Y Ltd. is a bank, functioning in India. It is planning to diversify into the insurance business. Lately, the Government of India has allowed the private sector to gain entry in the insurance business. Previously, it was the prerogative of LIC and GIC to do insurance business. But now with a liberalisation of the economy and to make the field competitive other companies have been given licences to start the insurance business under the regulation of 'Insurance Regulatory and Development Authority'. Y Ltd. plans to recruit high-quality employees and agents and exercise effective direction to capture a substantial part of life and non-life insurance business.
Identify how the company can supervise its employees and agents effectively? What benefits will the company derive from effective supervision?
The company can supervise its employees and agents by taking the following steps:
(i) Training programmes should be organised.
(ii) Make them understand the various policies so that they can convince their clients.
(iii) Establishing targets for them and also monetary incentives.
(iv) Regularised system for submission of periodical reports of their performance.
(v) Constant customer feedback should be taken and acted upon.
The benefits of effective supervision will be:
(i) Trained personnel will give better performance. They can improve upon their skills.
(ii) Knowledge of the products of the insurance company will ensure better satisfaction for the clients.
(iii) They will compete to give better performance and earn higher incentives.
(iv) It will help in identifying the area where workers and agents need specialised training programmes.
(v) It will help to identify the actual problem areas and keep agents under check.