Communication Development in

Insurance Industry

BINS 31113
Principles and Practices of Insurance

25/06/2023

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Department of Finance

Course Title : Principles and Practices of Insurance

Course Code : BINS 31113
Academic Year : 2021/2022
Semester :1
Year : 3rd Year
Lecturer : Ms. Sandali Sudasinghe
Assignment Topic : Communication Development in Insurance Industry
Student Name : R.H.R.B.B.Kamalsiri
Student Number : BM/2019/426

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 Declaration

I certify that this report does not incorporate without acknowledgment, any material previously
submitted for a degree or diploma in any university, and to the best of my knowledge and belief
it does not contain any material previously published or written by another person, except
where due reference is made in the text.

…………………………
Signature Of Student
R.H.R.B.B.Kamalsiri
BM/2019/426
25/06/2023

Acknowledgment

I would especially like to thank Ms:Sandali Sudasingha for guiding me to carry out such
assignments that develop team spirit. Without your valuable advice and knowledge, I will not
be able to carry out this assignment successfully. I hope you will have the strength to nurture
students like me for a long time to come. The success of this assignment is the result of the
hard work and dedication of our me. And I would like to thank all those who supported me in
various ways in carrying out this assignment.

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Executive Summary

The insurance industry is constantly evolving due to technological advancements and customer
needs, with new trends shaping the industry. Some new trends are Sustainable and ESG
Considerations, Usage-Based Insurance, Cyber Insurance, Insurtech, On-Demand Insurance,
Parametric Insurance etc. I have selected the communication development as my assignment.

The insurance industry is experiencing significant advancements in communication practices

due to technological innovations and customer expectations. Effective communication is
essential for customer interactions, internal operations, and organisational success. By
facilitating coordination, collaboration, efficient workflows, problem-solving, decision-
making, and support for initiatives in training and development, effective communication
assists insurance businesses in controlling and managing their staff.

To improve consumer interactions, insurance companies are utilising digital channels like
mobile apps, websites, and social media platforms. Customers may now access policy
information, make payments, submit claims, and communicate with customer care in faster,
more convenient, and personalised ways.

As insurers use client data and analytics to give specialised suggestions, focused marketing
initiatives, and specialised insurance possibilities, personalization is becoming a primary focus.
To communicate with clients, empower staff, and adapt to the industry's evolving landscape,
insurers must use effective communication practices. Insurance firms can improve their
position, increase client happiness, and spur corporate growth by adopting communication
innovations and utilising cutting-edge technologies. Communication development is essential
in the insurance industry to ensure customer satisfaction, streamline claims processes, assess
risks accurately, comply with regulations, support sales and marketing efforts, manage crises,
and promote effective collaboration.

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Table of content

1. How communication used in Insurance industry .............................................................. 1

1.1. Important of communication for insurance companies .............................................. 1
1.2. Purpose and objective of communication in insurance industry ................................. 2
2. Current trends of communication in the market .............................................................. 3
2.1. Sri Lanka insurance corporation (SLIC) ....................................................................... 3
2.2. Softlogic Life insurance ................................................................................................ 3
2.3. Ceylinco insurance ....................................................................................................... 4
3. The impact on development of communication in insurance industry................................ 5
3.1. Insurance company.................................................................................................. 5
3.2. Customers ............................................................................................................... 5
3.3. Other stakeholders .................................................................................................. 5
4. Main communication strategies of successful insurance companies use. ............................ 7
4.1. Adopt the right tone of communication. .................................................................... 7
4.2. Use relevant media depending on the target audience. ............................................... 7
4.3. Simplify to help consumers understand easily. .......................................................... 7
4.4. Have a reliable customer support system. ................................................................. 7
5. Opportunities and challengers under the development of communication ......................... 8
5.1. Opportunities: ............................................................................................................. 8
5.2. Challengers:................................................................................................................. 8
6. Recommendations........................................................................................................... 9
7. Conclusion...................................................................................................................... 9
8. References .................................................................................................................... 10

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 1. How communication used in Insurance industry

Communication is the process of transferring information, concepts, ideas, and feelings

among individuals or groups that can take place verbally or nonverbally, in writing, or via
the use of visual aids. It is a key component of human interaction and is essential for
forming connections, communicating ideas, and promoting understanding.

The interchange of information, concepts, and messages among various industry players is
referred to as communication in the insurance sector. This covers correspondence between
insurance firms, brokers or agents, clients, authorities, and other pertinent parties.

1.1. Important of communication for insurance companies

Internal Communication:
Insurance businesses to guarantee that staff are in line with the organisation's objectives,
policies, and processes, effective internal communication is crucial. A cohesive and
effective workforce is made possible by good communication practices that encourage
collaboration, knowledge exchange, and coordination amongst departments.

Policyholders and Clients:

For insurance firms to establish and keep solid relationships with policyholders and clients,
effective communication is crucial. They can use it to clarify policy specifics, respond to
inquiries, give updates, and allay worries. This increases customer pleasure, fosters trust,
and encourages client retention.

Claims Processing:
Communication is essential during the claims process, as insured parties must record
accidents and submit claims quickly and insurance companies must communicate with
claimants to gather information, determine validity, and offer updates. This ensures
customer confidence and smooth claims processing.

Marketing and Sales:

Communication is essential for insurance firms to properly sell their goods and services, as
it helps potential buyers make educated selections. Engaging communication tactics used
in advertising, social media, and direct sales initiatives help attract new clients and grow
the clientele.

Industry Relationships
Insurance businesses need effective communication channels to build connections with
stakeholders, exchange information, negotiate deals, resolve issues, and keep abreast of
market trends. It also makes networking and collaboration opportunities possible.

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 1.2. Purpose and objective of communication in insurance industry

One of the primary objectives of communication in

the insurance industry is to transmit information and
share meaning. This is the main goal of
communication, which enables people to
successfully express their needs, wants, and views.
In the insurance sector, communication is essential
for a few reasons that support the sector's efficient
operation.

The following are some important objectives of communication in the insurance sector:

● Information Sharing: Communication is essential for insurers to share important

information with policyholders, ensuring customers are well-informed and can
make informed decisions.

● Sales and Marketing: Insurance businesses must communicate effectively to

effectively market their goods and services. Communication channels such as
advertising, direct marketing, websites, and social media help insurers reach their
target audience and generate sales leads.

● Risk Assessment and Underwriting: Clear communication is essential for

accurately underwriting policies and determining fair premiums, as it helps insurers
make informed decisions about coverage and premium costs.

● Customer Service: Effective communication is vital for providing excellent

customer service in the insurance industry. Insurance companies use a range of
communication methods to provide outstanding customer service, build trust, and
sustain client pleasure.

● Internal Communication: Effective internal communication is essential for task

coordination, information sharing, goal alignment, and building a cooperative work
environment. The goal is to make it easier for many teams, departments, and people
to coordinate, collaborate, and share information.

● Claims Processing: Insurance companies try to stay in touch with policyholders to

collect the data they need, help them file claims, give them progress updates on their
claims, and respond to any issues or queries they may have. This guarantees a
simple and transparent claim process.

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 2. Current trends of communication in the market

Today with the new technology there are some developments and trends of communication
in the insurance industry. They are internal communication development trends as well as
external communication development trends. Under the external communication
development trends, I have selected three main insurance companies in Sri Lanka and
gathered some trends they use to communicate with their customers.

2.1. Sri Lanka insurance corporation (SLIC)

 Self-Service Options:
With the ability to access information, manage policy,
and do simple activities independently, self-service
options are growing in popularity and minimising the
necessity for direct communication.
SLTC has introduced a customer app, customers can
easily take care of all the information they need from
home. No need to go to the insurance company. This is
designed to be more user-friendly for customers.

 Customer care service:

Customer care service is a key component of the insurance sector, and insurance businesses
frequently employ a variety of techniques to deliver efficient client support. Insurance firms
may improve customer service, encourage client loyalty, and stand out in a crowded market
by putting these strategies into practise.
Toll free hotline is a new trend. Out of all the insurance companies in Sri Lanka, only SLIC
Insurance Company provides a service facility. In case of emergency, the customer is
provided with the facility to make phone calls to the insurance company from any network
without any payment.

2.2. Softlogic Life insurance

 Use social media.

Digital channels are being used by insurance companies to interact with clients. They use
these platforms to distribute educational materials, respond to client inquiries, and post
company activity updates. Customers can engage with the business on social media and
discuss their experiences.

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 Softlogic Life insurance company uses
their face book page to connect with their
customers. It is an effective way to give
information for their customers and
customers can easily get information about
what they want. And customers can use
their websites to get information about
what they want.

 Proactive Communication:
Businesses are putting a lot of effort into proactive communication to keep clients informed
and interested. In the case of significant life events like marriage, the birth of a child, or the
purchase of a home, proactive communications also create upsell chances by promoting
additional insurance policies or higher premium coverage.
This may entail sending regular updates via channels like email, SMS, or push alerts on
changes to policies, new products, or pertinent business news.

2.3. Ceylinco insurance

 Use chatbot:
A virtual assistant tool called an insurance
chatbot makes it easier for clients and
insurance companies to communicate. An
insurance chatbot makes sure that every query
and claim receives a real-time answer.
Chatbots provide for seamless
communication with insurers through a
variety of consumer channels, preserving
corporate operations and attracting new clients.

Ceylinco Life introduces a 24/7 virtual

assistant called ‘Ceylena’, available to answer
insurance questions and direct visitors to
relevant web pages. For reactivating policies,
claims, bonuses, cancellations, credit card
standing orders, and loans, ‘Ceylena’
provides FAQ responses. During office hours,
visitors can also speak with a live
representative in real time. On the home page
of www.ceylincolife.com, the chatbot or
Artificial Conversational Entity is located at the bottom right corner.

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 3. The impact on development of communication in insurance
industry

3.1. Insurance company

Insurance companies can analyse a tremendous quantity of data about policyholders, risks,
and market trends using big data and advanced analytics. With the use of data, insurers can
better analyse risks, tailor policies to specific needs, and set premiums accordingly. Better
decision-making is enabled through effective communication inside the organisation,
which allows for the flow of data and insights.

The claims process has been expedited using digital forms, online claim submission, and
electronic document management systems, which enable insured people to submit claims
electronically, attach supporting documentation, and get real-time updates. This has
streamlined the claims settlement process, decreased manual error, and reduced paperwork.

3.2. Customers
The way customers interact with businesses has been revolutionised by communication
technology, who have made it quicker and more convenient. Customers can transact at any
time and from any location, and they will instantly receive notifications and updates, which
will enhance their purchasing experience.

Communication technologies have enabled customers to access detailed product

information, compare options, and make informed purchasing decisions, leading to higher
satisfaction with their purchases.

3.3. Other stakeholders

Communication development has improved efficiency, transparency, and access to
information, benefiting employees, investors, Insurance Agents and Brokers, Claims
Adjusters and Investigators, Underwriters and Actuaries, Reinsurers, and Regulators.

Employees:
The way that workers interact, communicate, and work has been revolutionised by
communication development. It makes remote work, flexible work schedules, and virtual
meetings possible, which boosts output, promotes work-life balance, and boosts job
satisfaction. Better opportunities for training, knowledge exchange, and professional
development are also made possible through communication tools.

Investors:
The exchange of information between insurance businesses and their shareholders and
investors has improved thanks to advancements in communication. Companies can now
convey financial results, strategic objectives, and corporate advancements using digital

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channels such as investor portals, webcasts, and email updates. As a result, shareholders
and investors may make better choices and keep up with the company's progress.

Reinsurers:
The connection between insurers and reinsurers has improved as a result of communication
advancements, which have made it possible for them to communicate more effectively,
share risk information, and negotiate reinsurance contracts more successfully. As a result,
risk management, insurance underwriting, and risk assessment have all improved.

Insurance Agents and Brokers:

Modern communication methods like email, video conferencing, and online chat allow
agents and brokers to interact with clients remotely, offer assistance in real time, and
respond to questions more quickly. This facilitates quicker policy issuing and claims
processing, enhances customer service, and coordination with insurers.

Claims Adjusters and Investigators:

Real-time communication solutions, such mobile apps and web portals, provide for timely
contact between policyholders, claims staff, and other important parties, facilitating faster
investigation and settlement and lowering the time and effort needed to process claims.

Underwriters and Actuaries:

The information exchange between underwriters, actuaries, and other parties involved in
risk assessment and pricing has improved due to communication development. This has
enabled underwriters and actuaries to obtain the data they need to analyse risks, examine
trends, and determine the right premiums. This has improved risk assessments, pricing
models, and decision-making.

Regulators:
Regulators and compliance organisations can now receive and review information about
insurance, monitor compliance, and communicate updates and requirements more
effectively thanks to digital communication platforms. This has improved regulatory
oversight, streamlined reporting procedures, and encouraged better adherence to
regulations.

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 4. Main communication strategies of successful insurance companies
use.

Effective communication is essential for all players in the insurance industry to build strong
relationships and ensure customers understand their products and processes. To strengthen
their relationship with their customers, successful insurance firms employ a few
communication strategies, including in-person meetings, text messages, phone calls, letters,
and social media engagements.

4.1. Adopt the right tone of communication.

Given that each consumer has unique tastes and needs that could change over time, it can
be difficult for businesses to establish the appropriate communication tone. When choosing
an insurance provider, those who are looking should take these things into account. When
creating insurance products, insurers must consider the needs of both young and older
consumers. Insurance firms might not experience the "wow effect" when presenting their
products to potential customers. However, good communication includes keeping the
client's needs in mind.

4.2. Use relevant media depending on the target audience.

Insurance companies used to communicate with their clients over the phone and on paper,
but today email and the internet make this process quicker and simpler. Social media is a
potent tool that brands can use to advertise their goods and services.
❖ Older generations advertise their goods through a range of mediums, including
pamphlets, billboards, print media, and commercials.
❖ Social media is the most effective tool for pushing a brand message to younger
generations since it gives them the ability to target a large audience while also focusing
on certain niches.

4.3. Simplify to help consumers understand easily.

The most crucial concept is to minimise jargon when talking with your target market and
to use straightforward language while adhering to the legal framework. Simplifying things
is, above all, a marketing tactic that facilitates effective communication. Any
communication plan in the insurance industry needs to consider a few key client traits and
products.

4.4. Have a reliable customer support system.

Insurance companies have customer service units that answer client questions, but clarity
and transparency of the support system are essential. A customer support system must
include a feedback mechanism to address customer issues promptly.

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 5. Opportunities and challengers under the development of
communication

5.1. Opportunities:

 Insurance businesses can digitise operations thanks to developments in communication

technology, which boosts productivity and lowers costs. Customers can contact insurers
and get insurance information via digital platforms and mobile apps.

 Data analytics and machine learning can be used by insurers to learn more about
customer behaviour, risk assessment, fraud detection, and underwriting, enabling them
to make informed decisions and enhance corporate strategy.

 Remote collaboration between insurance professionals is beneficial for multinational

companies and remote teams, as it allows for real-time communication and
collaboration across different locations.

5.2. Challengers:

 Integrating new systems with existing infrastructure can be complex and require careful
planning to ensure smooth operations. Legacy systems may not be compatible with
modern technologies.

 To satisfy client needs, insurance companies must strike a balance between automated
communication and the requirement for individualised care.

 Insurers should provide support and education to help customers adapt to digital
platforms, while also offering alternative communication methods for those who prefer
traditional channels.

 Insurance companies must make security investments to safeguard customer data and
adhere to data protection laws to lower the risk of data breaches and cyberattacks.

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 6. Recommendations
To increase communication at all levels, offer training programmes to help people develop
successful communication skills like active listening, empathy, clear writing, and vocal
communication.

Establish policies and norms for clear communication, such as expectations for verbal and
written communication, how quickly to respond to consumer questions, and email etiquette
rules, to ensure consistent and expert communication practises.

Provide current and pertinent information, maintain policies, and communicate with
customers through a variety of channels, including live chat and social media messaging,
through optimising digital channels.

To find areas for strength and improvement, conduct communication audits that include
reviewing internal and external communication materials, evaluating customer satisfaction
data, and soliciting employee and customer input.

7. Conclusion
As a result of technological breakthroughs and changing customer expectations, the
insurance sector is seeing substantial improvements in communication practises. For
internal processes, customer contacts, and organisational performance, effective
communication is crucial. Insurers are using digital channels like mobile applications,
websites, and social media platforms to enhance consumer interactions. As insurers employ
client data and analytics to provide specialist ideas, targeted marketing activities, and
specialised insurance options, personalization is becoming a top priority. Insurers must
employ efficient communication techniques to interact with customers, empower
employees, and adjust to the changing environment of the sector. To assure client
happiness, speed claims procedures, accurately analyse risks, adhere to regulations, support
sales and marketing initiatives, manage crises, and foster successful teamwork,
communication development is crucial in the insure.

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 8. References
https://www.totalsystems.co.uk/blog/effective-communication-in-the-insurance-market/

https://www.axiapr.com/blog/4-communication-strategies-successful-insurance-
companies-use-to-connect-with-their-target-audience

https://www.srilankainsurance.com/en/online-services

https://www.srilankainsurance.net/LandingPage.aspx

https://www.ft.lk/Financial-Services/Ceylinco-Life-introduces-Ceylena-a-friendly-
chatbot-accessible-24-7/42-693137

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