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rvice quality driver focuses on aspects of the service delivery process which includes time taken to settle claims, flexibility of insurer to change the coverage depending on customer's circumstances, and ease of access to agents/employees. The IBM and University of St. Gallen's insurance survey (see Figure 13) revealed that more than 80% of the respondents gave fast and uncomplicated claims processing the highest importance. Insurers must also streamline their processes and organizational structure to reduce the time required to serve each customer. Additionally, an insurer's marketing department may interact with customers and collect feedback about the services and gather information about customers' perceptions of the policy and how it can be modified. According to the IBM and University of St. Gallen's insurance survey[24] (see figure 13), approximately 70% of the respondents gave high importance to the competency level and know-how of employees.

We would assume the same to hold true in Asia as customers prefer financial advisor/ agent as the primary touch point which means that insurers and brokers need to ensure that their employees are customer centric and have the product knowledge to go with it.

Social value
This driver focuses on the demographic, socio-economic, and cultural background of the insurer's agents and other distribution channels such as financial advisors. Customers are more at ease speaking to an agent/employee from a similar background and with similar demographics such as age, sex, and level of education.

By engaging a diverse sales team to meet the needs of the diverse customer base insurers can identify customer's needs more precisely. The above strategy would facilitate building a long term relationship with the customer with great potential of cross and up selling opportunities.

The Two Sides of Customer Value
Customers are segmented into different categories based on two parameters of customer value:

* Value of customers to life insurance company

* Value to customers by life insurance company

Using the above parameters each customer can be bucketed in one of the four categories as shown in Figure 14.

Star Customers - These customers require high value in terms of products and services from the insurer and in return they provide high value to the company in terms of profitability, loyalty and less retention costs. These customers are the most profitable for the insurer as it is a win-win situation for both the parties.

Insurers should continue to provide them with personalized and quality service as well as product offerings, promotions, and loyalty programs as a way of showing their appreciation for the customer's continued loyalty.

Lost Causes - These customers do not generate high value from the products and services offered and do not provide high value to the insurer. Insurers can maximize profitability from lost customers by economies of scale and reducing costs and promoting efficiencies.

If the insurer is not able to move these customers to high profitability levels then the company should consider reducing its investments on these customers or may even consider dropping them. These customers could destroy value for the insurer.

Vulnerable Customers - These customers generate high value to the firm but they d