Page 27 - Insurance Times August 2018

The insurance companies must recognize,
therefore, that operations is at the core
of their business and operations must
create value. It must be relevant to
changing environment. They must reduce
costs to achieve profitability, improve
productivity to position for growth, built
sustainable value and do it quickly. All must
result in value-based restructuring. In a
competitive market this is very difficult to
achieve. Quality movement must take
care of these challenges and even should
go for Total Quality Management exercise.

The core areas for imposing quality management are as dissatisfaction. Image will be the acid test of good
follows : claims settlement. Hence quality movement in the
i) Training: "Strategy Key" initiative is to turn the insurance service industry must address this aspect of
vital operation of insurers. The good image of quick and
organization into a learning organization. Investment fairer settlement of claims will enhance market share
in people by training and welfare comes to a top order of the business.
in priority trends. Attitudinal changes have to be
brought in the mind of each service provider It is, therefore, of paramount importance for the insurers
representatives. to dwell more seriously about maintaining quality in their
service and management philosophy must focus on such
ii) Cost control: Simplification and cutting down issues more urgently. In this context, it is to be observed
redundancy are the catch words. Organization are re- that in the general insurance sector there is stiff competition
engineering Quality Management system to be process in service among the state-owned insurers and private
oriented and it will continue to be so, insurers need to players and there is no guarantee that renewals are
examine Quality Management in the context of retained. Customers are having a say and insurers must
changing philosophy in quality movement. Customer respond positively though there are constraints.
needs to be treated as "GOD" in the changed situation.
From service we are leading towards a prayer situation All are facing severe market competition and tendency to
in the current market. liberalize rating and removal of tariff rating system. In the
background of the emerging market scenario in the Indian
iii) Underwriting processes: All the insurers have brought economic horizon, the aspect of quality Management as a
a rapid change in their underwriting processes to cope strategic tool needs a closer look. It needs commitment at
with the de-tariffing of this market. Proper software the top level and involvement & acceptance at the bottom
selection, the skill development must help policy most level.
servicing to be streamlined, unit cost reduced, speedy
completion of entire process of underwriting and of Summing up: Finally while aiming at the Quality
course selection of appropriate policy to adequately
covering the need of the customers. Management in the insurance industry every one must
remember -
iv) Claims Management -- Most vital aspect of insurance 1. Fast and consistent will always beat the slow and
organization is settlement of claims within a reasonable
time. Systems and procedures must be devised to steady;
reduce the time gap in settlement. Occasional
absenteeism of the officials and staff employed for claim 2. Dire need to work to the competencies;
settlement is an important detrimental feature in the
claim settlement process. Ultimately the delay in 3. Never give up when faced with failures;
settlement of claims must result in customer
4. Pooling resources and working as a team will always

The Insurance Times, August 2018 27