Customer service in a life assurance company

Abstract

Customer service has gained tremendous focus around the world. However, the general standard of customer service in South Africa is poor. The experiences of the average customer permeate all areas of commerce and industry. Thus, the need for improved customer service is acute. The life assurance industry is no exception. This study attempts to evaluate the perceptions of policyholders with regard to the customer service provided to them by Old Mutual Life Assurance Company. The first part involves a literature study in order to develop a strategic approach, which could serve as a blueprint, or framework against which the customer service activities of the life assurance company may be evaluated. It became clear that the relationship marketing concept and the strategic approach to customer service could be used effectively to the life assurance industry. The strategic approach focused on the development of a service philosophy, evaluation of the present strategy, the development of the vision and mission statements and the formulation of objectives culminating in the formulation of the service triangle model. The elements of the service triangle model (strategy, customer, people and systems) were examined in detail. This was followed by an empirical study (survey conducted in the Durban Metropolitan Region) to determine the practical application of customer service principles. It is emerged clearly that the customer service practices of the selected company are sufficiently customer oriented. The areas that warrant improvement are follow up customer service activities and the complex language used in the regular communication with policyholders to determine the changing needs of policyholders. Arising out of this study were various recommendations made in order to improve customer service activities of the life assurance company specifically. However, the recommendations may be valuable to all life assurance businesses striving towards customer orientation.