Customer Evaluation, Policy Evaluation in insurance

12/07/2021 1 By indiafreenotes

Consumer evaluation, also called consumer testing or consumer research, is the process of assessing the properties or performance of existing or new products or services as perceived by the consumers. Many methods have been developed over the past decades with the growth of the consumer goods’ industry. Each section of this chapter describes the methodology (small-scale qualitative, large-scale quantitative and in-depth ethnographic approaches) as well as the important points to consider and pitfalls to avoid for each. It includes concrete and pragmatic case examples (tables, graphs) with types of deliverables covering different types of product categories.

Customer insight (consumer insight)

Customer insight, also known as consumer insight, is the understanding and interpretation of customer data, behaviors and feedback into conclusions that can be used to improve product development and customer support.

Agile marketing

Agile marketing is an iterative approach to marketing strategies that models methodologies used in agile software development. With agile marketing, teams identify and focus their collective efforts on high value projects, complete those projects cooperatively, measure their impact, and then continuously and incrementally improve results over time.

360-degree customer view

The 360-degree customer view is the idea that companies can get a complete view of customers by aggregating data from the various touch points in which consumers interact with companies.

Actionable intelligence

Actionable intelligence is information that can be followed up on, with the further implication that a strategic plan should be undertaken to make positive use of the information gathered.

Age of the customer

Age of the customer is the concept that consumers are more empowered than ever because they can access information about products and services over the Internet in real time.

Policy Evaluation in insurance

Ease of service

Customer is the everything and it is this age-old business mantra that still doesn’t fail to dictate the shots, even in the realm of insurance. Private insurance companies have a lot to offer to their customers, vis-à-vis their erstwhile counterparts.

It is normal for you to want a website that’s rich in information, a toll-free helpline number that’s truly round-the-clock operational, assistance with claims support and a company interface that’s resourceful and effective. If your insurance company ticks all the relevant boxes, you can be rest assured that your insurance is in the right hands.

Online purchase and Renewal of policy

In present times, most experts would swear against visiting an insurer’s brick and mortar outlet in order to purchase an insurance policy. Online policy purchase, besides being a no-hassle approach, offers you extra in terms of comparing various policies, being thorough with the fine print, paying the premiums and submitting documents at ease.

It is this sheer ease that should also take precedence once you decide to move ahead with policy evaluation.

Claim settlement ratio

One of the better indicators of an insurance provider’s efficacy (in terms of settling claims), probing into your insurer’s claim settlement record will give you an idea about your own chances, if and when the need arises to file a claim. A claim settlement ratio, in simple terms, is the number of claims settled out of the total pile of claims filed.

Make sure your preferred insurance company boasts of a good claim settlement ratio so that it doesn’t drag its feet when it is your time to get the proceeds from a claim.

Premium outgoes

Here, you will have to strike a delicate balance between the cost of the policy and the sum insured you would be eligible to. Putting it in perspective, on-boarding the most expensive insurance policy might not make sense, particularly if you aren’t sure about your finances.

On the other hand, landing the cheapest insurance policy around might not be all that helpful, considering you may have to compromise on the coverage.


Probably the most commonly heard buzz word whenever someone talks about an insurance policy, checking the coverage is certainly of utmost importance once you start evaluating insurance policies. Check whether the sum insured is adequate so that you don’t have to press the panic button in case of damages and losses caused to your home, vehicle or health, for that matter.

Evaluating life insurance policies consideration:

Cost: Being cost effective is good, however, the cheapest does not mean the best.

Convenience: The ease of buying is very important. The facility to learn, compare and pay online is an added advantage.

Company Credentials: The insurer’s ability to honour a claim is based on its financial position. Do your research about the fundamentals of the insurance provider before buying a policy. The IRDAI has enough safeguards to ensure that the insurers are adequately funded. Rating agencies like ICRA and CRISIL also rate insurance companies on factors like claim-settlement ratio, financials, etc.

Claim Settlement Record:

This is a key indicator of the insurance company’s efficiency while processing claims. The Insurance Regulatory and Development Authority of India(IRDAI) has stipulated that for cases where an investigation is not required, insurers are expected to settle a claim within 30 days of submission of complete documents. However, with increasing instances of frauds, insurance companies have become extra cautious while examining each claim.

Customer Service: This is the key differentiator between erstwhile life insurance companies and some of the private insurance providers in India. A highly resourceful website, a 24×7 helpline, a relationship manager and comprehensive email support are the key touch points you should look for.

Coverage: A healthy base sum assured and the availability of popular riders is desirable.

Review Existing Policies

  • Analyze alternative scenarios. Determine what the policy premium will be and the time over which it must be paid using scenarios of falling interest rates and rising mortality rates. Make sure clients can afford the higher premiums and continue to pay them for longer periods.
  • Compare “re-projected” policies. When the agent prepares a new projection for one of the client’s existing policies, be sure the policy terms are identical to the policy as originally written. Otherwise, you’re comparing apples and oranges.
  • Compare illustrations. Check the assumptions the insurance company uses in its policy illustration such as interest rates, mortality rates and expected longevity. Compare results such as premiums, length of time they must be paid and benefits the policy provides. Make sure to look at carrier ratings and financial stability.
  • Make sure the client gets the best deal. Some companies offer better policies for new buyers. Find out if the client’s carrier or another carrier offers lower premiums, higher cash values or larger death benefits to new buyers than the current policy offers. If so, cancel the old policy and buy a new one.
  • Continue to assess carrier ratings and financial stability. Like any business, insurance carriers’ fortunes change. Be certain the carrier’s situation has not exceeded your client’s risk tolerance. If it has, change carriers.