IC33 English Chapter 19 Notes

Chapter 19 – Customer Service

 The role of customer service and relationships is far more critical in the case of insurance than in other products. This is because, insurance is a service and very different from real goods. The sale of insurance is quite different from the sale of a consumer product or a consumer durable. Similarly, the purchase of insurance is different from that of a purchase of car.

 The role of customer service and relationships is far more critical in the case of insurance than in other products

A well-known model on service quality (named “SERVQUAL”) would give us some insights. It highlights five major indicators of service quality:

  • Reliability
  • Responsiveness
  • Assurance
  • Empathy
  • Tangibles

The secret to the success of leading sales producers in the life insurance industry is their commitment to serving their customers

Customer lifetime value may be defined as the sum of economic benefits that can be derived from building a sound relationship with a customer over a long period

The insurance agent needs to be a personal financial planner and advisor. In addition to these, he/she also needs to be an underwriter, a designer of customised solutions and a relationship builder. He/she needs to thrive on building trust and long-term relationships, all rolled into one

The agent has a crucial role to play at the time of claim settlement. It is his/her task to ensure that the details of claim are immediately informed to the insurer. He/she has to support any claim investigation that may be necessary to expedite the process

Soft skills relate to one’s ability to interact effectively with other workers and customers, both at work and outside. The elements that promote trust include:

  1. Attraction
  2. Being present
  3. Communication

Communication may take place in several forms:

  • Oral
  • Written
  • Non-verbal
  • Using body language

The agent can make a great first impression on the client by:

  • Being on time always
  • Presenting himself or herself appropriately
  • Always having a warm, confident and winning smile o Being open, confident and positive
  • Being genuinely interested in the other person

Active listening involves:

  • Paying attention
  • Demonstrating that you are listening
  • Providing feedback
  • Not being judgemental
  • Responding appropriately

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