The Unconventional Metric to Judge Your Insurer – Employees

Bajaj Allianz Life Insurance
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In today’s time and age, life insurance and other tax investments go a long way in ensuring that the future goals of your own and your family remain protected at all times.

Investing in an insurance plan helps reduce the financial load on your family in your absence. Thus, life insurance cover empowers your loved ones to achieve their goals while supporting their current lifestyle with an appropriate financial backup.

It is vital that you purchase an insurance policy as soon as possible and from a reputable insurer. The choice of insurer is crucial too because an insurance plan is only as good as the insurer’s commitment towards providing hassle-free insurance benefits to your family.

Your decision of insurance company will not only determine what benefits your family would receive under the insurance plan but also how seamlessly the plan will fill into your shoes, as your family’s primary financial provider.

While you can compare between the best insurance companies in India, by their Claim Settlement Ratio or Persistency Ratio, there is another key metric that provides more profound insights into an insurance company’s profile: their employees.

Why Employees Matter in Life Insurance?

Top insurance companies in the country, promote a culture of meritocracy in their business model. Reputable insurers such as Max Life Insurance understand the value each employee brings to the business and hence, expose them to a thriving work environment, complete with objective performance assessments and aspirational goals.

In the presence of a robust performance management system, every employee is aware of his or her individual and organisational goals. As a result, each person can share ideas and collaborate with others to create a dedicated and motivated workforce.

Overall, inter-personnel collaboration serves as the foundation of an insurance company.

How Can Agents Play an Important Role in Managing Life Insurance for You?

The success of any organisation depends equally on its business policies and employees. Therefore, on the one hand, the best insurance companies continually work on updating their existing plans and develop new work processes to suit the evolving dynamics of insurance buying. While on the other, insurers focus on recruiting and training life insurance agents in understanding the consumer’s mindset and their insurance requirements.

With the right set of personnel onboard, insurers can ensure that their target audience receives comprehensive information about available life insurance solutions including long term savings, retirement protection and ULIPs.

Also, a high-quality agency distribution helps in personalising life insurance plans, making them suitable and affordable for buyers from all walks of life.

Best Life Insurance Companies to Work For

Recently, Great Place to Work Institute published its report on the ‘Best Workplaces to Work in BFSI (Banking, Financial Services and Insurance) sector.

The market study reviewed approximately 600 companies, out of which 55 enterprises were from the BFSI sector, on key metrics such as work culture and employee satisfaction.

Along with Max Life Insurance, other top performing insurance companies in the Top 15 of the report were:

  • Apollo Munich Health Insurance Company Ltd
  • Bajaj Allianz General Insurance Company

What Do Other Indicators Say?

While the best insurance companies boast of their dedicated workforce and robust business policies, they continually work on the compliance directives issued by the IRDAI (Insurance Regulatory Development Authority of India).

Every year, insurers are evaluated on their performance by the IRDAI on factors such as 13th-month persistency ratio, claim settlement ratio and solvency ratio.

Each of these values helps you determine the overall presence, impact and efficiency of an insurer in delivering their financial promises towards their customers.

Out of these, the 13th-month persistency ratio is a measure of customers; those are continuing with their life insurance policy.

In other words, the persistency ratios disclosed by the insurance companies imply the number of life cover policies (in terms of both count and premium), which continue in their books by the end of the:

On the other hand, the Claim Settlement Ratio or CSR indicates the number of claims settled by the insurer in the previous year. Therefore, higher the claim settlement ratio, higher is the credibility of the insurance company in terms of paying out the filed claim amount.

If Life Insurance is a Vehicle, the Insurer is the Chauffeur!

Buying a life insurance plan is not only a crucial financial decision that will help secure your family’s financial future in your absence but will also give you several benefits such as peace of mind and of course, tax deductions.

Life insurance products, also regarded as tax investments, provide comprehensive tax deductions on both premium paid and maturity/death benefit, under Section 80C and Section 10(10D) respectively.

Overall, if you are looking to buy an insurance policy, don’t just look into the usual metrics such as CSR or Persistency ratio. Instead, take a closer look at the prime workforce behind the insurance company’s brand value: their employees and then choose the one that treats its employees the best!

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