“Customer Relationship Management in Reliance Life Insurance”
Executive Summary Reliance Life Insurance Company Limited is a part of Reliance Capital Ltd. of the Reliance - Anil Dhirubhai Ambani Group. Reliance Capital is one of India’s leading private sector financial services companies, and ranks among the top 3 private sector financial services and banking companies, in terms of net worth. Reliance Capital has interests in asset management and mutual funds, stock broking, life and general insurance, proprietary investments, private equity and other activities in financial services. Yet, nearly 80 per cent of Indian population is without life insurance cover while health insurance and non-life insurance continues to be below international standards. And this part of the population is also subject to weak social security and pension systems with hardly any old age income security. This itself is an indicator that growth potential for the insurance sector is immense.
Title of the Project “Customer Relationship Management in Reliance Life Insurance” About The Project To understand the relations maintained by the Reliance Insurance Company with its customers. Ever increasing competition, low interest rates, and declining margins have driven firms to discover the customer as the basic element in their business equation Insurance as a sector has shown tremendous growth in recent years. People now are becoming more secured in terms of their life as well as their money. They want a profitable benefit out of their investment. There is a need to know the companies’ efforts towards convincing the customer about their product and to know how to create loyal customers. Insurance happens to be a mega opportunity in India. It’s a business growing at the rate of 15-20 per cent annually and presently is of the order of Rs 450 billion.
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“Customer Relationship Management in Reliance Life Insurance” OBJECTIVES 1. To study the company’s procedures conducted by the company for retaining the customers. 2. To study the current market trends in Customer Relationship Management. 3. To study the companies efforts in maintaining and motivating the advisors for retaining an existing customer and building a new customer METHODOLOGY Type of research The research based will be Descriptive Research.
Type of data 1.Primary data 2.Secondary data Primary data The primary or the first hand data will be collected with the help of handing out the questionnaire to the customers &employees. Secondary data The major source of secondary or supporting data will be internet . SURVEY METHOD The related data or information will be obtained by personal administration through questionnaire i.e. personal survey. SAMPLE SIZE A sample size of
110
Customer
50
Sales manager
10
Sales advisor
50
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“Customer Relationship Management in Reliance Life Insurance” SAMPLING METHOD The method for survey will be, Non Probability convenience sampling method
Findings of the study 1.Out of the total sample 60% of customer strongly agree that reliance has variety of products, about 34% of customer agree that that reliance has variety of products and 3% of the customer feel that the products are normal. 2.Out of the total sample 74 % of customer got sufficient information about product while purchasing the product and 26 % of the customer didn’t get sufficient information about the products while purchasing the products. 3.Out of the total sample 24 % of customer did not get sufficient information about product because of complexity of products and 18% did not get sufficient information from the company employee while purchasing the products. 4. Out of the total sample 54 % of customer needs and product are fully matching, while 40% of customer needs and product are partly matching and about 6% of customer needs and product are in normal. 5. Out of the total sample most of the customers are highly motivated by the sales officer and least motivated by the advisor. 6. The services provided by advisor to the customer are most of about 54% of the customer receive information of premium date reminding, while 34% receive information of new policies and 12% of customer get service of solving the doubts. 7. 62% of the advisors have tried to understand the customers needs, which in-turn will help in suggesting a suitable product to the customer. But 38% of the advisors haven’t tried in understanding the customer needs.
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“Customer Relationship Management in Reliance Life Insurance�
8. 30% of the Advisors are able to visit the customers once in a Month, and can interact with them to find the need of the customers and to generate the further leads, 14% of the advisors are able to visit the customers at once a week. This group of advisors can generate more business for the company. 9. 58% of the advisors prepare themselves to sales call; hence they can be able to solve the customer’s queries and can generate the business to the Company. Where as 42% of the advisors attend the sales call casually. 10. About 32% of the advisors feel that the company should provide help desk at the branch. And 16% of the advisors feel generating leads by the company is necessary for generating more business. 11. 70% of the advisors are highly satisfied with monetary benefits, and only 30% of the advisors are satisfied with monetary benefits. 12. 30% of the advisors are highly satisfied with the rewards. 50% of the advisors are satisfied with the rewards, and 20% advisor are feeling normal about the Rewards 13. 40% of the advisors are highly satisfied with the recognition, about 40% of the advisors are satisfied with the recognition, and 20% advisor are feeling normal about the recognition.
Limitations of the study The present study is undertaken in Dharwad city and data is collected from the respondents for the year 2007-08. Hence, data pertained to the study is too short and brief for generalization. Hence, it would be difficult to draw precise generalizations regarding the implications of the study. The findings in the study, interpretations and conclusions drawn could be best seen within these limitations.
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“Customer Relationship Management in Reliance Life Insurance”
Suggestion and Recommendations As the number of visits made by the advisors to the customers is less than 56%, and the relation can be build/maintained by effective communication with the customers by being in constant touch with the customer. As many of the new life insurance companies are entering, Reliance has to maintain its relation with the customer. So that it can be abele to generate more number of loyal customers. To educate the customers about the new products, the company can use Sms service for reaching its customers. Due to large number of customers, the reach of the entire customers in less time may not be possible from its advisors and sales officers. This can be a less costly medium of taking direct response of the customers. As it does not disturb the customer. To effective closing of any sales call, one should understand the need of the customers in depth. The Advisors can be trained by the sales officers, and training institution. The Reliance should come up with more number of Products for those customers about 40% of customer are feeling that the product that they purchased. does not match there needs
Conclusion This research has been brought up many facts regarding the Customer relationship Management. Reliance Life insurance has large number of products in its portfolio. But the advisors are unable to find out the need of the customers and they are unable to suggest the right suitable product. By this project, now I can understand the various factors of insurance industry and how the customer relation is maintained in this industry.
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“Customer Relationship Management in Reliance Life Insurance” The potential customers are more in number and they are still not secured their life. Due to distribution channels, to reach every other customer in shortest time is not possible; hence company can adopt some of the suggestions to bring faster growth in its Business.
OVERVIEW OF INSURANCE SECTOR With largest number of life insurance policies in force in the world, Insurance happens to be a mega opportunity in India. It’s a business growing at the rate of 15-20 per cent annually and presently is of the order of Rs 450 billion. Together with banking services, it adds about 7 per cent to the country’s GDP. Gross premium collection is nearly 2 per cent of GDP and funds available with LIC for investments are 8 per cent of GDP. Yet, nearly 80 per cent of Indian population is without life insurance cover while health insurance and non-life insurance continues to be below international standards. And this part of the population is also subject to weak social security and pension systems with hardly any old age income security. This itself is an indicator that growth potential for the insurance sector is immense. A well-developed and evolved insurance sector is needed for economic development as it provides long-term funds for infrastructure development and at the same time strengthens the risk taking ability. It is estimated that over the next ten years India would require investments of the order of one trillion US dollar. The Insurance sector, to some extent, can enable investments in infrastructure development to sustain economic growth of the country. Insurance is a federal subject in India. There are two legislations that govern the sector- The Insurance Act- 1938 and the IRDA Act- 1999. The insurance sector in India has come a full circle from being an open competitive market to nationalization and back to a liberalized market again. Tracing the developments in the Indian insurance sector reveals the 360-degree turn witnessed over a period of almost two centuries.
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“Customer Relationship Management in Reliance Life Insurance� Indian Insurance Industry: Insurance may be described as a social device to reduce or eliminate risk of life and property. Under the plan of insurance, a large number of people associate themselves by sharing risk, attached to individual. The risk, which can be insured against include fire, the peril of sea, death, incident, & burglary. Any risk contingent upon these may be insured against at a premium commensurate with the risk involved. Insurance is actually a contract between 2 parties whereby one party called insurer undertakes in exchange for a fixed sum called premium to pay the other party happening of a certain event. Insurance is a contract whereby, in return for the payment of premium by the insured, the insurers pay the financial losses suffered by the insured as a result of the occurrence of unforeseen events. With the help of Insurance, large number of people exposed to a similar risk make contributions to a common fund out of which the losses suffered by the unfortunate few, due to accidental events, are made good Potential Largely untapped market: 17% of the world’s population o Nearly 80% of the Indian population is without Life, Health and Non-life insurance o Life insurance penetration is low at 4.1% in 2006-07 o Non-life penetration is even lower at 0.6% in 2006-07 o The per capita spend on life and non-life insurance is US$33.2 and US$5.2 (2006-07), respectively compared to a world average of US$330 and US$224 o Strong economic growth with increase in affluence and rising risk awareness leading to rapid growth in the Insurance sector o Innovative products such as Unit Linked Insurance Policies are likely to drive future industry growth Babasabpatilfreepptmba.com
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“Customer Relationship Management in Reliance Life Insurance” o Investment opportunities exist in both Life and Non-life segments o Total estimated investment opportunity of US$14-15 billion
Structure Indian Insurance market was opened to private & foreign investment in 1999-2000 The Indian Insurance industry consists of a total of 31 players
Life: 1 Public sector player; 15 private players
Non-Life: 6 public sector players; 9 private players
Major international players like AIG, Aviva, MetLife, New York Life, Prudential, Allianz, Sun Life, Standard Life and Lombard are already present with minority stakes in joint ventures with Indian companies for both Life and Non-life segments
Life Insurance market is still dominated by Life Insurance Corporation (LIC) - a public sector company which has 75% share of first year premium in 2006-07
In Non-life, private sector companies (almost all are joint ventures with foreign insurers) accounted for 34% of the market in 2006 to 07.
POLICY FDI up to 26% is permitted under the automatic route subject to obtaining a license from the Insurance Regulatory and Development Authority (IRDA) Plans to increase FDI up to 49% Insurance Regulatory Development Authority (IRDA) is the regulator for the Insurance industry In a landmark move the government detariffed the General Insurance business on 1st January 2007
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“Customer Relationship Management in Reliance Life Insurance”
What is Life Insurance? Life insurance is a guarantee that your family will receive financial support, even in your absence. Put simply, life insurance provides your family with a sum of money should something happen to you. It thus permanently protects your family from financial crises. In addition to serving as a protective cover, life insurance acts as a flexible money-saving scheme, which empowers you to accumulate wealth-to buy a new car, get your children married and even retire comfortably. Life insurance is a contract that pledges payment of an amount to the person assured (or his nominee) on the happening of the event insured against. The contract is valid for payment of the insured amount during: •
The date of maturity, or
•
Specified dates at periodic intervals, or
•
Unfortunate death, if it occurs earlier
The functions of Insurance can be bifurcated into two parts: 1. Primary Functions 2. Secondary Functions 3. Other Functions The primary functions of insurance include the following:
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“Customer Relationship Management in Reliance Life Insurance� Provide Protection - The primary function of insurance is to provide protection against future risk, accidents and uncertainty. Insurance cannot check the happening of the risk, but can certainly provide for the losses of risk. Insurance is actually a protection against economic loss, by sharing the risk with others.
Collective bearing of risk - Insurance is a device to share the financial loss of few among many others. Insurance is a mean by which few losses are shared among larger number of people. All the insured contribute the premiums towards a fund and out of which the persons exposed to a particular risk is paid. Assessment of risk - Insurance determines the probable volume of risk by evaluating various factors that give rise to risk. Risk is the basis for determining the premium rate also Provide Certainty - Insurance is a device, which helps to change from uncertainty to certainty. Insurance is device whereby the uncertain risks may be made more certain. The secondary functions of insurance include the following: Prevention of Losses - Insurance cautions individuals and businessmen to adopt suitable device to prevent unfortunate consequences of risk by observing safety instructions; installation of automatic sparkler or alarm systems, etc. Prevention of losses cause lesser payment to the assured by the insurer and this will encourage for more savings by way of premium. Reduced rate of premiums stimulate for more business and better protection to the insured. Small capital to cover larger risks - Insurance relieves the businessmen from security investments, by paying small amount of premium against larger risks and uncertainty.
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“Customer Relationship Management in Reliance Life Insurance� Contributes towards the development of larger industries - Insurance provides development opportunity to those larger industries having more risks in their setting up. Even the financial institutions may be prepared to give credit to sick industrial units which have insured their assets including plant and machinery.
The other functions of insurance include the following: Means of savings and investment - Insurance serves as savings and investment, insurance is a compulsory way of savings and it restricts the unnecessary expenses by the insured's For the purpose of availing income-tax exemptions also, people invest in insurance. Source of earning foreign exchange - Insurance is an international business. The country can earn foreign exchange by way of issue of marine insurance policies and various other ways. Risk Free trade - Insurance promotes exports insurance, which makes the foreign trade risk free with the help of different types of policies under marine insurance cover. Key Benefits of insurance
Need for Life Insurance Today, there is no shortage of investment options for a person to choose from. Modern day investments include gold, property, fixed income instruments, mutual funds and of course, life insurance. Given the plethora of choices, it becomes imperative to make the right choice when investing your hard-earned money. Life insurance is a unique
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“Customer Relationship Management in Reliance Life Insurance� investment that helps you to meet your dual needs - saving for life's important goals, and protecting your assets.
Let us look at these unique benefits of life insurance in detail.
Asset Protection From an investor's point of view, an investment can play two roles - asset appreciation or asset protection. While most financial instruments have the underlying benefit of asset appreciation, life insurance is unique in that it gives the customer the reassurance of asset protection, along with a strong element of asset appreciation. The core benefit of life insurance is that the financial interests of one’s family remain protected from circumstances such as loss of income due to critical illness or death of the policyholder. Simultaneously, insurance products also have a strong inbuilt wealth creation proposition. The customer therefore benefits on two counts and life insurance occupies a unique space in the landscape of investment options available to a customer.
Goal based savings Each of us has some goals in life for which we need to save. For a young, newly married couple, it could be buying a house. Once, they decide to start a family, the goal changes to planning for the education or marriage of their children. As one grows older, planning for one's retirement will begin to take precedence.
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“Customer Relationship Management in Reliance Life Insurance�
Clearly, as your life stage and therefore your financial goals change, the instrument in which you invest should offer corresponding benefits pertinent to the new life stage. Life insurance is the only investment option that offers specific products tailormade for different life stages. It thus ensures that the benefits offered to the customer reflect the needs of the customer at that particular life stage, and hence ensures that the financial goals of that life stage are met. The table below gives a general guide to the plans that are appropriate for different life stages.
Life Stage Young
Life
Primary Need &
Single
Product
Asset creation
Wealth creation plans
Young & Just Asset creation & married
protection
with education,
kids
creation
Asset and
protection Middle
aged Planning
for
with grown up retirement & asset kids Across all lifstages
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protection Health plans
Wealth creation and mortgage
protection
plans
Children's Married
Insurance
Education
insurance,
mortgage protection & wealth creation plans Retirement
solutions
& mortgage protection Health Insurance
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“Customer Relationship Management in Reliance Life Insurance� Life Insurance V/S Other Savings Contract Of Insurance: A contract of insurance is a contract of utmost good faith technically known as uberrima fides. The doctrine of disclosing all material facts is embodied in this important principle, which applies to all forms of insurance. At the time of taking a policy, policyholder should ensure that all questions in the proposal form are correctly answered. Any misrepresentation, non-disclosure or fraud in any document leading to the acceptance of the risk would render the insurance contract null and void. Protection: Savings through life insurance guarantee full protection against risk of death of the saver. Also, in case of demise, life insurance assures payment of the entire amount assured (with bonuses wherever applicable) whereas in other savings schemes, only the amount saved (with interest) is payable. Aid To Thrift: Life insurance encourages 'thrift'. It allows long-term savings since payments can be made effortlessly because of the 'easy installment' facility built into the scheme. (Premium payment for insurance is either monthly, quarterly, half yearly or yearly). For example: The Salary Saving Scheme popularly known as SSS, provides a convenient method of paying premium each month by deduction from one's salary. In this case the employer directly pays the deducted premium to LIC. The Salary Saving Scheme is ideal for any institution or establishment subject to specified terms and conditions. Liquidity: In case of insurance, it is easy to acquire loans on the sole security of any policy that has acquired loan value. Besides, a life insurance policy is also generally accepted as
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“Customer Relationship Management in Reliance Life Insurance� security, even for a commercial loan. Tax Relief: Life Insurance is the best way to enjoy tax deductions on income tax and wealth tax. This is available for amounts paid by way of premium for life insurance subject to income tax rates in force. Assesses can also avail of provisions in the law for tax relief. In such cases the assured in effect pays a lower premium for insurance than otherwise.
Money When You Need It: A policy that has a suitable insurance plan or a combination of different plans can be effectively used to meet certain monetary needs that may arise from time-to-time. Children's education, start-in-life or marriage provision or even periodical needs for cash over a stretch of time can be less stressful with the help of these policies. Alternatively, policy money can be made available at the time of one's retirement from service and used for any specific purpose, such as, purchase of a house or for other investments. Also, loans are granted to policyholders for house building or for purchase of flats (subject to certain conditions). Who Can Buy A Policy? Any person who has attained majority and is eligible to enter into a valid contract can insure himself/herself and those in whom he/she has insurable interest. Policies can also be taken, subject to certain conditions, on the life of one's spouse or children. While underwriting proposals, certain factors such as the policyholder’s state of health, the proponent's income and other relevant factors are considered by the Corporation.
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“Customer Relationship Management in Reliance Life Insurance�
Insurance For Women Prior to nationalization (1956), many private insurance companies would offer insurance to female lives with some extra premium or on restrictive conditions. However, after nationalization of life insurance, the terms under which life insurance is granted to female lives have been reviewed from time-to-time.
At present, women who work and earn an income are treated at par with men. In other cases, a restrictive clause is imposed, only if the age of the female is up to 30 years and if she does not have an income attracting Income Tax. Medical And Non-Medical Schemes Life insurance is normally offered after a medical examination of the life to be assured. However, to facilitate greater spread of insurance and also to avoid inconvenience, LIC has been extending insurance cover without any medical examination, subject to certain conditions. With Profit And Without Profit Plans An insurance policy can be 'with' or 'without' profit. In the former, bonuses disclosed, if any, after periodical valuations are allotted to the policy and are payable along with the contracted amount. In 'without' profit plan the contracted amount is paid without any addition. The premium rate charged for a 'with' profit policy is therefore higher than for a 'without' profit policy. Keyman Insurance Keyman insurance is taken by a business firm on the life of key employee(s) to
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“Customer Relationship Management in Reliance Life Insurance” protect the firm against financial losses, which may occur due to the premature demise of the Keyman
PRINCIPLES OF INSURANCE
Insurance is a specialized type of contract. Apart from the usual essentials of a valid contract, insurance contracts are subject to some additional principles. These principles provide the framework within which the product and all the contracts of insurance operate. Principle of cooperation: A device to share risk & uncertainties collectively, one for all and all for one’’ Principle of probability: Important determinant of insurance premium, Rate of premium depends on quantum of risk & probability of risk Principle of Insurable Interest : Interest of such a nature that the possessor would be financially injured by the occurrence of the event insured against, `` LA to be more valuable alive then dead Principle of utmost good faith: The parties to the contract (insurer and insured) are legally bound to reveal each other all information about the subject matter, which would influence each other’s decision.
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“Customer Relationship Management in Reliance Life Insurance” Principal of warranties: A warranty is an undertaking by assured that some conditions shall be fulfilled, or a certain thing shall be or shall not be done. A warranty may be Express or Implied Principle of Causea Proxima: In order to make the Insurer liable for loss, such loss must have been proximately caused by the Peril insured against. Eg. ADBR. These 6 principles are applicable to all the products, both life and Non-Life. These principles provide the framework within which the products and all the contracts of Life Insurance operate.
Industry profile The insurance sector in India has come a full circle from being an open competitive market to nationalization and back to a liberalized market again. Tracing the developments in the Indian insurance sector reveals the 360-degree turn witnessed over a period of almost 190 years. The business of life insurance in India in its existing form started in India in the year 1818 with the establishment of the Oriental Life Insurance Company in Calcutta.
Some of the important milestones in the life insurance business in India are 1912 - The Indian Life Assurance Companies Act enacted as the first statute to regulate the life insurance business. 1928 - The Indian Insurance Companies Act enacted to enable the government to Babasabpatilfreepptmba.com
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“Customer Relationship Management in Reliance Life Insurance� collect statistical information about both life and non-life insurance businesses. 1938 - Earlier legislation consolidated and amended to by the Insurance Act with the objective of protecting the interests of the insuring public. 1956 - 245 Indian and foreign insurers and provident societies taken over by the central government and nationalized. LIC formed by an Act of Parliament, viz. LIC Act, 1956, with a capital contribution of Rs. 5 crore from the Government of India. The General insurance business in India, on the other hand, can trace its roots to the Triton Insurance Company Ltd., the first general insurance company established in the year 1850 in Calcutta by the British.
Some of the important milestones in the general insurance business in India are: 1907 - The Indian Mercantile Insurance Ltd. set up, the first company to transact all classes of general insurance business. 1957 - General Insurance Council, a wing of the Insurance Association of India, frames a code of conduct for ensuring fair conduct and sound business practices. 1968 - The Insurance Act amended to regulate investments and set minimum solvency margins and the Tariff Advisory Committee set up. 1972 - The General Insurance Business (Nationalization) Act, 1972 nationalized the general insurance business in India with effect from 1st January 1973. 107 insurers amalgamated and grouped into four companies viz. the National Babasabpatilfreepptmba.com
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“Customer Relationship Management in Reliance Life Insurance� Insurance Company Ltd., the New India Assurance Company Ltd., the Oriental Insurance Company Ltd. and the United India Insurance Company Ltd. GIC incorporated as a company.
INSURANCE IN INDIA: Before insurance sector was opened to the private sector Life Insurance Corporation (LIC) was the only insurance company in India. After the opening up of Insurance sector in India there has been a glut of insurance companies in India. These companies have come up with innovative and flexible insurance policies to cater to varying needs of the individual. Opening up of the Insurance sector has also forced the LIC to tighten up its belt and deliver better service. All in all it has been a bonanza for the consumer. The life insurance business in India started since 1818. Till 1956, the insurance business was mixed and decentralized. In 1956, the life insurance business of all companies was nationalized and a single monolithic organization, the Life Insurance Corporation of India (LIC), was set up. The Insurance
Regulatory and
Development Authority (IRDA) Bill was passed by Indian parliament in December 1999. The IRDA become a statutory body in April 2000 and has been framing regulations and restrictions the private sector insurance companies. The insurance sector was opened up to the private sector in August 2000. Consequently, some Indian and foreign private companies have entered the insurance business. There are about 16 life insurance companies operating in the private sector in India. The insurance sector in India has come a full circle from being an open competitive market to nationalization and back to a liberalized market again. Tracing the developments in the Indian insurance sector reveals the 360 degree turn witnessed over a period of almost two centuries.
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“Customer Relationship Management in Reliance Life Insurance� ABOUT THE INDUSTRY: With an annual growth rate of 15-20% and the largest number of life insurance policies in force, the potential of the Indian insurance industry is huge. Total value of the Indian insurance market (2004-05) is estimated at Rs. 450 billion (US$10 billion). According to government sources, the insurance and banking services' contribution to the country's gross domestic product (GDP) is 7% out of which the gross premium collection forms a significant part. The funds available with the state-owned Life Insurance Corporation (LIC) for investments are 8% of GDP. Till date, only 20% of the total insurable population of India is covered under various life insurance schemes, the penetration rates of health and other non-life insurances in India is also well below the international level. These facts indicate the of immense growth potential of the insurance sector. The year 1999 saw a revolution in the Indian insurance sector, as major structural changes took place with the ending of government monopoly and the passage of the Insurance Regulatory and Development Authority (IRDA) Bill, lifting all entry restrictions for private players and allowing foreign players to enter the market with some limits on direct foreign ownership. Though, the existing rule says that a foreign partner can hold 26% equity in an insurance company, a proposal to increase this limit to 49% is pending with the government. Since opening up of the insurance sector in 1999, foreign investments of Rs. 8.7 billion have poured into the Indian market and 21 private companies have been granted licenses. Innovative products, smart marketing, and aggressive distribution have enabled fledgling private insurance companies to sign up Indian customers faster than anyone expected. Indians, who had always seen life insurance as a tax saving device, are now suddenly turning to the private sector and snapping up the new innovative products on offer.
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“Customer Relationship Management in Reliance Life Insurance� The life insurance industry in India grew by an impressive 36%, with premium income from new business at Rs. 253.43 billion during the fiscal year 2004-2005, braving stiff competition from private insurers. This report "Indian Insurance Industry: New Avenues for Growth 2012", finds that the market share of the state behemoth, LIC, has clocked 21.87% growth in business at Rs.197.86 billion by selling 2.4 billion new policies in 2004-05. But this was still not enough to arrest the fall in its market share, as private players grew by 129% to mop up Rs. 55.57 billion in 2004-05 from Rs. 24.29 billion in 2003-04 Though the total volume of LIC's business increased in the last fiscal year (20042005) compared to the previous one, its market share came down from 87.04 to 78.07%. The 14 private insurers increased their market share from about 13% to about 22% in a year's time. The figures for the first two months of the fiscal year 2005-06 also speak of the growing share of the private insurers. The share of LIC for this period has further come down to 75 percent, while the private players have grabbed over 24 percent. There are presently 12 general insurance companies with four public sector companies and eight private insurers. According to estimates, private insurance companies collectively have a 10% share of the non-life insurance market.
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“Customer Relationship Management in Reliance Life Insurance” Indian Insurance Industry Forecast (2007-2009) The market research report “Indian Insurance Industry Forecast (2007-2009)” gives an in-depth analysis of the present and future of the Indian Insurance Industry. The market research report looks in to the details as well as gives an overview of the Indian insurance market with focus on the performance of the key players. With the initiation of the deregulation in the Indian insurance market, the monopoly of big public sector companies in life insurance as well as general (non-life insurance) market has been broken. New private players have entered the market and with their innovative approaches and better use of distribution channels and technology, they are eating in to the shares of established public sector companies in Indian Insurance Market. Since the deregulations have been put in to place, the market share of LIC has come down to 71.4% in life insurance market while the private players have captured around 17% market in the general insurance segment. It is said that, public sector insurance companies such as LIC and New India Assurance are registered impressive double-digit growths, which reflects on the overall health of the Indian insurance sector.
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“Customer Relationship Management in Reliance Life Insurance�
Indian Insurance Sector The Insurance sector in India governed by Insurance Act, 1938, the Life Insurance Corporation Act, 1956 and General Insurance Business (Nationalization) Act, 1972, Insurance Regulatory and Development Authority (IRDA) Act, 1999 and other related Acts.
Life Insurance Corporation of India (LIC): Life Insurance Corporation of India (LIC) was formed in September, 1956 by an Act of Parliament, viz., Life Insurance Corporation Act, 1956, with capital contribution from the Government of India. Then the Finance Minister, Shri C.D. Deshmukh, while piloting the bill, outlined the objectives of LIC thus: to conduct the business with the utmost economy, in a spirit of trusteeship; to charge premium no higher than warranted by strict actuarial considerations; to invest the funds for obtaining maximum yield for the policy holders consistent with safety of the capital; to render prompt and efficient service to policy holders, thereby making insurance widely popular. Since nationalization, LIC has built up a vast network of 2,048 branches, 100 divisions and 7 zonal offices spread over the country. The Life Insurance Corporation of India also transacts business abroad and has offices in Fiji, Mauritius and United Kingdom. LIC is associated with joint ventures abroad in the field of insurance, namely, Ken-India Assurance Company Limited, Nairobi; United Oriental Assurance Company Limited, Kuala Lumpur and Life Insurance Corporation (International) E.C. Bahrain. The Corporation has registered a joint venture company in 26th December, 2000 in Kathmandu, Nepal by the name of Life Insurance Corporation (Nepal) Limited in collaboration with Vishal Group Limited, a local industrial Group. An off-shore company L.I.C. (Mauritius) Off-shore Limited has also been set up in 2001 to tap the African insurance market.
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“Customer Relationship Management in Reliance Life Insurance�
General Insurance: General insurance business in the country was nationalized with effect from 1st January 1973 by the General Insurance Business (Nationalization) Act, 1972. More than 100 non-life insurance companies including branches of foreign companies operating within the country were amalgamated and grouped into four companies, viz., the National Insurance Company Ltd., the New India Assurance Company Ltd., the Oriental Insurance Company Ltd., and the United India Insurance Company Ltd. with head offices at Calcutta, Bombay, New Delhi and Madras, respectively. General Insurance Corporation (GIC) which was the holding company of the four public sector general insurance companies has since been de-linked from the later and has been approved as the "Indian Reinsure" since 3rd November 2000. The share capital of GIC and that of the four companies are held by the Government of India. All the five entities are Government companies registered under the Companies Act. The general insurance business has grown in spread and volume after nationalization. The four companies have 2699 branch offices, 1360 divisional offices and 92 regional offices spread all over the country. GIC and its subsidiaries have representation either directly through branches or agencies in 16 countries and through associate/ locally incorporated subsidiary companies in 14 other countries. A whollyowned subsidiary company of GIC, i.e. Indian International Pte. Ltd. is operating in Singapore and there is a joint venture company, viz. KenIndia Assurance Ltd. in Kenya. A new wholly owned subsidiary called New India International Ltd., UK has also been registered.
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“Customer Relationship Management in Reliance Life Insurance” Insurance sector reforms In 1993, Malhotra Committee, headed by former Finance Secretary and RBI Governor R.N. Malhotra, was formed to evaluate the Indian insurance industry and recommend its future direction. The Malhotra committee was set up with the objective of complementing the reforms initiated in the financial sector. The reforms were aimed at “creating a more efficient and competitive financial system suitable for the requirements of the economy keeping in mind the structural changes currently underway and recognising that insurance is an important part of the overall financial system where it was necessary to address the need for similar reforms…”.In 1994, the committee submitted the report and some of the key recommendations included: i) Structure: Government stake in the insurance Companies to be brought down to 50% Government should take over the holdings of GIC and its subsidiaries so that these subsidiaries can act as independent corporations. All the insurance companies should be given greater freedom to operate ii) Competition: Private Companies with a minimum paid up capital of Rs.1bn should be allowed to enter the industry No Company should deal in both Life and General Insurance through a single Entity. Foreign companies may be allowed to enter the industry in collaboration with the domestic companies. Postal Life Insurance should be allowed to operate in the rural market. Only one State Level Life Insurance Company should be allowed to operate in each state. iii) Regulatory Body: The Insurance Act should be changed. An Insurance Regulatory body should be set up. Controller of Insurance (Currently a part from the Finance Ministry) should be made independent.
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“Customer Relationship Management in Reliance Life Insurance�
iv) Investments: Mandatory Investments of LIC Life Fund in government securities to be reduced from 75% to 50%. GIC and its subsidiaries are not to hold more than 5% in any company (There current holdings to be brought down to this level over a period of time) v) Customer Service LIC should pay interest on delays in payments beyond 30 days. Insurance companies must be encouraged to set up unit linked pension plans. Computerization of operations and updating of technology to be carried out in the insurance industry. The committee emphasized that in order to improve the customer services and increase the coverage of the insurance industry should be opened up to competition. But at the same time, the committee felt the need to exercise caution as any failure on the part of new players could ruin the public confidence in the industry. Hence, it was decided to allow competition in a limited way by stipulating the minimum capital requirement of Rs.100 crore. The committee felt the need to provide greater autonomy to insurance companies in order to improve their performance and enable them to act as independent companies with economic motives. For this purpose, it had proposed setting up an independent regulatory body.
The Insurance Regulatory and Development Authority
Reforms in the Insurance sector were initiated with the passage of the IRDA Bill in Parliament in December 1999. The IRDA since its incorporation as a statutory body in April 2000 has fastidiously stuck to its schedule of framing regulations and registering the private sector insurance companies. The other decisions taken simultaneously to provide the supporting systems to the insurance sector and in particular the life insurance companies were the launch of the IRDA’s online service for issue and renewal of licenses to agents. The approval of
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“Customer Relationship Management in Reliance Life Insurance� institutions for imparting training to agents has also ensured that the insurance companies would have a trained workforce of insurance agents in place to sell their products, which are expected to be introduced by early next year. Since being set up as an independent statutory body the IRDA has put in a framework of globally compatible regulations. In the private sector 12 life insurance and 6 general insurance companies have been registered. Duties, Powers and Functions of IRDA Section 14 IRDA Act, 1999 lays down the duties, powers and functions of IRDA 1. The Authority has the duty to regulate, promote and ensure orderly growth of the Insurance business and re- insurance business. 2. This Include a) Issue to the applicant a certificate of registration, renew, modify, Withdraw, suspend or cancel such registration b) Protection of interests of the policy holders in matter concerning assigning Of policy, nomination by policyholders, insurable interest, settlement of insurance claim, surrender value of policy and condition of contracts of insurance. c) Specifying the code of conduct and practical training For intermediary or insurance intermediaries and agents d) Specifying the code of conduct for surveyors and loss assessors e) Promoting efficiency in the conduct of insurance business f)
Promoting and regulating professional organization connected with insurance and reinsurance business.
g) Levying fees and other charges for carrying out the purposes of this act.
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“Customer Relationship Management in Reliance Life Insurance� h) Calling from information from, undertaking inspection of, conducting enquiries and investigation including audit of the insurers, intermediaries and other organization connected with the insurance business i)
Control and regulation of the rates, advantages, terms and condition
j)
Specifying the form and manner in which books of accounts shall be maintained and statement of account shall be rendered by insurers and other intermediaries.
k) Regulating investment of funds by insurance companies. l)
Regulating maintenance of margin of solvency.
m) Adjudication of disputes between Insurers and intermediaries or insurance intermediaries. n) Supervising the functioning of the Tariff Advisory Committee. o) Specifying the % of Premium, Income of the insurer to finance schemes for promoting and regulating professional organizations Specifying the % of Life Insurance Business and general Insurance Business to be undertaken by the Insurer in the rural or social sector
Insurers Insurance industry, as on 1.4.2000, comprised mainly two players: the state insurers Life Insurers •
Life Insurance Corporation of India (LIC)
General Insurers
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“Customer Relationship Management in Reliance Life Insurance” •
General Insurance Corporation of India (GIC) (with effect from Dec'2000, a National Reinsure)
GIC had four subsidiary companies, namely: 1. The Oriental Insurance Company Limited 2. The New India Assurance Company Limited, 3. National Insurance Company Limited 4. United India Insurance Company Limited. With effect from Dec'2000, these subsidiaries have been de-linked from the parent company and made as independent insurance companies. Yr:
2000-2001:
(From
2nd
April
'2000
to
31st
December'2001)
In the year 2000-2001, Insurance industry had 16 new entrants(private), namely:
Life Insurance: Major Players Name of Company Public Sector LIC Private Sector ICICI Prudential Bajaj Allianz Birla Sun Life HDFC Standard Life Tata AIG Non-life Insurance: Major Players
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“Customer Relationship Management in Reliance Life Insurance”
Name of Company Public Sector New India Assurance National Insurance Oriental Insurance United India Insurance
Private Sector ICICI Lombard Bajaj Allianz IFFCO Tokio Tata AIG Source: IRDA (Provisional)
IMPACT OF FOREIGN INSURERS ENTERING INDIA: ''LIBERALIZATION'' For a long period after Independence, Indian business was characterized by government regulations-- the ‘license raj’. The government not only exercised control over industrial growth and expansion, but also ran monopoly undertakings and took over loss-making industries on the grounds of mismanagement. Then, in 1985, the late Mr Rajiv Gandhi initiated the first set of economic reforms. After so many years of developmental effort they had not been able to eradicate poverty, remove inequalities or establish an egalitarian society. The resultant disillusionment came out in the open when the socialist economies collapsed. As the Indian economy got further integrated with the
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“Customer Relationship Management in Reliance Life Insurance” world’s, the necessity for globalization increased. This introduced a new buzzword-Liberalization. The term is used for a more ‘outward-oriented’ policy, which includes the elimination of anti-export biases, lowering high import tariffs, reducing and phasing out Quantitative Restrictions (QRs) on inputs and switching to tariff-related measures. However, the government would not completely abandon all forms of control and place the entire economy at the mercy of MNCs. Liberalization and globalization would mainly remove certain imbalances and restrictions that hamper the free flow of trade. The goals of liberalization were to motivate Indian manufacturers to prefer updated technology and to deliver the better products at lower costs. This would increase competition and provide incentives to deliver world-class goods and services at affordable prices, which leads to quality assurance.
About Reliance Life Insurance Reliance Life Insurance Company Limited is a part of Reliance Capital Ltd. of the Reliance - Anil Dhirubhai Ambani Group. Reliance Capital is one of India’s leading private sector financial services companies, and ranks among the top 3 private sector financial services and banking companies, in terms of net worth. Reliance Capital has interests in asset management and mutual funds, stock broking, life and general insurance, proprietary investments, private equity and other activities in financial services. Reliance Capital Limited (RCL) is a Non-Banking Financial Company (NBFC) registered with the Reserve Bank of India under section 45-IA of the Reserve Bank of India Act, 1934. Reliance Capital sees immense potential in the rapidly growing financial services sector in India and aims to become a dominant player in this industry and offer fully integrated financial services. Reliance Life Insurance is another step forward for Reliance Capital Limited to offer need based Life Insurance solutions to individuals and Corporate.
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“Customer Relationship Management in Reliance Life Insurance”
About Sh.Dhirubhai Ambani
Few men in history have made as dramatic a contribution to their country’s economic fortunes as did the founder of Reliance, Sh. Dhirubhai H Ambani. Fewer still have left behind a legacy that is more enduring and timeless. As with all great pioneers, there is more than one unique way of describing the true genius of Dhirubhai: The corporate visionary, the unmatched strategist, the proud patriot, the leader of men, the architect of India’s capital markets, the champion of shareholder interest. But the role Dhirubhai cherished most was perhaps that of India’s greatest wealth creator. In one lifetime, he built, starting from the proverbial scratch, India’s largest private sector enterprise. When Dhirubhai embarked on his first business venture, he had a seed capital of barely US$ 300 (around Rs 14,000). Over the next three and a half decades, he converted Babasabpatilfreepptmba.com
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“Customer Relationship Management in Reliance Life Insurance” this fledgling enterprise into a Rs 60,000 crore colossus—an achievement which earned Reliance a place on the global Fortune 500 list, the first ever Indian private company to do so. Dhirubhai is widely regarded as the father of India’s capital markets. In 1977, when Reliance Textile Industries Limited first went public, the Indian stock market was a place patronised by a small club of elite investors, which dabbled in a handful of stocks. Undaunted, Dhirubhai managed to convince a large number of first-time retail investors to participate in the unfolding Reliance story and put their hard-earned money in the Reliance Textile IPO, promising them, in exchange for their trust, substantial return on their investments. It was to be the start of one of great stories of mutual respect and reciprocal gain in the Indian markets. Under Dhirubhai’s extraordinary vision and leadership, Reliance scripted one of the greatest growth stories in corporate history anywhere in the world, and went on to become India’s largest private sector enterprise. Through out this amazing journey, Dhirubhai always kept the interests of the ordinary shareholder uppermost in mind, in the process making millionaires out of many of the initial investors in the Reliance stock, and creating one of the world’s largest shareholder families. Corporate Profile Chief Executive Officer - Mr. P Nandagopal Country Head - Sales & Distribution - Mr. Manoj Singh Chauhan Chief Financial Officer - Mr. Rajesh Bahl Appointed Actuary - Ms. Pournima Gupte Chief Investment Officer - Mr. R Rangarajan
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“Customer Relationship Management in Reliance Life Insurance�
Chief Human Resources Officer - Ms. Maneesha Thakur Chief Technology Officer - Mr. C Mohan
Range of Product Individual Plans Product Name Description Reliance Wealth Health Plan Life changes. And as it does, so do your priorities. After all, the circumstances of your life can determine the type of health coverage you need. Reliance Secure Child Plan A plan to helps you realize your child's dreams... Reliance Automatic Investment Plan A smart plan, which adapts to your changing risk profile with increasing age. Reliance Money Guarantee Plan Under this plan the investment risk in the investment portfolio is borne by the policyholder. Reliance Endowment Plan Babasabpatilfreepptmba.com
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“Customer Relationship Management in Reliance Life Insurance� This plan will keep you financially prepared for all the special occasions in your life. Reliance Special Endowment Plan This insurance policy is designed for people who wish to combine savings with extended security. Reliance Cash Flow Plan This insurance policy is designed for those who have a recurring need for reinvestment in business or look for short-term investment channels. Reliance Child Plan This insurance policy is designed for people who wish to save money for a future time. Reliance Term Plan This insurance policy is designed for those who only want life cover for the protection of their family, and do not wish to save for themselves. Reliance Whole Life Plan This insurance policy is designed for people who do not wish to avail of any benefits themselves but wish to create an immediate estate to protect their family by availing of insurance cover on their life at a very low cost. Reliance Market Return Plan Reliance Market Return Fund is the unit-linked product that helps you invest in the financial markets in a combination of investment instruments of your choice. Reliance Golden Years Plan Reliance Golden Years Plan is a flexible package that provides freedom of choice in choosing the type of investment, life cover, vesting options such as commuting and annuity options. Reliance Golden Years Plan Value The Reliance Golden Years Plan Value gives you the right kind of solution. A retirement plan that allows you to save systematically to generate a much needed corpus to make your olden years look golden. Reliance Golden Years Plan Plus It is a retirement plan that allows you to save systematically, build up the much
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“Customer Relationship Management in Reliance Life Insurance� needed corpus to make your golden years special, while ensuring a basic minimum amount collected, should the unthinkable happen before you achieve your dreams. Reliance Simple Term Plan Reliance Simple Term Plan is a cost-effective, pure life insurance plan that offers you comprehensive and affordable coverage for a limited period of time to suit your needs. Reliance Special Term Plan Reliance Special Term Plan is a pure life insurance plan that offers you comprehensive and affordable coverage for a limited period of time to suit your needs. Reliance Credit Guardian Plan Reliance Credit Guardian Plan ensures that your housing loans, personal loans or even outstanding credit card bills are paid in the event of untimely demise. Thus keeping you and your family protected from the burden and the worry of debt in such a situation. Reliance Special Credit Guardian Plan Reliance Special Credit Guardian Plan helps you and your family avoid such situations by securing your housing loans, personal loans and even credit card payments. What makes the Plan special is the fact that on survival at maturity, all premiums paid for your basic policy will be returned to you. Reliance Connect 2 Life Plan Reliance Connect 2 Life Plan helps you build security and savings for a better tomorrow. Employee Benefit Plans Product Name Description Reliance Group Term Assurance Policy Reliance Group Term Assurance Policy is a one-year Renewable Term Assurance contract. The benefit is payable on the happening of the contingency during one year. At the end of the year, the contract may be renewed. Reliance EDLI Scheme
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“Customer Relationship Management in Reliance Life Insurance” All establishments with at least 10 full-time permanent employees and to whom the Employee's Provident Fund and Miscellaneous Provisions Act, 1952 applies, have a statutory liability to subscribe to Employee's Deposit Linked Insurance Scheme (EDLI), to provide for life insurance for all their employees. Reliance Group Gratuity Policy A gratuity policy that reflects your company's identity and which highlights the value of the benefits you provide to your employees. Reliance Group Superannuation Policy A superannuation policy that reflects your company's identity and which highlights the value of the benefits you provide to your employees.
Competitors Public company: Life Insurance Corporation of India: The Life Insurance Corporation of India, fondly known as LIC by millions of policyholders, is India’s largest life insurance company. In fact, LIC is one of the world’s largest insurance corporations. A monopoly player until recently, LIC does not seem overly worried by the recent act of parliament, which opened the insurance sector in India to private players too. LIC confidence comes from a few but important areas. As India’s foremost insurance company with a presence that spans decades, LIC has become synonymous with life insurance in India. Its promptness and efficiency in settling claims has helped earn the trust of millions. Its immense distribution strength gives even remotely located
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“Customer Relationship Management in Reliance Life Insurance” customers’ access to its services. LIC has huge cash reserves at its disposal and knows the Indian market like no other insurance company. These strengths are tough to duplicate. The following are the products offered by the LIC in India: Term Insurance: 2 years Term Insurance Convertible Term Insurance Bima sandesh Bima kiran Whole Life Insurance: Whole Life Policy Limited Payment Policy Convertible Whole Life Policy Endowment Policy: Jeevan shree Jeevan Mitra Asha Deep II
Private life insurance companies: 1) Allianz Bajaj Life Insurance Company Ltd: Allianz Bajaj is mainly the general insurance company. It is joint venture of Bajaj Auto Limited and Allianz AG Germany. It was in corporate on 19 th
2001 to conduct
general insurance business including health insurance business in India. The following are the products offered by the company: Group credit care card Allianz Bajaj Group Risk Care Plan Allianz Bajaj Group Credit Care Plan Allianz Bajaj term Plan Allianz Bajaj Risk Care Plan Allianz Bajaj Life Time Care Allianz Bajaj save Care
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“Customer Relationship Management in Reliance Life Insurance” 2) Birla Sun - Life Insurance Company Ltd: Birla Sun – Life Financial Services offers a rang of financial services for resident Indians and Non resident Indians. The mutual Fund and Insurance companies provide wealth management and protection products to customers while the Distribution and Securities companies provide brokerage and trading services for investment in equities, debt securities, and fixed deposits. Products offered by the company: Endowment plan Flexi Save plus Endowment Plan Money Back Plan Flexi cash flow money 3) HDFC Standard Life Insurance Company Ltd: HDFC and Standard Life first came together for a possible joint venture, to enter the Life Insurance market, in January 1995. It was clear from the outset that both companies shared similar values and beliefs and strong relationship quickly formed. Products offered by the company: Endowment Assurance Plan Money Back Plan Group Insurance Plan ICICI Prudential Life insurance Company Ltd: ICICI Prudential Life Insurance Company is a joint venture between ICICI, a premier financial power house and prudential plc, a leading international financial services group headquartered in the United Kingdom. ICICI prudential was amongst the first private sector insurance companies to begin operations in December 2000 after receiving approval from Insurance Regulatory Development Authority. Product offered by company Endowment Plan ICICI prudential Single bond ICICI prudential saven protect
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“Customer Relationship Management in Reliance Life Insurance” ICICI forever life Money back policy ICICI prudential cash back Protection Plan 4) Max New York Life Insurance Company Ltd: Product Offered By the Company Endowment policy Whole Life policy Term Insurance 5) MetLife Insurance Company Ltd: The origin of Metropolitan Life Insurance Company (MetLife) was started in 1863. But the company decided to focus on life insurance business in 1868. By 1880 the company was started to 700 new industrial policies a day. From 1909 MetLife became the nation’s largest life insurance in terms of insurance.
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“Customer Relationship Management in Reliance Life Insurance� Products offered by the companies Term Insurance products One-Year Term Insurance Scheduled Term Insurance Permanent insurance products L-98 whole life Equity Advantage VUL
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“Customer Relationship Management in Reliance Life Insurance”
Customer Relationship Management Crucial to Business Success Customer Relationship Management focuses on acquiring, developing and creating satisfied loyal customer; achieving profitable growth; and creating economic value in company’s brand. Customer Relationship Management strives to improve the customer’s experience of how they interact with the company and produce high customer equity .the more loyal customer, the higher are the customer equity. Recently CRM has taken a center stage in the business world with businesses concentrating on saving money and increasing profits by redefining internal processes and procedures. It costs a company dramatically less to retain and grow an existing client, than it does to court new ones. It is said that “It is seven times more expensive to acquire a new customer than to keep an existing one”, therefore the value of customer information and management should never be underestimated Customer equity comprises of three drives •
Value equity
•
Brand equity
•
Relationship equity
CRM (Customer Relationship Management) is something that is not restricted to any country or culture. Wherever customers are there, business cannot afford to keep them unhappy; and that is where CRM comes in as a strong requirement. In India, the trend is positive. When compared to about twenty years ago , people have more choice and every company knows it can’t take customer for granted .May be
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“Customer Relationship Management in Reliance Life Insurance” the movement is slow ,but we see a steady progress towards an increased focus on the customer rather than merely on the products and price . Today’s era is of service because customers are ultimate base line for any business to sustain in this competitative world For example: Banks started providing ‘gold’, ‘silver’ cards to its valued customer, depending on their needs the customer get faster services. The concept of CRM is relatively simple and familiar to insurers. The two points of the concept are: •
Understand your customers' unique requirements.
•
Offer them the services and products over their lifetime that will maintain or increase their profitability and retain them as your customers.
These are the some supporting strategies that implement these concepts to yield significantly greater results and a true competitive advantage. These supporting strategies generally fall into three groupings: analytical, marketing and operational. The analytical path focuses on mining the data you have on your existing customers, and marrying that data with external data when possible to develop a scoring index. This index can then be reliably applied to individual customers to indicate their level of profitability, tendency to remain a customer, and propensity to acquire other products and services. The current trends in crm followed by insurance companies While the CRM market in India is still nascent, bigger players such as ICICI Prudential Life Insurance Company are adopting it in a big way. The company was earlier using GoldMines (a sales and marketing tool) and HEAT (an operational CRM solution) from FrontRange Solutions. Last year it took a decision to invest in CM3 from Teradata and SAS’s statistical tool for BI. Anil Tikoo, head-IT at ICICI Prudential Life Insurance Company says, “As a forward looking company, we see CRM playing a significant role in acquiring new customers. CRM lets us obtain granular details about Babasabpatilfreepptmba.com
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“Customer Relationship Management in Reliance Life Insurance” our customers, helping us to design better products, improve service levels and reduce operational costs.” CRM has helped ICICI Prudential Life capture five lakh customers through effective event-based marketing and lead tracking to cross- and up-sell products.
Business drivers for CRM Margins are under pressure: A couple of years ago, LIC dominated the insurance market with the help of its sales force and channels and margins were reasonably high. Today, there are close to 20 companies offering both life and general insurance products. All of them have equally strong international and local partners; all are focusing upon similar geographies and target audiences. The new firms selling life insurance and nonlife insurance [pensions, insurance as saving, etc] have failed to emulate the LIC model because margins are getting squeezed. There are several pain areas that new insurance firms face—acquiring new customers, retaining them, cross-selling products and controlling rising costs while providing comprehensive support. Insurers have added a variety of products and services to their kitty. These range from insurance as an investment option to pension plans. They target the younger generation in the 20 to 30 years age group. “The convergence of four factors—protection, saving (investment option), loans and pension—have compelled insurance companies to align with banks in reaching out to a larger audience,” says Tikoo. This trend has led to another—insurance companies are joining hands with banks by becoming channel partners for insurance. Tata AIG has a marketing alliance with HSBC, Birla Sun Life has one with Citibank and IDBI and LIC ally with Corporation Bank, while Kotak Life Insurance has an arrangement with Kotak Bank. This strategy helps insurance firms increase their footprint to cover a larger part of the customer base in the 20-30 years demographic. CRM helps connect a bank’s high net worth customers with insurance firms.
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“Customer Relationship Management in Reliance Life Insurance” Where to begin—operational CRM or analytical CRM? The choice between operational and analytical CRM as a starting point depends upon the insurer’s needs. Gartner says that insurance companies with multiple financial products and a big customer base, such as integrated insurance solution providers, will leverage their customer base to cross- and up-sell different financial products, including insurance. Such providers will benefit from adopting analytical CRM. Market segmentation, campaign management and data mining applications will benefit them in many ways. •
Call center text mining: This tool can help improve the customer experience by resolving complaints rapidly. Insurers are using these tools to mine text from call center transcripts to identify issues faced by customers. Text mining tools also help detect and capture other useful pieces of information around a customer’s life stage, financial needs and product interests. These can be used to generate leads and trigger cross-selling. However, to be fully effective, customer service representatives must be trained to probe for information that will help in cross selling during the text-mining phase. Text mining tools are leading edge today, but are predicted to take off quickly.
•
Event-triggering and profiling: “Insurers can use event triggers to generate leads that can be acted upon quickly, usually within 24 hours,” says Tikoo. Eventtriggering tools monitor incoming transaction and contact data in near-real-time to recognize changes in a customer’s behavior or profile to trigger actions or alerts.
Lead management gets sophisticated: Often the ability of an insurer to generate leads by means of event-triggering, re-engineered touch points and cross line-of-business referral can outstrip their ability to manage said leads. In such a situation, though the number of leads generated rises, the conversion rate does not. It may even drop. CRM can help provide sales representatives with a mechanism to prioritize and manage leads.
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“Customer Relationship Management in Reliance Life Insurance�
Changing customer behavior in insurance buying In insurance buying, most customers would probably describe their level of understanding of insurance contracts in the above manner. Customers know generally what a policy covers; they also know that there are several fine prints in insurance contracts, which they do not know, or perhaps care to know, at the time of buying. And they also seem to generally conclude that when it comes to making a claim under an insurance policy, there could be several issues of which they are just unaware at the time of buying the policy in the first place.
Changing expectations A remarkable trend in the insurance industry in the last three years is the rapid change in the knowledge level as well as expectations of the customers. A study conducted last year by Forte, a collaborative effort between FICCI and ING Vysya Insurance Co. about the consumer behavior in the pre and post liberalization days of the industry had revealed stunning changes in consumer expectations. It looks as though the docile, uninformed, insurance consumer has suddenly been transformed into an aggressive and highly demanding species. While the fresh air of competition in every sector of the economy brings in major changes in consumer expectations (witness the sea change in the attitude of automobile buyers in India in the last five years), the insurance industry has witnessed a few unique aspects, such as regulation-inspired efforts to educate insurance buyers, and a vast change in the skills and capabilities of the intermediaries involved in distribution.
Motivating factors In respect of life insurance, potential buyers are driven to buying a policy for one or more of three major reasons: security of the money invested, saving for one or more
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“Customer Relationship Management in Reliance Life Insurance” specific purposes, and the availability of tax benefit. Customers are increasingly known to place less reliance on the tax benefit factor, and stress more on the security aspect and the end-use objective. The challenge of the insurance companies is to address the motivating factors imaginatively and come up with genuine solutions. Take for example, the consumer’s objective of taking a policy to save money for higher education of a child. This has been a driving force in the sale of new insurance contracts in several other countries too, notably in Asia. A potential buyer primarily expects that the saving should be a painless process and that the money saved should be absolutely safe. The challenge is to provide not only convenient payment options, but also mechanisms that could offer some measure of protection and relief to the customer if he is forced to disrupt the payment arrangement for unforeseen reasons. On the issue of the consumers’ perception of security of the money invested, there are two important aspects. One is how the features of the insurance contract are put across to the buyer (whether it is a unit-linked policy or endowment oriented). The second is how to address more effectively the question about the dependability of the new generation companies that potential new insurance buyers raise during sales calls especially outside metros and in small towns (referred to in publicity jargon as buyers in the SEC B and C categories). Both insurance companies and the Regulator need to address this behavioral challenge more actively.
Consumer’s experience There has been a vast change in the approach of the insurance agent from the preliberalization days. While the agent in the past established informal contacts with potential buyers and often depended on referrals from friends and family members, the new age companies insist on a professional, and often aggressive stance on the part of the sales staff. Customer expectations in this regard revolve around two key aspects: first, whether the customer is getting truthful advice from the agent, or if he is pushing a Babasabpatilfreepptmba.com
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“Customer Relationship Management in Reliance Life Insurance” product that yields him the highest commission rate. Invariably, the customers today expect the insurance agent (and other intermediaries such as the banc assurance sales staff) to provide a ready comparison of competitors’ products and how the product the agent is suggesting is superior to the others. How far is the need-based analysis of insurance requirement, that the new age sales staff are trained to offer, found to be relevant and useful to potential insurance buyers? The answer varies from the metro cities and small towns. However outside metro cities, customers tend to take a clear view that saving-oriented policies are more needed. There is also marked reluctance to disclose the true personal financial status and the corresponding insurance needs to insurance salespersons. The second aspect of customers’ perception about the new generation of insurance agents is the level of continuing commitment of the agent to arrange post-sale service. Potential insurance buyers are unsure that they would continue to deal with the same agent who sold the policy throughout the term. They would tend to place more reliance on the company’s general promises of service and commitment. This is an important message for the insurance companies. As insurance customers increasingly make arrangements to pay periodical premiums directly through the electronic medium, or though automatic transfers from their bank accounts, thereby bypassing the need for regular post-sale service by the agents, customers would tend to place more reliance on the direct standard of service from the company concerned. Instances of customers requiring agents to arrange for loans against their policies, or change nominations etc. are rare. Therefore companies need to gear themselves to provide high service standards directly.
Premium shopping Is pricing or the premium rate for a policy, a deciding factor for buying insurance? It is indeed so in a price sensitive market such as ours. In several forums, customers have voiced the general feeling that as insurance products become more
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“Customer Relationship Management in Reliance Life Insurance” complex, and they get bundled with several riders, it is becoming impossible to make price comparisons between different companies. An increasingly larger segment of customers now questions why the premium rate should be the same for a policy if bought direct from the company over Internet, or through a channel considered simpler, such as the banc assurance channel. There is logic in the insurance companies passing on the cost saving to customers in such cases. It is time the Regulator seriously considered the customer expectations of differential premium rates for the same policy bought through different channels and allowed the practice. It should therefore be conceivable to offer premium rebate to insurance buyers who consciously decide to approach the company directly for buying a policy (after presumably taking the trouble of educating themselves about the product features and other aspects), and choose to deal with the company directly for future servicing needs.
High expectations One aspect of customer service from new age insurance companies that a remains to be tested widely is the claim payment record. While consumers seem to be satisfied that the survival benefits under a life insurance policy would get paid rather promptly from the tech-savvy new companies, obviating the need for interlocution by the insurance agent, insurance buyers are not yet convinced about hassle-free payment in the event of a claim, whether under a life policy or a general insurance policy. This is especially so in respect of rider benefits such as critical illness or hospitalization benefits. The level of consumer skepticism on claim payment is markedly high in respect of non-life insurance products, such as Householders’ Package or Mediclaim policies. There is considerable work to be done to boost the level of confidence both by insurance companies and the Regulator. By the time a company completes the development of a strategy and makes investments to pursue the strategy, the opportunity often ceases to exist. It is therefore important that the new age insurance companies become ‘kinetic’ Babasabpatilfreepptmba.com
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“Customer Relationship Management in Reliance Life Insurance” enterprises, which can take advantage of unpredictable customer demands and unexpected market events immediately. This is vastly relevant for the Indian market where the insurance consumers are rapidly coming of age.
Title of the Project “Customer Relationship Management in Reliance Life Insurance” About The Project To understand the relations maintained by the Reliance Insurance company with its customers. Insurance as a sector has shown tremendous growth. People now are becoming more secured in terms of their life as well as their money. They want a profitable benefit out of their investment. There is a need to know the companies’ efforts towards convincing the costumers about their products. OBJECTIVES: 1. To study the companies’ procedures conducted by the company for retaining the customers. 2. To study the current market trends in Customer Relationship Management. 3. To study the companies efforts in maintaining and motivating the advisors for retaining an existing customer and building a new customer
METHODOLOGY Research Design
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“Customer Relationship Management in Reliance Life Insurance” The study was based on both primary and secondary data. The primary data was collected through printed questionnaires consisting of completely structured and dichotomous questionnaires. Using this data measurement technique, information was collected by personal interviews. Secondary data was collected through company websites, discussions with company guide. The collected data was processed through S.P.S.S. Package.
Sampling Design The research was mainly opted on customer’s survey, adviser’s survey as well as sales officer’s survey. The sample selected for survey was stratified sample. Sample size is 50 Customers, 10 Sales officers and 50 advisers.
Sample Character Respondents are sales officers, and existing customers of reliance insurance and the advisers.. Sampling Plan For Customers Sampling unit
: Individuals.
Sampling Method
: Non Probability, Convenience Sampling.
Sampling Size
: 50 Customers.
For sales officers Sampling unit
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: 10 Sales officers
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“Customer Relationship Management in Reliance Life Insurance�
For Advisers Sampling unit
: Advisers .
Sampling Method
: Non Probability, Convenience Sampling
Sampling Size
: 50 Advisers.
Sampling Plan
: Questionnaires.
Sample Area
: Dharwad City
Tools and Technique of Data Collection Personal Interviews Where customers, sales officers and advisers were interviewed personally that face to face interaction were done. Questionnaire: It is a systematic designed questionnaire is used for collecting primary data. These data are used for further descriptive research.
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“Customer Relationship Management in Reliance Life Insurance�
Table 1: Do you agree that reliance insurance variety of products. Frequency 30 17 3 50
strongly agree agree normal Total
Percent 60.0 34.0 6.0 100.0
Valid Percent 60.0 34.0 6.0 100.0
Cumulative Percent 60.0 94.0 100.0
Figure: 1 Do you agree that reliance insurance variety of products
normal 6.0%
agree 34.0% strongly agree 60.0%
Findings Babasabpatilfreepptmba.com
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“Customer Relationship Management in Reliance Life Insurance� From the 50 respondents surveyed 60% Customers are strongly agreed that Reliance have variety of products. 34% Customers are agree that reliance has variety of products. 6% Customers feel that Reliance has Neutral of products.
Table No: 2. Did you get sufficient information about the product while purchasing
yes no Total
Frequency 37 13 50
Percent 74.0 26.0 100.0
Valid Percent 74.0 26.0 100.0
Cumulative Percent 74.0 100.0
Figure: 2. Did you get sufficient information about the product while purchasing
no 26.0%
yes 74.0%
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Findings From the 50 respondents surveyed 74% respondents say that they got sufficient information about product while purchasing. 26% respondents say that they did not got sufficient information about product while purchasing
Table: 3. If no the Reasons are
complexity of products less information given by advisor/sales officer Total
Frequenc y 12
Percent 24.0
Valid Percent 57.1
Cumulative Percent 57.1
9
18.0
42.9
100.0
21
42.0
100.0
Figure: 3. If no the Reasons are
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less inf ormation giv 18.0%
Missing 58.0% complexity of produc 24.0%
Findings From the 50 respondents surveyed 24% respondents say that because complexity of the product 18% respondents say that less information given
.
Table: 4. Does your need and product are matching
fully matched partly matched normal Total
Frequency 27 20 3 50
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Percent 54.0 40.0 6.0 100.0
Valid Percent 54.0 40.0 6.0 100.0
Cumulative Percent 54.0 94.0 100.0
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Figure: 4
Does your need and product are matching
normal 6.0%
partly matched 40.0%
fully matched 54.0%
Findings From the 50 respondents surveyed 54% respondents say that, their need and product fully matched 40% respondents say that, their need and product partly matched 6% respondents say that their need and product are neutral
Table: 5. Cross tabs
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“Customer Relationship Management in Reliance Life Insurance� how much are you motivated by advisor ?(advisor) * how much are you motivated by sales officer?(sales officer)) Crosstabulation Count
how much are you motivated by advisor ?(advisor)
highly motivated motivated not at all
Total
how much are you motivated by sales officer?(sales officer)) highly motivated motivated 15 4 19 6 3 3 37 13
Total 19 25 6 50
Figure: 5. cross tabs
20 19
15
10
Count
6
how much are you mot
4 3
3
0
highly motivated motivated
highly motivated
motivated
not at all
how much are you motivated by advisor ?(advisor)
Out of the total sample most of the customer are highly motivated by the sales officer
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“Customer Relationship Management in Reliance Life Insurance� Table 6: Which are the services you receive from the advisor
Frequency information of premium date reminding information of new policies help in solving the doubts Total
Percent
Valid Percent
Cumulative Percent
27
54.0
54.0
54.0
17
34.0
34.0
88.0
6 50
12.0 100.0
12.0 100.0
100.0
Figure: 6. Which are the services you receive from the advisor
help in solving the 12.0%
informati on of premi i nformation of new p
54.0%
34.0%
Findings From the 50 respondents surveyed 54% respondents say that they got information about the premium 34% respondents say that their need and product partly matched 12% respondents say that their need and product are neutral Babasabpatilfreepptmba.com
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“Customer Relationship Management in Reliance Life Insurance”
. Table: 7. Have you tried to understand needs of the customers
yes no Total
Frequency 31 19 50
Percent 62.0 38.0 100.0
Valid Percent 62.0 38.0 100.0
Cumulative Percent 62.0 100.0
Figure: 7. Have you tried to understand needs of the customers
no 38.0% y es 62.0%
Findings From the 50 respondents surveyed 62% Advisor say that they tried to understand needs of the customers 38% advisor say that they don’t try to understand needs of the customers.
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“Customer Relationship Management in Reliance Life Insurance�
Table: 8. How many times you have contacted the existing customer
once in once in once in once in Total
week month 6 months a year
Frequency 7 15 18 10 50
Percent 14.0 30.0 36.0 20.0 100.0
Valid Percent 14.0 30.0 36.0 20.0 100.0
Cumulative Percent 14.0 44.0 80.0 100.0
Figure: 8. How many times you have contacted the existing customer
once in w eek once in a year
14.0%
20.0%
once in month 30.0% once in 6 months 36.0%
Findings From the 50 respondents surveyed 36% Advisor say that they have contacted the customers once in 6 months Babasabpatilfreepptmba.com
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“Customer Relationship Management in Reliance Life Insurance� 30% advisor says that they try to contact once in a month to customer 20% Advisor say that they have contacted once in a year to customers 14% advisor says that they have contacted customers once in a week.
Table: 9. Do you prepare yourself for any sales call
yes no Total
Frequency 29 21 50
Percent 58.0 42.0 100.0
Valid Percent 58.0 42.0 100.0
Cumulative Percent 58.0 100.0
Figure: 9. Do you prepare yourself for any sales call
no 42.0%
yes 58.0%
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.
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“Customer Relationship Management in Reliance Life Insurance”
Findings From the 50 respondents surveyed 58% Advisor says that they prepare for sales call 42% advisor says that they don’t prepare for sales call
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Table: 10 What kind of assistance do you need to generate more business
Frequency Training about customer handling Helpdesk at the branch Generating leads by the company Total
Percent
Valid Percent
Cumulative Percent
26
52.0
52.0
52.0
16
32.0
32.0
84.0
8
16.0
16.0
100.0
50
100.0
100.0
Figure: 10.What kind of assistance do you need to generate more business
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Generating l eads by 16.0%
T raining about c usto 52.0% Hel pdesk at the bran 32.0%
Findings From the 50 respondents surveyed 52% Advisor says that they want training about customer handling 32% advisor says that they want help desk at the branch 16% advisor says that they want generating leads by the company
Table: 11. Extent of advisor satisfaction in RIL with Monetary
H.satisfied satisfied Total
Frequency 7 3 10
Percent 70.0 30.0 100.0
Valid Percent 70.0 30.0 100.0
Cumulative Percent 70.0 100.0
Figure: 11. Extent of advisor satisfaction in RIL with Monetary
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satisfied 30.0%
H.satisfied 70.0%
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Findings 70% of the advisors are highly satisfied with monetary benefits, and 30% of the advisors are satisfied with monetary benefits.
Table: 12. Extent of advisor satisfaction in RIL with rewards
H.satisfied satisfied neutral Total
Frequency 3 5 2 10
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Percent 30.0 50.0 20.0 100.0
Valid Percent 30.0 50.0 20.0 100.0
Cumulative Percent 30.0 80.0 100.0
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Figure: 12 Extent of advisor satisfaction in RIL with rewards
neutral 20.0%
H.satisfied 30.0%
satisfied 50.0%
Findings
30% of the advisors are highly satisfied with the rewards. 50% of the advisors are satisfied with the rewards, and 20% of the advisors are feeling normal about the Rewards
Table: 13. Extent of advisor satisfaction in RIL with recognition
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H.satisfied satisfied neutral Total
Frequency 4 4 2 10
Percent 40.0 40.0 20.0 100.0
Valid Percent 40.0 40.0 20.0 100.0
Cumulative Percent 40.0 80.0 100.0
Figure: 13. Extent of advisor satisfaction in RIL with recognition
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neutral 20.0% H.satisfied 40.0%
satisfied 40.0%
Findings
40% of the advisors are highly satisfied with the recognition 40% of the advisors are satisfied with the recognition. 20% advisors are feeling normal about the recognition.
Table: 14 Do you find difficulty in handling advisers
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Frequency 6 4 10
yes NO Total
Percent 60.0 40.0 100.0
Valid Percent 60.0 40.0 100.0
Cumulative Percent 60.0 100.0
Figure: 14 Do you find difficulty in handling advisers
NO 40.0% yes 60.0%
Findings The sales officer found about 60% difficulty in handling the advisor The sales officer found about 40% No difficulty in handling the advisor
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“Customer Relationship Management in Reliance Life Insurance� Table: 15. What kind of assistance do you need to generate more business
Frequency presentation by the insurance comapny briefing by managers helpdesk at the branch meeting with advisers Total
Percent
Valid Percent
Cumulative Percent
1
10.0
10.0
10.0
2 2 5 10
20.0 20.0 50.0 100.0
20.0 20.0 50.0 100.0
30.0 50.0 100.0
Figure: 15. What kind of assistance do you need to generate more business pres entation by the 10.0%
briefing by m anagers 20.0% m eeting with advis er 50.0%
helpdes k at the bran 20.0%
Findings 50% sales officers feel that generating business can be done through meeting with advisor 50% sales officers feel that generating business can be done through help desk at the branch 20% sales officers feel that managers can do generating business through briefing
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“Customer Relationship Management in Reliance Life Insurance” 10% sales officers feel that managers can do generating business through presentation.
Findings and Observations 1.Even though the sales officers and advisors provide sufficient information to customers, 1. while selling the product 26% of the total customers feel that they had not received sufficient information. Provided was complex, rest of the respondents feel that the information provided was less. 2.Found that Reliance Life Insurance has large variety of products in its portfolio, it is 2. observed that 37% of the customer feel that the product purchased by most the customer and their need are not matching. 3.As compared to the Advisors, Sales people perform more than advisors. In instance sales people have motivated the most of the customers to purchase the product. 4.The male were the dominating category in advisors 5.Due to lack of the effective training, most of the advisors were not able to handle the customer properly, and may not solve the customer’s queries. 6.There are not satisfactory visits made by the advisors to the customer’s doorstep. Only 14% of the advisors have been visiting the customer at their doorstep at once a week. So that they can find the need in the existing customers or can be able to build a new customer for the Reliance Life Insurance. 7.Most of the advisors do not prepare themselves for the sales call, in turn they may not perform better at the call of the customer.
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“Customer Relationship Management in Reliance Life Insurance” 8.To generate more business, most the Sales officers feel that there should be a meeting to be kept with the advisors. 9. The services provided by advisor to the customer are most of about 54% of the customer receive information of premium date reminding, while 34% receive information of new policies and 12% of customer get service of solving the doubts. 10. 62% of the advisors have tried to understand the customer’s needs, which in-turn will help in suggesting a suitable product to the customer. But 38% of the advisors haven’t tried in understanding the customer needs.
11. About 32% of the advisors feel that the company should provide help desk at the branch. And 16% of the advisors feel generating leads by the company is necessary for generating more business. 12. 70% of the advisors are highly satisfied with monetary benefits, and only 30% of the advisors are satisfied with monetary benefits. 13. 30% of the advisors are highly satisfied with the rewards. 50% of the advisors are satisfied with the rewards, and 20% advisor are feeling normal about the Rewards 14.40% of the advisors are highly satisfied with the recognition, about 40% of the advisors are satisfied with the recognition, and 20% advisor are feeling normal about the recognition. 15. The advisors who are working with the Reliance Life Insurance fall under the age group between, 25 to 30 Years. Most of the advisors are young.
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“Customer Relationship Management in Reliance Life Insurance” Suggestion and Recommendations As the number of visits made by the advisors to the customers is less than 56%, and the relation can be build/maintained by effective communication with the customers by being in constant touch with the customer. As many of the new life insurance companies are entering, Reliance has to maintain its relation with the customer. So that it can be abele to generate more number of loyal customers. To educate the customers about the new products, the company can use Sms service for reaching its customers. Due to large number of customers, the reach of the entire customers in less time may not be possible from its advisors and sales officers. This can be a less costly medium of taking direct response of the customers. As it does not disturb the customer. To effective closing of any sales call, one should understand the need of the customers in depth. The Advisors can be trained by the sales officers, and training institution. The Reliance should come up with more number of Products for those customers about 40% of customer are feeling that the product that they purchased. does not match there needs
Conclusion This research has been brought up many facts regarding the Customer relationship Management. Reliance Life insurance has large number of products in its portfolio. But the advisors are unable to find out the need of the customers and they are unable to suggest the right suitable product. By this project, now I can understand the various factors of insurance industry and how the customer relation is maintained in this industry. The potential customers are more in number and they are still not secured their life. Due to distribution channels, to reach every other customer in shortest time is not possible; hence company can adopt some of the suggestions Babasabpatilfreepptmba.com
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Annexure Questionnaire For Customers Dear Sir/Madam, 1. Name: 2. Age: 3. Sex: 4. Income: 5. Do you agree that Reliance life insurance offers variety of products? Strongly Agree
Agree
Normal
Disagree
Strongly Disagree
6. Did you got sufficient information about products while purchasing? a) Yes
b) No
7. If No, the reasons are: •
Complexity of products
•
Less information given by the adviser/sales officer
•
Any others (specify)
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8. Does your need and the product you purchased are matching? Fully matched Partly matched
Normal
Partly not matched Not matched
9. How much are you motivated by the adviser or sales officer? Highly motivated Adviser
motivated
Highly motivated Sales Officer
Not at all
motivated Not at all
10.Which are the services you receive from the advisor? Information of premium date reminding Information of new policies. Helps in solving the doubts. If any mention __________________________ 11.Sugest any unique service you want from the organization? __________________________
Thank you QUESTIONNAIRE FOR SALES OFFICERS 1. Name:
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2. Designation: 3. Do you agree that Reliance life insurance has variety of products? Yes
No
4. Do you educate the advisers about initiating Reliance products? Yes
No
5. If No, the reasons are: •
Lack of information about the same,
•
Lack of time
•
Lack of motivation from Reliance Life Insurance
•
Lack of interest in the Advisers,
•
Any others (specify)
6. Are you aware of the various incentives available for following leads given by advisers? Yes
No
7. What are the advisors satisfied with? H Satisfied
Satisfied
Neutral
Dissatisfied
H Dissatisfied
Monetary Rewards Recognition 8. How many advisers are there in you’re under? _______
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“Customer Relationship Management in Reliance Life Insurance” 9. Do you find difficulty in handling advisers? Yes
No
10. If yes then what type of difficulty you face? _____________
11. Are you given sufficient information / training to help you clear the advisers queries regarding insurance plans? Yes
No
12. What kind of assistance do you need to generate more business? •
Presentation by the insurance company
•
Briefing by managers
•
Helpdesk at the branch
•
Meeting with advisers Thank You
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“Customer Relationship Management in Reliance Life Insurance” QUESTIONNAIRE FOR ADVISERS 1. Name: 2. Age: 3. Sex: 4.Qulification: 5. Do you agree that Reliance life insurance has variety of products? Strongly Agree Agree
Normal
Disagree
Strongly Disagree
6. Do you get sufficient information about products? Yes
No
If No, the reasons are: Lack of interest in yourself Lack of Training Lack of motivation from Reliance Life Insurance Any others (specify) 7. Do you educate customers about Reliance Life Insurance Products? _______ 8. Have you tried to understand the needs of the customer? Yes
No
9. If no then what type of difficulty you face? _____________
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“Customer Relationship Management in Reliance Life Insurance” 10. Have you given sufficient information / training to help you clear the customers queries regarding insurance plans? Yes
No
11. How many times you have contacted the existing customer? Once in weak
Once in month
Once in 6 months
Once in Year
12. Do you prepare yourself for any sales call? Yes
No
13. What kind of assistance do you need to generate more business? Training about customer handling Helpdesk at the branch, Generating leads by the company Any others (specify)
Thank you
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BIBLIOGRAPHY Textbooks: Service marketing by Ajay Pandit Websites:
www.reliancelife.co.in www.licindia.com
Newspaper:
Business Line
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“Customer Relationship Management in Reliance Life Insurance� Coding sheet of customers
Age
Sex
Income
34 28 37 32 29 36 39 34 27 41 31 44 31 42 39 34 42 33 41 36 29 37 42 40 29 34 36 28 41 37 34 27 38 35 34 29 47
in lakhs Male 1.50 Male 1.75 Male 1.25 Male 1.50 Male 1.80 Male 2.10 Male 2.40 Male 1.20 Male 1.90 Female 1.80 Male 2.20 Male 3.40 Male 2.10 Male 1.70 Male 1.60 Male 2.20 Male 1.80 Male 2.10 Male 2.70 Male 2.40 Male 1.75 Female 1.60 Male 2.40 Male 1.80 Male 1.90 Male 2.20 Male 2.90 Male 3.20 Male 2.10 Male 2.70 Male 2.40 Male 1.75 Male 1.60 Male 2.90 Male 2.60 Male 1.75 Male 1.90
Q5
Q6
Q7
Q8
Q9a
Q9b
Q10
1 2 2 1 1 1 1 1 2 2 1 3 2 2 1 1 2 1 1 1 3 2 1 1 1 1 2 2 1 1 1 1 1 1 2 1 2
1 1 2 1 1 1 1 1 1 2 2 1 1 2 2 1 1 2 1 2 1 1 1 1 1 2 1 2 1 1 1 1 1 2 1 2 1
. . 2 1 1 2 2 . . 1 2 . . 2 1 . . 1 . 1 . . . . . 1 . 1 . . . . . 2 . 1 .
1 1 2 1 2 1 1 1 2 1 2 1 2 1 2 1 1 2 2 2 1 1 1 2 1 1 1 2 1 1 2 1 3 1 1 2 3
2 2 2 1 2 3 2 1 3 2 2 2 1 2 2 1 2 2 3 2 1 1 1 1 1 2 1 1 2 1 3 1 2 1 2 2 2
1 2 1 1 1 1 1 1 2 1 1 1 1 2 1 1 1 2 2 1 2 2 1 1 1 2 1 1 1 2 1 1 2 1 1 1 1
1 3 2 1 1 2 1 1 3 2 1 1 1 2 3 1 2 2 1 2 1 3 1 2 1 1 1 2 1 1 1 2 1 1 2 2 2
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“Customer Relationship Management in Reliance Life Insurance” 52 39 49 37 57 43 33 48 54 28 58 36 48
Male Male Male Male Male Male Male Male Male Male Male Male Male
2.60 3.10 2.30 2.45 2.10 2.70 2.40 1.75 1.60 2.40 1.80 1.70 1.60
1 2 3 1 2 2 1 1 1 1 1 2 2
1 1 1 2 1 1 1 1 1 1 1 2 1
. . . 1 . . 1 1 2 2 . 2 .
1 3 2 2 2 1 2 2 1 1 1 2 2
1 1 1 2 2 2 1 2 3 2 1 3 2
1 1 2 1 2 1 1 1 1 1 1 2 1
1 1 2 1 3 2 1 1 2 1 1 3 2
CODING SHEET OF ADVISORS
Age 27 31 22 26 21 19 33 38 42 23 29 34 37 28 31
Sex Male Male Male Male Male Male Male Male Male Male Female Male Male Male Male
Qualification B.A PUC PUC B.Com B.A SSLC B.A B.Com B.Sc PUC B.Sc B.Com B.Com PUC B.Sc
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Q5 2 1 1 2 2 1 1 3 2 1 1 1 2 1 2
Q6 1 1 1 2 1 2 1 1 2 1 1 2 1 1 1
Q6a . . . 2 . 3 . . 2 . . 2 . . .
Q8 1 1 2 1 2 2 1 1 2 1 2 2 1 1 1
Q10 1 1 2 2 1 1 1 1 2 1 1 1 1 2 2
Q11 3 4 3 3 2 4 1 4 2 3 2 3 2 2 1
Q12 1 2 2 1 1 2 1 1 2 1 1 2 1 2 1
Q13 3 2 2 1 2 2 2 3 1 1 3 2 3 2 2
88
“Customer Relationship Management in Reliance Life Insurance� 28 43 25 28 26 29 32 27 27 32 26 38 24 34 28 24 28 31 29 33 27 36 36 27 35 28 37 22 37 38 29 31 37 25 28
Male Male Female Male Male Male Male Male Male Male Male Female Male Female Female Male Male Male Male Male Male Female Male Male Male Male Female Male Male Male Male Male Male Female Male
B.A B.Com PUC BCA B.Com B.Sc B.A PUC B.Com PUC B.Sc B.Com B.Sc PUC B.Sc B.A B.Com PUC PUC PUC B.A B.A PUC B.Sc B.A B.Com PUC BCA B.Com B.Sc B.A PUC B.Com B.A B.Com
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1 1 1 1 1 2 1 2 1 1 1 2 1 1 2 1 2 1 1 1 1 1 1 1 2 1 1 1 1 2 1 1 1 1 2
2 1 1 1 1 2 1 1 1 1 1 1 1 1 2 1 2 1 1 1 1 1 1 1 2 1 1 1 1 2 1 1 1 1 2
1 . . . . 3 . . . . . . . . 2 . 3 . . . . . . . 3 . . . . 3 . . . . 3
1 1 2 1 2 1 2 1 1 2 2 1 1 2 1 1 1 1 1 2 1 2 1 2 1 1 2 1 2 1 1 2 1 2 1
1 2 1 2 1 1 2 1 1 1 1 1 1 2 2 2 1 2 1 2 2 1 2 1 1 2 1 2 1 1 2 1 2 1 1
2 1 4 3 2 3 3 2 1 2 3 3 4 3 2 3 3 1 4 3 2 4 2 3 4 1 3 2 3 2 1 4 2 3 4
1 2 1 2 1 2 2 1 1 2 1 1 2 1 2 1 1 2 1 2 1 1 1 2 1 2 1 1 1 2 1 2 1 2 2
3 1 1 1 2 1 1 3 3 1 1 3 2 2 1 1 1 1 2 2 1 1 1 2 1 1 1 1 2 1 1 1 1 2 1
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“Customer Relationship Management in Reliance Life Insurance” CODING SHEET OF SALES OFFICER Q3 1 1 1 1 1 1 1 1 1 1
Q4 1 1 1 1 1 1 1 1 1 1
Q6 1 1 1 1 1 1 1 1 1 1
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Q7a 1 2 1 1 1 2 1 2 1 1
Q7b 2 1 2 1 2 3 2 3 1 2
Q7c 2 2 1 2 1 1 3 2 3 1
Q9 2 1 2 1 1 1 1 2 2 1
Q11 1 1 1 1 1 1 1 1 1 1
Q12 4 4 2 1 3 4 2 3 4 4
90