ABSTRACT: In today’s intensely competitive, rapidly changing and highly complex business environment characterized by diminishing customer loyalty, the need to be market–focused and customer–centric is more critical than any other time in the past with increased globalization and presence of a large number of players in the market. CRM, as is well known, stands for customer relationship management. It is perceived by Common man as basically an I.T. solution to ensure a better customer service. But obviously it goes much beyond that. It is a business approach that tries to integrate the Employees, the process and technology to improve an organizations relationship with its Customers – both the existing and prospective; as well as internal and external. The current scenario in the insurance industry is a complex and competitive environment tinged with little stability.