SHRIRAM GENERAL INSURANCE
Established in 2008, Shriram General Insurance (SGI) is a public limited company, operating in the non-life insurance sector in India. The organization is currently facing the problem of low renewal rate for its two-wheeler customer segment, caused primarily due to agent disengagement. Thus, the scope of this project was to investigate "What strategies should be designed in order to increase agent motivation?".
Research methodology incorporated both primary and secondary research. Primary research entailed of creating surveys; outlining monetary and non-monetary incentives in order to understand the basis of agent motivation. The sample size was 100 and the survey was conducted nationally. Secondary research included previously employed company motivational techniques, background information of agents and relevant company and industry information.
The results of the survey indicated that a disconnect exists between the top management and the agents, and also a lack of regularly structured training schedules. It was thus recommended that interaction be increased between agents and the senior management, along with a revised training schedule.
Suggesting and setting project goals.
Researching and linking with innovation principles.
Gathering & substantiating of supporting data.
General management for smooth operation of the whole project.
The entire insurable
$425 million (AUD)
Premiums & interest
Fair & fast claim settlement.
Commercial, private vehicles & all businesses.
Human capital, capital & technology.
Est. in 2008, located in India, part of Shriram Group (est. 1974)
Low Renewal Rate of 22% in the two-wheeler customer segment.
> 40% of customers
have no access to the Internet.
Client Pain Elaborated
"What strategies should be designed in order to increase agent motivation?"
- Previously employed company motivational techniques.
- General/common information pertaining to agents.
- Relevant industry and company provided information.
Analyze individual agent application forms.
Design survey based on analysis of application forms.
Collect and analyze results.
Distribute the survey to 100 agents nationally.
Secondary Research Findings
- Total agents enrolled 68,374 (active & non-active).
- Of which, active agents: 13, 790.
- Agents who contribute monthly: 7,600.
Previously employed motivational techniques:
Annual Agent Conference & Club Membership.
Relevant industry information:
Retain loyal customers to excel as a top-rated insurance brokerage.(MarketLine, 2017).
Said that recognition by the top-management would appeal to them the most, as an additional way to recognize them for their efforts.
Primary Research Findings
Responded "Neutral" when asked "My job gives me a sense of personal accomplishment".
Responded ‘unsure’ if their current profession was their long-term career path.
Agreed that the company recognizes and rewards agents for their efforts.
- Improved & more frequent in-person training sessions.
- Pre-recorded online training sessions, to suit the convenience of agents.
- Increase interaction of agents with the senior management, via multiple methods such as live webinars, in-person meetings, conferences etc.
Assumption: Agents are disinterested due to low commission.
Once tested: Survey results indicated that 65% of agents were satisfied with the commission structure.
Outcome: Consequently, indicating the reason for disengagement to be lack of motivation, instead.
Thus, an increase in motivation may result in increased chances of agents providing correct customer contact information, due to shared strengthened trust.
Successes & Limitations in Study
- Generalizability: Result of 100 surveys, not enough to represent the whole population.
- Unreliable data: Exaggerated response and/or for the sake of completion.
- Longitudinal effects: Time limitation because of the due date.
- Assumption tested.
- Data collected via primary research, strengthening the credibility of the study.
- SGI should form a project team, to ensure recommendations are implemented.
- Once implemented review the same via a survey again to gain feedback, post-execution.