Evaluation Of Relationship Management By Insurance Broking In An Essay.

Provide a brief context for an insurance broking organisation or a division of an insurance broking organisation with which you are familiar. For this insurance broking organisation or division of an insurance broking organisation:

• Explain how relationships with insurers are managed.
• Analyse the strengths and challenges of the relationships with insurers which may influence the customer experience.
• Make recommendations, based on your analysis, to improve the management of the relationships with insurers in order to enhance the customer experience.

About Henderson Insurance Broking Company

This paper focuses on the evaluation of relationship management by insurance broking as relationship is key aspects for the success of business to being competitive in the perspective market. At the same time, how relationship derives value for the business, it is also discussed. Strengths and weakness related to the insurance broking in context of value proposition for business, it also analyzed significantly to address the impact on client and how it can affect the experience of customer. Along with this, appropriate suggestions are also proposed that can effectively address the issues arises for insurance broking.

Henderson insurance broking company is one of the top company in the UK market. Basically it operates the business in insurance for the business like real estate, manufacturing, retail and construction business. Along with this, Henderson broking is also leading the business by risk management for the high risky business in the market. Company was established in the year 1986 and this private owned company is having operation of business by 15 offices in UK (Hibl, 2013). Company is enjoying the continuous growth every year and the premium for this year may exceeded by £200m. Company has risk expertise strategy by its professional risk manager in concerned area of business (Bloomberg, 2017). Henderson’s philosophy is to provide the excellent services to the customers and cover all the risks. Life insurance is one of the valuable financial planning for the potential issues that can be arisen and influence the future of customer so it puts the customer interest first. Recently company has started its insurance policy for farmers to protect their losses which can influence the customer experience because farming is considered as one of the most risky business so it assists them in assuring their damages effectively.           

Relationship of business matters for every business to maintain the healthier relationship to create valuable business in order to build the business more competitive in fierce competition as insurance industry is also considered most risky business and requires succinct expertise to meet the requirement of client (Kumar and Reinartz, 2012). Main motto of the company is to work for the betterment of clients and confers the insurance service with competitive price. Henderson protects the losses of customer by any categorized insured area and makes the customer happy first. Further, the company introduces new policies for stringent customer management. Be the customer first is the value proposition for Henderson insurance broking. Company has strong bonding with families for valuable coverage. Along with this, importance of customer relationship aspects has changed significantly because insurance industry is emerging as most competitive industry it has become too hard to influence the clients. To stronger the customer relationship company has spread the branches of company as numbers in 15 so that it can handle the queries of clients and resolve issues for their higher satisfaction. In addition to this, company has introduces new technology to track the record for the customers and check the insurance coverage. On the other hand, globalization and internet has change the things significantly and focusing on the strategies to retain the existing customers (Bolance, et. al, 2012). In this innovative era, company is adopting the product oriented strategy to deliver it newly and satisfy the customers. Furthermore, company considers the customer as resource and tapping the new market by introducing new products with significant coverage. Customer relationship depends on the various factors like satisfaction and fair communication with customers (Porter and Levine, 2015). On the other hand, poor communication may influence the process of business.         

Importance of Relationship Management in Insurance Broking

Apart from this, loyalty is also considered as important aspect for business and company has purpose to build the brand loyalty in perspective market. Better customer relations are effective for business in order to enhancing the market value of business with accommodating the perspective challenges. At the same time, it also creates brand image of company against the market competitors. Moreover, if client is satisfied with the service of insurance company than he or she may propose others to avail the service of company which directly or indirectly better for company to increase the market share of business (Egube, 2016). Basically, the company is focused on the creating value for its clients from different sectors and well managed insurance is provided by the company to fine tune with them in any consequences. Further, company performs its liability towards the betterment of community in which it operated. In order to maintain the customers, claims are easily reported by company to satisfy the customer in effective manner. Along with this, company provides the offer by 24 hours for claim reporting in emergency case so that it can fascinate its customers by lucrative service. Additionally, company is more focused on risk management collusion for clients to provide them full coverage. In relation to manage and control the risk for insurance clients, company has adopted corporate risk system. This corporate risk management system helps the business to provide the training to the new comers to being familiar with the effective process (Johnston, 2017). Company provides the best asset management formulation for highly risk attached sector life healthcare, fleet management and disaster covering. Henderson broking follows the customer centric approach to inform the clients about their insurance policy. Company has interactive channel process for effective communication so that it can emphasize on brand and customer relationship. In order to this, it uses the websites, social media and interactive tools to serve the better to the clients.  

Relationship is a crucial aspect for the business to maintain positive relationship with different parties of business. Positive relationship matters for business to keep in touch with the customers through variant communication channels. It is known that insurance sector is the most risky business to manage the issues and challenges of perspective industry (Lindgreen, 2012). It is evident that creation of new customer is more costly than retaining the existing customer. New customer approach for higher service as the competitor offers in perspective market. Henderson insurance broking is also focused on retaining the customer to becoming customer sustainable insurance company in the market. At the same time, company is committed to sales with reset to creating brand recognition through delivering convenient service to the customers. Company has also faced the recession in year 2007 but owing its effective customer based policy worked and increases the valuable clients. Along with this, premium for company has also increased by £10m from last year from £2.2m. Owing the specialization in retail, construction and real estate it has covered all the aspects of customers. Retention is also prominent for business and it has 97% ratio to retain the customers (Recognitionpr, 2013). Major clients of company are PJ Dick Trumbell, RMU, Mascaro Evoqua.   

Retaining the Existing Customer

In UK insurance market client personal line based clients is very strong to comprehend the insurance to recover the damages by following insurance policies. Further, the paradigm of insurance has changed and it has shifted towards the most competitive industry. It adopts the transparent policy to share the information to require to the clients (Thibeault and Wadsworth, 2014). Due to better relationship with the client Henderson has become most choice of people to avail the insurance service.

Insurer has a cycle to distribute the service to the clients and broker is the multilevel intermediary to deliver the service at its best. Company possesses various ways to interact with clients and distribute the insurance. Company has physical location as 15 branches of Henderson business to resolve the queries of clients and satisfy them.  

Cycle of Market

Broker’s profit generation way is to get commission from the client due to delivering the service instantly. Brokers majorly play two different roles for the marketers as brokers and other one is agent of the company. Further, brokers need to follows the obliged laws to resolve the conflicts of clients (Raj and Baranidharan, 2012). On the other hand, brokers are not permitted to use the confidential information of the customer for their personal use because it can influence the client experience. In UK market major brokers are professional to develop the impediment market of personal lines. Brokers creates positive impact through higher risk coverage. Along with this, insurer delivers the insurance products to combating with insurer. Value proposition involves the needs and wants of the customers for defined insurance policy. In UK market FCA registered brokers are decreasing gradually due to higher competition and lower growth. Brokerage is the income for agent as 2-3% commission. Technology has changed the pace of market so the clients and insurer adopts the innovative way to transact with the clients and solve the conflicts it also influences to the customer experience and supports the business to maintain the clients in effective manner. Brokers follow a systematic process to establish the relationship with clients. Henderson manages the reviews of customers and takes action to improve the relationship with customers for its positive brand avenue (Shanmugasundaram and Srilekha, 2017). UK is basically focused towards the principle based approach that is revealed by the FCA. Broker needs to take the permission from the higher authority to deal with the clients. In relation with the core compliance law of agency for insurance is managed immensely to have better relationship with the customers. Henderson broking treat the customer as per their insurance base. Additionally, it is committed to fulfill the requirement of the clients.          

Broker and Its Role in Insurance Business

Customer relationship derives value for business and it confers the competitive advantages to create strong market position in the insurance sector. Strength of customer relationship that may influence the customer experience is as follows

(a) Easily understand the needs and expectations of clients: In this competitive era it is complex to understand the needs and wants of the customer to fulfill in effective manner which may lead to the long term customer relationship and it can also influence the customer experience through acknowledged competence (Ricci, 2014).  

(b) Enhancing the potential customer’s intentions: It is one of the most strength of customer relation that it can create potential client from the congnigent feedback of existing customer those revealed the experience from the insurance company (Barken, 2011). Along with this, it also supports the product volume to be increased.             

(c) Identification of issues and policies to address: Along with this, potential issues can easily be identified that can affect the customer experience which may also influence the customer relationship. After understanding the challenges insurer can easily frame the policies to control the activities that is liable for the entire process.

(d) Experienced the market knowledge: Effective relationship with insurer may lead to gaining the market information about the insurance that can influence the customer experience (Dickstein and Gehring, 2014). Through market knowledge customer can build strong policies to avail the insurance which is really beneficial for clients.

(e) Long term market success: Long term market sustainability and centricity depends on the stronger relationship with the customer and which derives the success of business in competitive market.

(f) Quote the price: If client have significant relationship with the insurer than on behalf of client insurer can quote the price for insurance claim and take decisions that are imperious for clients.

(g) To indentify the risk for individual: Risk is a major factor in insurance sector and people are not satisfied with the service of insurance company because of the fraudulent activities of broker (Jerry and Richmond, 2012). But positive relationship of client with insurer may also be effective to easily understand the risk of individual client and delivers them possible coverage.

(h) Evaluation of cost and ease: Client’s relationship with the insurer is also useful and it also strengthens the client to determine the lower cost as compare to the direct broker. Customer can get the insurance service at lower price.   

Consequently the significant importance of relationship with the insurer client faces many challenges that can also influence the customer experience. Following are the major challenges discussed below

Strengths of Customer Relationship

(a) Security of personal data: Security is the major concern for the client that keeps the client hesitated to share because it may be resulted into the loss information that can influence the personal values and client experience.

(b) Lack of accountability: It is revealed that many customers face the problem to claim the insurance policy in an accidental case but the insurer become unaccountable for the case than it can influence the customer loyalty towards the company to continue (Touchstonecrm, 2015). It is evident that insurance broker are liable for any incidence but situation arises when someone does not get any response to resolve the queries of customers than it can hamper the customer experience which may also influence the long term sustainability of business in the competitive era.

(c) Partiality issues due to higher relationship: Excess of anything may ruin the results so the higher relationship may also be in negative sense and issue related to partiality may arises and it can also impact the external environment in market of company.

(d) Personal attributes may affect:  It is known that the personal attributes may also be influenced by the higher relationship with the insurer.

(e) Following traditional tendency: Along with this, insurer can use the traditional tendency to take the decisions about client consequences.           

(f) Effective relations also reduces the cost:  It is also reviewed that the personal relationship bonding also resulted into the lower cost for the company to promote the policies in market to make familiar with new policy and lure the clients to take the same (Acton, 2012).                 

(g) It spheres the potential market: Potential market can also be observed by the insurer to speed up the market clients and focus in developing strong relationship. It is reviewed that the UK market is leveraging the growth in the insurance sector so opportunities are also strives in the market to tap the potential business and individual to cover losses.

On the basis of above analysis it can be recommended the relationships are important aspect for the insurance business to retain the clients for long time. In order to improve the customer experience company should focus on the innate needs and wants of the customers and evaluate that what type of insurance policies are required for the existing and potential  clients to feel them satisfied with insurance company. At the same time, company should be concentrated on the arranging full coverage for any incidence that is occurred with the clients. It is revealed that risk are major concern for the client that’s why clients prefer the insurance acclaim so the company should frame a proreta in which all the risk can be assured to covered for higher satisfaction (Jltspecialty, 2015). Further, strong customer experience is the key to success of business so it should attempt to effective interaction with the client by current innovative technological tools. In addition to this, communication is an effective strategy to keep in touch with the customers resolve their queries (Clipson, 2016). It is evident that relationship may also result into the revenue from the potential market client so existing customers experience derives value for the same. Moreover, engagement of client is also useful to share the problems and bring effective solution for the existing client and future clients. Furthermore, brand loyalty also imperious to create satisfied customer in insurance personal line also so the value of insurance products should be shared with the clients (Anderwise, 2014). In order to enhance the customer experience, it is recommended the personalization of clients may evolve new way to deliver the higher satisfied and quality service to the client. Additionally, remember, recognize and reach to the client are the important aspect to create positive customer experience. Customer experience can also be improved by the digitization of insurance. Technology enabled the insurance companies to understand the data of clients and attempt to develop deeper relationship to create positive customer experience. Building trust is another aspect which can also influence the customer experience so caring of expectations and deliver good service may also be resulted into trust corner of company. In relation to this, effective customer experience is also beneficial for the retention of clients. Furthermore, advancement in technology may also suggest implementing to enhance the customer experience in insurance industry. On the other hand, it can also be suggested that the company should adopt the effective sales in which it can carry out the direct and indirect sales through which the customer experience can also be influenced to offer them significant insurance policy so that it can helps the client to provide them highest coverage from the insurance policy (Maroofi, et. al, 2017). Furthermore, differentiation from the market player in order to deliver the inbound insurance service can create additional advantage for company. Further, segmentation is another important strategy that may enable the company to target the segmented market and attempt to capture the client. 

Weaknesses of Customer Relationship

Conclusion

Relationship between the two parties is looked into new ways to immensely engage into the satisfaction of the client through conffesing their issues and address them to build strong relationship. The above report is presented to evaluates the relationship between the insurer and insured of the chosen insurance broking as Henderson insurance broking in order to emphasize on the needs and wants of clients which is expected from company. Henderson is one of the top insurance broking firms which seeks to deliver the satisfactory service to the clients and focuses on retaining the existing client for the betterment of clients. From the above analysis it can also be concluded that the relationship also matters in the success of business and it also resulted into profitable situation for the business in competitive era. Along with this, strengths and weaknesses are also evaluated understand the current paradigm of insurance business. On basis of suggestions it can also be concluded that company should focus on maintaining healthier relationship with the clients through meeting their expectations.        

References 

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