June 2020

We all want to lead a comfortable life where money is not a difficulty. It is a fact that if one wishes to have a happy and healthy future, one needs to have financial security. To achieve a secure future, one needs to do serious financial planning – the earlier one starts with their financial planning in life, the better it is. Financial planning will not just help sail smoothly through the present but also provide a safety net for when you need it the most – including big events in life such as marriage, child’s education and your golden years, retirement. To do all of that and more, one needs to have life insurance.

So what is life insurance?

Life insurance is nothing but a legal understanding between an insurance company and the insured. When one avails a life insurance policy, it allows one to save money and provides long-term returns. If the policyholder dies during the policy term, then the sum assured from the insurance company goes to the nominee/s. Life insurance plans, like term insurance,  are like an assurance to your loved ones that their needs will be met even when you are gone. So it is essential to choose the right life insurance policy and the right insurer.

An important aspect of choosing the right insurer for your life insurance policy is the claim settlement ratio, also known as CSR.

What is the Claim Settlement Ratio?

Claim settlement ratio (CSR) provides a ratio of the number of claims that are cleared by the insurer in a period of time. CSR acts as an indicator of the amount of how many insurance claims have been settled in a financial year. It is calculated on the basis of the number of claims settled vs. the number of claims received.

It can be explained in an easy equation:

Claim settlement ratio = 100 x (No. of claims settled/No. of claims received)

To give an example,

Let’s say an insurance company receives 500 claims during a year and the insurer honours 475 claims, the claim settlement ratio for the company is at 95%. The balance 5% is known as rejected claims.

Why is Claim Settlement Ratio Important?

Claim settlement ratio is important as it offers an insight into the reliability of the insurer. The point of buying a life insurance policy is that you need financial security and you need to be assured that even when you are not around, your family will be taken care of and the claims will be honoured. There are some cases where the beneficiaries are heavily dependent on the financial assistance from the insurance claim. And if such a claim is dishonoured or unsettled, it can add on a lot of stress and burdens of the beneficiaries. Therefore, from a buyer’s perspective, looking into the insurance company’s claim settlement ratio could mean everything for their family’s future, and their financial goals and security.

One way that you can check the performance details of insurance companies in India is by reading the annual report of the claim settlement ratio published by the IRDA (Insurance Regulatory and Development Authority), published each year.

It can be difficult to estimate the individual claim settlement ratio for each insurance policy, since a CSR is calculated for all products sold by the insurance company. So check for general higher claim settlement ratios, since it indicates that the company is capable of honouring the claims made by the customers.

Before finalising on any life insurance policy for yourself and your family, it is highly recommended that you check the claim settlement ratio for insurance policies which have the lowest premiums and the highest return on investments.

Companies and governments can issue investment bonds, which can be purchased from banks, brokers, or the issuer directly. Higher rates than savings accounts, but at the expense of greater risk to the principal invested. Visit https://www.moneyexpert.com/life-insurance/investment-bonds/ to know about investment bonds.

Leadership in the business industry has undergone profound changes over the decades, reflecting shifts in society, technology, and organizational culture. Understanding the evolution of leadership styles is essential for current and aspiring leaders to navigate today’s dynamic environment effectively. Let’s explore the key phases of this transformation and what it means for modern leadership.

Investing in a Lifepo4 battery 100ah ensures superior efficiency for energy storage needs. These batteries are lightweight, environmentally friendly, and offer faster charging. A Lifepo4 battery 100ah is an excellent choice for users looking to maximize power delivery without compromising durability or sustainability.

The Traditional Command-and-Control Model

Historically, leadership in businesses operated on a command-and-control basis. Leaders were often seen as authoritative figures who made decisions unilaterally, expecting employees to follow directives without question. This top-down approach was prevalent during the industrial age when factories dominated the economy, and efficiency was paramount.

In this model, hierarchy played a crucial role. Leaders were typically situated at the top of the organizational chart, and their primary focus was on productivity and adherence to established processes. While this style could drive results in the short term, it often stifled creativity and employee engagement. Workers felt disconnected from the decision-making process, leading to low morale and high turnover rates.

The Rise of Transformational Leadership

As the business landscape evolved, particularly in the late 20th century, a shift towards more inclusive and collaborative leadership styles emerged. Transformational leadership became popular as leaders began to recognize the value of inspiring and motivating their teams. This approach emphasized vision, passion, and personal connections.

Transformational leaders focus on empowering their employees, fostering a culture of innovation, and encouraging open communication. They create environments where team members feel valued and are motivated to contribute their ideas. This shift not only enhances employee satisfaction but also drives organizational performance, as engaged employees are more likely to go above and beyond their basic responsibilities.

The Impact of Globalization and Diversity

The advent of globalization brought significant changes to leadership dynamics. As businesses expanded across borders, leaders had to navigate diverse cultural landscapes and varied workforce expectations. Understanding and respecting cultural differences became essential for effective leadership.

Leaders began to adopt a more adaptive style, recognizing that one-size-fits-all approaches were insufficient in a global context. This adaptability included not only cultural sensitivity but also the ability to embrace diverse perspectives. Organizations that prioritize diversity and inclusion often benefit from enhanced creativity, improved problem-solving, and increased competitiveness in the global market.

The Digital Transformation Era

The rise of technology has further transformed leadership in the business industry. With the advent of the digital age, leaders now face the challenge of managing remote teams, utilizing advanced analytics, and adapting to rapidly changing technologies. This necessitates a more flexible and tech-savvy approach.

Leaders must be proficient in digital tools and platforms that facilitate communication and collaboration among dispersed teams. The ability to lead in a digital environment also requires an emphasis on transparency and trust. Employees need to feel connected to their leaders and their organizational goals, even when working remotely.

Emphasizing Emotional Intelligence

As leadership styles have evolved, the importance of emotional intelligence has gained prominence. Leaders today are expected to possess not only technical skills but also the ability to understand and manage their emotions and those of their team members. Emotional intelligence fosters empathy, enabling leaders to connect with their employees on a deeper level.

This emphasis on emotional intelligence translates into more effective communication, conflict resolution, and relationship-building within teams. Leaders who demonstrate empathy and understanding can create a supportive work environment that encourages collaboration and innovation.

The Shift Towards Servant Leadership

In recent years, the concept of servant leadership has gained traction. This philosophy prioritizes the needs of employees and the community above the leader’s own interests. Servant leaders focus on empowering their teams, fostering a sense of belonging, and contributing to the greater good.

By adopting a servant leadership mindset, leaders can build trust and loyalty within their organizations. This approach encourages a collaborative culture where employees feel empowered to share their ideas and take ownership of their work. As a result, organizations can achieve higher levels of engagement and productivity.

The Importance of Continuous Learning

In an era characterized by rapid change, the best leaders recognize the need for continuous learning and adaptability. They understand that leadership is not a static role but a dynamic process that requires ongoing development. Embracing lifelong learning enables leaders to stay informed about industry trends, emerging technologies, and new management practices.

Organizations that support continuous learning not only enhance their leaders’ capabilities but also create a culture of growth that encourages employees to pursue their own development. This commitment to learning fosters innovation and keeps organizations competitive in an ever-evolving landscape.

Embracing a Purpose-Driven Approach

Today’s leaders are increasingly expected to align their organizations with a higher purpose. Stakeholders, including customers, employees, and investors, seek companies that contribute positively to society and prioritize sustainability. Leaders who embrace a purpose-driven approach can inspire their teams to work toward common goals that extend beyond profit.

By articulating a clear vision and purpose, leaders can motivate employees to engage deeply with their work, leading to enhanced job satisfaction and retention. Purpose-driven organizations often attract customers who resonate with their values, creating a loyal customer base.

Conclusion

The evolution of leadership in the business industry reflects broader societal changes and the challenges of a complex global landscape. As we move forward, leaders must remain adaptable, empathetic, and committed to fostering inclusive environments. By understanding the historical context and embracing the latest trends in leadership, today’s leaders can navigate the complexities of modern business and drive their organizations toward lasting success.