Following to aggressive marketing strategy, Siam Commercial New York Life Insurance PCL (SCNYL) has introduced a new unit “Policy Recovery” to further strengthen its after-sale services and recover lapsed policies in a bid to increase persistency rate and generate long-term premium for the company.
Mr. Donald Carden, President and CEO of SCNYL disclosed that, “Due to the overwhelming success of new business expansion, our sales and client bases have grown rapidly during the past 2 years. We, therefore, emphasized more on after-sales service and Customer Relationship Management Program (CRM) to retain good relation with existing customers and also keep penetrating into new market. This scheme will strongly support us to maintain our persistency rate which currently stands at 91% and also boost more renewal premium, the key source of income for insurance business.”
To better satisfy the needs of diverse customers and provide services more efficiently, SCNYL has set up “Policy Recovery Unit under Customer Service Department. The Policy Recovery staff will administer, develop relations, provide consultant and explain the benefits of renewal policies for clients having lapsed policies less than 5 years, and those who are going to withdraw their policies. In addition, the staff will also offer proper solutions for individual problems and introduce new services and products for these clients.
“We began Policy Recovery pilot project with lapsed policies of Bancassurance distribution in July last year as this channel has generated skyrocketing sales growth and client base. In the trial period, we were fully satisfied with the positive feedback from customers and earned nearly 10 million baht first year premium a month from lapsed policies. As of May 2005, Bancassurance distribution alone has 65,000 in-force policies.” Mr. Carden added.
With the successful start, the company, in June this year, expanded Policy Recovery scheme to cover Agency distribution, another company’s core distribution channel which currently owns 75,000 in-force policies.
All Policy Recovery staff have successfully passed SCNYL training program including problem-solving, interpersonal skills, service-minded and psychology. They also required taking 2 months training on insurance products, negotiation and customer service skills. Currently, each staff is able to contact 20 policyholders per day or handle 1,000 cases per month in average, depending on problem. From SCNYL’s findings, financial problem and lacking knowledge of policy renewal benefits were main reasons of policies suspension among policyholders.
“Gearing forwards to customer service improvement, SCNYL also plans to introduce “Welcome Call” service for new policyholders next month. Our tele-staff will introduce policy conditions and benefits, payment method and company’s services to build up relations with new clients and help prevent them from withdrawing their policies during Free Look Period.” Mr. Carden said.
SCNYL ’s new business premium including single premium continued to grow significantly to 1,958 million baht, an increase of 29% over last year period. The company has quickly moved from 5th position last year to the 3rd place in new business premium and its market share rose dramatically to 10.8% from 8%. Among total 6 distributions, Agency distribution showed the most outstanding sales performance with huge growth rate of 50%. The company also reported net profit of 21.21 million baht in the first quarter of this year, compared to 170.63 million baht last year.
For more information please contact:
Ms. Nantawan Kijthanacharoen
Corporate Communications
Tel: 02-6553000 ext. 3839 or 01-8356540
Email:
[email protected]
www.scnyl.com End.