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LISTENING TO THE VOICE OF THE CUSTOMER
February, 2014
 

Elie Hanna, General Manager at AIG Qatar speaks to Sinchita Mukherjee about innovation which arises from listening to the Voice Of the Customer (VOC). 

Being an international insurer, AIG must be having solutions for efficiently managing millions of customers across the globe. Please share a few nuances of the same. Locally, how have you adapted your way of operation to listen and be more receptive to the VOC

AIG effectively operates as a capacity provider for commercial lines in the Qatari market and in the Middle East. Hence, our definition of customers is broad and includes our partners like insurance brokers, insurance companies and direct end consumers. We came into operation in Qatar in 2007 with the intention of supporting and growing the market while improving insurance awareness and penetration. 

Elie Hanna, General Manager, AIG Qatar 

In terms of consumerism, we have a few specialized lines in Qatar such as travel insurance and warranty. Likewise, we have designed specific packaged products for the SME market, which is one of our target sectors in the State of Qatar. SME is still an untapped segment and we have built the expertise to handle it. We consider the SME client to be as vulnerable as a retail client from an insurance knowledge perspective. Needless to say, we always design comprehensive products keeping the VOC in mind. Additionally, the type of industry we cater to is another determinant in designing or tailoring our products. This primarily helps in avoiding gaps in coverage. 

At AIG we give great importance to customer feedback and needs and have designed systems and processes based on continuous research and surveys. We have also established a new global division called “Science division,” which makes use of our data and drives competitive advantage from an insurance company’s standpoint-including delivering to our promises and customers’ experience. 

Locally we definitely make use of all the tools available within AIG that helps us better understand customer behaviour and expectations. Undoubtedly, customers vary from one country to another and so do their needs. You cannot apply the same strategy that would appeal to a customer in Europe to a customer in Qatar! However, taking into account the cultural impact, insurance awareness etc., we have been able to make use of our global expertise and localize it to meet our customers’ expectations and needs. 

 

Please exemplify how listening to the VOC has helped in the following situations: 

For boosting sales 

Building a prospective business case 

Marketing/awareness campaigns 

Claims settlement procedures 

Every country has its own culture, beliefs, dynamics and level of awareness towards insurance. We are mindful of the low insurance penetration, which is less than 1percent in Qatar. Hence, to raise the profile of insurance amongst the residents, it is mandatory for us to listen to our local customers and design solutions which would be specific to their needs. For example, we have launched an internal reporting tool, which measures the time from when a customer approaches us to enquire about a product, to when the deal is actually closed. The senior management then reviews it to understand the customer’s purchasing experience and how it can be improved. We draw attention to the pitfalls like where our response is delayed or where we are going wrong. Undoubtedly, listening to the VOC is a learning experience for us. 

In my opinion, innovation in distribution is of grave importance. Yet, innovation has to be simplistic. There has to be ease in presenting and accessing the concerned product. Using technology, we ensure to be close to the needs of our customers. For example, for travel insurance, we partner with the Global Distribution System (GDS) providers, which help customers purchase travel insurance while they are booking air tickets. While designing products for our local customers, we always factor in insurance penetration and awareness towards it. This is precisely one of the ways of boosting sales or building a prospective business case. 

A research done by E&Y suggests that insurers who understand their customers’ needs and offer the right propositions can cross-sell/ up-sell and repeat the sell. Understanding your customers’ needs and positioning the requirement for insurance makes the customers more receptive towards cross selling and up selling. I have observed this trend to prevail at a regional level. 

To raise the profile of insurance amongst the residents, it is mandatory for us to listen to our local customers and design solutions which would be specific to their needs. 

Additionally, Product Sequencing is also vital. Given the level of awareness towards insurance in this part of the world, customers typically buy product II only after they have bought and liked the services offered by product I. This is a mindset, which is a reflection of the VOC

For every insurance company, settling claims helps in gaining loyalty of their customers. On a global level, AIG pays an average of USD 115.1 million in claims on a daily basis. Undoubtedly, we listen to the VOC even while settling claims. Going forward, we have organised claims forums, where we have discussed the regulatory or legislative issues with our distribution partners in order to enhance our customers’ claims experience and to resolve claims quickly and effectively. 

 

Last year, we had organised a Directors’ & Officers (D&O) seminar and this year, we are looking to organise a seminar on Professional Indemnity (PI) for construction. During these seminars, we also get a chance to interact and listen to our customers and get their feedback and learn about the fresh demands of the market. Based on the provided feedback, we restructure our strategy and make ourselves more approachable to our customers. Customers’ needs are evolving and so are our promises. Settling claims is a way of delivering what we promise to our customers. This is essentially how we capture the VOC

Some customers like submitting their claims requests online. On the contrary, for some customers, human interaction is very essential. Regardless of the fact that there is a 24x7 assistance number, they prefer submitting their claims requests forms by dropping in to our offices. It is a way of thinking and we acknowledge and respect the same. At the end of the day, we have to maintain a good relationship with all our customers. 

 

 

Customers’ needs are evolving and so are our promises. Settling claims is a way of delivering what we promise to our customers. 

What kind of research do insurers typically perform for launching a new product? 

Companies usually spend a lot of time and money in understanding the dynamics of the market while launching a new product. Business planning is certainly crucial and at the same time, you need to have a positive approach and take calculated risks. 

 

Feasibility studies are typically commissioned to assess the market opportunity and financial feasibility of launching a particular product. Not only that, we also study the trend and the current demand in the market for the product. At this juncture, it is crucial to understand the VOC to know what they need. 

Please tell us how differently you would approach to the VOC for: 

Contaminated product insurance 

First party recall insurance 

We have a very strong presence in Europe on First party recall insurance and Contaminated product insurance. A recall is a huge step for any business, as it could affect cash flows, relations with customers’, reputation, future revenue etc. So you’ve got to know what you are doing and act quickly and prudently. In addition to the defense cost/ lost profits, we contribute to the cost of engaging specialist consultants before and after the loss. 

We have not rolled out the above products in the Qatari market yet as these are usually for manufacturers or producers. However, times are changing and we will surely consider rolling these out once we know the market is ready for it. 

 
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