What is Insurance

Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for a premium, and can be thought of as a guaranteed small loss to prevent a large, possibly devastating loss. An insurer is a company selling the insurance; an insured is the person or entity buying the insurance. The insurance rate is a factor used to determine the amount to be charged for a certain amount of insurance coverage, called the premium.

Today there are numbers of risks involved in the lives, properties of private and public sectors alike. Especially after the advancement of technology; which is said to be brought worries than advantages, to each and every sector of the society?

If somebody questions, what is the most important trade in the world, there is no doubt that the answer should be ‘Insurance’, because no other trade can survive without insurance, and all of them rely on this most important business since almost all activities are involved with risks.

In the insurance market, instead of products, services are offered to the customers. Unlike products, services are intangible. Therefore, service quality is an essential feature in customer services. Today’s customers are demanding a quality service at a competitive price. If we can respond to the total satisfaction of the customer, we can presume that the service is of good quality.

With the improvement of the quality of life standard of living and the improvement in technology, customer demands are becoming more complex and competitive.

 In this scenario, retention of existing customers and attracting new customers, are mainly depending on the quality of customer service. Therefore maintaining and improving service quality in the respective areas are very important.

This service quality is ever evolving process. In organizations like insurance companies, they should not be limited to cater to one segment of society. They should cater to the basic expectations of the rural customer to the sophisticated needs of the corporate customer in the urban. The solution has to be tailor made according to the needs of the customer.

Periodically the insurance companies should do surveys in various regions to check whether they match the customer expectations, using the services of an external service provider and get the feed back on the quality of service provide by them.

Further, honesty is absolutely important. Promise what you can deliver and never over promise and under deliver. Focus on what you want to achieve.