7 ADVICES FOR INSURANCE AGENTS TO IMPROVE CUSTOMER RELATIONS

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Depending of my field experiences and observations,  I have prepared 7 suggestions for the owners and managers of the insurance agencies to improve their relations with customers and finding new customers.

1.Define the significant customer; big volume, average volume highly profitable, good potential, etc. Then prepare your time tables depending on your priorities.

2.Set plans that fit your targets; create customer-specific plans to work constantly with your significant customers. Strike various ways to expand your portfolio at current customers (policy trainings, cross selling, etc.).  Determine what kind of new customers you are targeting and work accordingly.

3. Work with stakeholders that fit your concept and goals; work with proper insurance companies or brokers fit for your expectations and goals. Do not only focus on prices. Create strategies to display your difference in your work to your current and potential customers. You also make sure that your prices are in line with market realities.

4.Be specialize on a sector or profession; or example, textile, construction, import-export, etc or lawyers, architects, dentists, etc. So your customer visits would be much more effective. Thus you can also find new additional requirements and develop custom products

5.Hand over your daily standard occupations as much as possible; set your website to provide daily needs of your customers and start giving some services here.  Encourage your customers to use your website. Utilize more IT for your routine office operations. So you and your employees can save more time.

6. Expand your network: When the insurance issues are being spoken, an insurance agent must be the remembered person even in the absence. You cannot obtain this result only with your services and customer visits. Use social media channels effectively. You must also take care to spend time for various activities, social responsibility projects, etc. So you meet new people and remind you to your current customers.

7. Reward your loyal customers: Your loyal customers must feel their differences in your services. These actions will aid to keep your customers and also make your name heard by their friends

 

It is important to inscribe your plans systematically. So you can observe and evaluate your progress. If we change our ways to do business , these will carry us to different results.

 

Rıza OYGUR

July 2019

DIGITALIZATION, IS IT OPPORTUNITY OR THREAT FOR THE EMPLOYEES OF TURKISH INSURANCE INDUSTRY

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Through digitalization, the rapidly developing civilization makes our business and private life easier.

The insurance industry also takes its share from these developments. Recent years, most manual works have been  digitized and become faster and more efficient.

While these progresses are going on how is the growth and employment trend in insurance companies? Let’s look at the table below created by the TSB and T.C Treasury Department datas;

NON LIFE INSURANCE COMPANIES 2017 2013
Nr. of employees* 8.264 8.358 -1%
Total Pr.x1.000.000 TRY 39.710 20.834 91%
Nr. of policies (total) x1000 62.619 52.002 20%
Nr. of policies (CMTPL) x1000 16.644 14.390 16%
Nr. of policies (without CMTPL) x1000 45.975 37.612 22%

Source; TSB, T.C. TREASURY DEP.

WITHOUT LIFE & PENSION COMPANIES NR OF EMPLOYEES, PREMIUMS AND NR. OF POLICIES

 

This table shows except non-life companies which were working in 2013 and inactive today and the companies founded after 2013

COMPARISON THE DATA BETWEEN 2013 TO 2017 FOR NON LIFE COMPANIES WHICH HAVE BEEN ALSO ACTIVE IN 2013 2017 2013  
Nr. of employees* 7.708 7.380 4%
Total Pr.x1.000.000 TRY 35.039 18.536 89%
Nr. of policies (total) x1000 48.421 42.919 13%
Nr. of policies (CMTPL) x1000 13.289 12.858 3%
Nr. of policies (without CMTPL) x1000 35.131 30.061 17%

Source; TSB, T.C. TREASURY DEP.

For 2013, Allianz datas considered as Yapı Kredi + Allianz.

Ak Sigorta is out of this table because it has no employee datas for 2017

2013 – 2017 changes; Aviva – Unico, Demir – Turkland, AIG – Gulf.

 

as above. The effect of the companies which were working in 2013 and inactive in 2017, digitalization, companies prefer to provide some internal works from outsources, employment politics of companies which have been established after 2013, etc. appears the reasons of decreasing number of employees

Near future call centers and claim services that will more effective and faster with artificial intelligence,  via digitalization faster issuing of policies according to requirements, digital sales channels, etc. so insurance sector will grow and widespread the policies with these new occasions. We should not think of these things just as operational progresses. It is also indispensable that managerial routines and approaches become coherent with these progresses. The importance and necessity of the people will be risen who consider, accomplish, implement and develop these innovations. Companies will  reduce the number of employees  but will need more qualified employees

Developments and progresses also concern employees individually. All employees who want to continue their career in the future should strive to improve their personal and technical skills and knowledge.

Ultimately, for all the people and institutions that have succeeded improvement and progress, the digital developments will bring much greater opportunities than ever.

 

Rıza OYGUR

December 2018

COMMON TARGET OF INSURANCE COMPANIES AND INTERMEDIARIES IS PROFITABLE GROWTH

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The main principle never changes for all sectors and companies; to grow in sustainable and profitable way. All kind of commercial enterprises have to grow in changing and thriving market conditions. If all this performance is sustainable, the main company and its stakeholders are also gaining their share from this revenue and volume.

Suppliers of  growing manufacturers, subcontractors of expanding developers, intermediaries of rising insurance companies can also be considered as stakeholders of these enterprises. If the main company and stakeholders will have new earnings from the results of good performance, it will be more effective for them to work together for this common purpose.

If the insurance company succeed sustainable profitable growth, its intermediaries, will gain the new customers, will get good service, will make renewals more effective, will have effective campaign and additional commission opportunities so their benefits will increase.

One of the important contribution of the intermediaries to insurance companies are their correct and guiding feedbacks. The feedbacks have to collect and evaluated carefully by the insurance companies and implemented which are appropriate . So reach the expectations become easier if the business is carried out together with the company and intermediaries

In some cases, companies could ignore growth for profitability. By the way it is important to remember the old senior insurance executives advice ”if you cannot grow up, you will disappear healthy”

Growth actions are generally made for to rise the current market share. The most common ones are price reductions and more flexible risk acceptance criterias. Although to increase  premium volume is succeed,  meanwhile side effects have to analyse carefully in medium and long terms . As I mentioned before “the basic rule for commercial enterprises is to keep the profit”

New insurance needs for social and technological progresses, occurrence of new sales channels, fast and effective operational processes with IT applications, rising of insurance awareness, etc. are emerging opportunities for profitable growth.

 

Today, just like in the past, new inventions and discoveries make great gains to individuals who find them. In the insurance industry;  new methods- products, sales strategies, all kinds of innovations which companies implement effectively  could increase their earnings. Recently, covers against cyber risks which are more widespread abroad and also surety insurance rapidly spreading in our country are some of new gaining fields created by new products.

If the companies make close collaboration with their intermediaries for the innovations, new products and market needs  from the beginning. They can reach the expected goals easily. Consequently, if we want to change our current situation, we have to change something in our lives. As Albert Einstein mentioned in his famous saying “Do not expect the different results by doing the same things over and over again”

 

Rıza OYGUR

November 2018