Page 28 - Insurance Times December 2015 SAMPLE
P. 28
providing them efficient service during the entire policy Objectives of CEM
period.
CEM aims to develop personalized experiences by providing
Claims management value to customer's experiences through improved service
quality, personalized care, reduction of customer stress,
4 One of the very vital parts of CRM in insurance is the increased value for money and customer empowerment.
way life insurance companies settle the claims. For the
policy holder it is the early settlement of the claims The companies through CEM try to:
that matters as an essential service. So it becomes
utmost important for the life insurance companies that v Know what their customers think about the services
they settle the claim efficiently and effectively. This act provided by the company and thus act accordingly in
as a medium to increase customer retention and also future.
to create a brand image for the company in the minds
of the people. v Identify and respond quickly to customer's issues and
opportunities.
CEM is more beneficial to CRM v Optimize the relationships financially.
CRM consists primarily of databases and software v Combines both analytical and creative for strategizing
programs. It stores and use the data that is mainly and implementation.
quantifiable in nature, which does not gives the true picture
of the customer. CRM focuses on the information that is CEM in insurance
useful for the company and occasionally helps to shape
customer behavior. Building a relationship requires The major means of distribution in Insurance industry is
integration across a variety of touch points, But CRM through agency channel. Because of this agency-centric
databases are usually not integrated. model, insurance company must provide support to its
distribution channel to make it responsive, efficient and
The core purpose of CRM is to increase the effectiveness of profitable. Therefore insurers must develop a strategy
the relationships with the customers. It does provide you where it becomes easy for the company to track and
with answers to the questions as to, what the customer did. manage the customer's experience and thus connecting the
But not, why he did so? Whereas with CEM you know what different aspects of the customer experience to enjoy the
drives your customer, what they want and why. With this benefits of customer's loyalty. The insurance sector needs
knowledge available, the company can deliver services to maintain a balance between acquiring customers and
effectively in timely manner and thus react faster to the developing existing ones. The insurance market has been
business issues and opportunities. expanding impressively and the companies are facing
intense competition not only amongst the insurance
CRM is insurers' 360 degree view of the customer. CEM is companies but also from banks, mutual funds companies
the customer's 360 degree view of insurer. and non-financial institutions.
CEM can prove to be very beneficial
specifically to the life insurance companies
because they have contracts with the
customer which stretches for 50-60 years.
Therefore the companies need to maintain
relationship with the policyholders and
provide them with a valuable and
memorable experience to delight them.
Max New York Life (MNYL) is a 74:26 basis
Joint venture between Max India and New
York Life. MNYL's strategy in India is to focus
on its customers. It follows the RATER
24 The Insurance Times, December 2015
Copyright@ The Insurance Times. 09883398055 / 09883380339
