Insurance Service Po

8/3/2019 Insurance Service Po

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INSURANCE SERVICE


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INTRODUCTION

Insurance is an arrangement by which one party (theinsurer) promises to pay another party (the insured orpolicyholder) a sum of money if something happens

which causes the insured to suffer a financial loss.

The responsibility for paying such losses is thentransferred from the policyholder to the insurer.

In return for accepting the burden of paying for losses

when they occur, the insurer charges the insured a price,the insurance premium.


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Reach in insuranceservice


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1. Credence properties

There are credence properties, which arecharacteristics that customer and hard to evaluate evenother consumption.

Insurance service have a professional services forexample, company will be give remedy through, cash,product and so on.

Agent can deficient customers perceived risk beforethey purchase the insurance by helping them match theirneeds to specific service features and educating them onwhat to expect both during and after service delivery.

Its can only been seen after the customer purchase thepremium. Its because no customer know about theinternal activity that service provider do.


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2. Experience properties

Experience properties means that attributes which canbe discerned after making a purchase or during theconsumption.

Experience properties can be evaluate the insuranceservice. By asking their friends, family and relatives, thatwhich already have experience about these service.


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Importance of the time factor All premium are payable at an office of the company but

person maybe authorized to receive such premium atother place.

All agent should go to customer house, for collect thepayable premium, of facility to that customer choose thisservices.

Busy customer expert services to be availed at time,insurance service provide to use bank service.

This service also better than above and its service veryeasy and faster. This insurance open the time of office but agent may

give service at anytime and everywhere.


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Servicesgeneralization


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1. People-based

This service are more on people-based, so the serviceare provided by unskilled, skilled, or professionalworkers.

For example this service use more skillful or professionalagent to promote their insurance to customer.

The professional agent may get more customer becausethe customer cannot evaluate the service through whatthey see, heard and feel.


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2. Personal need & business

need Insurance service differ as to whether, the agent meet a

personal need or a business need.

This service are typically, develop different marketingprograms for personal and business markets.


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3. Objective and ownership

Service provider differ in our objective, the insuranceservice is to give the protection, and saving to thecustomer service. This service giving customeropportunity to assurance that brings you peace for thecaring you on give.

This service policy was provide under company policy,this policy can be cancelled through written requestmentto the company in 15 days after assured had beenreceived the policy document.


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Characteristics andmarketing implication


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1. Intangible

Service intangibility means that the service cannot beseen, tasted, felt, heard or smelled before they make apurchase or consumption.

To solve this problem the service provider used physicalevidences.

For example by show this service intangible this serviceprovide the pamphlet, brochures, campaign, billboard,

newspaper and so on.


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2. Perishability Perishability means that the service that cannot be stored,

saved, resold or returned. In insurance service this characteristics are easy and

difficult.

Beside that they also can design some strategy in order tomatch the demand and supply of the service. For example:

1. Demand forecasting for insurance service aredepend on the sale.

2. For example the agent must search the customerand achieve their goal(12 people/year).


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3. Variability

Insurance service are performances, frequentlyproduced by humans, no two people will beprecisely a like. Each will have unique demands

or experience the service in a unique way. To solve this problem in order to maintain, this

service with take three steps toward qualitycontrol. The first step is the investing in good

human resources selection and training to theiragent (20hours of the year).


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Second step is

standardizing theservice-performanceprocess throughoutthe organization, with

use the flow chart.

1-Contacting the insurer

2-Insurance intermediaries

3-Law agency4-Providing the details

5-Offer and acceptance

6-Paying the premium

7-Proof of purchase

8-The contract in writing

9-The legal interpretation of policyforms

10-Renewing existing contracts

11-Cancelling the policy


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The third step is monitoring customer satisfaction

through suggestion and complaint systems. It can dothrough telephone or complaint direct to insurer. So thatpoor service can be detected and corrected.


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4. Inseparability

Inseparability means that the service cannot beseparated from their services provider and its makingthe services difficult to be separate from the person whoperforms the services.

The insurance service provider plays a particularimportant role.

The insurance agent interacts with the customer affectsthe perceptions of the service and customer satisfied isoverall with the service.

To solve this problem the agent should give, confidentinformation for their customer.


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Service marketing triangle

External Marketing

(Insurance company settingthe promise)

Interactive Marketing(Insured delivered company promise)

Internal Marketing(Enabling the promise)

Employee(company branch,

agencies)

Customer(insured)

Company (Management)


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1. External marketing

This external marketing refers to the marketing provideby service firms which using all of the 4Ps elements(product, place, price, promotion) to get the customerawareness and interest towards the service in order toprovide the customer expectations.

For example, this service efforts that the firm engaged into get its customers expectations & make promise tocustomers regarding what is to be delivered.

In insurance services, the external promotion aretargeted for example to school and institution.

Some of the factor to communicate with the customer areby using brochures, pamphlet, special promotion from theagent.


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2. Interactive marketing

The term interactive marketing or what some refer to asreal-time marketing.

Insurance services are delivering the promise.

For example according to insurance policy, the customercan buy the policy with the price of RM10,000 but today,they buy the insurance with RM550 per monthly. Butwhen we want to claim, we must pay RM10,000according to the insurance agreement agreed.


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3. Internal marketing

The internal marketing is which enables employees tokeep the promises that have made to customers.

The internal means that the service firm must effectively

train and motivate its employees and supporting serviceperson to work as a team to provide customersatisfaction.

For example the company set the target and promotionin insurance service, agent are responsible to achievethe goal.


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The servicemarketing mix


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People

As a services marketing mix, are all human actors whoplay a part in service delivery and thus influence thebuyers perception, namely, the customers in the service

environment. Agent must dressed tidy, to confident their customer.

They must appear the excellent characterization and thealso their attitudes.

For examples, agent must show the professionalrelationship-based insurance services because thatagent is the service.


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Process Involves the actual insurance procedures, mechanisms

and flow of activities by which the service is delivered

and operating systems. Company provide pamphlet and used it to the

customer with evidence on which to judge the service. These process characteristics are use the form. The

form one based on physical evidence of the customer. Insurance company have the time work, the branches

open at 9 am until 4.30 pm, Sunday to Thursday forthe company branches but for the agency they give theservice anytime.

On the other hand, agent focuses on their customer

relationships. For example:1. Celebrated customer birthday party.2. Prizes - company-agent-customer.3. Every year gives the souvenir such as pen,

umbrella, diary an other.


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Physical evidence

This service it includes the physical facility where theservice is offered, for example, the insurance branchfacility.

Other tangibles such as policy book may be importantindicators of quality of service insurance. For example, when customer have little on which to

judge the actual quality of service, they will rely on thesecues, just as they rely on the cues provided by thepeople and the service process.


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Core and supplementof insurance service


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1. Core of insurance service

General - Motor and non-motor

1. Fire and thief

2. Burglary3. Fire

4. Aviation

5. Marine6. Accident


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Supplement of insurance service

Life insurance

1. Saving

2. Education

3. Investment

4. Coverage extensions

5. Best cost of treatment


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Categorizing insurance serviceprocess Insurance services are categorize in information

processing at a customers asset.

This service need little direct involvement with thecustomer such as agent must meet customer more to

initiated this service. Insurer and insured prefer to meet face to face.

- Insured and insurer can feel learn more about each

others needs, performance and others.

- Insurer can show that successful personalrelationships, built on trust and others.

Others process can be undertaken are by mail, phone,internet or website.

Insurance Service Po

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