Productivity & Quality

Management in Insurance Sector

 Agenda

• Current Insurance Scenario in India

• Problems of Insurance Industry
• Productivity & Quality Improvement in Insurance Sector
• Conclusion
 Current Insurance Scenario in India

• Growth rate of 15-20 per cent annually and presently is

of the order of Rs 450 billion

• More than three-fourths of India's insurable population

has no life insurance, pension cover and post-
retirement protection
Insurance Problems:
The challenges faced by the insurance sector can
be divided in 2 main parts for the purpose of
analyzing them & solving them effectively. They
are:
• External Problems
• Internal Problems
Insurance: External Problems

• What exactly is insurance?

• And do they really need Insurance?
• Lack of awareness about Insurance
• Lack of awareness about benefits of insurance
• Search an insurance company
• Distribution of Insurance service across the length
and breaths of the country.
• A vast gap between the potential customer and the
company (communication gap)
 Insurance: Internal Problems

• Enormous paperwork
• Lot of chances of errors in paper work
• Difficult for internal staff to avail correct and timely
information about the status of the Policy Holders
• Difficulty in collecting and analyzing raw data for
statistical purposes
 ICICI – Prudential Life Insurance

• A JV between the ICICI Group and Prudential, UK. (74:26)

• First private life insurer to cross the one million policies milestone

• The corresponding sum assured stands at about Rs22,500 crore

• The new business premium income is Rs1,700 crore.

• CAGR has been 148 per cent over the past three financial years.
 Productivity & Quality Management in
Insurance Sector

P&QM in insurance sector is brought about by

adopting following strategies, techniques and
methodologies

 CRM - ‘Customer Relationship Management’

 Internet Portal – Online information availability
 Insurance Advisors (Agents)
 Six Sigma Principle
 Malcolm Baldrige
 Enterprise Documents Management
 Business Processes Management
 Customer Relationship Management

 CRM is a set of
 Strategies
 Processes
 Organizational culture and
 Technology solutions
that enhance an organization's ability to see
the differences in its customers’ and prospects'
behavior and needs, track new opportunities to better
serve their customers and act, instantly and
profitably, on those differences and opportunities
 Customer Relationship Management

 CRM concentrates on saving money and increasing

profit

 “It is seven times more expensive to acquire a new

customer than to keep an existing one”,
therefore the value of customer information and
management is never be underestimated.

 The aim of CRM is optimize the use of technology and

human resources for the business to gain insight into
the behavior of costumer.
CRM….(Contd)
• Helps in categorize and segment customers and
align our products that best suit them

• Helping them expand into rural areas

 Internet Portals – Online Information

 Internet Portals provides complete information to the

potential customers and makes it easy for them to select
the right policy for themselves without the help of any
advisor

 It provides resources like

– Life Insurance Calculator

– Retirement Calculator

– Policy Selection Tool

Retirement Calculator
Retirement Calculator Answer
 3 Steps
to choosing
a policy
 Insurance Advisors or Agents

 Conferences/Meeting places.
 Free Telephone Calls
 Laptops Facility
 Continuous Improvement Programs
 Monthly Competitions
 Annual Awards
 Chance To Become Permanent Employee
Productivity & Quality Improvements
• Innovative ways to interact with customers
• Use of Internet Technology
• Customer Relationship Management – CRM
• Benefits/ Incentives to the Advisors
• Documents Management Systems
• Business Processes Management
 Six Sigma Principle

• It is a systematic and holistic approach to reduce

defects and wastes by beefing up the bottom-line and
returns on investments

• The process involves use of statistical tools to observe

process variables and manage the variances and
characteristics
 Six Sigma Principle

There are 6 such

sigmas of management
which the management
focuses on to achieve
the desired results
Malcolm Baldrige Principles
 Enterprise Document Management

The technologies used to capture, manage, store,

preserve, and deliver documents and content related to
business. The ability to use these documents and
content with legacy systems seamlessly.
EDM has the following components:
•Document / Image Mgt.
•Electronic Content Mgt.
•Record Mgt.
•Knowledge Mgt.
•Reports Management
 Processes Used to Improve Internal Productivity &
Quality Management

Document Document Management

Capture Engine
Technologies Document Hierarchy, Indexing, Search,
Version Control, Check-in Check-out

User Desktops OR
Connector to Integration with
Report third party
Generation Reports Manager Applications
Software (ERM)
Billing Output
and Reports
Management
 OmniCapture

Seamless Scanning & Indexing

Page range definition for auto

categoisation
OmniExtract
 Windows look and feel
directory folder structure

Custom defined data

classes (Indexes) on Files
and Folders
Business Process Management
Business Process Management (BPM) Involves
 End to end Automation of mission critical business processes
 Blending machine operated and manual operations
 And Straight Through Processing (STP)

Using
Workflow
Imaging
Document Management
EAI technologies
 BPM Explained

BPM Maintains
 Workflow at the core. The workflow manages all routes, rules, roles
exceptions & hierarchies with the flexibility to alter each
 Applications and people interact with the workflow at defined
moments as per the business process

BPM Allows
 Complete information availability on a transaction across
people and applications
 People and Service Levels Management
 Processes to be defined and modified by business people
rather than technologists
How does BPM help to improve PQM
 How BPM enhances PQM

 De-risking of the process and Improved Quality:

by making processes compliant with statutory & regulatory guidelines
and by ensuring transparent process compliance at every step

 Complete control over operations:

through uniform deployment, modification and monitoring of business
processes

 Reduced operating costs and lower turn around

times:
through leveraging existing technology infrastructure, automating routine
tasks, simplifying work, straight through processing and eliminating
paperwork
 Conclusion

• The Indian Insurance Sector has become one of the

most lucrative and most competitive sector of Indian
service industries.
• The Sector has made tremendous improvement in its
productivity as well as the quality which in turn has lead
to multifold growth in Insurance Sector
THANK YOU