1273550-HARPREET KAUR MAVI-F1-Q-29-CUSTOMER SERVICE IN INSURANCE SECTOR

INTRODUCTION

Insurance is the equitable transfer of the risk of a loss, from one entity to another in exchange for payment. It is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss An insurer, or insurance carrier, is a company selling the insurance; the insured, or policyholder, is the person or entity buying the insurance policy. The amount of money to be charged for a certain amount of insurance coverage is called the premium. Risk management, the practice of appraising and controlling risk, has evolved as a discrete field of study and practice.n one form or another, we all own insurance. Whether it's auto, medical, liability, disability or life, insurance serves as an excellent risk-management and wealth-preservation tool. Having the right kind of insurance is a critical component of any good financial plan. While most of us own insurance, many of us don't understand what it is or how it works. 

DISCUSSION

In today’s Internet- and mobile-enabled world, customer expectations are being shaped by 
daily transactions and interactions with companies across various industries. For example, 
Amazon.com has raised standards for online service, while Hilton Hotels and Harrah’s 
Casinos have become well known for providing superior customer experiences. As a result, 
insurance companies must establish their own benchmarks for service delivery against 

those of leading experience providers, not their peers.The inability of traditional insurance companies to deliver what consumers expect is creating an opportunity for new entrants and niche players to erode the market shares of incumbents. Sheila’s Wheels, for example, is a successful online niche player that provides affordable car, 
home, travel, and pet insurance for women. Targeted products and services include insurance for lost purses and discounts at female-friendly automotive repair shops Today, consumers have countless choices for products and services from a myriad of companies across multiple channels. Greater use of the Internet for virtual communication, entertainment, and commerce has also made customers much more informed. This 
increased comfort level with new technologies has spawned a new breed of consumers 
capable of quickly finding, evaluating, and purchasing products online. 
With regard to insurance, people now use the Internet to find and compare products. Several 
companies are taking advantage of this trend to make it even easier for consumers to buy 
from the lowest-cost provider. Comparis.ch (Switzerland), Confused.com (United Kingdom), 
and Versicherungsvergleich.de (Germany) are three examples of firms providing information 
that allows consumers to compare a wide range of insurance offerings. 

CONCLUSION

Given the significant challenges insurance companies face today, it is important for 

executives to think seriously about transforming their companies’ business models to better 

understand and become more relevant to their customers. Doing so will not only improve 

short-term results, but promote revenue growth, financial stability, and prosperity. 

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