The catch is – while it is apparently very natural to position fear of fortuity when talking insurance, it is highly unnatural for the normal human mind to envisage a calamity or a negative fortuity unless it is absolutely imminent and just around the corner.

Hence the attitude that is the pet peeve of the insurance industry – people know things can go wrong, but they believe it will happen only to their neighbours and not to themselves.

On one hand, insurance is for unknown uncertainties and not imminent and around the corner calamities. On the other hand, the normal human mind refuses to recognise uncertainties somewhere in the future, and does not, therefore, feel a sense of fear about them. Here lies the dicotomy.

So, clearly fear is NOT the key..

Then what is? Is LIC wrong in saying ‘Emotions are our business’?

The right way for insurance to recognise emotion as business is through what is probably the finest of all emotions – empathy.

Have you ever sat back to notice that empathy is a resonating emotion? How it creates strong and vibrant echoes?? When you empathise with a person, you actually kindle empathy in that person too.

You can’t scare a person into an insurance decision; you can empathise a person into it. Afterall, an insurance decision does not often stem from ‘what will happen to me if something goes wrong?’. It stems more from ‘what would happen to my dear ones if something goes wrong?’. The cornerstone, therefore, is empathy, not fear.

Just see the difference – ‘A calamity will befall you; and you will need me’ – Instilling fear. Isolating and distancing that person. As against this, ‘If a calamity befalls you, I will be there with you’. – Empathising, embracing, encompassing. Yes, it doesn’t work if it is just in words and slogans; it always works, if it is in true emotions.

I am proud to belong to Medimanage, whose mission statement starts with empathy, where, the entire value edifice is built on the foundation of empathy. When I say I am an empathetic organisation, most people receive it to mean that we are empathetic when a claim occurs, when a health service or product is necessitated and so on. Actually, truth is far from it,far larger and farther reaching. Empathy, for us, is not just at the time of something untoward but in everything we do – including in helping people buy. We understand the buyers’ paradigms and offer solutions there – from there, and forever thereafter, the underlying diffrentiator is empathy.

Like all emotions, it has to be experienced, can not be explained.. Like my colleague Sudhir says, when you greet someone ‘Goodmorning’, it is not the words ‘good’ and ‘morning’ that matter, but the spirit with which they are said… ]]> http://www.jiyohealthy.com/2009/08/i-read-an-lic-ad-long-ago-that-said-emotions-are-not-an-interference-in-our-business-emotions-are-our-business-i-would-like-your-feedback-on-this/feed/ 0 http://www.jiyohealthy.com/2009/08/q-a-in-linkedin/#utm_source=feed&utm_medium=feed&utm_campaign=feed http://www.jiyohealthy.com/2009/08/q-a-in-linkedin/#comments Mon, 03 Aug 2009 14:01:01 +0000 sankar http://www.jiyohealthy.com/2009/08/q-a-in-linkedin/

KS Sankar

Hello readers,

Thanks for a great response.

We would like to introduce Mr. KS Sankar. Mr. KS Sankar, who heads Branding Initiative at Medimanage is one of the last words on Insurance in India.  He has a rich experience of close to 30 years in the Insurance Industry.

We invite more questions on varied aspects of Insurance, which he would be glad to reply. You can use the comment section below to ask your questions.

Here’s a question that was asked on LinkedIn, which he has answered below.

 (Q): Payment of Agency Commision/Brokerage in Insurance ?
When an investor purchases mutual funds w.e.f. 01-08-2009 he is not required to pay any commission to any intermediary/agent/financial advisor. Don’t you think that like wise when you purchase life or non-life insurance or pay renewal insurance premium as an insurance consumer, should also:-

(1) Not be required to pay any agency commission/brokerage like MF’s

(2) Not be required to pay any agency commission/brokerage, when purchased directly from office of insurance company or an employee of insurance company or internet. Should you also not get direct discount in premium or pay less premium since agent/broker is not involved ?

(3) Don’t you think IRDA should immediately issue instructions in this regard ?

Location specific: India

(A): Despite being a part of the broking fraternity – or, should I say, ‘Gandhi’ (the film) style – especially because I am a part of the broking fraternity, my answers are the same as those of Pran. (Pran & I do not differ on too many points – like IRDA should be IDRA & Insurers should develop a ‘feel’ for the risks..).
A broker’s role is not merely that of an intermediary who brings the insurer and insured together. The role is more that of a consultant, who, through interactions with the insured, makes a proper risk assessment and presents the risk in clear perspective to the insurer/s so that the underwriting and pricing (premium) are scientific and a perfect fit to the risk. The current remuneration pattern makes the brokers glorified agents, not to talk about Prahlada’s valid concerns. And the only benchmark for the brokers’ performance, in most cases, ends up being the ability to obtain the L1 quote..
The silverlining – There are corporates who use the brokers only for the domain expertise they bring to the table and source the quotes directly from Insurance companies. We, at Medimanage, are proud to have played this role with several corporates – like providing a product and process structure solution to an ultra-large multinational ITES company – a solution that was evading them for years until we were given the opportunity to work on the same. Why, for another ITES company, representing the Company we interacted with other brokers, (despite our being brokers ourselves) to ensure the product fit. The other brokers were sourcing the quotes and we had validated the quotes in terms of coverage, wordings – in short, the works.
So. 1) Yes. 2) Yes & 3) Yes. Let brokers be paid for their grey cells than contacts.
Clarification added 17 minutes ago:
And, Laxman Prasad, it is not that Medimanage grey cells are available only to Corporates. Do wait till my Online Portal is launched, thru’ which you can buy your individual health policies and other health products and services – As co-incidence would have it, Gandhiji is here too.. The target launch is on 2nd October – You will find so much of content in it to help you take an informed purchase decision that you will happily pay me a fee !!