Professional Documents
Culture Documents
Kiran Gaikwad Isurance Project
Kiran Gaikwad Isurance Project
Project on
University of Mumbai
Kets V.G.VAZE COLLEGE OF ARTS
COMMERCE AND SCIENCE, MITHAGAR
ROAD
MULUND - EAST
Mumbai- 81
DECLARATION
the
project
on
Marketing
of
Date:
Sa
ily Pillewar
Roll No-B025
ACKNOWLEDGEMENT
Last but not the least, I would like to thank almighty God, my
parents, and my friends who helped me gather these data and have
sat with me for hours discussing about the project.
Index
Pg no
No
INSURANCE
1.1
1.2
History of Insurance
1.3
Concept of Insurance
1.4
Overview of Insurance
1.5
Principles of Insurance
1-22
Marketing of
Insurance
2.1
Marketing of
Insurance
2.2
Insurance Marketing
strategies
2.3
2.4
marketing
Indian Insurance
Marketing
5
2.5
Problems face by
2339
Objectives
6
Limitations
Scope
The project begins with a brief mention of what
MARKETING is and its need and importance in
Insurance Companies. It further goes on to show
the
challenges
faced
by
the
Insurance
Companies
Methodology of study
Data for the project is obtained from secondary
source
Secondary source-
Period
February to 3rd
March 2011.
Executive summary
8
10
Chapter 1
INSURANCE
11
1.1
Definition
A promise of compensation for specific potential future losses in exchange for a
periodic payment. Insurance is designed to protect the financial well-being of
an individual, company or other entity in the case of unexpected loss. Some
forms of insurance are required by law, while others are optional. Agreeing to
the terms of an insurance policy creates a contract between the insured and the
insurer. In exchange for payments from the insured (called premiums), the
insurer agrees to pay the policy holder a sum of money upon the occurrence of a
specific event. In most cases, the policy holder pays part of the loss (called the
deductible), and the insurer pays the rest. Examples include car insurance,
health insurance, disability insurance, life insurance, and business insurance.
This instrument is used for managing the possible risks of the future.
Insurance is bought in order to hedge the possible risks of the future which may
or may not take place. This is a mode of financially insuring that if such a
incident happens then the loss does not affect the present well-being of the
person or the property insured. Thus, through insurance, a person buys security
and protection.
A simple example will make the meaning of insurance easy to understand. A
biker is always subjected to the risk of head injury. But it is not certain that the
accident causing him the head injury would definitely occur. Still, people riding
bikes cover their heads with helmets. This helmet in such cases acts as
insurance by protecting him/her from any possible danger. The price paid was
the possible inconvenience or act of wearing the helmet; this i.e. equivalent to
the insurance premiums paid.
Though loss of life or injuries incurred cannot be measured in financial terms,
insurance attempts to quantify such losses financially. Insurance can be defined
as the process of reimbursing or protecting a person from contingent risk of
losses through financial means, in return for relatively small, regular payments
to the insuring body or insurance company.
Insurance can range from life to medical to general (residential, commercial
property, natural incidents, burglary, etc)
13
Life Insurance:
It insures the life of the person buying the Life Insurance Certificate. Once a
Life Insurance is sold by a company then the company remains legally entitled
to make payment to the beneficiary after the death of the policy holder.
Medical Insurance :
This is also known as mediclaim. Here, the policy holder is entitled to receive
the amount spent for his health purposes from the insurance company.
General Insurance:
This insurance type involves insuring the risks associated with the general life
such as automobiles, business related, natural incidents, commercial and
residential properties, etc.
14
1.2
History of insurance
Refers to the development of a modern laws and market in insurance against
risks. In some sense we can say that insurance appears simultaneously with the
appearance of human society. We know of two types of economies in human
societies: money economies (with markets, money, financial instruments and so
on) and non-money or natural economies (without money, markets, financial
instruments and so on). The second type has been used much longer than the
first. In such an economy and community, we can see insurance in the form of
people helping each other. For example, if a house burns down, the members of
the community help build a new one. Should the same thing happen to one's
neighbour, the other neighbors must help. Otherwise, neighbours will not
receive help in the future.
Turning to insurance in the modern sense (i.e., insurance in a modern money
economy, in which insurance is part of the financial sphere), early methods of
transferring
or
distributing
risk
were
practiced
by Chinese and Babylonian traders as long ago as the 3rd and 2nd millennia
BC, respectively. Chinese merchants travelling treacherous river rapids would
redistribute their wares across many vessels to limit the loss due to any single
vessel's capsizing. The Babylonians developed a system which was recorded in
the
famous Code
of
Hammurabi,
c.
1750
BC,
and
practiced
by
Exchange for the lender's guarantee to cancel the loan should the shipment be
stolen.
Achaemenian monarchs were the first to insure their people and made it official
by registering the insuring process in governmental notary offices. The
insurance tradition was performed each year in Nowruz (beginning of the
Iranian New Year); the heads of different ethnic groups as well as others willing
to take part, presented gifts to the monarch. The most important gift was
presented during a special ceremony. When a gift was worth more than 10,000
Derrik (Achaemenian gold coin) the issue was registered in a special office.
This was advantageous to those who presented such special gifts. For others,
the presents were fairly assessed by the confidants of the court. Then the
assessment was registered in special offices.
The purpose of registering was that whenever the person who presented the gift
registered by the court was in trouble, the monarch and the court would help
him. Jahez, a historian and writer, writes in one of his books on ancient Iran:
"whenever the owner of the present is in trouble or wants to construct a
building, set up a feast, have his children married, etc. the one in charge of this
in the court would check the registration. If the registered amount exceeded
10,000 Derrik, he or she would receive an amount of twice as much."
A thousand years later, the inhabitants of Rhodes created the 'general average',
which allowed groups of merchants to pay to insure their goods being shipped
together. The collected premiums would be used to reimburse any merchant
whose goods were jettisoned during transport, whether to storm or sink age.
The ancient Athenian "maritime loan" advanced money for voyages with
repayment being cancelled if the ship was lost. In the 4th century BC, rates for
16
thereby a reliable source of the latest shipping news. It became the meeting
place for parties wishing to insure cargoes and ships, and those willing to
underwrite such ventures. Today, Lloyd's of London remains the leading market
(note that it is not an insurance company) for
Marine and other specialist types of insurance, but it works rather differently
than the more familiar kinds of insurance.
Insurance as we know it today can be traced to the Great Fire of London, which
in 1666 devoured 13,200 houses. In the aftermath of this disaster, Nicholas
Barbon opened an office to insure buildings. In 1680, he established England's
first fire insurance company, "The Fire Office," to insure brick and frame
homes.
The concept of health insurance was proposed in 1694 by Hugh the Elder
Chamberlen from the Peter Chamberlen family. In the late 19th century,
"accident insurance" began to be available, which operated much like
modern disability insurance. This payment model continued until the start of the
20th century in some jurisdictions (like California), where all laws regulating
health insurance actually referred to disability insurance.
The first insurance company in the United States underwrote fire insurance and
was formed in Charles Town (modern-day Charleston), South Carolina in 1732,
but it provided only fire insurance.
Industrial revolution
Benjamin Franklin helped to popularize and make standard the practice of
insurance, particularly against fire in the form of perpetual insurance. In 1752,
he founded the Philadelphia Contribution ship for the Insurance of Houses from
Loss by Fire. Franklin's company was the first to make contributions toward
18
fire prevention. Not only did his company warn against certain fire hazards, it
refused to insure certain buildings where the risk of fire was too great, such as
all wooden houses.
The sale of life insurance in the U.S. began in the late 1760s.
The Presbyterian Synods
York founded
the
mortgages that were underwritten by the federal government during this time
included an insurance clause as a means of protecting the banks and lending
institutions involved against avoidable losses. During the 1940s there was also
the GI life insurance policy program that was designed to ease the burden of
military losses on the civilian population and survivors.
During the 1970s and 1980s there was a growth in support for the requirement
for drivers to have insurance as a means of proving financial responsibility
since it was recognized that the automobile, in the case of an accident, could
cause significant collateral damage. It soon followed that car insurance became
a mandatory requirement for all drivers.
Health insurance in the United States
Accident insurance was first offered in the United States by the Franklin Health
Assurance Company of Massachusetts. This firm, founded in 1850, offered
insurance against injuries arising from railroad and steamboat accidents. Sixty
organizations were offering accident insurance in the US by 1866, but the
industry consolidated rapidly soon thereafter. In 1887, the African American
workers in Muchakinock, Iowa, a company town, organized a mutual protection
society. Members paid fifty cents a month or $1 per family for health insurance
and burial expenses. In the 1890s, various health plans became more common.
Disability insurance group disability policy was issued in 1911
Commercial insurance companies began offering accident and sickness
insurance (disability insurance) as early as the mid-19th century. Hospital and
medical expense policies were introduced during the first half of the 20th
century. The first group medical plan was purchased from The Equitable Life
Assurance Society of the United States by the General Tire & Rubber Company
in 1934. Before the development of medical expense insurance, patients were
20
expected to pay all other health care costs out of their own pockets, under what
is known as the fee-for-service business model. During the middle to late 20th
century, traditional disability insurance evolved into modern health insurance
programs. Today, most comprehensive private health insurance programs cover
the cost of routine, preventive, and emergency health care procedures, and also
most prescription drugs, but this was not always the case.
During the 1920s, individual hospitals began offering services to individuals on
a pre-paid basis. The first group pre-payment plan was created at the Baylor
University Hospital in Dallas, Texas. This concept became popular among
hospitals during the Depression, when they were facing declining revenues. The
Baylor plan was a forerunner of later Blue Cross plans. Physician associations
began offering pre-paid surgical/medical benefits in the late 1930s Blue Shield
plans. Blue Cross and Blue Shield plans were non-profit organizations
sponsored by local hospitals (Blue Cross) or physician groups (Blue Shield). As
originally structured, Blue Cross and Blue Shield plans provided benefits in the
form of services rendered by participating hospitals and physicians ("service
benefits") rather than reimbursements or payments to the policyholder.
Hospital and medical expense policies were introduced during the first half of
the 20th century. During the 1920s, individual hospitals began offering services
to individuals on a pre-paid basis, eventually leading to the development of
Blue Cross organizations. The Ross-Loos Clinic, founded in Los Angeles in
1929, is generally considered to have been the first health maintenance
organization (HMO). Henry J. Kaiser organized hospitals and clinics to provide
pre-paid health benefits to his shipyard workers during World War II. This
became the basis for Kaiser Permanente HMO. Most early HMOs were nonprofit organizations. The development of HMOs was encouraged by the passage
of the Health Maintenance Organization Act of 1973. The first employer21
22
1.3
Concept of Insurance
The functions of Insurance will give you an idea on how to go ahead with the
approach of insurance and what type of insurance to choose. In a layman's
words, insurance means, a guard against pecuniary loss arising on the
happening of an unforeseen event. In developing economies, the insurance
sector still holds a lot of potential which can be tapped. Majority of the people
in the developing countries remains unaware of the functions and benefits of
insurance and it is for this reason that the insurance sector is still to grow.
Tangible or intangible an individual can insure anything! Be it a house, car,
factory, or the voice of a singer, leg of a footballer, and the hand of an
author.....etc. It is possible to insure all these as they have the possibility of
becoming
non
functional
by
any
23
disaster
or
an
accident.
24
Preventing losses
Insurance warns individuals and businessmen to embrace appropriate
device to prevent unfortunate aftermaths of risk by observing safety
instructions; installation of automatic sparkler or alarm systems, etc.
by paying
25
1.4
OVERVIEW of INSURANCE :
The economic reforms undertaken in the last 15 years have brought about a
considerable improvement in the health of banks and financial institutions in
India. The banking sector is a very important sector of the Indian economy.
The sector has made a marked improvement in the liberalization period.
There has been extraordinary progress in the financial health of the
commercial banks with respect to capital adequacy, profitability, and asset
quality and risk management. Deregulation has opened new doors for banks
to increase revenues by entering into investment banking, insurance, credit
26
The insurance business is one of the most rapidly growing areas in the
financial sector. As an economy grows over the years, insurance sector
intensifies and broadens its reach. Every practical and futuristic individual
would want himself, his family and his assets to be insured. Insurance deals
mainly with life and general insurance. India has a large insurance market
commensurate with its population. The IRDA Act 1999 (Insurance
Regulatory and Development Authority of India Act) has given new
opportunities to private players to enter into the market on the fulfillment of
certain prerequisites. The IRDA is the licensing authority in the sector; the
current FDI cap/Equity in the sector stands at 26 percent. There is no doubt
the challenges ahead will become tougher with more companies competing
27
both in general and life Insurance. Also mortgage insurance will soon be
coming into the industry. New players have contributed to the launch of
innovative products, services and value-added benefits.
Major foreign players have entered the country and announced joint
ventures in both life and non-life areas. These include New York Life, Aviva,
Tokio Marine, Allianz, Standard Life, Lombard General, AIG, AMP and Sun
Life among others.
Commercial banks are coming up with more and more vacancies, and the
banking sector now has more new jobs than any other sector. Right from the
branch level to the highest level, there is tremendous range of opportunities
available in the sector. Jobs in this sector can be both rewarding and
enjoyable, as you get opportunities to learn about business, interact with
people and build up clientele. The same is the case with insurance, as it is the
fastest growing industry under the financial sector. Both government and
private players are currently offering a plenty of jobs in this sector. So, this is
great news for you if you are thinking to go into the banking & insurance
streams.
28
1.5
Insurance Principles
Main principles of Insurance:
Indemnity
Subrogation
Contribution
Insurable Interest
Proximate Cause
As a client it is your duty to disclose all material facts to the risk being
covered. A material fact is a fact which would influence the mind of a
prudent underwriter in deciding whether to accept a risk for insurance
and on what terms. The duty to disclose operates at the time of inception,
at renewal and at any point mid term.
2. Indemnity
On the happening of an event insured against, the Insured will be placed
in the same monetary position that he/she occupied immediately before
the event taking place. In the event of a claim the insured must:
Transfer any rights which he/she may have for recovery from
another
30
receives under his insurance (where that represents the full amount of his
loss) and enables his insurer to recover or reduce its loss.
4. Contribution
The right of an insurer to call on other insurers similarly, but not
necessarily equally, liable to the same insured to share the loss of an
indemnity payment i.e. a travel policy may have overlapping cover with
the contents section of a household policy. The principle of contribution
allows the insured to make a claim against one insurer who then has the
right to call on any other insurers liable for the loss to share the claim
payment.
5. Insurable Interest
If an insured wishes to enforce a contract of insurance before the Courts
he must have an insurable interest in the subject matter of the insurance,
which is to say that he stands to benefit from its preservation and will
suffer from its loss.
31
6. Proximate Cause
An insurer will only be liable to pay a claim under an insurance contract
if the loss that gives rise to the claim was proximately caused by an
insured peril. This means that the loss must be directly attributed to an
insured peril without any break in the chain of causation.
32
CHAPTER 2
MARKETING OF INSURANCE
AN INTRODUCTION
33
2.1
Insurance Marketing Strategies
Insurance marketing is basically just the marketing of insurance products.
Marketing of this sort is an important tool when it comes to the business of
insurance. The marketing of insurance readily happens in the life insurance
department as well as the non-life insurance department.
What type of advertising and marketing is most suitable for your
insurance business? This is not a one size fits all deal. You must consider how
much of a budget you have and work from there. You also need to know what
your
target
market
is.
For
example,
are
you
going
to
sell
the know. You are an industry professional so you need to get yourbusiness in
one or more of these publications as well.
Television ads and print ads are excellent forms of insurance marketing.
However the downside is that both can be very expensive. You may go way
beyond your budget if you decide to use either one of these methods. However
if you can afford it then your best course of action is to either consult with an
external advertising agency or hire one to help you develop a campaign that is
conducive to what you need most. Your goal of course is to gain exposure and
to increase your sales.
If you decide that print ads would suit your style and your budget just fine then
colored ads are the most expensive to produce but can be very appealing to the
eye. You can also choose a reverse type for your advertisements. Think back
to what black and white television looked like. The ad would have white
lettering on a stark black background. The black background sets off the
lettering and gives it that catchy effect.
35
2.2
Marketing is
the
process
of
performing market
process
through
which
companies
build
strong customer
relationships and create value for their customers and for themselves.
Marketing is used to identify the customer, to satisfy the customer, and to keep
the customer. With the customer as the focus of its activities, it can be
concluded that marketing management is one of the major components
of business management. Marketing evolved to meet the stasis in developing
new markets caused by mature markets and overcapacities in the last 2-3
centuries. The adoption of marketing strategies requires businesses to shift their
focus from production to the perceived needs and wants of their customers as
the means of staying profitable.
36
The term marketing concept holds that achieving organizational goals depends
on knowing the needs and wants of target markets and delivering the desired
satisfactions. It proposes that in order to satisfy its organizational objectives, an
organization should anticipate the needs and wants of consumers and satisfy
these more effectively than competitors.
Definition
The management process through
services move from concept to
customer. As a practice,
it
consists
Identification, selection,
philosophy,
marketing
is
based on thinking
about
the
38
2.3
Indian Insurance Marketing
The Indian insurance market in spite of having a history covering almost two
centuries took a turn after the establishment of the Life insurance Corporation
in India in 1956. From being an open competitive market to being nationalized
and then back to a liberalized market again, the insurance sector has witnessed
all aspects of contest.
The Indian insurance market conventionally focused around life insurance until
recently, a various range of other insurance policies covering sectors like
medical, automobile, health and other classes falling under general insurance
came up, generally provided by the private companies. The life insurance of
India added 4.1% to the GDP of the economy in 2009, an immense growth
since 1999, when the gates were opened for the private company in the market.
The company should only the serve the purpose of life or general
insurance or reinsurance business
The FDI limit in the insurance sector has been capped at 26% for the
foreign marketers but the government is thinking to increase it to 49% and
a bill of this offer is pending at the Rajya Sabah
40
In the coming three years Health insurance sector is all set to become
the second largest business after motor insurance.
41
HDFC Standard
Bajaj Allianz
ICICI Prudential
SBI Life
42
2.4
Types of insurance
What you should know about the various types of insurance policies before
getting insured. All policies are not the same. Some give coverage for your
lifetime and others cover you for a specific number of years. Here is a
snapshot of the types of policies and what they offer.
Term Insurance
Term insurance covers you for a term of one or more years. It pays a death
benefit only if the policy holder dies during the period the insurance is in
force. Term insurance generally offers the cheapest form of life insurance. You
can renew most term insurance policies for one or more terms even if your
health condition has changed.
However, each time you renew the policy for a new term, premiums may
climb higher, just like a rent agreement every time you renew the lease. This
policy is particularly useful to cover any outstanding debt in the form of a
mortgage, home loan, etc.
For example if you have taken a loan of Rs10 lakhs, you will have an option
of taking an insurance to protect the loan in case of passing away before the
debt is repaid.
43
Riders
Riders are additional add-on benefits that you could opt to include in
your policy over and above what the policy may provide. However,
these additions come at an extra premium charge depending of the rider
you opt for. These riders cannot be bought separately and independently.
The extra premium, nature and characteristics of the riders are based on
the base policy that is offered.
Some riders available in the market are :
1.) Accident Death Benefit: Provides a additional amount in case
death occurs as a result of an accident.
2.) Term Rider: It allows the payment of an additional amount should
death of the insured happens.
3.) Waiver of Premium: In case of total and permanent disability of
life insured due to accident or any other means this rider allows
premiums on base policy or riders to be waived.
4.) Critical Illness: It provides payment of an additional amount on the
diagnosis of some critical illness.
46
2.5
What Problems Are Faced by Insurance Companies?
1.
2.
47
3.
Companies that offered whole and term life insurance began offering
"market-sensitive" products in an effort to expand product portfolios, according
to Price Waterhouse Coopers. This gave policyholders competitive returns and
gave
Insurance companies an edge in the financial service market. Consequently,
reserve calculations are subjective, more complex and the investment portfolios
require more attention in order to manage them so returns and cash flow align
with future liabilities. Market sensitive products that involve long- and shortterm investments for companies that sell life insurance are seeing low returns.
As a result, insurance companies need to look at other avenues to ensure
solvency and increase retention efforts.
4.
48
49
2.6
51
Chapter 3
52
3.1
53
54
Product
It must provide value to a customer but does not have to be tangible at
the same time. Basically, it involves introducing new products or
improvising the existing products.
Price
Pricing must be competitive and must entail profit. The pricing strategy
can comprise discounts, offers and the like.
Place
It refers to the place where the customers can buy the product and how
the product reaches out to that place. This is done through different
channels, like Internet, wholesalers and retailers.
Promotion
55
People
People refer to the customers, employees, management and everybody
else involved in it. It is essential for everyone to realize that the
reputation of the brand that you are involved with is in the people's
hands.
Process
It refers to the methods and process of providing a service and is hence
essential to have a thorough knowledge on whether the services are
56
helpful to the customers, if they are provided in time, if the customers are
informed in hand about the services and many such things.
Physical (evidence)
It refers to the experience of using a product or service. When a service
goes out to the customer, it is essential that you help him see what he is
buying or not. For example- brochures, pamphlets etc serve this purpose.
57
3.2
fairly straightforward ways to insurance marketing and its benefits to the end
customer.
Now, when I write insurance marketing tips, I'm constantly looking for the
edge, the out - the hook. What makes this product work for the reader and
prospective buyer?
To answer that question, I start with doing some research on Google, and look
for page ranks for specific permutations of insurance buying search terms, like
"cheap health insurance" or "cheap life insurance" or "auto insurance Michigan"
- anything that will help narrow down the search fields. Then I look at what
others are doing on those pages that pull up. It is extremely important to
understand what your competitors are doing. It helps you keep track of market
trends and makes sure you keep your edge.
price (which is the primary driver in insurance policies) and service (which is
where insurance companies trying to maintain margins on policies try to set
themselves up as upscale.
60
Chapter 4
Case study
61
Case study
The Life Insurance Corporation of India (LIC) is the largest state-owned life
insurance company in India, and also the country's largest investor. It is fully
owned by the Government of India. It also funds close to 24.6% of the Indian
Government's expenses. It has assets estimated of 9.31 trillion (US$202.03
billion). It was founded in 1956 with the merger of more than 200 insurance
companies and provident societies.
Headquartered in Mumbai, financial and commercial capital of India, the Life
Insurance Corporation of India currently has 8 zonal Offices and 101 divisional
offices located in different parts of India, at least 2048 branches located in
different cities and towns of India along with satellite Offices attached to about
some 50 Branches, and has a network of around 1.2 million agents for soliciting
life insurance business from the public.
History
The Oriental Life Insurance Company, the first corporate entity in India offering
life insurance coverage, was established in Calcutta in 1818 by Bipin Bernard
Dasgupta and others. Europeans in India were its primary target market, and it
charged Indians heftier premiums. The Bombay Mutual Life Assurance Society,
formed in 1870, was the first native insurance provider. Other insurance
companies established in the pre-independence era included,
Indian Mercantile
General Assurance
The first 150 years were marked mostly by turbulent economic conditions. It
witnessed, India's First War of Independence, adverse effects of the World War
I and World War II on the economy of India, and in between them the period of
world wide economic crises triggered by the Great depression. The first half of
the 20th century also saw a heightened struggle for India's independence. The
aggregate
effect
of
these
events
led
to
high
rate
control over an industry that had seen several financially unsound ventures fail.
A bill was also introduced in the Legislative Assembly in 1944 to nationalize
the insurance industry.
Nationalization
In 1955, parliamentarian Amol Barate raised the matter of insurance fraud by
owners of private insurance companies. In the ensuing investigations, one of
India's wealthiest businessmen, Ram Kishan Dalmia, owner of the Times of
India newspaper, was sent to prison for two years. Eventually, the Parliament of
India passed the Life Insurance of India Act on 1956-06-19, and the Life
Insurance Corporation of India was created on 1956-09-01, by consolidating the
life insurance business of 245 private life insurers and other entities offering life
insurance services. Nationalization of the life insurance business in India was a
result of the Industrial Policy Resolution of 1956, which had created a policy
framework for extending state control over at least seventeen sectors of the
economy, including the life insurance.
Current status
64
65
66
viz. LIC Act, 1956, with a capital contribution of Rs. 5 crores from the
Government of India.
The General insurance business in India, on the other hand, can trace its roots to
the Triton Insurance Company Ltd., the first general insurance company
established in the year 1850 in Calcutta by the British.
68
Objectives of LIC
Spread Life Insurance widely and in particular to the rural areas and to
the socially and economically backward classes with a view to reaching
all insurable persons in the country and providing them adequate
financial cover against death at a reasonable cost.
Maximize mobilization of people's savings by making insurance-linked
savings adequately attractive.
Bear in mind, in the investment of funds, the primary obligation to its
policyholders, whose money it holds in trust, without losing sight of the
interest of the community as a whole; the funds to be deployed to the
best advantage of the investors as well as the community as a whole,
keeping in view national priorities and obligations of attractive return.
Conduct business with utmost economy and with the full realization that
the moneys belong to the policyholders.
Act as trustees of the insured public in their individual and collective
capacities.
Meet the various life insurance needs of the community that would arise
in the changing social and economic environment.
Involve all people working in the Corporation to the best of their
capability in furthering the interests of the insured public by providing
efficient service with courtesy.
69
70
Mission
"Explore and enhance the quality of life of people through financial security by
providing products and services of aspired attributes with competitive returns,
and
by
rendering
resources
for
economic
development."
Vision
"A trans-nationally competitive financial conglomerate of significance to
societies and Pride of India."
71
Chapter 5
72
There are many aids of marketing of products but the challenges are also there.
The external environment of insurance market changes time to time, the
customer expectations are increased, they need good technology services at
quick.
The aim of marketing of insurance product is to create customer and generate
profit through customer satisfaction. The insurance marketing focuses on the
formulation of an ideal mix for insurance business so that the insurance
organization survives and thrives in the right perspective.
The government policy changes and low productivity and high cost of agency
organization, Illiteracy of people many challenges, by giving high technology
services to the customer, giving special training to the agents so that they can
convince the customers in rural areas.
The marketing of insurance really helps the companies and customers to know
what type of insurance are in the market.
73
BIBLIOGRAPHY
M.N. Mishra
WEBLIOGRAPHY
WWW.GOOGLE.COM
WWW.WIKIPEDIA.COM
WWW.licindia.in
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