint venture between ICICI Bank Limited, India's second

largest bank with total assets of over USD 99 billion at March 31, 2014 and Fairfax Financial

Holdings Limited, a Canada based USD 37 billion diversified financial services company

engaged in general insurance, reinsurance, insurance claims management and investment

management. It is one of the largest private sector general insurance companies in India with

a Gross Written Premium (GWP) of Rs 71.34 billion for the year ended March 31, 2014.


ICICI Lombard received the highest rating in terms of overall customer satisfaction as well as

'The Most Recommended Company' in a 2013 and their 3 main areas of focus are Customer

Education, Customer Communication and Customer Feedback.

a. Partnership with Wipro Infotech to implement a solution using Citrix MetaFrame

Presentation Server to structure better all types of the company’s insurance products,

independent of time and location. The system is designed to generate a policy in less than

10 minutes.

b. Signed up for Consigntech "GoDB Platform" a software from Consigntech for developing

mobile and disconnected POS (point of sale). This reduces the transaction cycle time for

policy issuance to its customer at the intermediary and customer premises.

c. Integration of the contact center for surveyors, dealers, operations, internal claim teams

into a single interface leading to improved speed and accuracy of claims processing via a

Customer Relationship Management (CRM) system and Claims Processing System (CPS)

system been implemented together on the Talisma platform

d. Cross-selling and up-selling thus selling more product or service to the retained customer

on the revenue side of the profit equation

e. Online Manager - a web-based interface enabling the customers and intermediaries to

independently process insurance transactions through the internet. ICICI Lombard has

sales and service abilities on the corporate website, providing real time policy issuance

for certain products




Page9

LIFE INSURANCE CORPORATION

The Life Insurance Corporation of India (LIC) is the largest life insurance company in India,

and also the country's largest investor; it is fully owned by the Government of India. It also

funds close to 24.6% of the Indian Government's expenses. It has assets estimated of Rs. 8

trillion (US$ 178.4 billion). It was founded in 1956.


The recent Economic Times Brand Equity Survey rated LIC as the No. 1 Service Brand of

the Country.

a. Feature called “Policy Locator” designed on the website for giving a variety of

general and policy information to the policyholders.

b. Feature called “Insurance Selector” designed on the website helps in deciding which

plan is suitable according to his/her age, occupation, income and insurance needs.

c. Systems such as Grievance Redressal, Claims review committee and Policyholder

Councils And Zonal Advisory Boards to show the commitment of the company

towards the customers via availability and accessibility at all times and at all the

locations

d. Adoption of a Citizens Charter through which it reiterates its commitments to the

customers and the standards for general procedures, the standards for policy servicing,

the standards for easy access to information for customers and the standards for

fairness in dealing with the customers.

e. Investment of nearly Rs 600 crore on electronic document management system

(EDMS) thus transforming more than 175 million policies into electronic format.

f. LIC WAN/MAN network thus using the best of the technology to streamline

operations and take customer satisfaction to higher levels




Page1

0

4 Shortcomings in the CRM strategy

a. Standard Customer Communication

There is a lack of standardized platform for communication between internal team and

customers. Due to different systems used by branch, call center and agents, every team had

different versions and status of customer requests. Multiple and unnecessary redundancy in

customer touch points increased customer dissatisfaction due to calls received from various

sources for the same issue.

b. Increasing consumer involvement and building loyalty:

In an attempt to acquire more and more customers and increase the balance sheet size anddeposit base, insurance companies forget to understand that only a very few customers

remain with the insurance companies for a long time. The percentage of profitable customers

over the entire customer base is very low and as a result the cost of acquisition becomes high

in the long-run.

c. Adapting to changing environment:

One of the long-standing maxims about the life insurance business is that life insurance was a

product that was sold not bought. The key moment for the insurer and the customer alike

came when the agent sat down with the prospective customer to make the sale. Once the sale

was made, however, the ongoing relationship between insurer and customer became episodic

at best. In many cases, customers have no contact with their life insurance provider unless

there is a death in the family.




Page1

1

5 Opportunities for improving CRM practices

a. Educating the consumers about the insurance industry

Build up a network where sufficient time can be given to educate clients about the various

insurance plans in detail including all the benefits, rights and responsibilities. Enhanced FAQ

system should be set up so as to be open to answering questions at any time without any

delays. Develop customized solutions for the consumers with respect to the changes

occurring in their insurance plans with the changes in the market.

b. Social media content strategy

While it’s accepta ble for a financial brand to take the issue offline and resolve it over phone,email or in-person, it is equally important to come back to the Facebook page and

acknowledge the resolution there as well. This goes to show that the brand has successfully

handled the complaints and delighted its customers.. The more time it takes to pacify the

aggrieved customer, the more agitated he/she will become. Deploying a tool which

continuously monitors wall updates will improve the response rate and help pacify customers

at the earliest. A humane touch in interacting with consumers will go a long way in resolving

issues and generating positivity on social media.

c. Partnering with institutions offering complementary services:

Banking industry can provide readily available customer pool which insurance provider scan

exploit and learn CRM practices of these banks to improve their own practices

d. Effective cross-selling capability

Use CRM to enhance cross-sell, up-sell capabilities across all customer touch points.




Page1

2

REFERENCES :

1) http://www.edelweisstokio.in/

2) http://www.insurancetech.com/data-and-analytics/insurers-leveraging-social-

media-to-improve-customer-acquisition-and-retention/d/d-id/1312729?

3) http://www.capgemini.com/resource-file-

access/resource/pdf/Analytics__A_Powerful_Tool_for_the_Life_Insurance_In

dustry.pdf

4) Gosawami, P. (2008), : “Customer Satisfaction with Service Quality in the Life

Insurance Industry in India” Accessed from: http://s3.amazonaws.com/ppt-

download/lic-090608051318-phpapp01.pdf?Signature=

fQuLJ5MZdWdggLoqXigFVEXOjKk%3D&Expires=1273381236&AWSAcc

essKeyId=AKIAJLJT267DEGKZDHEQ

5) Karat S., (2005), “Beware! - Life Insurance Corporation of India gets serious about

customer service”. Accessed from

http://customerworld.typepad.com/swami_weblog/2005/10/beware_life_ins.ht

ml

6) Pandey P, (2004), “LIC ropes in Wipro, IBM for CRM project”, Business Statndard,

May 24, 2004.Accessed from: http://www.business-standard.com/india/news/lic-

ropes-in-wipro-ibm-for-crm-project/150982/

7) Cisco, “Case Study Special: LIC’S WAN/MAN Network Serving I nsurance Policies

on the Net” http://www.cisco.com/web/IN/about/files/serving_cisco.pdf

8) Karkre. P., (2010), “Insurance : Waking Up to a New Life”, Dataquest, January 07,

2010,Accessedfrom

http://dqindia.ciol.com/content/verticals/2010/110010701.asp

9) http://mitchellosak.com/2012/06/10/customer-acquisition-in-a-multi-channel-

world/

10) http://web.pb.com/customer-acquisition-life-insurance

http://s3.amazonaws.com/ppt-download/lic-090608051318-phpapp01.pdf?Signature=%20fQuLJ5MZdWdggLoqXigFVEXOjKk%3D&Expires=1273381236&AWSAccessKeyId=AKIAJLJT267DEGKZDHEQ





http://customerworld.typepad.com/swami_weblog/2005/10/beware_life_ins.html



http://www.business-standard.com/india/news/lic-ropes-in-wipro-ibm-for-crm-project/150982/



http://www.cisco.com/web/IN/about/files/serving_cisco.pdf















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CRM Final Project Report Group 8 SecA

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