Question:
Give a brief overview of the insurance broking organization or division of an insurance brokering organisation that you are familiar with.
This is the insurance broking organization or division of an insurance brokering organisation.
Describe how insurance companies manage relationships.
Analyze the strengths and challenges of your relationships with insurance companies that may impact the customer experience.
Based on your analysis, make recommendations to improve the management and customer experience with insurers.
Answer:
Introduction
This paper examines the role of insurance broking in evaluating relationship management. Relationship is crucial for the business’ success in the prospective market.
It is also examined how the relationship creates value for the business.
It is also examined in detail to determine the impact on clients and how it affects customer experience.
These issues can be addressed with the help of appropriate recommendations.
Company Background
The Henderson insurance broker company is a top-rated company on the UK market.
It is a broker of insurance that covers real estate, manufacturing, and construction.
Henderson broking also manages high-risk business.
The company was founded in 1986. It is privately owned and has 15 UK offices (Hibl, 2013,).
The company is experiencing continuous growth each year, and the premium for this may exceed PS200m.
The company has a professional risk manager who is skilled in the area of business that it is interested. (Bloomberg 2017).
Henderson believes in providing excellent customer service and covering all risks.
Life insurance can help you plan for future problems and protect your financial interests.
A company recently launched an insurance policy for farmers in order to help them protect their losses. This can have a positive impact on the customer experience as farming is considered one of the most dangerous industries.
Customer Relationship Policy of the Company
Every business needs to have a strong relationship with its clients in order to grow their business. The insurance industry is a risky business that requires a lot of expertise and knowledge.
The company’s main motto is to improve the lives of its clients and provide insurance services at a competitive price.
Henderson ensures that customers are protected in any category of insured areas and makes sure they are happy.
The company also introduces new policies to ensure customer management.
Henderson insurance broking is all about putting the customer first.
For valuable coverage, the company has strong relationships with families.
Because insurance is becoming the most competitive industry, it has become difficult to influence clients.
The company has established 15 branches to strengthen customer relationships. This allows it to respond to clients’ queries and solve their problems for better client satisfaction.
Company has also introduced new technology to monitor the records of customers and verify their insurance coverage.
Globalization and the internet have changed the world in a significant way. Companies are now focusing on strategies to retain existing customers (Bolance et.
Company is moving to a product-oriented strategy in this new era. This will allow them to offer it fresh and satisfy customers.
Company considers customers as a resource, and taps new markets by offering new products that have a wide coverage.
The quality of customer relationships is dependent on many factors, such as satisfaction and open communication (Porter and Levine 2015).
Poor communication can also impact the business process.
Loyalty is an important aspect of business. Companies must aim to build brand loyalty in the perspective market.
Business can improve customer relations to increase their market value and be more flexible in dealing with potential challenges.
It also helps to build a company’s brand image against its market competitors.
Clients who are satisfied with their service may recommend other companies to use the company’s services to help them increase their market share (Egube 2016, 2016).
The company’s main goal is to create value for clients in different industries. They provide well-managed insurance that helps them manage any potential consequences.
Company also takes responsibility for the improvement of the community where it operates.
To maintain customers, company makes it easy to report any claims to ensure that they are resolved quickly and effectively.
Company also offers a 24-hour claim reporting service in an emergency situation to its customers. This allows them to be more attractive and can make a lot of money.
Company is also more focused on risk management to ensure clients receive full coverage.
Company has implemented a corporate risk management system to manage and control risk for clients.
The company’s corporate risk management system allows them to train new employees and make them familiar with the process. (Johnston 2017).
The company provides the best asset management formula for high-risk sectors such as life, healthcare, fleet management, and disaster coverage.
Henderson broking uses a customer-centric approach to inform clients about their insurance policies.
Interactive communication channels are used by the company to ensure that brand and customer relationships are highlighted.
It uses social media, websites and interactive tools to better serve clients.
The value of customer relationships and risk management for company and insured
For a business to have positive relationships with other parties, it is crucial that they establish and maintain a good relationship.
Businesses need to have positive relationships with customers in order to stay in touch via various communication channels.
The insurance industry is considered the most difficult business to manage the challenges and issues of the perspective industry (Lindgreen 2012).
Evidently, creating new customers is more expensive than keeping existing customers.
For a higher level of service than the competitor in the market, a new customer should approach.
Henderson insurance broking also focuses on customer retention to become a customer-sustainable insurance company in the market.
Company is also committed to sales and reestablishing brand recognition by providing convenient service to customers.
The company has been through the recession of 2007 and its customer-based strategy worked well. This helped increase the number of clients.
The premium paid to company has increased by PS10m, from PS2.2m last year.
It has been able to cover all aspects of customers due to its specialization in construction, retail and real estate.
It has a 97% retention rate (Recognitionpr 2013, 2013).
Major clients include RMU, Mascaro Evoqua, PJ Dick Trumbell and Mascaro Evoqua.
The UK insurance market has a strong client personal line. This allows clients to understand the insurance and to seek damages.
The insurance industry has evolved and is now more competitive.
It follows a transparent policy of sharing information with clients (Thibeault & Wadsworth 2014).
Because of its better client relationship Henderson is the most popular choice for people who want to use the insurance service.
The service is distributed to clients by the insurer through a cycle. Brokers are the multilevel intermediary that delivers the best service.
The company has many ways to communicate with clients and offer insurance.
To answer clients’ questions and provide satisfaction, company has 15 Henderson branch locations.
Cycle of Market
The way a broker generates profits is to receive commission from clients by delivering services immediately.
Two roles are majorly played by brokers: one is that of agent for the company.
Brokers must follow the laws in place to resolve conflicts between clients (Raj & Baranidharan 2012).
Brokers are prohibited from using confidential customer information for their own purposes as it could impact the client experience.
Major brokers in the UK market are professionals to create impediment markets of personal lines.
Through higher risk coverage, brokers can make a positive impact.
Insurer also provides the insurance products that help to fight with insurer.
The value proposition is the customer’s needs and wants for a defined insurance policy.
Due to lower growth and increased competition, UK market FCA-registered brokers are slowly declining.
The income agent earns from brokering is 2-3% commission.
The market has changed rapidly and clients and insurers have adopted innovative ways to transact with clients and resolve conflicts. This also impacts the customer experience and helps the business to retain clients effectively.
To establish a relationship with clients, brokers follow a structured process.
Henderson reviews customers and takes steps to improve customer relationships (Shanmugasundaram & Srilekha 2017, 2017).
The FCA reveals that the UK is primarily focused on the principle-based approach.
To deal with clients, brokers must obtain permission from the higher authority.
To have a better relationship with customers, the core compliance law for agency for insurance must be managed well.
Henderson broking treats each customer according to their insurance coverage.
It is also committed to fulfilling the client’s requirements.
The Customer Experience: Strength and Challenges
The Strength of Customer Relationships and Its Impact on Customer Experience
Customers are valuable to businesses and provide competitive advantages that allow them to be a strong player in the insurance market.
The following are some factors that can influence customer experience:
(a) Understand the client’s needs and expectations: It is difficult to understand customer needs and desires in this competitive age. This may help to build long-lasting customer relationships and can influence customer experience (Ricci 2014).
(b) Enhancing potential customers’ intentions: This is one of the strongest customer relationships that it can create potential clients from the congnigent feedback from existing customers who revealed their experience with the insurance company (Barken 2011, 2011).
It also helps to increase product volume.
(c) Identification and formulation of policies: This will allow you to identify potential problems that could affect customer experience, which can also impact customer relationships.
Once you have identified the issues, the insurer can quickly frame policies that will control the activities and be liable for the whole process.
(d) Market knowledge: A good relationship with an insurer can lead to the acquisition of market information that may be useful in influencing customer experience (Dickstein & Gehring, 2014).
Market knowledge can help clients build solid policies to get the insurance they need.
(e) Long-term market success: A stronger relationship with customers is key to long-term market sustainability and customer centricity. This will ensure that your business succeeds in a competitive market.
(f) Price quote: Clients who have a strong relationship with an insurer may be able to quote the cost of insurance claims on their behalf.
(g) To identify the risk for an individual: Risk is a major concern in the insurance sector. People are unhappy with the service provided by insurance companies due to fraudsters (Jerry & Richmond, 2012).
However, a positive relationship between client and insurer can be very effective in helping to understand the client’s risk and provide them with possible coverage.
(h) Cost and ease evaluation: The client’s relationship is important and helps to establish the lowest cost than a direct broker.
The insurance service can be purchased at a lower price.
Problems of a Relationship with the Insurer
The importance of a relationship with an insurer client is a major factor in customer experience.
Below are some of the key challenges.
(a) Security of personal information: This is the main concern for clients that makes them hesitate to share their personal information, as it could lead to the loss of valuable information that could affect the client’s experience.
(b) Inadequate accountability: Many customers have the difficulty of claiming insurance in an accident case. If the insurer is not accountable for the case, it can affect customer loyalty and make it difficult to continue to do business with the company (Touchstonecrm 2015).
Although insurance brokers are responsible for all incidents, it is clear that customers can suffer from poor customer service.
(c) Problems with partiality due to a higher relationship: Too much of anything can ruin results. A higher relationship could also lead to negative outcomes. Issues related to partiality can arise and may impact the market environment of a company.
(d) Personal characteristics may influence: It is well-known that higher relationships with insurers may have an impact on personal attributes.
(e) Following the traditional tendency: Insurers can also use this traditional tendency to make decisions about client consequences.
(f) Effective relationships also lower the cost. It was also found that personal relationships bonding resulted in a lower cost for companies to market new policies and attract clients (Acton 2012).
(g) It spheres potential market: The insurer can also observe the potential market to increase market clients and develop strong relationships.
The UK market is growing rapidly in insurance so there are many opportunities to tap into the potential market for individuals and businesses to cover losses.
Tips To Enhance Customer Experience
Based on the above analysis, it is clear that relationships are an important part of the insurance business’ ability to retain clients over time.
To improve customer experience, companies should consider the natural needs and wants of their customers. They must also evaluate what insurance policies are necessary for existing and potential clients in order to make them feel satisfied with the insurance company.
The company must also ensure that clients are covered for all eventualities.
Clients are concerned about risk and prefer insurance. Therefore, the company should create a proreta that covers all risks. This will ensure clients have a better experience (Jltspecialty 2015).
A strong customer experience is key to business success. Therefore, it should strive to have a positive interaction with clients using the most current technological tools.
Communication is a great strategy to stay in touch with customers and resolve any queries (Clipson 2016,).
The relationship with potential market clients can also lead to revenue, so customers who are already in the business of selling products and services will benefit.
Engaging clients is useful for sharing the client’s problems and finding solutions that work for them and their future clients.
Brand loyalty is important to build satisfied customers in the insurance personal line. Clients should also be informed about the benefits of insurance products (Anderwise 2014).
Personalization is a way to improve customer service and satisfaction.
To create a positive customer experience, it is important to recognize, reach out, and acknowledge the client.
The digitization of insurance can also improve customer experience.
The insurance companies can now use technology to better understand their clients’ data and to build deeper relationships to improve customer experience.
Trust is another factor that can influence customer experience. Caring about customers and delivering good service could also help to build trust.
A positive customer experience can also be beneficial in retaining clients.
The technology advancements may allow for the improvement of customer experience in the insurance industry.
It is also possible to suggest that the company adopts effective sales methods through which it can make direct and indirect sales. This will allow the customer to have a positive experience, which can be used to influence the company to offer significant insurance policies to help them get the best coverage (Maroofi, Maroofi, and others).
A company may also be able to differentiate from the market players in order deliver an inbound insurance service.
Segmentation is an important strategy to help the company target segments and capture clients.
Conclusion
The relationship between the parties is examined in new ways to engage with the client by discussing their concerns and addressing them to build a strong relationship.
This report evaluates the relationship between an insurer and an insured. It focuses on what clients want and need.
Henderson Insurance Broking is a top-rated insurance brokerage firm that strives to provide a satisfactory service to clients. They also focus on keeping existing clients for the benefit of their clients.
The relationship is a key factor in the success and profitability of a business in a competitive environment.
This is done to understand the current insurance business model and identify its strengths and weaknesses.
Based on these suggestions, it can be concluded that the company should strive to maintain a healthy relationship with clients by meeting their expectations.
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