Customer Satisfaction In Indias Insurance Industry Commerce Essay Example

similar risks, in order to provide compensation for unforeseen losses. The primary principle of insurance is the collective sharing of risks within large groups. Insurance companies generate revenue through two main sources: regularly collected premiums and investment income. These premiums are invested in various secure options such as government bonds, Gilt, stocks, mutual funds, real estate, and others.

Investment income relies on market conditions, interest rates, and the economy, which can vary annually and create uncertainty for insurance companies. To manage this risk, insurance companies must generate enough income from premiums to cover their expenses. Certain conditions must be met for the risk to be insured:

• The insured must face a financial loss if the risk occurs.
• The amount of loss must be measurable in monetary terms.
• The object of the insurance contract must be legal.
• The insurance company should have sufficient knowledge about the risks they accept.

Company PROFILE
Max New York Life Insurance Company Ltd. is a joint venture between Max India Limited and New York Life International. Max India Limited is a prominent multi-business corporation in India, while New York Life International represents Fortune 100 company New York Life.

Max New York Life (MNYL), incorporated in 2000 and commencing commercial operations in 2001, has positioned itself on the quality platform. With a vision to be the most admired life insurance company in India, MNYL has developed a strong corporate administration model based on the core values of excellence, honesty, knowledge, caring, integrity, and teamwork. As a company committed to financial responsibility, Max New York Life has implemented prudent financial practices to safeguard policyholder's funds. As of April 30th, 2009, the company's paid-up

capital amounts to Rs 1782 crore. MNYL boasts a diverse distribution network spanning across the entire country.

Agency distribution is the main channel for distributing our products, and we also have partnership distribution, banc confidence, confederation selling, and dedicated distribution for emerging markets. Our company emphasizes the importance of our selection process for agent advisers, which includes four phases - showing, psychometric trial, calling seminar, and concluding interview. We train our agent advisers in-house to ensure the highest quality of preparation. Currently, we have around 92,760 agent advisers at 710 offices in 385 cities. Additionally, we have 36 referral affiliations with banks and partnerships with 24 distribution and confederation selling relationships. To reach rural areas, we have implemented a unique hub and spoke model of distribution.

The company has 133 offices dedicated to rural countries. MNYL offers a variety of flexible products. Currently, there are 43 life insurance products and 8 customizable riders, allowing customers to choose from over 800 combinations that best suit their needs. The company has a workforce of over 13,923 employees. New York Life International, INC.

, a Fortune 100 company, has opted for a JOINT VENTURE as a means to enter the Indian market. It has chosen MAX INDIA LTD., one of India's leading multi-business corporations. Utilizing its extensive network of highly skilled agent advisers and adaptable product solutions, MYNL is establishing a long-term partnership with its clients in INDIA to meet their life stage requirements.

Max New York Life Insurance has experienced significant growth in collected premiums, with an 81% increase to Rs.2,100 crore from January to July 2008 compared to the same period last year. This growth is attributed to first-year premiums

of Rs.1195 crore and reclamation premiums of Rs.905 crore. Since its establishment, the company has sold approximately 2.7 million policies and currently ranks as the third-largest private life insurance company based on policies sold (YTD June). The Assets under Management have also increased from Rs.2271 crore in 2007 to Rs.4138 crore on July 31, 2008.

Max New York Life Insurance aims to become one of India's top quartile life insurance companies by combining global expertise with local knowledge and being a national participant, brand of choice, employer of choice, and preferred choice for agents. They highly value knowledge as it leads to expertise and emphasize focused, current, tested, and shared knowledge.

The company's mission includes redefining the life insurance paradigm by prioritizing customer needs and care through an antiphonal, personalized, humane, and empathic service procedure. Each individual who represents the company holds the title of our trade name.
The life insurance industry holds honesty as its core value.

Trust is the foundation of the MNYL experience, which is built on transparency, unity, and dependability. The company ensures that anyone representing the brand promises to care, both in words and actions.

CUSTOMER RELATIONSHIP MANAGEMENT AT MAX NEW YORK LIFE INSURANCE

CUSTOMER RELATIONSHIP MANAGEMENT involves managing detailed information about individual customers and all customer touch points to enhance customer loyalty. A customer touch point refers to any interaction where a customer encounters the brand and its products, including personal or mass communications and casual observations. Max New York Life Insurance

Company has also taken various steps to strengthen its customer relationship management.

Max New York Life Insurance has launched an IVR service in 10 different languages to enhance the customer and distributor experience. Sanjeev Mago, Executive Vice President of Customer Operations and Service Delivery at Max New York Life Insurance, stated that this initiative aims to improve customer satisfaction by providing service in their preferred language. The company emphasizes the importance of interacting with clients and distributors in their own language. To improve customer relationship management, MNYL maintains a database of customer profiles and contact information using internal records and marketing intelligence systems.

Analysis

The research was conducted to analyze the various factors that determine client satisfaction, which also leads to client retention. The focus was on acquiring new clients and keeping existing ones, as current clients are not completely satisfied with the services provided by Max New York Life Insurance. Additionally, the determined factors will help understand the organization's threats in the market and the market conditions, allowing for appropriate solutions. By comparing itself with other firms, Max New York Life Insurance can identify its service strengths and weaknesses based on consumer preferences. This can be utilized as a strategy to retain clients, not just financially, but also by implementing effective customer relationship management techniques for increased client welfare.

Study limitations

The following unavoidable and uncontrollable factors may result in an inaccurate outcome.

The study faced several challenges, including time and cost restraints. Additionally, some biasness could not be eliminated. Due to time restrictions, a sample size of 20 was used. Many respondents showed a lack of cooperation and bias

towards their own opinions. The behavior of the client also kept changing as they were influenced by external environmental occurrences. The market was found to be heterogeneous, which made the survey less flexible. Furthermore, judging consumer taste and preferences proved to be challenging as they can change frequently.