The Hindu Business Line : MetLife unit to track `delinquent' policies

MetLife's Chief Administrative Officer, Mr Ashwin, said, the conservation unit, Metcare, ensured customer follow-ups were made to minimise defaults on payment of premiums.

In addition, he said, MetLife had also begun working with some of its agents or field advisors to minimise attrition rates.

Life insurance companies have traditionally suffered high delinquencies due to high employee attrition rates. This was true in some of the corporates with whom MetLife has tied up for payroll savings schemes. These payroll schemes, identical to the salary savings schemes of the Life Insurance Corporation of India, allowed deduction of policy premiums directly from customers' salaries.

MetLife's conservation centre, he said, would initially focus on the metros and non-metros and carry out periodic post-issue surveys among the customers. This would ensure retention of the customers, he added.

However, the life insurers' problems started when customers switch jobs or locations. Metcare was intended to ensure the conservation of the customer, he added.

Besides, he said, MetLife would also work out methods for direct premium deductions from customer's bank accounts, to further reduce the delinquency rates. But for this purpose, the new Real Time Gross Settlement Scheme would have to become fully operational among all the banks, allowing for instant clearing, he added.