combined final of college insurance

7/27/2019 Combined Final of College insurance

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Introduction

Insurance Industry:

Insurance in India:

The insurance sector in India has come to 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.

A Brief history of the Insurance Sector:

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 in India are;

1818 saw the advent of life insurance business in India with the establishment of the

Oriental Life Insurance Company in Calcutta. This Company however failed in 1834. In

1829, the Madras Equitable had begun transacting life insurance business in the Madras

Presidency. 1870 saw the enactment of the British Insurance Act and in the last three decades

of the nineteenth century, the Bombay Mutual (1871), Oriental (1874) and Empire of India

(1897) were started in the Bombay Residency. This era, however, was dominated by foreign

insurance offices which did good business in India, namely Albert Life Assurance, Royal

Insurance, Liverpool and London Globe Insurance and the Indian offices were up for hard

competition from the foreign companies.

In 1914, the Government of India started publishing returns of Insurance Companies in India.

The Indian Life Assurance Companies Act, 1912 was the first statutory measure to regulate

life business. In 1928, the Indian Insurance Companies Act was enacted to enable the

Government to collect statistical information about both life and non-life business transacted

in India by Indian and foreign insurers including provident insurance societies. In 1938, with

a view to protecting the interest of the Insurance public, the earlier legislation was

consolidated and amended by the Insurance Act, 1938 with comprehensive provisions foreffective control over the activities of insurers.


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The Insurance Amendment Act of 1950 abolished Principal Agencies. However, there were a

large number of insurance companies and the level of competition was high. There were also

allegations of unfair trade practices. The Government of India, therefore, decided to

nationalize insurance business.

An Ordinance was issued on 19th January, 1956 nationalising the Life Insurance sector and

Life Insurance Corporation came into existence in the same year. The LIC absorbed 154

Indian, 16 non-Indian insurers as also 75 provident societies245 Indian and foreign

insurers in all. The LIC had monopoly till the late 90s when the Insurance sector was

reopened to the private sector.

The history of general insurance dates back to the Industrial Revolution in the west and the

consequent growth of sea-faring trade and commerce in the 17th century. It came to India as a

legacy of British occupation. General Insurance in India has its roots in the establishment of

Triton Insurance Company Ltd., in the year 1850 in Calcutta by the British. In 1907, the

Indian Mercantile Insurance Ltd. was set up. This was the first company to transact all classes

of general insurance business.

1957 saw the formation of the General Insurance Council, a wing of the Insurance

Association of India. The General Insurance Council framed a code of conduct for ensuring

fair conduct and sound business practices.

In 1968, the Insurance Act was amended to regulate investments and set minimum solvency

margins. The Tariff Advisory Committee was also set up then.

In 1972 with the passing of the General Insurance Business (Nationalisation) Act, general

insurance business was nationalized with effect from 1st January, 1973. 107 insurers were

amalgamated and grouped into four companies, namely National Insurance Company Ltd.,

the New India Assurance Company Ltd., the Oriental Insurance Company Ltd and the United

India Insurance Company Ltd. The General Insurance Corporation of India was incorporated

as a company in 1971 and it commence business on January 1sst 1973.


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This millennium has seen insurance come a full circle in a journey extending to nearly 200

years. The process ofre-opening of the sector had begun in the early 1990s and the last

decade and more has seen it been opened up substantially. In 1993, the Government set up a

committee under the chairmanship of RN Malhotra, former Governor of RBI, to propose

recommendations for reforms in the insurance sector. The objective was to complement the

reforms initiated in the financial sector. The committee submitted its report in 1994 wherein,

among other things, it recommended that the private sector be permitted to enter the

insurance industry. They stated that foreign companies are allowed to enter by floating Indian

companies, preferably a joint venture with Indian partners.

Following the recommendations of the Malhotra Committee report, in 1999, the Insurance

Regulatory and Development Authority (IRDA) was constituted as an autonomous body to

regulate and develop the insurance industry. The IRDA was incorporated as a statutory body

in April, 2000. The key objectives of the IRDA include promotion of competition so as to

enhance customer satisfaction through increased consumer choice and lower premiums, while

ensuring the financial security of the insurance market.

The IRDA opened up the market in August 2000 with the invitation for application for

registrations. Foreign companies were allowed ownership of up to 26%. The Authority has

the power to frame regulations under Section 114A of the Insurance Act, 1938 and has from

2000 onwards framed various regulations ranging from registration of companies for carrying

on insurance business to protection of policyholders interests.

In December, 2000, the subsidiaries of the General Insurance Corporation of India were

restructured as independent companies and at the same time GIC was converted into a

national re-insurer. Parliament passed a bill de-linking the four subsidiaries from GIC in July,

2002.

Today there are 24 general insurance companies including the ECGC and Agriculture

Insurance Corporation of India and 23 life insurance companies operating in the country.

The insurance sector is a colossal one and is growing at a speedy rate of 15-20%. Together

with banking services, insurance services add about 7% to the countrys GDP. A well-

developed and evolved insurance sector is a boon for economic development as it provides


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long- term funds for infrastructure development at the same time strengthening the risk taking

ability of the country.

2001 ICICI Prudential Life Insurance came into the market to sell a policy.

2002 Banks were allowed to sell insurance plans, as TPAs enter the scene

The Insurance Regulatory and Development Authority (IRDA):

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 IRDAs online

service for issue and renewal of licenses to agents. The approval of 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.

With the demographic changes and changing life styles, the demand for insurance cover has

also evolved taking into consideration the needs of prospective policyholder for packaged

products. There have been innovations in the types of products developed by the insurers,

which are relevant to the people of different age groups, and suit their requirements. Continued

innovations in product development has resulted in a wide range of flexible products to meet

the requirements for cover at different stages of life -today a variety of products are available

ranging from traditional to Unit linked providing protection towards child, endowment,

capital guarantee, pension and group solutions. A number of new products have been

introduced in the life segment with guaranteed additions, which were subsequently

withdrawn/toned down; single premium mode has been popularized; unit linked products;

and add-on/riders including accidental death; dismemberment, critical illness, fixedterm assurance risk cover, group hospital and surgical treatment, hospital cash benefits, etc.


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Comprehensive packaged products have been popularized with features of endowment, money

back, whole life, single premium, regular premium, rebate in premium for higher sum

assured, premium mode rebate, etc., together with riders to the base products.

Contribution to Indian Economy

-Life Insurance is the only sector which garners long term savings.

-Spread of financial services in rural areas and amongst socially less privileged.

-Long term funds for infrastructure.

-Strong positive correlation between development of capital markets and

insurance/pension structure.

-Employment generation.

Insurance Industry prior to de-regulation

Prior to deregulation in 2000, market was a public monopoly.

Public Monopoly- 2000 Offices

- Over 800,000 agents

Distribution through tied agents only Sales approach primarily on a tax savings platform Traditional style product offering : Endowment and money back plans Inadequate and inflexible products Pensions: Small part of product offer Limited focus on customer needs


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Overview of the company:

Introduction to Beacon Insurance Brokers Pvt. Ltd.:

IRDA Licensed No. DB 307/05

Incorporation: January 31, 2005

Profile: Direct Insurance Brokers (Life & Nonlife)

Applied for Reinsurer Licence

Paid Up Capital: INR 5 Million

Net Worth: INR 20 Million

No. of Employees: 140

Registered Office: A-201, Taksh Complex, Near ESIC Hospital Crossing Gotri Road

Vadodara 390021 (Guj.) India.

Presence: Ahmedabad, Ankleshwar, Delhi, Mumbai, Surat, Vadodara and

expanding in Northern and Southern region.

International: Insurance Partner with UNIBA for global Insurance Broking.

Beacon Insurance has a team of qualified MBAs, Engineers, Licentiates, Associates and

Fellows of the Insurance Institute of India. The Organization is set up to develop core

competency in Insurance Sector. They started their operations in the year 2005. Since then

Beacon is effectively Managing Insurance Portfolio of numbers of Individuals, Small,

Medium and Large Corporate Professionals with 20-30 years experience in Private and

Public Sector blended with young vibrant team have come up together to emerge Beacon as a

one of the Fastest Growing Insurance Broking Company. They have their networks all over

India and have in house expertise in all aspects of property, human, liability and other

insurance domains. They have strong Infrastructure which takes care of all needs of clients

for General and Life Insurance. Beacon is committed to bring changes in the mindset of

Indian corporate about effectiveness of implementing insurance as Risk Management Tool.

From the Desk:

Beacon started its journey in 2005 with a modest strength of 7 persons. We have grown to

strength of 130+ persons. We take pride in the fact that our team is known in the industry for

its professional approach. We live by our principle of Trust, Tolerance & openness &


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Vision, Mission, Philosophy and Strength:

Vision:

"To become research based International Insurance Broker Company providing

innovative solution to ensure happiness of our customers.

Mission:

"We shall deliver excellent service and superior products to our customers, remaining

focused to their needs and strive for continuous improvement through communication

and technology. We will unite and operate our business through the shared value of

Trust, Tolerance and Openness. Our employees shall be known and respected within

the industry for their expertise, commitment and professional integrity."

Philosophy:

To work towards the utmost satisfaction of the client by always taking care of theirbest interest.

Work continuously to improve Knowledge, Skill, Attitude, and Experience, to bemost competent in the industry.

Always provide the best services as an outsource partner. Flexibility in approach to innovate and continuously deliver value added services.

Strength:

"Our" team is a perfect blend of fresh ideas in accord with the exhaustive experience

of eminent professionals. And team truly demonstrates the statement.


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Organization Hierarchy:

Board

Executive Director

Sr. Vice President

Vice President

Assistant Vice

President

Sr. Manager

Manager

Deputy Manager

Assistant Manager

Senior Executive

Executive

Jr. Executive


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Beacon Business Process:

1) Approaching the client:

Beacon has adopted a very unique method of approaching their client. They dontrepresent any particular insurance company for selling a policy; instead they tend to

represent their client to the companies based on the requirements and audits done by

Beacons associates and work team. There are various ways that Beacon approaches.

- Cold Approach:

Cold approach means to approach or start a conversation with a complete

unknown client.

Beacon has a qualified team of experts who bring in new potential clients and

makes sure that they close the deal.

- References:

References are the suggestions made by the existing clients to approach

someone who can be a possible potential customer with a need of insurance

that Beacon can help them serve with.

- Existing Client:

Beacon has a strong collection of satisfied customers and maintains a strong

relation with them. They not only sell them new policies but also stay in

constant touch with them and give them regular reminders and updates about

their policies and its renewal premiums. It also keeps them updated with new

policies which are even more profitable to their clients.

2) Providing introduction of Beacon and its services to the client:

Providing a range of specialised services, Beacon experts introduce their

company and the range of services that they provide. The client is made

convinced that the company works for their clients providing them a hassle

free experience and providing them just what is essential for them and their

firm.


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3) Gathering information about the client

Beacon being an insurance broker rather an insurance agent has multiple

companies in its basket for providing the insurance to its client. This helps

Beacon in an innovative way to firstly understand its customer and its

requirement firstly and make and report on the clients requirement. This

report is then forwarded to the insurance companies to get a perfect quote for

the insurance. This service of processing client information for insurance

suggestion helps it to provide the client with the best possible profitable, low

cost and high service policy to its client.

4) Various services provided by Beacon to Client

Beacon Insurance Brokers Pvt. Ltd. is not merely an insurance selling agency.

It is a broking firm that provides a range of services both before and after sale

of insurance policy. Beacon provides the following specialised services.

- Plant/ Vicinity Inspection

Once the client gives nod to opt for Beacon services and after gathering

information from the client the Beacon engineers visit the clients vicinity foran inspection. The inspection includes checking for risk areas, safety measures

at the facility and valuation of the vicinity/ plant.

The specialised engineers gather the complete information of the plant and

integrate this information in form of a report which is sent to various insurance

companies to get a competitive quote of insurance policy for that particular

facility.

This inspection helps client to fetch a competitive quote from various

insurance companies. The competition is so tough that these companies

provide huge discounts on premiums which may go up to whooping 85%.

Moreover this inspection report helps insurance companies decide upon risk

involved in that particular business and based upon that the companies decide

the premium.

IRDA has fixed certain rates of premium which every insurance companyneeds to abide with hence the premium that the companies propose is more or


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less the same but it is the discount rate which differs company to company

based upon which the decision is made by the client up on which policy to opt

for.

- Risk Report

Risk report is a report that covers the total risk involved at the facility/

vicinity. This report helps insurance companies decide upon the premium to be

charged. Higher the risk, higher will be the premium. It is a detailed report

which includes several criteria like-

- Acknowledgement

- Introduction of the company

- Introduction about the plant

- Process flow of the company

- Various constructions and occupancy

- Other details about plant

- Various risk exposure

- Good Features

- Flood zone map

- Wind and Cyclone zone map

- Earthquake zone map

- Safety Audit

Every insurance company before deciding the premium amount and selling the

policy is concerned about the risk involved of the insured. To understand the

risk a risk inspection report is made which is again backed by a safety audit

report which states the safety measures taken by the company for the time of

mishap.


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Beacon Insurance Brokers Pvt. Ltd. prepares this report. The engineers at

Beacon inspect the safety measures available at the facility and based on their

inspection they jot down their observations. Based upon their observation they

also provide recommendations to the client which can improve their safety

measures and ultimately can also reduce the premium amount as more are the

safety measures, lesser the insurance company charges as the risk is minimal.

Hence safety audit is again a facility provided to client as well as the insurance

companies. For client it maximises the safety and minimizes the cost while for

insurance companies it minimises the risk involved and reduce the chances of

claim.

- Listing & Valuation

Beacon being an insurance broking firm helps the client in getting the total

sum of amount that is to be insured for the client in the policy. Listing is the

method which shows the complete line by line listing and description of the

total things that are to be insured in the policy. Listing shows the details of

things with its special description and requirement that help the insurance

company to individually decide on the valuation of the things listed and helpsin calculating the perfect sum for insurance which helps in calculating the

amount of premium for the insurance.

Listing and valuation helps the client and the insurance company both

combine as different areas, plant and machinery, building, stock, etc. have

different characteristics and IRDA have different pre-determined rates

depending on the characteristics and surrounding of the insurable objects.

Insurance of stock is done by the market price/book price and all the other is

done by RIV (reinstatement value). Reinstatement value is the current market

price of purchasing the same asset but a new one.

- Policy Audit:

Policy audit means analysing of clients existing policies and providing them

proper information about the features covered and not covered in those

policies and those features which are not covered in those policies is the target


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for Beacon. They pitch them policies with those features which are not

covered in the existing policies. More over they offer endorsement facility

through which the client can avail the same features in their existing policy.

Policy audit also facilitates giving a cheaper quotation for their existing policy.

- Risk Matrix

Beacon follows a unique method to assign and prescribe an insurance policy to

its client. Beacon uses the method of risk matrix in which it gathers

information about all the previous policies taken by the client and the policies

that are currently active. It compares all the policies and tries to evaluate them

and find out the major Gaps and lags and gives the outcome answer showing

which policies are to be continued and which ones are to be dropped / stopped.

This evaluation helps the Beacon to improvise its services and suggestion of

the policy to its client which can reduce the cost by eliminating overlapping in

any pre-insured policy.

- Suggestion

After all the above analysis Beacon draws a proper conclusion and provides

accurate suggestions to the client. These suggestions help the client to take

proper decision and opt for a better policy that suits best for them.

5) Assessment of Various Policies and drawing a quotation based upon various reports

and information provided by the client.

All the above mentioned policies are formulated in a proper format and undergo

assessment. Based on the various observations and conclusions the Beacon experts

prepare a portfolio for the client and forward it to a few insurance companies which

they think to be most appropriate for the client and also up on the preferences of the

client. The insurance companies assess the reports and propose a quotation for the

client. The quotation is forwarded to Beacon and Beacon again shortlist the best

quotations and put them in a comparative format which will make it easy for the client


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to select a policy based on their preferences. Hence this quotation is forwarded to the

client for selection.

6) Closing the deal

After the quotation is finalised and a policy is selected by the client, a Beacon

personnel will collect a cheque from the client. The amount on cheque is the premium

amount for that policy which is directly addressed on the companys name and not on

Beacon. By doing this even the client dont need to worry and they feel to be in safe

hands. A Proposal form is filled on behalf of the client and signed by client.

7) Triggering the product

After the cheque is collected the cheque is forwarded to the insurance agency along

with the filled in proposal form, various reports and necessary documents. The

insurance company evaluates the documents and activate the policy and hence the

product is triggered. Beacon provides a door to door facility right from cheque pick

up to handling the policy document to the client.

8) Regular follow-ups with the insurance companies/ Claim settlement

After sale service is inevitable for any business. The concept of selling is not limited

till sales but it has expanded to the after sale service they provide. Beacon can never

overlook the after sale service especially when it is in Insurance industry where client

is entitled to pay premiums at regular interval and failing to do so will lead to

discontinuation of the insurance policy.

Beacon cares for its clients and hence it also provides regular follow-ups to its clients,

where client need not worry about missing the premium interval as it is the

responsibility of Beacon to keep them updated as soon as the due date is near so that

the client never misses to pay the premium. The client gets a door to door facility

where the Beacon client picks up the cheque as soon as the client informs them.

Claim settlement has been one of the USP of Beacon. Offering client a hassle-free

claim settlement Beacon has focused on this key part of their business. At Beacon the

client need not rush for the claim settlement, they just need to inform Beacon about

the incident and after that Beacon will look after the settlement of the claim with theinsurance company.


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Insurance /Risk Management is the substance of a security against any unforeseen

events which allows the enterprise to flourish with a focus on key matter without the

threat by perils known & unknown. Claim is the most crucial aspect to be taken into

consideration as it requires lots of expertise.

Claim is the true litmus test to judge the efficiency of any insurance brokers. Giving

price advantage is definitely the motto as your insurance partner, but the prime motto

is to deliver optimum level of satisfactory service during claim settlement. Beacons

role in claim management-

Beacon acts as a catalyst in entire claim management exercise.

9) Customer Retention

Customer retention is the biggest part of any business especially in insurance industry

where retaining a customer is the biggest challenge that prevails where there is a cut

throat competition for attracting clients towards their business. Consumer these days

has a power of knowledge and they may divert towards the most profitable andconvenient business as per their needs.

For Beacon retaining a customer is as important that for any other firm. Insurance

industry works on references majorly and references come only when your current

customers are satisfied. Not only for references but also for generating more business

from their existing customers retention is important.

Beacon has a broad range of services and to ensure precision in each service Beacon

has a department for each service separately which not only provide expertise in work


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but also disintegrate the work which also makes the work much more faster and

efficient, hence practicing economies of scale and hence serving their client quickly

especially during claim settlement and policy generation and renewal before expiry

giving timely reminders to the client.

A normal agent works only for a particular company and tries to push the policy of

that company to the client while a broker works upon a range of companies and their

policies for the client and pitches only those companies and policies which are best

suited for the client giving a handcrafted experience to the client which also makes

them feel that they are not being fooled and they are in safe hands. Hence Beacon has

a healthy reason to retain its customer because they working for the customers and not

for insurance companies.


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Literature Review

1. INTRODUCTION

Large-scale changes in the market point out the challenges the future will bring for brokers in

the insurance industry. On the one hand, inefficiencies in insurance markets were partially

defused by the global emergence of modern information and communication technology,

which, at least theoretically, should have led to a smaller demand for intermediation. On the

other hand, other contextual changes in the industry, such as the deregulation and

liberalization of insurance markets, have resulted in greater product differentiation and

correspondingly lower market transparency, which in turn increased demand for brokerage.Hence intermediaries still play a decisive role in facilitating the exchange between consumers

and providers of financial services. However, debates such as the discussion about new, fee-

based payment systems indicate that brokers need to reconsider their function in order to

provide added value beyond direct exchange. How can insurance brokers create this added

value?

Focusing on the relationship between brokers and insurants, I investigate the value insurance

brokers create for insurants in todays challenging environment, discussing for this purpose

both current and possible future functions of brokers in the insurance market. Instead of an

institutional perspective, which focuses on the internal activities of existing institutions

such as insurance companies or brokers, our analysis is based on a functional perspective,

which focuses on the services provided and needs fulfilled by these institutions, for example,

managing risk or transferring resources across time and space (Merton and Bodie, 1995).

According to Merton and Bodie (1995, 2004), a financial system should be analysed in terms

of a functional perspective because over long periods of time, functions have proven to be

much more stable than institutions. Especially during the last years, institutions have emerged

and disappeared, evolved and changed, while functional needs have remained stable (see also

Allen and Santomero, 1998; Oldfield and Santomero, 1997). Allen and Santomero (1998, p.

1466) state: The financial services may be packaged differently both across competitive

institutions and over time, but the functions are far more stable.


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As we are advocates of the customer-value approach (see section Customer Value, pp. 5-7),

we analyse these broker functions from a customer point of view by asking: What functions

do or should brokers fulfil for their customers? The results discussed in this article are

primarily derived from answers to this question given in interviews with globally operating

companies, companies that are now or have the possibility of being very important customers

of brokers.

The article first explains the theoretical context and presents the applied research method.

Next, the key results of the qualitative study and their implications are discussed. The article

closes with suggestions for future research.

2. THE FUNCTIONS OF FINANCIAL INTERMEDIARIES:

There are three sets of players in the insurance market: insurance providers (e.g., insurance

and reinsurance companies), intermediaries (also known as brokers), and consumers, whose

demands for insurance vary with their individual degrees of risk aversion. In this article, we

adopt the definition of insurance broker set out by Cummins and Doherty (2005, p. 5): an

insurance intermediary (or broker) is an individual or business firm, with some degree of independence from the insurer, which stands between the buyer and seller of insurance.

Optimally, the broker acts completely autonomously and represents the interests of its

customers. Hence, independent insurance brokers are described as intermediaries who bring

the parties together and match particular needs of policyholders with the products ofinsurers

(Cummins and Doherty, 2005, p. 5). Brokers facilitate the interaction between providers and

consumers in exchange for some form of remuneration.

Traditionally, market imperfections, such as asymmetric information and transaction costs;

have been given as the reason for the existence of brokers in the financial services industry,

what we might call financial intermediaries (Allen and Santomero, 2001; Freixas and Rochet,

1997). How central such market imperfections are to the literature of the past two decades is

illustrated by two major reviews of intermediation theory by Santomero (1984) and

Bhattacharya and Thakor (1993). However, during the same two decades, new developments

(e.g., new technologies and globalization) have significantly reduced the price of information,

lowered transaction costs, and evened the playing field when it comes to asymmetric

information. Strangely, though all this has not led to a reduced demand for intermedia-tion


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services. In fact, overall demand has increased (Allen and Santomero, 1998; Scholtens and

van Wensveen, 2000). This suggests that there is something other than market imperfections

that is driving the demand for financial intermediation and, indeed, Allen and Santomero

(2001) argue that the theory of financial intermediation focuses too much on the role of

intermediaries in reducing the frictions of transaction costs and asymmetric information.

Therefore, several researchers (e.g., Allen and Santomero, 1998, 2001; Scholtens and van

Wensveen, 2000; Schmidt, Hackethal, and Thyrell, 1999) propose broadening the focus of

intermediation theory so as to better understand the continued existence of modern financial

brokers.

Well-founded research in the field of financial intermediation is mostly limited to the banking

industry (e.g., Gurley and Shaw, 1960; Diamond, 1984; Gale and Hellwig, 1985; Boyd and

Prescott, 1986; Bhattacharya and Thakor, 1993; Winton, 1997; Schmidt, Hackethal, and

Thyrell, 1999; Gorton and Winter, 2002; Germain, 2005). There is very little information on

insurance intermediation apart from Dionne (1991) and Cummins and Doherty (2005).

Nevertheless, we analysed the existing financial intermediation literature in order to identify

functions of insurance intermediaries that might explain the continued existence and

relevance of brokers in the contemporary market. Based on this literature review, the

different functions of insurance intermediaries can be summarized as follows.

Information function:

A traditional function of insurance brokers is to provide their clients with information and

advice regarding the clients insurance needs. Through economies of scale and scope, brokers

can search the insurance market more efficiently than could individual buyers and can help

their clients compare insurers skills, capacities, risk dispositions, financial strengths, and

reputations (Cummins and Doherty, 2005). Brokers also fulfil an informational function for

insurers. During the matching process, insurance brokers can typically acquire or process

more information about their clients level of risk than is possible for insurers (Sirri and

Tufano, 1995). This valuable information can help insurers solve problems related to

asymmetric information (Strong and Walker, 1987), such as adverse selection and moral

hazard. Having better and more information also allows insurers to price policies more

competitively and fairly (Rothschild and Stiglitz, 1976). If the broker acts on behalf of large

commercial insurance buyers, the information the broker can provide the insurer about such


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clients is particularly valuable since the risk involved with large policyholders is typically

more complex and difficult to evaluate. This informational function of brokers enables

insurers to reduce the frictional costs of insurance and increases the efficiency of the

insurance market, especially for policyholders, who would otherwise bear such costs in the

form of higher premiums (Cummins and Doherty, 2005). And because a broker relies on

long-term relationships for a successful business, brokers also provide and solicit information

on customers and insurance companies to ensure that market transactions are completed

satisfactorily for all parties and that no party acts opportunistically after an agreement has

been signed (Swiss Re,2004).

A recent worldwide survey conducted by Accenture among L&A and P&C/General

insurers revealed that 80% regard sales growth as a critical priority.

Their primary strategies for achieving this are to improve the performance of their

salespeople and intermediaries, raise the level of customer retention, enhance their new-

product success rate and deliver a better customer service.

In the past, high performance in these areas depended almost exclusively on the superior

capability of key professionals: recruiters, trainers, marketers, salespeople, support personnel,

underwriters and managers. With the aging of the workforce, and the intensifying

competition for top performers, insurers need to be able to consolidate their successes and

institutionalize their best practices. They also need to break through traditional performance

ceilings, finding new ways of boosting sales and service efficiency and effectiveness.1

1Marketing & Distribution Services for the Insurance Industry - Accenture. 2013. Marketing

& Distribution Services for the Insurance Industry - Accenture. [ONLINE] Availableat: http://www.accenture.com/us-en/Pages/service-insurance-marketing-distribution-

services-summary.aspx. [Accessed 01 August 2013].
http://www.accenture.com/us-en/Pages/service-insurance-marketing-distribution-services-summary.aspxhttp://www.accenture.com/us-en/Pages/service-insurance-marketing-distribution-services-summary.aspxhttp://www.accenture.com/us-en/Pages/service-insurance-marketing-distribution-services-summary.aspxhttp://www.accenture.com/us-en/Pages/service-insurance-marketing-distribution-services-summary.aspx


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Competitors

Insurance Brokers Surat:

Bharat Re-Insurance Brokers Pvt. Ltd.

JK Risk Managers and Insurance Brokers Limited

Emkay Global Financial Services Limited

Loyal Insurance Brokers Limited

Unison Insurance Broking Pvt. Ltd.

Havmore Insurance Brokers Pvt. Ltd.


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Direct Insurance Companies in Competition:

- Bajaj Allianz General Insurance Co. Ltd.- ICICI Lombard General Insurance Co. Ltd.- IFFCO Tokio General Insurance Co. Ltd.- National Insurance Co. Ltd- The New India Assurance Co. Ltd- The Oriental Insurance Co. Ltd- United India Insurance Co. Ltd- Reliance General Insurance Co. Ltd- Royal Sundaram Alliance Insurance Co. Ltd- Tata AIG General Insurance Co. Ltd- Cholamandalam MS General Insurance Co. Ltd- HDFC ERGO General Insurance Co. Ltd- Export Credit Guarantee Corporation of India Ltd- Agriculture Insurance Co. of India Ltd- Star Health and Allied Insurance Company Limited- Apollo Munich Health Insurance Company Limited- Future Generali India Insurance Company Limited- Universal Sompo General Insurance Co. Ltd- Shriram General Insurance Company Limited- Bharti AXA General Insurance Company Limited- Raheja QBE General Insurance Company Limited- SBI General Insurance Company Limited- Max Bupa Health Insurance Company Ltd- L&T General Insurance Company Limited- Religare Health Insurance Company Limited- Magma HDI General Insurance Company Limited- Liberty Videocon General Insurance Company Limited

Others:

Banks and private Insurance agents.
http://www.uiic.co.in/http://www.uiic.co.in/


24/71

Project Introduction

The service sector in India has showed a significant rise in the past recent years. The

contribution to the GDP through service industries is rising at an increasing rate each year.

The Insurance industry is also gaining a healthy pace in service sector. Industries like

Insurance industry requires happy customers as acquiring service is all about acquiring an

experience moreover there is a cut throat competition whereby customers can switch from

one service provider to other.

Beacon Insurance Broker Pvt. Ltd. is one such firm in Insurance industry which faces a cut

throat competition right from the agents, brokers, banks and insurance companies themselves.

In such a situation whereby competition from more than one industry it is very difficult to

survive unless they provide a rich quality of service that ensures proper satisfaction level of

the customers and keeps them retained in the business.

Hence looking at the crucial role of customer satisfaction and retention in this industry the

researchers decided to study the level of satisfaction and retention at Beacon Insurance

Brokers Pvt. Ltd. which will help analyse how well Beacon is performing in maintaining the

satisfaction level of their customers which will help retain them providing them an individual

approach to help cater every need of the customer and developing a rich overall Beacon

experience. The study aims to covers several aspects that will help Beacon Insurance Brokers

Pvt. Ltd. analyse their current standing.


25/71

Statement of Problem

In Insurance Industry, where there are several companies with ample number ofproducts, there are also multiple insurance providers who all together multiply the

competition at each level. In such a scenario providing the product with a quality

service is mandatory. The customer satisfaction level need to be maintained at each

stage and hence comes the customer retention because there is always a threat of

losing the customer because the customer has multiple options to opt for; hence the

satisfaction level of the customer needs to be analysed frequently which then decides

its retention.

Beacon Insurance Brokers Pvt. Ltd. is the leading direct insurance broking firm that

deals with all kind of insurance policy. With a net worth of 20 million Rupees,

Beacon Insurance Broker has a vast pool of customer base and has an incremental

performance since inception. Beacon Insurance Brokers have a focus on providing a

quality service to its customers for whom the researchers tend to carry a survey upon

the Customer Satisfaction and Retention at Beacon Insurance Brokers Pvt. Ltd. by

collecting necessary information from a random sample of 100 customers.

The resolution should be in the form of conclusion and recommendation of the

researchers which would be drawn by using a structured questionnaire which covers

the issues that hovers around the research topic.


26/71

Objective of Study:

Primary Objectives:

- To Study the Customer Satisfaction and Retention at Beacon Insurance Brokers Pvt. Ltd.

Secondary Objectives:

1. To identify a difference between an insurance brokers services and an agents services.

2. To identify services offered at Beacon.

- To understand the business model of Beacon

3. To identify the satisfaction level of customers pertaining to these services.

- To know the quality of services rendered.

- To identify a gap between services promised and services rendered.

- To provide recommendations to improvise the quality of services.


27/71

Research Methodology:

Type of Research Design:

Research design is a detailed blue print used to guide the research study towards its

objectives. The process of designing a research study involves many interrelated decisions.

The most significant decision is the choice of research approach as it determines how the

information will be obtained.

The type of research used in this study is descriptive approach which means asking questions

to people who are believed to possess the desired information which in this case are

customers of Beacon Insurance Brokers Pvt. Ltd.

Under this research a detailed questionnaire was prepared to know the review of customers

upon various services provided by Beacon Insurance Brokers Pvt. Ltd., their satisfaction level

with those services and service provider and their retention level.

Collection of Data:

Primary data: Data has been collected using a structured questionnaire with personal

interviews, Telephonic Feedback with the customers of Beacon Insurance Brokers Pvt. Ltd.

and Feedback from Beacon employees.

Secondary data: As this is a primary data research there is no secondary data is used for the

study.


28/71

Formation of Questionnaire:

The questionnaire has been prepared in three stages:

1. Understanding the process:

Initially the study started off with understanding the business process and model of Beacon

Insurance Brokers Pvt. Ltd. followed by industrial visit to know how this process is made

into practice and understanding the customers and their requirements after which those

customers were undertaken as prime focus of the study and hence their satisfaction level and

retention were taken as the prime topic of the research.

2. Preparing pool of question:

At this stage, after observing and understanding the entire process, various questions on the

set parameters have been formulated and a pool of questions was created for finalizing the

questionnaire.

3. Finalization of questionnaire:

After discussing with the industry as well as the faculty mentor, considering various

objectives set for the study a final set of questions was made ready for the survey. The

questions finalized were based on the relevance with the work, importance of the topic for the

study, services provided by the company and easy understanding of the respondent.


29/71

Data Collection Techniques:

Sampling Size: A random sample of 100 customers of Beacon Insurance Brokers Pvt. Ltd.

from Surat city and its surrounding areas is taken for the study.

Sampling Method:

Convenience Sampling: Convenience Sampling has been selected because this study

requires independent unbiased respondents where they were selected randomly without any

biasness and prejudice.

Sampling Frame: Sample for this research study is different areas of Surat city and its

surrounding areas.

Sample Element: Sample elements for the study are the customers of Beacon Insurance

Brokers Pvt. Ltd.

Survey Tool: A structured direct and telephonic interview along with a structured

questionnaire was taken as the survey tool.

Survey Method: The survey method used under this research is personal and telephonic

interview along with a structured questionnaire, whereby the review of the customers was

jotted down by the interviewers during one to one conversation with the respondents.

Analyses of Data:

The data so generated was subjected to rigorous statistical treatment and the inferences were

drawn accordingly. The basic analytical tools like bar charts and pie charts are used.


30/71

Limitation of the study:

The main limitation of research is customers having less time or no time so at timesthe questionnaires were filled with haste hence chances for faulty responses may

occur.

The time period for the study was limited hence the study provides individual focuson only 100 customers of Beacon.

The satisfaction level of each customer is different but the study covers satisfactionlevel of only 100 customers.

Negligence of customers for not providing the information reduces the scope of thestudy.

Assumptions

The responses provided by the sample are assumed to be representative of the overallpopulation.

The responses provided by the customers are free from any kind of biasness. The respondents are assumed to possess appropriate information regarding their

association with Beacon Insurance Brokers Pvt. Ltd.

Scope of the Study

The study was conducted in only Surat city and its surrounding areas. It can be carriedfurther in other cities where Beacon clients exist.

The study can be used as a secondary data in other branches of Beacon as well as byother broking firms if permitted.

The study provides an individual focus of the 100 customers covered in the study.This can be extended by covering all the customers of Beacon.

The study will provides a generalised satisfaction level of all Beacon customers whichcan be made specific with more sample size.

The study shall help provide the measures to know the retention level of thecustomers and help to build more customers base.

The study shall highlight the pitfalls in the services of Beacon which will help providedevelop in those particular areas in near future.


31/71

Analysis and Interpretation

Q1. Business Segment

Segment No. of Response Percentage

Textile 41 38%

Jewellery 5 5%

Chemical 7 7%

Engineering 4 4%

Other 50 47%

Table 1

Chart 1

Interpretation:

The above chart from the analysis shows the various segments of customer base which are

included in this research. Surat being a textile business oriented city the maximum customers

i.e. 41% of the research participants are from the textile sector 5% from the jewellery sector

7% from the chemicals 4% engineering and the remaining from other sectors which include

Real-Estate, Construction, Shopping Malls, Entertainment, Paper, Exports, Diamonds,

41

574

50Textile

Jewellery

Chemical

Engineering

Other


32/71

Pharmaceuticals, Glass, Packaging, Coal Mining, Steel & metal industries, Tiles, Aluminium

foils, Marketing, Petroleum, oil and refinery, Hotels, etc. . This shows that the Beacon

Insurance Brokers Pvt. Ltd. Have a rich customer base. The research focuses on the overall

main industries which are up and running in and around Surat including Kadodra, Palsana,

Navsari, Bardoli, Ankleshvar.


33/71

Q2. Customer of Beacon Insurance Brokers Pvt. Ltd Since

Customer Since No. of Responses Percentage

< 1 year 22 22%

2 years 37 37%

3 years 18 18%

4 or More years 23 23%

Table 2

Chart 2

Interpretation:

The above chart shows the duration of association of the customers with Beacon Insurance

Brokers Pvt. Ltd. The research shows the association on the basis of various years the

customer is connected with the company for its need for insurance and various supports and

services related to the insurance taken by them. The 22% of < 1 year, 37% of 2 years, 18% of

3 years, 23% of 4 or more years are associated customers shown in the survey performed on

the new as well as the existing customers regarding to the satisfaction and services which

were rendered to them by the Beacon. With the various different levels of association taken

into consideration in the research helps to make the report more reliable. This show that the

company has increased their client base since last 2 years.

22

37

18

23

< 1 year

2 years

3 years

4 or More years


34/71

Q3. Ease of contact and communication with the Beacon's employees (by phone and

email).

Rating No. of Responses Percentage

1 0 0%

2 0 0%

3 5 5%

4 65 65%

5 30 30%

Table 3

Chart 3

Interpretation:

As communication is the key in any business it is important that customers are always kept in

contact and up to date with the support and services that are rendered by any company

especially In Insurance Broking sector where the approach or the 1st contact as well as the

after sales services are mainly done through contact and communication between the

customer and the marketing personnel. This contact rate and quality communication helps in

converting a potential client (lead) to a customer of the company. If it is an existing customer

proper contact and communication helps to maintain the loyalty of customer as well as the

vital most part i.e. retaining the customer for a long time. Contact and communication also

helps the company with new leads and suggestions for new potential customers by the

satisfied existing customers.

0

20

40

60

80

1 2 3 4 5

0 05

65

30

No.Responses

Rating

Ease of contact and

communication

No. of Responses


35/71

At Beacon Insurance Brokers Pvt Ltd. the marketing personnel maintain a very high quality

contact and communication with their customers. Not only at the time of issuing or reissuing

the policy but also at the times of queries of the customers or various claim support and

services whenever required by the customers. This can be justified by the response received

from the customers in the research. Out of 95% of the customers 30% are completely

satisfied with the communication and only 5% respondent have a neutral response which was

because of a low contact requirement and lower contact satisfaction as their calls were not

answered on time or properly.


36/71

Q4. Extent of flexibility in dealing


1 0 0%

2 0 0%3 9 9%

4 61 61%

5 30 30%

Table 4

Table 4

Interpretation:

With growing wants and requirements of the customer and the high rate of competitors in

todays market the insurance policy cannot be made in a standard form for the customers. The

requirements of one customer differ from the other. The insurance Broker plays a competitionfrom not only other brokers but various agents and banks too. In todays time there does not

exists only one type of business in the market but several types of business and the

requirement of insurance differs from the type of business to the individual customers.

The customer is only satisfied if he has the perfect policy which is required by him and

eliminates the unwanted policy and the extra cost of policy. This means that the special

framing and flexibility in the policy is required. There is flexibility in dealing as the policy

issued to the customer is to some extent specially tailored as per their requirements and

customers past relations with the insurance company and various claims. This help of

0

10

20

30

40

50

60

70

1 2 3 4 5

0 0

9

61

30

No.ofResponse

Rating

Extent of Flexibility in Dealing

No. of Responses


37/71

flexibility is done by the Insurance Broker who is a link between the insurers and insured.

This important help of moulding the policy flexibly according to the customers requirement

helps in building loyalty and satisfaction of customer towards Beacon Insurance Brokers Pvt

Ltd.

As per the study 30% customers of Beacon Insurance Brokers Pvt Ltd. are fully satisfied as

the customers are large scale industries and corporates with high sum insured which increases

the eligibility of higher flexibility in policy framing heavy flexibility in policy premium

pricing. While the 61% customers are satisfied as they can get the best policies available into

the market regarding to their requirements with high amount of flexibility in the policy

premium pricing. The remaining 9% customers had a neutral review as they have flexible

policies and are satisfied but desire more flexibility in the policy premium pricing but this

could not be achieved as the business they run have are highly risk oriented considered by the

insurance companies.


38/71

Q5. The senior management and employees initiative to attend to the customer's needs

and develop the services rendered to the customers.


1 0 0%

2 0 0%

3 14 14%

4 43 43%

5 43 43%

Table 5

Chart 5

Interpretation:

Experience is the key to everything and in service industry experience is that one thing which

makes the difference between the service providers. Not only between the service providers

but even internally experience has its significance. The experience of the employees and

senior management makes a huge difference in rendering services. Customer is build upon

trust and that trust needs to be built by the employees of the company. Usually in insurance

industry it is real tough to earn the trust of the client as customer usually perceives that the

employee needs to meet his target and hence selling him the policy as per his target and not

as per his requirement. This is not the case at Beacon Insurance Brokers Pvt. Ltd. Here the

employees believe that the policy should be according to the customers need and not what

they wish them to have. Of course they suggest the customers what is essential to have and if

0

10

20

30

40

50

1 2 3 4 5

0 0

14

43 43

No.ofResponses

Rating

Senior Management and

Employees Initiative

No. of Responses


39/71

the customer believes in them then and only then that product is offered. Sometimes it may

happen the customer may not get convinced by the experience of the employee and they seek

for some more experienced personal to handle the deal. In such cases the senior management

of Beacon Insurance Broker Pvt. Ltd. is happy to help, hence taking care of customers need

and satisfaction which is essential to build that trust in them.

The research studies that 43% of customers are highly satisfied and another 43% are satisfied

by the initiative of employees and senior management to meet the customers need and

develop their experience with Beacon. 14% of customers have a neutral view on this as their

need were partially met and in few cases the senior management didnt involve because the

senior management believed that there was no need to involve in those cases. But

interestingly no customer is dissatisfied which clearly denotes that Beacon employees and

senior management are working off the edge for a better customer-company relationship

contributing to the overall experience.


40/71

Q6. Fairness and equity in treatment

Rating No. of Response Percentage

1 0 0%

2 0 0%3 3 3%

4 33 33%

5 64 64%

Table 6

Chart 6

Interpretation:

The credibility of each and every business or service depends upon how fairly the customer is

treated. The customer should not feel to be misguided by the employee of the company. At

the same time the customer seeks that he is being treated equally and there in no biasness

prevailing in the industry. On the other hand the companies need to maintain a check on these

crucial things. The insurance policies have various clauses attached to them which are very

important for the customer to know as the clauses contain the vital information regarding to

the issue and claim related clarifications. There may be cases where the customer is treated

fairly and equally but the customer may feel to be cheated, in such cases it is again the role of

the employees to ensure them to be in safe hands. Hence Fairness and Equity is a crucial

factor especially in the Insurance Industry. Unlike the insurance agents, Beacon Insurance

Brokers Pvt. Ltd. provides a customized service to each customer instead of providing

0

10

20

30

40

50

6070

1 2 3 4 5

0 03

33

64

No.ofResponses

Rating

Fairness and equity in treatment

No. of Response


41/71

standardized policies which eliminates the chances for customer to feel cheated or being

mistreated.

64% customers are highly satisfied that they are being treated fairly and equally while 33% of

customers are satisfied with the same. Only 4% customers have a neutral view regarding this

as they are new customers to the company and needs some more time to judge upon this.

Hence it is clear that unlike insurance agents Beacon Insurance Brokers Pvt. Ltd. serves each

and every client fairly and equally.


42/71

Q7. After sales service


1 0 0%

2 0 0%3 10 10%

4 59 59%

5 31 31%

Table 7

Chart 7

Interpretation:

In every industry the task of each company is not mere sale of the product or the service.

Customer nowadays seeks for the after sale service quality of the company way before the

purchase is made. The customer likes to invest their money in those products and services

where they get a long time benefit of the same. After sale service is inevitable for any

business these days. In insurance industry the after sale service is the only thing the

customers invest their money in. At Beacon Insurance Brokers Pvt. Ltd. the after sale service

is the USP of the company which gives them an edge over any other insurance provider.

Moreover these services are free of cost for the customers which again lead to an incremental

satisfaction for the customer. The after sale service is important for Beacon Insurance Broker

Pvt. Ltd. to evaluate their customer satisfaction level.

A total of 70% of customers are happy with the after sale services of Beacon InsuranceBroker Pvt. Ltd. out of which 31% are highly satisfied and 59% are satisfied. 10% of

0

10

20

30

40

5060

1 2 3 4 5

0 0

10

59

31

No.ofResponses

Rating

After sales service

No. of Response


43/71

customers are still having a neutral view which is an acceptable figure as they are again, new

to the company and wish to evaluate these services further. Yet there is always a scope of

improving the quality of these after sale services. Hence Beacon is doing pretty good in this

area as well.


44/71

Q8. Premium Quotation on time


1 0 0%

2 0 0%3 4 4%

4 56 56%

5 40 40%

Table 8

Chart 8

Interpretation:

There are several insurance providers like banks, agents, brokers, companies etc. in insurance

industry. The main difference between a broker and any other insurance provider is that all

other insurance provider work for a particular company while an insurance broker has a pool

of all the companies and their products in the insurance industry. Now any other insurance

provider will provide quotes of that particular company they are working for while an

insurance broker will study the need of the customer and based on their evaluation and

customers need and will design a quotation which will include a competitive quote of

assorted companies and then hand it over to the customer to decide upon these options. Hence

a comprehensive quotation is designed and handed over to the customer based on their

requirement and convenience at proper time and at their vicinity.

The study reveals that 40% of the 96% satisfied customers are highly satisfied with the

premium quotation being provided on time by Beacon Insurance Brokers Pvt. Ltd. which

0

10

20

30

40

5060

1 2 3 4 5

0 04

56

40

No.ofResponses

Rating

Premium Quotation on time

No. of Response


45/71

means they are pretty much on time in collecting quotes from various companies, integrate

them and provide it to the customer because they believe that perils and mishaps do not come

with a prior noticed and every day the risk is same, hence the sooner the better. The need to

work upon the 4% of customers who feel that they could have got the premium quotation a

little sooner.


46/71

Q9. Renewal notice on time


1 0 0%

2 0 0%3 17 17%

4 26 26%

5 57 57%

Table 9

Chart 9

Interpretation:

Renewal of Insurance is more important than selling of insurance because this factor decides

the retention of the customer. Selling will provide only one time customer but renewal will

cumulate that customer each year also helps in maintaining a rich customer base. A regular

follow up and reminders are provided by Beacon executives to the customers a decent time

before the renewal date of the policy which gives reminder to the customer as well as

provides them time to arrange for the renewal amount. Renewal notice should be made at

proper time to avoid the chance of polices getting lapsed. Though it is the part of the after

sale service, a separate attention on renewal notice is required because of its importance.

The study reveals that no customer is dis-satisfied by the timing of renewal notice by Beacon

Insurance Broker Pvt. Ltd. In fact a majority of 57% customer is highly satisfied while 26%

of customers are satisfied with this but there are still 17% of customers neutral on this

0

10

20

30

40

5060

1 2 3 4 5

0 0

17

26

57

No.ofResponses

Rating

Renewal notice on time

No. of Response


47/71

because they have not yet met renewals yet as their policy is very much new. Hence Beacon

is doing well on this part as well.


48/71

Q10. Claim Intimation on time


1 0 0%

2 1 1%3 24 24%

4 52 52%

5 23 23%

Table 10

Chart 10

Interpretation:

A person buys an insurance policy to reimburse during the period of perils and mishaps. It is

the claim that reimburses their losses. During the event of mishaps the customer needs to

intimate the Beacon Insurance Brokers Pvt. Ltd. about the event and after that it is the duty of

Beacon to take charge for providing the claim to the customer for the genuine losses. It is

necessary for Beacon Insurance Broker to receive the intimation seriously and act upon it

quickly and set the inspection as soon as possible.

23% customers were highly satisfied while 52% customers were satisfied taking the toll of

satisfied customers to 75% but there are 24% customers who still have neutral view as there

are 22% customers who are customer of Beacon since 1 year while few of them have not yet

encountered any claim yet. 1% customer is dissatisfied as there was a communication

problem during claim intimation.

0

10

20

30

40

5060

1 2 3 4 5

0 1

24

52

23

No.ofResponses

Rating

Claim Intimation on time

No. of Response


49/71

Q11. Extent of using new and modern techniques by the Beacon Insurance Brokers Pvt.

Ltd.


1 7 7%

2 35 35%

3 49 49%

4 8 8%

5 1 1%

Table 11

Chart 11

Interpretation:

With day to day advancementand modernization the introduction of latest technology into

the system is inevitable. Technology increases the work efficiency and eliminates the hassles;

moreover it increases the productivity of the work and reduces the time of work. Beacon

Insurance Brokers Pvt. Ltd. were so far using basic technologies like laptops, fax and email

but they recognized the need of technological overhaul and hence they are now on the verge

to introduce a web portal called SAIBA. This web portal will eliminate mistakes and

increase the work efficiency and productivity. Moreover the customer will not have to contact

again and again as everything will be available through this portal service. This technology

was not installed while the study was conducted.

0

10

20

30

40

50

1 2 3 4 5

7

35

49

8

1No.ofResponses

Rating

Extent of Using New and Modern

Technique

No. of Response


50/71

As stated above so far Beacon Insurance Brokers Pvt. Ltd. was using very few techniques and

hence the graph seems to be high on the left hand side. Only 9 people are satisfied with the

extent of new and modern techniques because they think that is enough for an insurance

broking firm while 49% people are neutral upon this view as they are still analysing and

waiting for the overhaul. While 42% people are dissatisfied out of which 7% of people are

highly dissatisfied as they believe that those methods do not meet todays standards. This

should be the utmost important area to focus for Beacon, which they do recognize; what they

need to do now is to bring the web portal into action for their customers as soon as possible.


51/71

Q12. Whether our employees are distinguished to be good to deal with and cooperative


1 0 0%

2 0 0%3 9 9%

4 71 71%

5 20 20%

Table 12

Chart 12

Interpretation:

It is not always about to give the customer a better policy but also to listen about their

suggestions regarding their policies and various doubts which leave them confused. A

confused customer is a dis-satisfied customer so in order to make the customer satisfied is to

give him all the support and services at the best as well as listen to all their doubt. A customer

wishes a best cooperation from the sales personnel as when taking an insurance policy the

customer is unknown about the various clauses present in the insurance policy which are to

be brought in front of the customer. Cooperation is not only at the time of issue or renew of

the policy but whenever a claim is to be processed.

The research shows that out of the 91% satisfied customers of the Beacon Insurance Brokers

Pvt Ltd 20% customers are highly satisfied with the cooperation of the Beacons employees

0

20

40

60

80

1 2 3 4 5

0 09

71

20

No.ofResponses

Rating

Employees Distinguished to be Good

to Deal with and Cooperative

No. of Response


52/71

support and services. While the remaining 9% respondent have a neutral review as there were

issues related to the contact and communication and claim paper work.


53/71

Q13. Extent of cooperation extended by our employees to give advice and support to the

customer's


1 0 0%

2 0 0%

3 6 6%

4 55 55%

5 39 39%

Table 13

Chart 13

Interpretation:

Every customer have their own business up and running and In order to run the business

smoothly and without any interruption from unaccounted losses from the future the customer

takes on various types of insurance policies to secure the business form such future losses.Every customer run their own separate business with their own separate requirement which

reflects on the requirement of their insurance policies this flexibility in insurance policy is

done from the various advices given by the supporting employees of the Beacon Insurance

Broker Pvt Ltd. The various advices are used to make the perfect policies for the customer

according to their own requirement. This advises and the support makes the customer

satisfied.

The research shows that 39% of the customers have rated highly satisfied with the advices

and support services provided by the Beacon Insurance Broker Pvt Ltd, 55% of the customers

0

10

20

30

40

50

60

1 2 3 4 5

0 06

55

39

No.ofResponses

Rating

Extent of Employees to give advice

and support

No. of Response


54/71

are satisfied with the advices and support rendered while the 6% of the customers have a

neutral rating as they were expecting more advices which would help them out but could not

work out.


55/71

Q14. Extent of rendering the claim Settlement services swiftly and efficiently


1 0 0%

2 0 0%3 32 32%

4 30 30%

5 38 38%

Table 14

Chart 14

Interpretation:

The main satisfaction of customers from the insurance brokers is the after sales service that is

provided to the customer. The main part of any insurance is to give an after sales service

which is to process the loss of the client through placing various claim intimation to the

insurance company by the insurance broker helping the customer to work the claim

settlement process smoothly and swiftly. Claim settlement services when done smoothly must

also be done efficiently which means reducing the loss of the customer to the minimum by

preparing the claim intimation and supporting files as per the requirement of the customer

and by which the optimum loss is recovered.

The research show that there are 38% customers who are completely satisfied with the claim

intimation and support services of the Beacon Insurance Broker Pvt Ltd followed with 30%

of other satisfied customers whereas the remaining 32% customers have a neutral response as

0

10

20

30

40

1 2 3 4 5

0 0

32 30

38

No.ofResponse

Rating

Rendering the claim Settlement

services swiftly and efficiently

No. of Response


56/71

maximum out of which are the customers who have not yet placed an insurance claim while

there are some customers who are not satisfied with their settled claim.


57/71

Q15. Availability of claim MIS report on time


1 0 0%

2 0 0%3 37 37%

4 51 51%

5 12 12%

Table 15

Chart 15

Interpretation:

Customer when places claim must know all about the claim situation, the progress and the

overall work out of the claim i.e. the overall claim report. The employees generate a claim

report through the Management Information System which can be electronically mailed and

accessed by the client and take out prints of the report as per the requirement. The MIS report

gives out all the past and present information related to the clients claims and all information

of the processed and pending claims which helps the client in all the focus area.

The research shows that 12% clients are satisfied with their MIS report on time while 51%

clients are satisfied with their MIS report where as out of 37% of the clients some have not

yet placed a claim so their review is neutral while with some clients there was a delay in

submission but not considers much importance.

0

20

40

60

1 2 3 4 5

0 0

37

51

12

No.ofResponses

Rating

Availability of Claim MIS Report

on Time

No. of Response


58/71

Q16. Our employees efficiency and knowledge of their duties and tasks


1 0 0%

2 0 0%3 1 1%

4 71 71%

5 28 28%

Table 16

Chart 16

Interpretation:

The customer or client has various doubts during the issue or renew of policy and also needs

support and services in between the duration of the policy i.e. the issue and collapse date of

the policy. The employees face various challenges due to the various doubts of the customer.

These doubts of the customers must be cleared, properly rectified and make the customer

understand when ever needed. When this is dealt properly helps in creating loyalty and a

loyal customer is a satisfied customer and easy to retain that customer.

The employees also have to help the client at the time of policy formulation and suggest the

client with all the new changes in the insurance sector and all about the new changes made in

to the policies by the insurance companies. These employees help the client to get the best

policies and this is only possible if they keep them up-to-date from the market. The employee

has to help the customers in various ways and only an efficient and knowledgeable employeecan perform the task properly.

0

20

40

60

80

1 2 3 4 5

0 0 1

71

28

No.ofResponses

Rating

employees efficiency and

knowledge of their duties and tasks

No. of Response


59/71

The employees has the task to issue or renew the policy and in this competitive times the

employee has to bring the best and most competitive insurance quote for the customers and

this is only possible when the employees know their task properly and work efficiently. The

customers now a day want a personalised insurance policy and that to in the lowest possible

quote this could be only brought by the efficient employee. The employees task doesnt end

here the employee has to help the customer whenever they face some problem or a claim. The

employees have their duties to help the customer and give various advices in order to reduce

the loss of the customer by guiding them about all the documents and preparation for the

claim approval requirement by the insurance company this is only possible if the employee

has proper knowledge towards his duties and then only he can give efficient advices.

The research brings forward that 99% customers of Beacon Insurance Brokers Pvt Ltd are

satisfied out of which 28% customers have no doubt on the employees efficiency and

knowledge on their duties only 1% neutral response.


60/71

Q17. Remedying your complaints transparently and effectively


1 0 0%

2 0 0%3 10 10%

4 57 57%

5 33 33%

Table 17

Chart 17

Interpretation:

A hassle free service is what each and every customer seeks before making a purchase as well

as after the purchase is made. This is possible when the customer is heard of its requirements

and complaints. It is upon the service provider then how swiftly, quickly and efficiently they

provide the remedy against that complaint. The customers often have doubts and remarks

which at times get converted to complaints and the complaints can be for the employee for

his task and duties for which he might not be able to put forward efficiently or help the

customer as per their requirement. The customer at times might put forward some suggestions

and the employee might not consider them due to some rules which might act as a bottle neck

for the employee for less room for flexibility and this situation would create a

misunderstanding which might push the customer to give out a feedback in the form of

complain. Now this complain must be processed properly and the employee must positively

accept it and have a one on one meeting with the client and try to solve the complaint and

0

20

40

60

1 2 3 4 5

0 0

10

57

33

No.ofResponses

Rating

Remedying Complaints

Transparently and Effectively

No. of Response


61/71

clear out all the doubts of the customer. This smooth way for remedying the complaints of the

customer removes all the doubts and gaps from the mind of the customer not only towards the

companies employee i.e. representative but also creates a loyalty for the company in the mind

of the customer.

Sometimes the customer is not satisfied with the insurance companies due to their surveyor

not giving proper and timely survey, problems related to the claim settlement, problems with

the losses in amount assessment, delay in claim processing and delay in the payment of

claim. The Broking Company keeps on tracking the status and forwarding the requests and

complains of the customer timely to the insurance company which results in faster complain

processing and output generation. This solves the problems of the customer leaving the

customer satisfied and further retained with the company for a long time.

The research gives out the result of 90% of satisfied customers where 33% have the best

response while the 57% customers are normally satisfied with no issues. The remaining 10%

customers were not completely satisfied from the point of claim settlement and survey from

the point of the insurance company hence they stand neutral in this case.


62/71

Q18. Common evaluation of the Beacon Insurance Brokers Pvt. Ltd. performance


1 0 0%

2 0 0%3 0 0%

4 0 0%

5 0 0%

6 1 1%

7 15 15%

8 42 42%

9 39 39%

10 3 3%

Table 18

Chart 18

Interpretation:

With all the above mentioned been rated, the customers were asked to rate Beacon Insurance

Brokers Pvt. Ltd. on overall bases to know their general view regarding the services and

patronage of Beacon Insurance Brokers Pvt. Ltd. This is like a birds eye view which will

give a top view of all the business activities of Beacon and help in knowing the level of

satisfaction of working with Beacon Insurance Brokers Pvt. Ltd.

0

5

10

15

20

25

30

35

40

45

1 2 3 4 5 6 7 8 9 10

0 0 0 0 0 1

15

4239

3No.ofResponses

Rating

Common Evaluation of Beacon

Insurance Brokers Pvt. Ltd.

Performance

No. of Response


63/71

The study shows that 3% of customers were completely satisfied by giving a 10 on 10 for the

overall rating. 39% of customers have rated Beacon with 9 on 10 which is pretty good figure.

42% customers have rated Beacon with 8 on 10 which is also a decent figure while 15% have

rated Beacons services with 7 which is an acceptable figure but needs to focus on those

customers and try to increase their satisfaction level to keep them retained with the firm. One

customer has rated Beacon with 6 on 10 which is an alarming situation, hence requires a

better focus on these customers their retention might be at stakes. The average score of

Beacon to 8.4 which is an impressive score yet leaving a scope for further improvement.


64/71

Conclusion

- Beacon Insurance Brokers Pvt. Ltd. has a pool of customers from various industriesout of which majority of the customers are from the textile industry as Surat is a well

know textile hub

- Beacon has increased their work profile significantly since last two years as majorityof the clients in the study belongs to 2 years group in terms of association with

Beacon.

- More than 95% of customers are satisfied with the ease of contact and communicationwith Beacon. Hence the Beacon maintains a strong company-client relationship.

- Dealing with Beacon ensures greater flexibility as more than 90% of customers arehappy and satisfied with the extent of flexibility of doing business with Beacon.

- More than 85% of customers have to say that Beacons senior management is highlyparticipative and are taking interest to ensure that their business is protected and in

safe hands. Hence even the senior management of Beacon cares for their clients

satisfaction level.

- Beacon provides a fair and equal treatment to its clients as 95% of clients have to saythat they have been treate

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