the causes the effects the therapists the cure ARRS
You have heard of SARS.  But, what is ARRS?
Here is a red alert !!!   <ul><li>ARRS is a widespread phenomenon.  </li></ul><ul><li>ARRS is –  </li></ul><ul><li>‘ Acute...
1)  Most Endowment, Money Back policies and other policies are of sum assured Rs. 50,000; Rs. 1 lakh 2)  Most Jeevan Shree...
<ul><li>Those who  only  depend on ready reckoners  </li></ul><ul><li>and who  do not  carry out need based selling  </li>...
<ul><li>Using ready reckoners to quote premiums for minimum sum a </li></ul><ul><li>assured from ready reckoners. </li></u...
<ul><li>Policy holders may not get sufficient life insurance.  </li></ul><ul><li>In the event of unfortunate death of the ...
<ul><li>The agent may lose his customer who shall prefer an agent  </li></ul><ul><li>who is knowledgeable & can propose hi...
<ul><li>Peers i.e senior agents: seniority not decided on  </li></ul><ul><li>no. of years as agent but based on performanc...
<ul><li>By imparting necessary training: on the job  </li></ul><ul><li>as well as in classrooms </li></ul><ul><li>Allocati...
<ul><li>By allocating sufficient attention to pre-sales activities like  </li></ul><ul><li>prospecting to prepare sales pr...
<ul><li>Let us try to overcome this syndrome </li></ul><ul><li>Thus, it will ensure : </li></ul><ul><li>*  adequate insura...
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Arrs

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Arrs

  1. 1. the causes the effects the therapists the cure ARRS
  2. 2. You have heard of SARS. But, what is ARRS?
  3. 3. Here is a red alert !!! <ul><li>ARRS is a widespread phenomenon. </li></ul><ul><li>ARRS is – </li></ul><ul><li>‘ Acute Ready Reckoner Syndrome’. </li></ul>
  4. 4. 1) Most Endowment, Money Back policies and other policies are of sum assured Rs. 50,000; Rs. 1 lakh 2) Most Jeevan Shree policies are of sum assured Rs. 5 lakhs 3) Whereas our Average FYPI is approx. Rs. 4000 per policy for non-single premium policies that of the other companies is Rs. 9200 per policy. Symptoms of ARRS
  5. 5. <ul><li>Those who only depend on ready reckoners </li></ul><ul><li>and who do not carry out need based selling </li></ul><ul><li>Those who do not assess financial status of the </li></ul><ul><li>prospect. </li></ul><ul><li>Those who wake up at the last minute to complete </li></ul><ul><li>their MBG. </li></ul><ul><li>Those who lack confidence due to lack of knowledge. </li></ul>Who is susceptible to ARRS?
  6. 6. <ul><li>Using ready reckoners to quote premiums for minimum sum a </li></ul><ul><li>assured from ready reckoners. </li></ul><ul><li>Not knowing rules regarding calculation of premium and thus </li></ul><ul><li>depending totally on ready reckoners. </li></ul><ul><li>Lack of knowledge regarding need based selling </li></ul><ul><li>Lack of confidence </li></ul><ul><li>Lack of Knowledge of financial capability of prospects </li></ul><ul><li>Waking up at the last hour & aiming to somehow complete MBG, </li></ul><ul><li>membership criteria, competition criteria. </li></ul>Causes of ARRS
  7. 7. <ul><li>Policy holders may not get sufficient life insurance. </li></ul><ul><li>In the event of unfortunate death of the policyholder, </li></ul><ul><li>his family will not get adequate financial support and </li></ul><ul><li>the salesman would have failed in his duty. </li></ul><ul><li>A sale may be lost or postponed as a prospect may </li></ul><ul><li>not be interested in a policy that does not fulfil his needs. </li></ul>Effects of ARRS
  8. 8. <ul><li>The agent may lose his customer who shall prefer an agent </li></ul><ul><li>who is knowledgeable & can propose him a need based solution. </li></ul><ul><li>The Corporation may lose a customer who may not take a </li></ul><ul><li>policy or respond favourably to a proposal for life insurance </li></ul><ul><li>from others commensurate with his financial status. </li></ul><ul><li>The customer may be deprived in going for a policy of adequate </li></ul><ul><li>value, when he is in excellent health. </li></ul>Effects of ARRS
  9. 9. <ul><li>Peers i.e senior agents: seniority not decided on </li></ul><ul><li>no. of years as agent but based on performance. </li></ul><ul><li>Development Officers </li></ul><ul><li>ABM(Sales), Sr./Branch Managers </li></ul><ul><li>4) Underwriters in Branch </li></ul>Who can cure ARRS ?
  10. 10. <ul><li>By imparting necessary training: on the job </li></ul><ul><li>as well as in classrooms </li></ul><ul><li>Allocating some time for this issue in Branch level </li></ul><ul><li>agents meetings : preferably a talk by successful </li></ul><ul><li>agents, Development Officers and Marketing Officials </li></ul><ul><li>By the power of demonstration : Development Officers </li></ul><ul><li>and Marketing Officials should demonstrate need-based </li></ul><ul><li>sale in the presence of an agent susceptible to ARRS. </li></ul>How can ARRS be cured?
  11. 11. <ul><li>By allocating sufficient attention to pre-sales activities like </li></ul><ul><li>prospecting to prepare sales presentations and quotations </li></ul><ul><li>depending upon the prospect’s income, family profile etc. </li></ul><ul><li>By working regularly to avoid last-minute sales pressures. </li></ul><ul><li>6) By scrutiny of proposals brought in by the ARRS-affected </li></ul><ul><li>and explaining to them, so that they improve next time. </li></ul><ul><li>By reference to ready reckoners for guidance only, but </li></ul><ul><li>deciding sum assured on the basis of the prospect’s </li></ul><ul><li>premium paying capacity. </li></ul>How can ARRS be cured?
  12. 12. <ul><li>Let us try to overcome this syndrome </li></ul><ul><li>Thus, it will ensure : </li></ul><ul><li>* adequate insurance for customer </li></ul><ul><li>* Agent and organisation will enjoy </li></ul><ul><li>continued loyalty of customer </li></ul>Thank you

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