Developing Managerial Quotient for Sustainable Client Servicing in Insurance Sector

Developing Managerial Quotient for Sustainable Client Servicing in Insurance Sector

Neeta Baporikar
Copyright: © 2021 |Pages: 23
DOI: 10.4018/978-1-7998-4522-5.ch008
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Abstract

The insurance sector consists of two branches: life and non-life. Non-life is commonly referred to as general insurance. Insurance is a service industry and client retention influences growth and business sustainability. Being a service industry managerial skills for client servicing is essential for effectiveness in the insurance sector. Further, middle-level management directly deals with clients. So, to mitigate the challenges of privatization, competition, stakeholder's expectations, etc., appropriate managerial skills for middle management is critical. A mixed-methods approach was adopted, primary data collected through questionnaires and secondary data from published records. The sample consists of middle-level managers of the general insurance industry from the Pune region, India. The analysis was done using descriptive statistics. Findings reflect that higher managerial quotient is associated with client servicing quotient.
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Introduction

A healthy and developing insurance sector is of vital importance to every modern economy. First as it encourages the savings habit, second because it provides a safety net to rural and urban enterprises and productive individuals. Further, it generates long-term funds for infrastructure development. The insurance industry plays a significant role in India's modern economy. Insurance is necessary to protect enterprises against risks such as fire and natural disasters. Individuals require insurance services in such areas as health care, life, property and pension (Sinha, 2007). Development of insurance is therefore necessary to support continued economic transformation. Social security and pension reforms also benefit from a mature insurance industry. Table 1 gives the development events chronology of the insurance sector in India.

Table 1.
Development Chronology of Insurance Sector in India
YearEvent
1912The Indian Life Insurance Company Act
1938The Insurance Act: Comprehensive Act to regulate insurance business in India
1956Nationalization of life insurance business in India
1972Nationalization of general insurance business in India
1993Setting up of Malhotra Committee
1994Recommendations of Malhotra Committee
1995Setting up of Mukherjee Committee
1996Setting up of (interim) Insurance Regulatory Authority (IRA) Recommendations of IRA
1997Mukherjee Committee Report submitted but not made public
1997The Government gives greater autonomy to LIC, GIC and its subsidiaries with regard to the restructuring of boards and flexibility in investment norms aimed at channeling funds to the infrastructure sector
1998The cabinet decides to allow 40% foreign equity in private insurance companies -26% to foreign companies and 14% to NRI;s OCB ‘s and FII’s
1999The Standing Committee headed by Murali Deora decides that foreign equity in private insurance should be limited to 26%. The IRA bill is renamed the Insurance Regulatory and Development Authority (IRDA) Bill
1999Cabinet clears IRDA Bill
2000President gives Assent to the IRDA Bill

Source: Banga, (2011).

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