CRM in insurance industry

The competitive landscape of the insurance industry is rapidly evolving. The structure of the market, the competition for customer wallet share, and the heightened focus on profitability has converged in an unprecedented way. This has created a marketplace that is far more complex, dynamic, and challenging than any in the past. Today, policyholders are expecting even more individual attention, responsiveness, and customization, but unwilling to pay a premium for these services. They are willing, however, to build long – term relationships based on trust and mutual respect with firms that provide a differentiated service offering. Good customer relationship is at the heart of business success. Stronger the relationship between the policyholders and the insurer, more likely the policyholder will give insurer repeat business. Now, marketing is shifting from trying to maximize the profit on each individual transaction to maximize beneficial relationship. The operating principle is “build good relationship and profitable transaction will follow automatically”. This paper highlights the needs, goals, processes, challenges and benefits of CRM strategies and solutions in the context of exploding e- insurance industry in India.