Six Sigma in the insurance sector
Posted On September 8, 2010 at 1:54 pm in Customer Satisfaction
Six Sigma concepts and philosophies were originally designed to improve the overall quality of its activities in manufacturing. Companies like Motorola and General Electric were among the first to be successfully introduced Six Sigma concepts in their activities. However, it is developing new tools and techniques, Six Sigma now appropriate and in the services sector. The usefulness of Six Sigma in the services sector is slightly out of reachgrowing number of financial and insurance companies that opt for Six Sigma.
Consumers are increasingly aware of the quality of services offered to them, making it necessary for the service industry, expectations and implements quality improvement such as Six Sigma techniques for meeting clients. This is particularly true for the insurance industry, when the relationship between the insurer and the insured is still largely subject to constant staffcontact. Offering the implementation of six sigma programs, insurance companies have the ability, high quality services at affordable prices for Their Customers.
Identifies key business processes
Unlike other quality management techniques such as Total Quality Management (TQM) Whose effectiveness is difficult to measure, Six Sigma based improvement programs use statistical tools That can measure the effect of changes in a very short time made. Six Sigma focuses on process, Enabling organizations to identify the orientation key business processes that are necessary to improve customer satisfaction. This helps managers in understanding the precise requirements of their customers and the change of business processes with customer needs and expectations.
Follows a disciplined approach
Six Sigma has helped insurance companies in improving quality and reducing the cost of services. It is to allow insurance companies to helpfollow a disciplined approach that has helped to prevent errors, minimizing hand-offs and eliminating rework and workarounds. He also helped increase the speed of business processes used in the insurance sector.
Helps you make informed decisions
Six Sigma has enabled managers to make informed decisions on the basis of statistical data. With the use of Six Sigma tools and techniques, managers no longer have their perceptions or gut feelings to make use ofLevel of benefits to policyholders, promised customers and prospects.
Assists in customer loyalty
Six Sigma places particular emphasis on understanding the needs of customers before any changes to business processes. This helps insurance companies in customer loyalty among their policyholders, the organization is essential for long-term success of any business. Insurance companies can also hope to increase their market share, customer satisfactionmore likely to recommend a company to provide consultancy services for quality, while a friend, relative or business partner.
Helps to reduce costs
Six Sigma tools and techniques designed to streamline business processes in a way that helps reduce costs. This helps insurance companies to improve their savings and avoid drastic cost cutting measures like downsizing can have a negative effect on employee morale. It may also be doubts in the minds of policyholdersand future downsizing usually attracts a lot of negative publicity.
Six Sigma has helped to provide the insurance industry in bridging the gap between planned strategies and concrete actions through analytical and process-performance measurement tools. These tools are used for the comparison of planned objectives and targets with Actual results and the search for the reasons, why not have a specific activity desired results. Once the exact problem wasidentified, managers can make the necessary changes that improve the overall quality of services provided to policyholders and prospects.
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