CUSTOMER RELATIONSHIP MANAGEMENT IN INSURANCE SECTOR: AN OVERVIEW

In today’s intensely competitive, rapidly changing and highly complex business environment characterized by diminishing customer loyalty, the need to be market–focused and customer–centric is more critical than any other time in the past with increased globalization and presence of a large number of players in the market. CRM, as is well known, stands for customer relationship management. It is perceived by Common man as basically an I.T. solution to ensure a better customer service. But obviously it goes much beyond that. It is a business approach that tries to integrate the Employees, the process and technology to improve an organizations relationship with its Customers – both the existing and prospective; as well as internal and external. The current scenario in the insurance industry is a complex and competitive environment tinged with little stability. The major hassle the industry faces is obtaining clients. This is due to the fact that the big fish in the insurance industry dominate the sector. It has become increasingly difficult for this particular sector to gain profits while curtailing costs. Since most insurance companies are not adequately equipped to help their agents deal with customer centered problems CRM insurance enables insurance organizations to survive in a tough economic climate by using the data the insurance company has on the existing customers and then use it to increase the level of profitability. Customer Relationship Management is a catalyst in insurance industry growth. Replacing the traditional in person encounter of door-to-door sales, the CRM system engages solid business relationships to meet customer demands for better results. Customer relationship management technology is proficient in qualifying leads, policy administration and streamlines various work functions to successfully service an insurance business. Continuing developments are providing the insurance industry with customized solutions to satisfy consumers and increase profits. This research paper presents a critical aspect of CRM in insurance industry.