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All the above units are connected through an extensive resolution had already been made in UPA Government for
network with a Web front-end to make policy detail and 51:49 partnership as Indian: Foreign participation in Private
services more accessible. LIC connected more branches, Sector Insurance market.
district centers and zonal offices to the WAN in a
hierarchical arrangement. It helped to modify policy Conclusion:
information or just check the status of policies etc.
Even though most of the private insurance companies are
To cut costs on travel and long distance calls, LIC chose to using CEM but the public sector companies are in CRM stage
voice-enable it's WAN and deploy video conferencing itself. Separate accounting of interest payment on account
solutions. While doing so, LIC also interfaced its EPABX voice of delayed payment shall always be the best input for
communications systems with the WAN. The upgraded and expeditious settlement of claim and further fixing up of
extended WAN helped LIC to - accountability may entirely change the level of efficiency
1. Streamlines processes, making it easier for customers in insurance sector especially of Public Sector Insurance
Companies (PSUs) and current introduction of payment of
and LIC staff to check the status of policies, address a hefty amount around say, Rs, 5 lacs as per the penalty
grievances, and act on feedback. imposed by IRDA to some insurers - mainly PSUs - these
issues of customers' grievance redressal or complaint
2. Collections via the Web reduce time taken for resolution - all become vital.
transactions.
The reason for private players to be successful in
3. All customer related enquiries will link all policies of a implementing CEM is that amount of data is very less for
customer for a better view and single stroke servicing the private players and the quality of data is very high as
of the customer. compared to public sector companies, so they are able to
implement the CEM concept easily.
4. Option to drill down to any policy or any request
pending (proposed) on any policy of the customer It is the biggest challenge in front of PSU's to purify the data
that has been evolved through different systems over the
5. Single Window Operations for all products and services years and also handling such a big volume of grievance /
for a customer complaints, to enable efficient implementation of the CRM
solutions. For the success of any CRM initiative, proper
6. Customer ID links all policies of a customer from the conviction of top level management is must.
branch data base and enables inquiry or display from
any terminal in the branch, thus enabling call center Moreover the Indian market for Insurance is not matured
like operations from each branch. enough. Some of the higher technologies cannot be
implemented here. The CRM Processes / System are not so
Apart from the above mentioned benefits it helped well developed that it can adopt itself to the changing CRM
marketing people to provide better service to customer and concepts of the insurance market.
thus increasing customer satisfaction and loyalty. Though
after liberalization it was seen with the entry of the private Indian Insurance companies may require more funds which
sector that LIC was losing its market share on mere ground could be possible only when the market is further
of CRM, but now with the adoption of above mentioned liberalized. We could see the requisite developments are
modern technique it is now able to sustain the competition achieved by the insurers in this Indian market in the coming
and provide better service to the new and existing policy few years when the market is developed and matured.
holders.
References:
Insurance Companies should not be carried by the apparent
high sounding appeal the CRM solutions make but rather Different contemporary discussions & information as
pay caution while implementing them. CRM in insurance collected & collated from various text books and referred
industry in India is at a very nascent stage, so a proper CRM from various web-based on-line materials.
platform has to be laid only after properly understanding
the customer's needs and desires and as innovative
approaches are further being allowed after the firm
28 The Insurance Times, December 2015
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