Page 15 - Life Insurance Today May 2016

Agents / Marketing Oriented Employees in the insurance
industry suffer from high levels of distress, aggravated by
a sluggish economy, growing regulation and outdated
selling models. Government reforms have not had any
significant impact on the health of this sector and
insurance companies need to adopt more innovative
models, primarily driven by technology to better their
value and rewards.
What should be the strategy of the
agents / advisors after deployment?
‘Strategy’ is a term that comes from the Greek word
'Strategia', meaning 'Generalship.' In the military, strategy C. To obtain better returns for resources invested.
often refers to maneuvering troops into position before
the enemy is actually engaged. In this sense, strategy
refers to the deployment of troops. Once the enemy has
been engaged, attention shifts to tactics. Here, the
employment of troops is central. Substitute 'resources' and
the transfer of the concept to the business world begin to
take form.
‘Corporate strategy’ is the pattern of decisions in a
company that determine and reveal its objectives,
purposes or goals; produce the principal policies and plans
for achieving those goals and defines the range of business
the company is to pursue; the kind of economic and
human organization it is or intends to be and the nature
of the economic and non-economic contribution it intends
to make to its shareholders, employees, customers, and
communities.
Noted experts on 'Business Strategy' suggest that adopting
The airline business is the biggest team sport in the world. When you're all consumed with fighting among yourselves, your opponents
Life Insurance Today May 2016
the concept of strategy from military use for business was
easy because very little change is required to get adopted
to style. In business, as in the military, strategy bridges the
gap between policy and tactics. Together, strategy and
tactics bridge the gap between ends and means.
Agents require:
A. To be more professional
B. To be more successful in communication and
informative to the customers.
D. Their goal setting requires-
i. Increase in Business
ii. Increase in Commission income
iii. Increase in area of coverage
iv. Increase in products variety sold.
E. Target prospect in professional manner.
F. Their action plan require:
1. Setting clear time-bound plan
2. Plan of Action should not include more than 5-6
issues
3. Should be measurable
4. Should spell out specific terms.
3. Specific marketing strategies for life
insurers:
3.1. Proper customer segmentation:
Any life insurance agent should do business across many
customer segments, as because if he focuses on any one
particular segment, he faces the same risk as faced by his
customer segment. Therefore, he should have a basket of
mixed customer segments.
For example, if a particular agent works only among the
diamond market customers in Mumbai then whenever the
diamond market goes into a recession or faces any market
challenge, the agent will also face a similar situation and
his business will be affected directly. An agent should not
have more than 20 per cent of his customer from any
particular segment. This will expose him to only a 20 per
cent risk which can be easily worked around.
can run over you every day.
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