Document Type : Original Research Paper
Authors
1 Assistant Professor of Insurance Research Center(IRC)
2 Department of Management, Faculty of Management and Financial Sciences, Khatam University, Tehran, Iran
Abstract
Objective: Identifying and prioritizing the damages of the life insurance loss management process, their causes and effects, as well as the solutions to fix them.
Methodology: using the methodology (methodology) of analysis of error states and effects (FMEA)
Findings: Twenty injuries have been identified and prioritized for the life insurance loss management process, of which six injuries were the most important and influential based on the methodology used (in terms of probability of occurrence, severity of effect, and probability of discovery). These six harms are: "failure to comprehensively transfer information to customers at the time of sale", "lack of skill of insurance salesmen and neglecting the suitability of the product with the needs of customers", "imprecision of risk assessment at the time of issuance, especially in large group contracts", " Lack of detailed study of the terms of the contract by customers", "the lack of access to a reliable and one-stop source to obtain complete and comprehensive information about the contracts and the characteristics of the types of life insurance" and "the lack of correct risk assessment and the announcement of an additional rate corresponding to it." In fact, injuries originating from the sales network are in the first priority, injuries related to information defects in the second priority, injuries in the management department in the third priority, and injuries in the evaluation and payment of damages employees department in the fourth priority.
According to the identified damages, solutions to fix them were also asked from the experts. Based on this, solutions were received for each of the injuries. The main solutions provided for priority damages include "giving sufficient training to sellers and creating motivation and a long-term perspective for them", "carrying out detailed risk management and requiring the presence of more than one appraiser when issuing large group contracts", "prioritizing consultation" Specialized in order to fully inform the customers", "Providing periodic feedback from the loss management department to the life insurance issuing department", "Preparing the health database of insured persons", "Compilation and periodic revision of the required internal standards", "Determining quantitative and qualitative indicators for evaluating the performance of employees Based on the limits of powers and responsibilities and the required standard training in the form of efficient and transparent measures", and "facilitating communication between insurance beneficiaries through the promotion of software systems and its timely updates", have been among the most important solutions proposed for the identified damages.
Conclusion: The findings of the research show that most of the problems of loss management are due to negligence during the issuance of the insurance policy (sales network) and there is no effective feedback from the loss department to the issuing department. Therefore, not paying enough attention to correcting the expectations of customers when purchasing a product and the problems caused by misunderstandings contribute significantly to the failure of customers when damage occurs. Based on the findings related to the solutions, it seems to strengthen the internal interactions between the loss management department and the management of life insurance issuance, as well as between the line and headquarters employees, along with the promotion of training according to the needs and in line with the damage removal, as well as the development of standards for the division of duties and training. And evaluating the performance of employees based on it can play a significant role in improving the loss management of insurance companies.
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