Problems in Insurance Marketing

8/19/2019 Problems in Insurance Marketing

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PROBLEMS OF INSURANCE MARKETING.

CHAPTER 1

INTRODUCTION

Insurance

Man has always been in search ! sec"ri#y an$ %r#ec#in !r& #he be'innin' !

ci(ili)a#in. This "r'e in hi& # lea$ # #he cnce%# ! ins"rance. The basis !

ins"rance was #he sharin' ! #he lsses ! a !ew a&n's# &any. Ins"rance

%r(i$es !inancial s#abili#y an$ s#ren'#h # #he in$i(i$"als an$ r'ani)a#in by

#he $is#rib"#in ! lss ! a !ew a&n' &any by &any by b"il$in' "% (er a

%eri$ ! #i&e.

E(en i! we #ry # cn#rl # a(i$* cn#rl an$ %re(en# ris+ will s#ill e,is#.

There!re* ins"rance is #he &s# %rac#ical &e#h$ !r han$lin' a &a-r ris+.

Ins"rance* in law an$ ecn&ics* is a !r& ! ris+ &ana'e&en# %ri&arily "se$

# he$'e a'ains# #he ris+ ! a cn#in'en# lss. Ins"rance is $e!ine$ as #he

e"i#able #rans!er ! #he ris+ ! a lss* !r& ne en#i#y # an#her* in e,chan'e

!r a %re&i"&. Ins"rer* in ecn&ics* is #he c&%any #ha# sells #he ins"rance.

Ins"rance ra#e is a !ac#r "se$ # $e#er&ine #he a&"n#* calle$ #he %re&i"&* #

be char'e$ !r a cer#ain a&"n# ! ins"rance c(era'e. Ris+ &ana'e&en#* #he

%rac#ice ! a%%raisin' an$ cn#rllin' ris+* has e(l(e$ as a $iscre#e !iel$ !

s#"$y an$ %rac#ice.

Ins"rance &ay be $escribe$ as a scial $e(ice # ens"re %r#ec#in ! ecn&ic

(al"e ! li!e an$ #her asse#s. Un$er #he %lan ! ins"rance* a lar'e n"&ber !

%e%le asscia#e #he&sel(es by sharin' ris+s a##ache$ # in$i(i$"als. The ris+s*which can be ins"re$ a'ains#* incl"$e !ire* #he %erils ! sea* $ea#h an$ acci$en#s

an$ b"r'lary. Any ris+ cn#in'en# "%n #hese* &ay be ins"re$ a'ains# a# a

%re&i"& c&&ens"ra#e wi#h #he ris+ in(l(e$. Th"s cllec#i(e bearin' ! ris+

is ins"rance.

Ins"rance is a cn#rac# whereby* in re#"rn !r #he %ay&en# ! %re&i"& by #he

ins"re$* #he ins"rers %ay #he !inancial lsses s"!!ere$ by #he ins"re$ as a res"l#

! #he cc"rrence ! "n!reseen e(en#s. The #er& /ris+/ is "se$ # $escribe #he


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%ssibili#y ! a$(erse res"l#s !lwin' !r& any cc"rrence r #he acci$en#al

ha%%enin's* which %r$"ce a &ne#ary lss.

Ins"rance is a %l in which a lar'e n"&ber ! %e%le e,%se$ # a si&ilar ris+ &a+e cn#rib"#ins # a c&&n !"n$ "# ! which #he lsses s"!!ere$ by #he

"n!r#"na#e !ew* $"e # acci$en#al e(en#s* are &a$e '$. The sharin' ! ris+

a&n' lar'e 'r"%s ! %e%le is #he basis ! ins"rance. The lsses ! an

in$i(i$"al are $is#rib"#e$ (er a 'r"% ! in$i(i$"als.


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CHAPTER 2

DEFINITION OF INSURANCE

The le'al $e!ini#in ! ins"rance is #ha#* 0i# is a cn#rac# be#ween #he ins"rer an$

ins"re$ whereby* in cnsi$era#in ! %ay&en# ! %re&i"& by #he ins"re$ #he

ins"rer a'rees # &a+e '$ any !inancial lss #he ins"re$ &ay s"!!er $"e #

cnsi$era#in ! an ins"rance %eril.1

The !inancial $e!ini#in ! ins"rance is #ha# ins"rance is a scial $e(ice in which

a 'r"% ! in$i(i$"al 2ins"re$3 #rans!er ris+ # an#her %ar#y 2ins"rer3 in r$er #

c&bine lss e,%erience* which %er&i#s s#a#is#ical %re$ic#in ! lsses an$

%r(i$es !r %ay&en#s ! lsses !r& !"n$s cn#rib"#e$ 2%re&i"&s3 by all

&e&bers wh #rans!er ris+.

DEFINITION OF MARKETING

There are &any $e!ini#in ! &ar+e#in'. The be##er $e!ini#in are !c"se$ "%n

c"s#&er rien#a#in an$ sa#is!ac#in ! c"s#&er nee$s4

Accr$in' # Phili% +#ler*

Mar+e#in' is a scial %rcess by which in$i(i$"al an$ 'r"% b#aine$ wha# #hey

nee$ an$ wan# # crea#in' an$ e,chan'in' %r$"c#s an$ (al"e wi#h #hers.

Accr$in' # P. F. 5r"c+er*

Mar+e#in' is n# nly &"ch bra$er #han sellin'* i#s n# a s%ecialise$ ac#i(i#y a#

all i# enc&%asses en#ire b"siness. I#6s a whle b"siness seen !r& #he %in# !

(iew ! #he !inal res"l#* #ha# is* !r& #he c"s#&er6s %in# ! (iew. Cncern an$

res%nsibili#y !r &ar+e#in' &"ch #here!re %er&ea#e all areas ! en#er%rise.


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CHAPTER 3

CONCEPT OF INSURANCE

In "r $aily li(es* #here is a ris+ in(l(e$ when #here is "ncer#ain#y. Ins#inc# !

sec"ri#y a'ains# s"ch ris+s is ne ! #he basic $ri(in' !rce !r $e#er&inin' #he

a##i#"$e ! h"&an bein's. 7" &"s# as a se"el ! #his "es#* #he cnce%# !

ins"rance has been brn !r sec"ri#y. Ur'e # %r(i$e ins"rance an$ %r#ec#in

a'ains# lss ! li!e an$ %r%er#y* y" &"s# ha(e been %r&#e$ # $ s&e sr#

! %e%le willin' # sacri!ice #he c%era#in ! #he %%"la#in* # achie(e

sec"ri#y. In #his sense* #he s#ry ! ins"rance is %rbably as l$ as #he

s#ry!&an+in$.

Li!e ins"rance* a'ains# #he ris+ ! %re&a#"re $ea#h ! i#s &e&bers # earn

inc&e* es%ecially # %r(i$e %r#ec#in # h&e. Li!e ins"rance is als &$ern*

%r(i$es %r#ec#in a'ains# #he ris+ ! 2heal#h ins"rance3 an$ $isease an$

$isabili#y 2i.e. ris+ ! "#li(in' s"rce ! inc&e3 ! s"ch ris+s* s"ch as li(in'8

rela#e$ an$ #her ln'e(i#y. The %r$"c# is # %r(i$e a ln'e(i#y ann"i#y an$

%ensin 2ins"rance a'ains# l$ a'e3. Nn8li!e ins"rance %r(i$es %r#ec#in

a'ains# acci$en# liabili#y* %r%er#y $a&a'e* an$ #her #he!#. C&%are$ # #he li!e

ins"rance cn#rac#* nn8li!e ins"rance cn#rac#* #he $"ra#in* b"# #y%ically

shr#er. In #he b"n$le* is %ec"liar ! li!e ins"rance c(era'e ris+s an$ Minis#ry#'e#her. T %r(i$e b#h li!e ins"rance an$ in(es#&en# %r#ec#in.

Ins"rance is '$ news n #he b"siness %rble&. Ins"rance* which %r(i$es

shr# an$ ln'8$is#ance relie!. Shr#8#er& relie!* by $is#rib"#in' #he lss a&n'

lar'e n"&bers ! %e%le #hr"'h #he &e$i"& ! Ris"+"beara s%ecial#y* s"ch as

#he Ins"rance C&%any* an$ is in#en$e$ # %r#ec# #he ins"re$ !r& lss ! li!e

an$ %r%er#y. There!re* # enable b"siness %e%le # !ace #he "ne,%ec#e$ lss

!* he nee$ # wrry ab"# #he %ssibili#y ! lss is n# a(ailable. The b-ec# !r

which ln'8#er& 'rw#h ! #he c"n#ry9s ecn&ic an$ in$"s#rial in(es#&en# ! !"n$s by ins"rance c&%anies wi#h a h"'e r'ani)a#inal an$ c&&ercial

in$"s#ry # be able # "se.


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CHAPTER 4

HISTORY OF INSURANCE

In s&e sense we can say #ha# ins"rance a%%ears si&"l#ane"sly wi#h #he

a%%earance ! h"&an scie#y. :e +nw ! #w #y%es ! ecn&ies in h"&an

scie#ies4 &ney ecn&ies 2wi#h &ar+e#s* &ney* !inancial ins#r"&en#s an$ s

n3 an$ nn8&ney r na#"ral ecn&ies 2wi#h"# &ney* &ar+e#s* !inancial

ins#r"&en#s an$ s n3. The secn$ #y%e is a &re ancien# !r& #han #he !irs#. In

s"ch an ecn&y an$ c&&"ni#y* we can see ins"rance in #he !r& ! %e%le

hel%in' each #her. Fr e,a&%le* i! a h"se b"rns $wn* #he &e&bers ! #he

c&&"ni#y hel% b"il$ a new ne. Sh"l$ #he sa&e #hin' ha%%en # ne9s

nei'hb"r* #he #her nei'hb"rs &"s# hel%. O#herwise* nei'hb"rs will n#recei(e hel% in #he !"#"re. This #y%e ! ins"rance has s"r(i(e$ # #he %resen# $ay

in s&e c"n#ries where &$ern &ney ecn&y wi#h i#s !inancial ins#r"&en#s

is n# wi$es%rea$ 2!r e,a&%le c"n#ries in #he #erri#ry ! #he !r&er S(ie#

Unin3.

T"rnin' # ins"rance in #he &$ern sense 2i.e.* ins"rance in a &$ern &ney

ecn&y* in which ins"rance is %ar# ! #he !inancial s%here3* early &e#h$s !

#rans!errin' r $is#rib"#in' ris+ were %rac#ice$ by Chinese an$ Babylnian#ra$ers as ln' a' as #he ;r$ an$


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:hen a 'i!# was wr#h &re #han >* 5erri+ 2Achae&enian 'l$ cin

wei'hin' .;@8.D* 5erri+* he r she w"l$ recei(e an a&"n# ! #wice as &"ch./

A #h"san$ years la#er* #he inhabi#an#s ! Rh$es in(en#e$ #he cnce%# ! #he

9'eneral a(era'e9. Merchan#s whse '$s were bein' shi%%e$ #'e#her w"l$

%ay a %r%r#inally $i(i$e$ %re&i"& which w"l$ be "se$ # rei&b"rse any

&erchan# whse '$s were -e##isne$ $"rin' s#r& r sin+a'e.

The Gree+s an$ R&ans in#r$"ce$ #he ri'ins ! heal#h an$ li!e ins"rance c. A5 when #hey r'ani)e$ '"il$s calle$ /bene(len# scie#ies/ which care$

!r #he !a&ilies an$ %ai$ !"neral e,%enses ! &e&bers "%n $ea#h. G"il$s in #he

Mi$$le A'es ser(e$ a si&ilar %"r%se. The Tal&"$ $eals wi#h se(eral as%ec#s !

ins"rin' '$s. Be!re ins"rance was es#ablishe$ in #he la#e >?#h cen#"ry*

/!rien$ly scie#ies/ e,is#e$ in En'lan$* in which %e%le $na#e$ a&"n#s !

&ney # a 'eneral s"& #ha# c"l$ be "se$ !r e&er'encies.

Se%ara#e ins"rance cn#rac#s 2i.e.* ins"rance %licies n# b"n$le$ wi#h lans r #her +in$s ! cn#rac#s3 were in(en#e$ in Gena in #he >D#h cen#"ry* as were

ins"rance %ls bac+e$ by %le$'es ! lan$e$ es#a#es. These new ins"rance

cn#rac#s allwe$ ins"rance # be se%ara#e$ !r& in(es#&en#* a se%ara#in !

rles #ha# !irs# %r(e$ "se!"l in &arine ins"rance. Ins"rance beca&e !ar &re

s%his#ica#e$ in %s#8Renaissance E"r%e* an$ s%eciali)e$ (arie#ies $e(el%e$.

Twar$ #he en$ ! #he se(en#een#h cen#"ry* Ln$n9s 'rwin' i&%r#ance as a

cen#re !r #ra$e increase$ $e&an$ !r &arine ins"rance.


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In #he la#e >s* Mr. E$war$ Lly$ %ene$ a c!!ee h"se #ha# beca&e a

%%"lar ha"n# ! shi% wners* &erchan#s* an$ shi%s6 ca%#ains* an$ #hereby a

reliable s"rce ! #he la#es# shi%%in' news. I# beca&e #he &ee#in' %lace !r

%ar#ies wishin' # ins"re car'es an$ shi%s* an$ #hse willin' # "n$erwri#e s"ch

(en#"res. T$ay* Lly$9s ! Ln$n re&ains #he lea$in' &ar+e# 2n#e #ha# i# is

n# an ins"rance c&%any3 !r &arine an$ #her s%ecialis# #y%es ! ins"rance*

b"# i# wr+s ra#her $i!!eren#ly #han #he &re !a&iliar +in$s ! ins"rance.

Ins"rance as we +nw i# #$ay can be #race$ # #he Grea# Fire ! Ln$n* which

in > $e("re$ >;*


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a "ni"e %si#in # 'ra%%le wi#h &a-r na#inal ins"rance br+era'es. S%i#)er

alle'e$ #ha# Marsh McLennan s#eere$ b"siness # ins"rance carriers base$ n

#he a&"n# ! cn#in'en# c&&issins #ha# c"l$ be e,#rac#e$ !r& carriers*

ra#her #han basin' $ecisins n whe#her carriers ha$ #he bes# $eals !r clien#s.

Se(eral ! #he lar'es# c&&ercial ins"rance br+era'es ha(e since s#%%e$acce%#in' cn#in'en# c&&issins an$ ha(e a$%#e$ new b"siness &$els.

CHAPTER 5


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EO!UTION OF INSURANCE

In #he $ays ! yre ins"rance was in i#s cr"$e !r& an$ was c%era#i(e

an$ (l"n#ary in na#"re. :hen* where an$ hw i# ri'ina#e$ is s#ill a &a##er ! research in ne way r #he #her was %re(alen# in l$en $ays. :e can #race i#s

his#ry !r& #he e(l"#in scie#y !r& h"n#in' s#a'e # #he &$ern in$"s#rial

a'e. A wr$ 07AGC==EM1 cc"rs in #he wrl$6s &s# ancien# =in$" Scri%#"re

Ri' He$a.

The wr$ 07AGC==EM1 &eans ins"rance. I# clearly in$ica#e$ #ha#

ab"# !"r #h"san$ years a' ins"rance was %re(alen# in i#s cr"$e !r&. I# was

c%era#i(e an$ (l"n#ary in na#"re. Pe%le !r&e$ $i!!eren# 'r"%s !

r'ani)a#ins # share #he lss a&n' #he&sel(es incase ! a %ar#ic"lar ris+.Each &e&ber cn#rib"#e$ s&e a&"n# # a c&&n !"n$ # &ee# #he

"n!reseen lsses. S&e#i&es #hey als cn#rib"#e$ e"ally # c&%ensa#e

%ersn as an$ when he s"!!ere$ a lss. Traces ! ins"rance in #he ancien# wrl$

are als !"n$ in #he !r& ! &arin #ra$e lans r carriers cn#rac#s which

incl"$e$ an ele&en# ! ins"rance.

E(i$ence is n recr$s #ha# arran'e&en#s e&b$yin' #he i$ea !

ins"rance were &a$e in Babylnia an$ In$ia a# "i#e an early %eri$.

Re!erences were &a$e # #he cnce%# ! ins"rance in Man"6s c$e 0Man"

S&ri#y1. I# was a+in # 07a'a+she&1 ! Ri'(e$a in which #he well bein' an$sec"ri#y ! #he c&&"ni#y was ai&e$ a#. =we(er* #here is n e(i$ence #ha#

ins"rance in i#s %resen# !ar& was %rac#ice$ %rir # #wel!#h cen#"ry.

CHAPTER "


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INSURANCE SECTOR REFORM

In >;* Malh#ra C&&i##ee* hea$e$ by !r&er Finance Secre#ary an$ RBIG(ernr R. N. Malh#ra* was !r&e$ # e(al"a#e #he In$ian ins"rance in$"s#ry

an$ rec&&en$ i#s !"#"re $irec#in.

The Malh#ra c&&i##ee was se# "% wi#h #he b-ec#i(e ! c&%le&en#in' #he

re!r&s ini#ia#e$ in #he !inancial sec#r. The re!r&s were ai&e$ a# 0crea#in' a

&re e!!icien# an$ c&%e#i#i(e !inancial sys#e& s"i#able !r #he re"ire&en#s !

#he ecn&y +ee%in' in &in$ #he s#r"c#"ral chan'es c"rren#ly "n$erway an$

rec'ni)in' #ha# ins"rance is an i&%r#an# %ar# ! #he (erall !inancial sys#e&

where i# was necessary # a$$ress #he nee$ !r si&ilar re!r&sJ1.

1##$%& Ins"rance re'"la#r IR5A se# "%.

2'''%& IR5A s#ar#s 'i(in' licenses # %ri(a#e ins"rers4 K#a+ Li!e

Ins"rance ICICI %r"$en#ial an$ =5FC S#an$ar$ Li!e ins"rance !irs#

%ri(a#e ins"rers # sell a %licy.

2''1%& Ryal S"n$ara& Alliance !irs# nn li!e ins"rer # sell a

%licy


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Pri(a#e c&%anies wi#h a &ini&"& %ai$ "% ca%i#al ! Rs.>

billin sh"l$ be allwe$ # en#er #he in$"s#ry.

N c&%any sh"l$ $eal in b#h li!e an$ 'eneral ins"rance

#hr"'h a sin'le en#i#y.

Frei'n c&%anies &ay be allwe$ # en#er #he in$"s#ry incllabra#in wi#h $&es#ic c&%anies.

Ps#al li!e ins"rance sh"l$ be allwe$ # %era#e in #he

r"ral &ar+e#. Only ne s#a#e le(el li!e ins"rance c&%any sh"l$ be

allwe$ # %era#e in each s#a#e.

3 REGU!ATORY 6ODY%&

The ins"rance ac# sh"l$ be chan'e$. An ins"rance re'"la#ry b$y sh"l$ be se# "%.

Cn#rller ! ins"rance sh"l$ be &a$e in$e%en$en#.

4 INESTMENTS%&

Man$a#ry in(es#&en#s ! LIC li!e !"n$ in '(ern&en#

sec"ri#ies # be re$"ce$ !r& ?@ # @.

GIC an$ i#s s"bsi$iaries are n# # hl$ &re #han @ inany c&%any.

5 CUSTOMER SERICE%&

LIC sh"l$ %ay in#eres# n $elays in %ay&en#s beyn$

; $ays

Ins"rance c&%anies &"s# be enc"ra'e$ # se# "% "ni#

lin+e$ %ensin %lans. C&%"#eri)a#in ! %era#ins an$ "%$a#in' !

#echnl'y # be carrie$ "# in #he ins"rance in$"s#ry.

The c&&i##ee e&%hasi)e$ #ha# in r$er # i&%r(e #he

c"s#&er ser(ices an$ increase #he c(era'e ! #he

ins"rance* in$"s#ry sh"l$ be %ene$ "% # c&%e#i#in.

B"# a# #he sa&e #i&e* #he c&&i##ee !el# #he nee$ # e,ercise ca"#in asany !ail"re n #he %ar# ! new %layers c"l$ r"in #he %"blic cn!i$ence in #he


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in$"s#ry. =ence* i# was $eci$e$ # allw c&%e#i#in in a li&i#e$ way by

s#i%"la#in' #he &ini&"& ca%i#al re"ire&en# ! Rs. > crres. The c&&i##ee

!el# #he nee$ # %r(i$e 'rea#er a"#n&y # ins"rance c&%anies in r$er #

i&%r(e #heir %er!r&ance an$ enable #he& # ac# as in$e%en$en# c&%anies

wi#h ecn&ic &#i(es. Fr #his %"r%se* i# ha$ %r%se$ se##in' "%in$e%en$en# re'"la#ry b$y.

CHAPTER $


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INSURANCE MARKETING IN INDIAN

ENIRONMENT

The na#"re an$ beha(i"r ! b"siness is '(erne$ by en(irn&en#al chan'es. In

a $e(el%in' ecn&y where !inancial ins#i#"#ins are acce%#e$ # sh"l$er

&"l#i8!ace#e$ scial b"r$ens in a$$i#in # #he #as+ ! &bili)in' an$

channeli)in' res"rces* i# is necessary #ha# %r!essinalis& sh"l$ be

$e(el%e$. 5"e # &"n#in' %rble&s ! re'inal bac+war$ness an$ re'inal

i&balances li+e &a+in' ! &ar+e#in' $ecisins an$ c&%lica#e$ in ins"rance

b"siness.

Ris+ an$ "ncer#ain#ies &(e "%war$ $"e # increase$ s%his#ica#in. A!#er #he

na#inali)a#in ! LIC in >@ an$ GIC in >?D #here ha(e been chan'es in #her'ani)a#inal b-ec#i(es. I# was in #his bac+'r"n$ #ha# ins"rance b"siness was

a##e&%#e$ # be e,%an$e$ in r"ral areas. The %"r%se was # reach all #he

%#en#ial "sers ! #he ser(ices. In #his cn#e,# i# is si'ni!ican# # &en#in #ha# #he

e,#en# ! $e%en$ence ! ins"rance b"siness n #he ser(ices ! a'en# an$ r"ral

career a'en#s is ! hi'h &a'ni#"$e. The ser(ice cn$i#ins ! r"ral a'en#s an$

a'en#s in 'eneral are # be enriche$. In #he In$ian cn$i#in #he #as+ !

&#i(a#in' #he r"ral %rs%ec#s is &re $i!!ic"l# as &a-ri#y ! #he& are illi#era#e.

Mar+e#in' ! ins"rance ser(ices nee$s a ra#inal a%%rach* which &eans #he

!llwin'4

>. Knwin' #he &ar+e#.


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THE INSURANCE REGU!ATORY AND

DEE!OPMENT AUTHORITY 8IRDA9

The Ins"rance Ac#* >; ha$ %r(i$e$ !r se##in' "% ! #he Cn#rller !

Ins"rance # ac# as a s#rn' an$ %wer!"l s"%er(isry an$ re'"la#ry a"#hri#y

!r ins"rance. Ps# na#inali)a#in* #he rle ! Cn#rller ! Ins"rance

$i&inishe$ cnsi$erably in si'ni!icance since #he G(ern&en# wne$ #he

ins"rance c&%anies.

B"# #he scenari chan'e$ wi#h #he %ri(a#e an$ !rei'n c&%anies !rayin' in #

#he ins"rance sec#r. This necessi#a#e$ #he nee$ !r a s#rn'* in$e%en$en# an$

a"#n&"s Ins"rance Re'"la#ry A"#hri#y was !el#. As #he enac#in' !

le'isla#in w"l$ ha(e #a+en #i&e* #he #hen G(ern&en# cns#i#"#e$ #hr"'h a

G(ern&en# resl"#in an In#eri& Ins"rance Re'"la#ry A"#hri#y %en$in' #he

enac#&en# ! a c&%rehensi(e le'isla#in.

The Ins"rance Re'"la#ry an$ 5e(el%&en# A"#hri#y Ac#* > is an ac# #

%r(i$e !r #he es#ablish&en# ! an A"#hri#y # %r#ec# #he in#eres#s ! hl$ers

! ins"rance %licies* # re'"la#e* %r&#e an$ ens"re r$erly 'rw#h ! #he

ins"rance in$"s#ry an$ !r &a##ers cnnec#e$ #herewi#h r inci$en#al #here# an$

!"r#her # a&en$ #he Ins"rance Ac#* >;* #he Li!e Ins"rance Cr%ra#in Ac#*>@ an$ #he General ins"rance B"siness 2Na#inali)a#in3 Ac#* >?< # en$ #he

&n%ly ! #he Li!e Ins"rance Cr%ra#in ! In$ia 2!r li!e ins"rance

b"siness3 an$ General Ins"rance Cr%ra#in an$ i#s s"bsi$iaries 2!r 'eneral

ins"ranceb"siness3.

The ac# e,#en$s # #he whle ! In$ia an$ will c&e in# !rce n s"ch $a#e as

#he Cen#ral G(ern&en# &ay* by n#i!ica#in in #he O!!icial Ga)e##e s%eci!y.

5i!!eren# $a#es &ay be a%%in#e$ !r $i!!eren# %r(isins ! #his Ac#.

The Ac# has $e!ine$ cer#ain #er&s s&e ! #he &s# i&%r#an# nes are as

!llws

a%%in#e$ $ay &eans #he $a#e n which #he A"#hri#y is es#ablishe$ "n$er #he

ac#. A"#hri#y &eans #he es#ablishe$ "n$er #his Ac#.

In#eri& Ins"rance Re'"la#ry A"#hri#y &eans #he Ins"rance Re'"la#ry

A"#hri#y se# "% by #he Cen#ral G(ern&en# #hr"'h Resl"#in N. >?2


15/41


:r$s an$ e,%ressins "se$ an$ n# $e!ine$ in #his Ac# b"# $e!ine$ in #he

Ins"rance Ac#* >; r #he Li!e Ins"rance Cr%ra#in Ac#* >@ r #he General

Ins"rance B"siness 2Na#inali)a#in3 Ac#* >?< shall ha(e #he &eanin's

res%ec#i(ely assi'ne$ # #he& in #hse Ac#s.

A new $e!ini#in ! /In$ian Ins"rance C&%any/ has been inser#e$. /In$ian

ins"rance c&%any/ &eans any ins"rer bein' a c&%any

>3 :hich is !r&e$ an$ re'is#ere$ "n$er #he C&%anies Ac#* >@


16/41


PROTECTION OF THE INTEREST OF PO!ICY

HO!DERS

Twar$s achie(in' #he b-ec#i(e ! %r#ec#in' #he in#eres# ! ins"rance %licy

hl$ers* #he a"#hri#y has #a+en #he !llwin' s#e%s4

• IR5A has n#i!ie$ Pr#ec#in ! Plicyhl$ers In#eres# Re'"la#ins

# %r(i$e !r4 %licy %r%sal $c"&en#s in easily "n$ers#an$able

lan'"a'e clai&s %rce$"re in b#h li!e an$ nn8li!e se##in' "% !

'rie(ance re$ressal &achinery s%ee$y se##le&en# ! clai&s an$

%licyhl$ers ser(icin'. The Re'"la#in als %r(i$es !r %ay&en# !

in#eres# by ins"rers !r #he $elay in se##le&en# ! clai&.

• The ins"rers are re"ire$ # &ain#ain sl(ency &ar'ins s #ha# #hey are in

a %si#in # &ee# #heir bli'a#ins #war$s %licyhl$ers wi#h re'ar$ #

%ay&en# ! clai&s.

• I# is bli'a#ry n #he %ar# ! #he ins"rance c&%anies # $isclse clearly

#he bene!i#s* #er&s an$ cn$i#ins "n$er #he %licy. The a$(er#ise&en#s

iss"e$ by #he ins"rers sh"l$ n# &islea$ #he ins"rin' %"blic.

• All ins"rers are re"ire$ # se# "% %r%er 'rie(ance re$ress &achinery in

#heir hea$ !!ice an$ a# #heir #her !!ices.

• The A"#hri#y #a+es "% wi#h #he ins"rers any c&%lain# recei(e$ !r& #he

%licyhl$ers in cnnec#in wi#h ser(ices %r(i$e$ by #he& "n$er #he

ins"rance cn#rac#.

In 5ece&ber* @8


17/41


c"n#rys G5P. A well8$e(el%e$ an$ e(l(e$ ins"rance sec#r is a bn !r

ecn&ic $e(el%&en#s as i# %r(i$es ln'8#er& !"n$s !r in!ras#r"c#"re

$e(el%&en#s a# #he sa&e #i&e s#ren'#henin' #he ris+ #a+in' abili#y ! #he

c"n#ry.


18/41

MARKETING MIX

PRODUCT MIX

PROMOTION MIXPLACE

MIX


CHAPTER #

MARKETING MI: FOR INSURANCEORGANI;ATION

The Ins"rance b"siness $eals in sellin' ser(ices an$ #here!re $"e wei'h# a'e in

#he !r&"la#in ! &ar+e#in' &i, !r #he Ins"rance b"siness is nee$e$. The

&ar+e#in' &i, incl"$es s"b8&i,es ! &ar+e#in' s"ch as #he %e%le* #he %rcess

an$ #he %hysical a##rac#in. The %"blic sec#r ins"rance r'ani)a#ins ha(e n#

been !r&"la#in' an$ inn(a#in' #he &ar+e#in' &i, # ca#er # #he chan'in'

nee$s an$ re"ire&en#s an$ increasin' le(el ! sa#is!ac#in ! #he "sers.Ma-ri#y ! #he %licyhl$ers an$ $issa#is!ie$ wi#h #he ser(ice8%r!ile an$ #hey

!#en c&%lain re'ar$in' #he $e#na#in' "ali#y ! ser(ices. 5"e # #his #he

!rei'n ins"rance c&%anies an$ %ri(a#e ins"rance %layers are sna#chin' away

#he b"siness ! #he %"blic sec#r ins"rance r'ani)a#in.

PRICE

MIX


19/41


20/41


PROMOTION MI:

The !r&"la#in ! %r$"c# &i, !r #he ins"rance b"siness &a+es i# si'ni!ican#

# #a+e a l+ a# #he ser(ices an$ sche&es ! ins"rance r'ani)a#ins. The

%r$"c# %r#!li is +nwn an$ #he %rcess ! !r&"la#in' a %ac+a'e sh"l$ be

+nwn. I# is na#"ral #ha# #he "sers e,%ec# a reasnable re#"rn !r #heir

in(es#&en#s. I# is "i#e na#"ral #ha# #he ins"rance r'ani)a#ins wan# #

&a,i&i)e %r!i#abili#y. I# is well +nwn #ha# #he +ey b-ec#i(es ! #he ins"rance

b"siness are &bili)a#in ! sa(in's an$ channelisa#in ! in(es#&en#s. This

&a+es i# essen#ial #ha# #he ins"rance b"siness is &a$e l"cra#i(e s #ha# #he "sers %#en#ial "sers 'e# incen#i(es # b"y a %licy r # in(es# in #he ins"rance

r'ani)a#ins. The ins"rance r'ani)a#ins als nee$ # %r&#e #he

"n$erwri#in' ac#i(i#ies* which w"l$ ac#i(a#e #he %rcess ! arres#in' #he

re'inal i&balance. In #he cn#e,# ! !r&"la#in' #he %r$"c# &i,* i# is essen#ial

#ha# #he ins"rance r'ani)a#ins %r&#e inn(a#in an $in #he %r$"c# %r#!li

incl"$e e(en #hse ser(ices an$ sche&es which are li+ely # 'e# a %si#i(e

res%nse in #he !"#"re. The %licies # be la"nche$ sh"l$ n# nly 'enera#e

en"'h %re&i"& b"# i# is als i&%r#an# #ha# #he %licies c(er %ersns wr+in'

in #he in!r&al sec#r* ser(in' as %r#ers* wr+in' as &an"al labrers* r

en'a'e$ in !ar& sec#r. The !r&"la#in ! %r$"c# s#ra#e'y sh"l$ assi'n $"e

wei'h#a'e # #he r"ral se'&en# e&er'in' as a bi' %r!i#able se'&en# es%ecially

in #he s# cen#"ry. The %licies an$ sche&es sh"l$ ha(e r"ral rien#a#in s

#ha# bac+war$ an$ ne'lec#e$ re'ins ! #he c"n#ry 'e# %riri#y a##en#in an$ #he

re'inal i&balance is &ini&i)e$. The !r&"la#in ! %ac+a'e is als !"n$

i&%r#an#. 5esi'nin' a %ac+a'e n #he basis ! #he nee$s an$ re"ire&en#s !

#he cncerne$ se'&en# w"l$ &a+e #he %r$"c# &i, re c&%e#i#i(e.


21/41


:i#h A$(en# ! %ri(a#e %layers in #he ins"rance !iel$* i# has nw bec&e

i&%era#i(e !r all #he ins"rance c&%anies # resr# # ra&%an# %r&#in.

Pr&#in &i, !r #his sec#r is as !llws

A/


22/41


Pers+na Se-n=

Persnal sellin' in #he case ! ins"rance r'ani)a#ins is a "i#e i&%r#an#

cnsi$erin' #he e,is#ence ! ins"rance a'en#s s%rea$ a# all le(els. Selec#in !

#hese a'en#s* #heir #rainin' is res%nsibili#y ! #he r'ani)a#in. There is a$i!!erence in #he "rban an$ #he r"ral &ar+e#. R"ral c"s#&ers &ay be

"ne$"ca#e$ "nin!r&e$ e#c c&%are$ # #he "rban c"s#&ers. =ence #he

r'ani)a#ins will ha(e # &a+e selec#ins ! #he r"ral an$ "rban a'en#s

accr$in'ly.

>+r/ + ,+u)* 0r+,+)-+n

The wr$ ! &"#h c&&"nica#in res"l# in# wi$er %"blici#y* which

s"bs#an#ially sensi#i)es #he %rcess ! in!l"encin' #he i&%"lse ! "sers

%rs%ec#s ! #he ins"rance ser(ices. The sa#is!ie$ 'r"% ! c"s#&ers %inin

lea$ers #he scial in!r&an#s *#he %%"lar %ersnali#ies ac# as a wr$ !

c&&"nica#in .The a$(er#ise&en# sl'ans &ay be incen#i(es #he %"blici#y

&eas"res &ay be ine!!ec#i(e b"# #he %si#i(e !eelin' ! !rien$s an$ rela#ins

c&&"nica#e$ cann# be ine!!ec#i(e#his &a+e i# clear #ha# #he &s# i&%r#an#

#hin' ! any b"siness is #he "ali#y ! ser(ices.

Tee,are)-n=

:i#h #he $e(el%&en# ! sa#elli#e c&&"nica#in !acili#ies an$ wi#h #he

e,%ansin ! #he #ele(isin ne#wr+* we !in$ #ele&ar+e#in' 'ainin' %%"lari#y

#he wrl$ (er. The r'ani)a#in in 'eneral nee$ # %r&#e #ele&ar+e#in'. #he

!rei'n ins"rance c&%any ha(e been assi'nin' $"e # wie'h#a'e # #his en$ in

In$ia #his is be'innin' # 'ain i&%r#ance wi#h #he a$(en# ! c&%e#i#in in #he

sec#r#he #elec&&"nica#e is s"%%se$ # be well aware ! #he #ele%hnic c$e

s #ha# #he #as+ ! sa#is!yin' #he c"s#&er wi#h #heir "eries will n# cns"&e&"ch ! #i&e.

>+r/ >-/e >e.

In ban+in' as well as Ins"rance* &re an$ &re i&%r#ance is bein' 'i(en #

nline cn#rac# !acili#ies whereby c&%lain#sc&&en#s c"l$ be sen# #hr"'h

an e&ail. E&ail is !as#es# wri##en &$e ! c&&"nica#in an$ since i# has been

rec'ni)e$ le'ally* i#s "se # clear $"b#s has been in !"ll swin'.


23/41


PRICE MI:

In #he ins"rance b"siness* #he %ricin' $ecisin are cncerne$ wi#h #he %re&i"&

char'e$ a'ains# #he %licies in#eres# char'e$ !r $e!a"l#in' #he %ay&en# !

%re&i"&s cre$i# !acili#ies* c&&issin char'e$ !r "n$erwri#in'

cns"l#ancy ser(ices. The !r&"la#in ! %ricin' s#ra#e'ies bec&es si'ni!ican#wi#h #he (iew%in# ! in!l"encin' #he #ar'e# &ar+e# r %rs%ec#s. T be &re

s%eci!ic in #he In$ian cn#e,# where #he $is%sable inc&e in #he han$s !

%rs%ec#s is !"n$ lw* #he increasin' in!la#inary %ress"re has been

ins#r"&en#al in cn#rac#in' #he $iscre#inary inc&e* #he increasin'

cns"&eris& has been &a+in' an assa"l# n #he sa(in' %#en#ials ! &asses* i#

is %er#inen# #ha# #he ins"rance r'ani)a#ins in 'eneral %"blic sec#r ins"rance

r'ani)a#ins in %ar#ic"lar a$%# s"ch a s#ra#e'y !r %ricin' #ha# &a+es is a

&#i(a#inal #l %a(es #he ways !r increasin' #he ins"rance b"siness. O!


24/41


c"rse* a &#i(a#inal %ricin' s#ra#e'y is re"ire$ # be 'i(en $"e wei'h#a'e.

This necessi#a#es a new (isin !r se##in' %re&i"& s#r"c#"re %ayin' #he bn"s

char'in' #he in#eres#.

The s#ra#e'y &ay ha(e a new (isin in #he sense #ha# #he ins"rance r'ani)a#ins %re!er # &a+e a &i, ! hi'h lw %ricin' s#ra#e'y. The &#i(e is # &a+e #he

%re&i"& s#r"c#"re c&&ercially (iable s #ha# #he ins"rance r'ani)a#ins

s"ccee$ in ha(in' a s"n$ %r$"c# %r#!li besi$es !"ellin' $e(el%&en#

rien#a#in. The %ricin' $ecisins &a+e i# essen#ial #ha# #he ins"rers +ee% in #heir

&in$s #he na#"re ! %licy (is8Q8(is #he se'&en# # which #he %rs%ec#s beln'.

In #he #an'ible %r$"c#s* cs# ! %r$"c#in is #a+en as #he basis !r !i,a#in !

%rices. E(en in #he ins"rance b"siness* i# is !"n$ # be an i&%r#an#cnsi$era#in a $&ina#in' base. This &a+es #he cs# ! ins"rance a $ecisi(e

!ac#r !r char'in' %re&i"&. The i&%r#an# bases !r $e#er&inin' #he cs# are

ra#e ! $ea#h* ra#e ! in#eres# #he e,%enses inc"rre$ n #he ins"rance b"siness.

The &r#ali#y #able hel%s #he $e#er&ina#in ! #he $ea#h ra#e. I# is # %re$ic#

!"#"re &r#ali#y. The bes# &e#h$ ! cns#r"c#in ! &r#ali#y #able is # selec# a

lar'e n"&ber ! %ersns a# a##aine$ a'e* which is &ean# a'e clse # #he bir#h

ra#e. The secn$ i&%r#an# ele&en# is #he ra#e ! in#eres#. On #he basis !

&r#ali#y ra#e* i# is es#i&a#e$ #ha# when hw &"ch a&"n# is # be recei(e$ as %re&i"& w"l$ be %ai$ as clai&s b"# n #he basis ! in#eres# ra#e* b"# n #he

basis ! in#eres# ra#e* i# is es#i&a#e$ #ha# hw &"ch in#eres# can be earne$ by

in(es#in' #he ins"rance !"n$s. The las# ele&en# is cs# which !c"ses n

$i!!eren# #y%es ! e,%enses. These are cer#ain e,%enses* which are inc"rre$ a#

#he #i&e ! ince%#in ! #he %licy. This necessi#a#es $e#er&ina#in ! #he na#"re

! e,%enses. The $e#er&ina#in ! e,%enses accr$in' # cc"rrence e"al

$is#rib"#in ! #he e,%enses e(ery year !r e"i#able $is#rib"#in ! la$in' are

!"n$ si'ni!ican# # &a+e %ssible a s"n$ &ana'e&en# ! e,%enses.

The %rcess ! ra#e ! !i,a#in in #he ins"rance r'ani)a#in is n# s scien#i!ic

i$en#i!ies #he cases ! &ral ha)ar$. I# is easier # i$en#i!y #he %hysical ha)ar$

b"# #he #as+ ! i$en#i!yin' #he &ral ha)ar$ is !"n$ $i!!ic"l#. The %re&i"&

char'e$ is # be &a$e ra#inal # ca#er # #he %ay&en# ! clai&s n a %riri#y

basis incl"$in' #he ca#as#r%hic lsses* &ana'e&en# e,%enses &ar'in !r

%r!i#. I# is essen#ial #ha# (ari"s rela#e$ # b#h #he ha)ar$s are es#i&a#e$ in a

scien#i!ic way. The ac#"al %rcess ! ra#in' cnsis#s ! #hree s#e%s. E.'.

classi!ica#in* $iscri&ina#in sche$"lin'.


25/41


The %rice &i, $ecisins are4

• Ma+in' %ssible cs# ! e!!ec#i(eness

• Res#r"c#"rin' ! %re&i"&

• 5"e %riri#y # %r!i# 'enera#in In(es#&en#s.

• Ra#inali)in' ! %#i&i)in' #he scial cs#s

• Pa(in' a(en"es !r channelisin' #he %r$"c#i(e in(es#&en#s

• Assi'nin' #he wei'h#a'e # #he %lices &ean# !r #he scially an$

ecn&ically bac+war$ classes.

• Ma+in' #he ways !r &a,i&i)in' %r!i#abili#y.

P!ACE MI:


26/41


27/41


&ana'ers are %ar#ic"lar # #he !!ice !"rnishin'* ci(ic a&eni#ies !acili#ies*

%ar+in' !acili#ies an$ in#erir $ecra#in.

Th"s #he %lace &ana'e&en# ! ins"rance branch !!ices nee$s a new (isin*

$is#inc# a%%rach an$ an inn(a#i(e s#ra#e'y. This is essen#ial # &a+e wr+

%lace cn$"ci(e* a##rac#i(e* an$ %r8ac#i(e # #he 'enera#in ! e!!iciency. The

&#i(es are # !!er #he %r&ise$ ser(ices # #he en$ "sers wi#h"# any

$is#r#in an$ &a+in' #he branch !!ices a %in# ! a##rac#in. The branch

&ana'ers nee$ %r!essinal e,cellence # &a+e %lace $ecisin %r$"c#i(e.

THE PEOP!E


28/41


Pe%le are &s# i&%r#an# c&%nen# ! &ar+e#in' &i, !r #he ins"rance

in$"s#ry. S%his#ica#e$ in #he %rcess ! #echnl'ical a$(ances &a+es #he way

!r #he $e(el%&en# ! %ersnnel in s"ch a way #ha# an r'ani)a#in s"ccee$s in

&a+in' %ssible a %r$"c#i(e "#ili)a#in ! #echnl'ies "se$ r li+ely # be

"se$. Pr!essinal "ali!ica#in re"ire&en#s chan'e as #echnl'y $e(el%s

an$ e(l(es. The "se ! c&%"#ers &icr8c&%"#ers* !a, &achines*

s%his#ica#e$ #ele%hnic ser(ices* an$ e8&ailin'* in#er8ne# an$ in#ra8ne# ser(ices

ha(e been !"n$ #hrwin' a bi' i&%ac# n #he %erce%#in ! "ali#y ! ser(ices.

This &a+es i# essen#ial #ha# #he ins"rance r'ani)a#ins als #hin+ in !a("r !

$e(el%in' %ersnnel in line wi#h #he $e(el%&en# an$ "se ! in!r&a#in

#echnl'ies. The !rn# line s#a!!s as well as #he branch &ana'ers are re"ire$ #

be 'i(en #he #rainin' !acili#y s #ha# #hey are in %si#in # &a+e %ssible an$

e!!ec#i(e "se ! #he #echnl'ies. The ins"rance r'ani)a#in bear #heres%nsibili#y ! #he $e(el%in' #he cre$en#ials ! #heir e&%lyees. In #his

cn#e,#* i# is als si'ni!ican# #ha# #hey #hin+ ab"# #he beha(i"r %r!ile !

ins"rance %ersnnel. I# is %er#inen# #ha# #he e&%lyees are well aware ! #he

beha(i"ral &ana'e&en# #hey +nw an$ "n$ers#an$ #he chan'in' le(el !

e,%ec#a#ins ! "sers an$ &a+e sincere e!!r#s # !"l!ill #he sa&e. In #his cn#e,#*

i# is als si'ni!ican# #ha# #he senir e,ec"#i(e while #he recr"i#in'* #rainin' an$

$e(el%in' #he ins"rance %ersnnel &a+e i# s"re #ha# e&%lyees ser(in' #he

r'ani)a#ins ha(e a hi'h beha(i"ral %r!ile in which e&%a#hy has been 'i(en

$"e %lace. The %sychl'ical a##rib"#es bec&es si'ni!ican# wi#h #he (iew %in#! in!l"encin' #he %rs%ec# a re#ainin' #he "sers* i# is in #his cn#e,# #ha# #he

ins"rance c&%anies nee$ a ra#inal %lan !r #he $e(el%&en# ! ins"rance

%ersnnel.

PHYSICA! EIDENCE


29/41


30/41


31/41


Ins"rance wr+s n s%rea$ ! ris+6 %rinci%le #he c&%any ha(e # "se #hers

&ney an$ hence #hey are (ery care!"l while %rcessin' #he clai&s b"# als

while acce%#in' #he %r%sals in #he !irs# %lace. Beca"se ! s&e s#rin'en#

nr&s* #he %rcess ! b#ainin' an$ !"rnishin' $c"&en#s %r!s e#c. Bec&es

c&%le, b"# i# has been "i#e si&%li!ie$ by #he e,is#ence ! #he a'en#s.

Cus)+,er -n


32/41


The #er& ins"rance &ar+e#in' re!ers # #he &ar+e#in' ! ins"rance ser(ices wi#h

#he ai& # crea#e c"s#&er an$ 'enera#e %r!i# #hr"'h c"s#&er sa#is!ac#in.

The ins"rance &ar+e#in' !c"ses n #he !r&"la#in ! an i$eal &i, !r Ins"rance B"siness s #ha# #he ins"rance r'ani)a#in s"r(i(es an$ #hri(es in #he

ri'h# %ers%ec#i(e. The r'ani)a#ins can s"ccess!"lly increase #he &ar+e# share*

&a,i&i)e #he %r!i#abili#y an$ +ee% n #he %rcess ! $e(el%&en# wi#h #he hel%

! &ar+e#in'.

In In$ian %ers%ec#i(e where r"ral rien#a#in nee$s a %ri&e a##en#in* #he

ins"rance &ar+e#in' &ay %r(e # be a $eice !r c&ba#in' re'inal i&balance

by &ain#ainin' #he sec#ral balance as an in(es#&en# ins#i#"#in #he r"ral$e(el%&en# rien#e$ %r-ec#s &a+e ways !r #he #rans!r&a#in ! r"ral

scie#y. I# is ri'h# # &en#in #ha# #he &ar+e#in' cnce%# in b#h ban+ an$

ins"rance b"siness is a &a##er ! recen# ri'in. The &ar+e#in' cnce%# in #he

ins"rance b"siness is cncerne$ wi#h #he e,%ansin ! ins"rance b"siness in #he

bes# in#eres# ! #he scie#y (is8Q8(is #he ins"rance r'ani)a#in. The selec#in !

ris+s 2%r$"c# %lannin'3* %licy wri#in' 2c"s#&er ser(ice3 ra#in' r ac#"arial

2%ricin'3 an$ a'ency &ana'e&en# 2$is#rib"#in38 all &ar+e#in' ac#i(i#ies &a+e

"% an in#e'ra#e$ &ar+e#in' s#ra#e'y. :e can6# ne'a#e #ha# $"rin' #he yes#er

$eca$es* #here ha(e been cnsi$erable $e(el%&en#s in #he %erce%#in !

c"s#&er ser(icin' !ir&s li+e ban+in' an$ ins"rance c&%anies. The &ar+e#in'

cnce%# in #he ins"rance b"siness !c"ses #he !r&"la#in ! &ar+e#in' &i, r

a cn#rl (er #he whle &ar+e#in' ac#i(i#ies #ha# &a+e "% an in#e'ra#e$

&ar+e#in' s#ra#e'y.

In a (iew ! #he ab(e* we bser(e #he !llwin' !ac#s re'ar$in' #he cnce%#s !

ins"rance &ar+e#in'4

• I# is a &ana'erial %rcess

• I# is a cnce%#"ali)a#in ! &ar+e#in' %rinci%les.

• I# is a %rcess ! !r&"la#in' #he &ar+e#in' &i,.

• I# is an a$(ice # &a+e %ssible c"s#&er rien#a#in.

• I# is an#her na&e ! &ar+e#in' %r!essinally.


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• I# is e(en a scial %rcess #ha# %a(es a(en"es !r scial #rans!r&a#in.

• I# is # &a+e %ssible %r$"c# a##rac#i(eness.

• I# is # ener'i)e #he %rcess ! "ali#y "%'ra$a#in.

CHAPTER 11


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MARKETTING STRATEGIES IN INSURANCE

In #$ay9s ecn&y* #he !inancial ser(ices in$"s#ry is e,%se$ # increasin' %er!r&ance %ress"re an$ c&%e#i#i(e !rces. M$ern &e$ia* s"ch as #he

in#erne#* ha(e crea#e$ new challen'es !r #his in$"s#ry. New b"siness cnce%#* a

chan'e in clien# s%has#ica#in* an$ an increasin' n"&ber ! new c&%e#i#rs

en#erin' in# #he &ar+e#* s"ch as in$e%en$en# !inancial cns"l#an#s* ha(e

chan'e$ #he b"siness &$els an$ #he c&%e#i#i(e !rces #ha# es#ablishe$

!inancial ser(ices r'anisa#ins are !acin' #$ay wrl$wi$e. A &ar+e#in'

s#ra#e'y ser(es as #he !"n$a#in ! a &ar+e#in' %lan. A &ar+e#in' %lan cn#ains

a lis# ! s%eci!ic ac#ins re"ire$ # s"ccess!"lly i&%le&en# a s%eci!ic &ar+e#in's#ra#e'y. A s#ra#e'y is $i!!eren# #han a #ac#ic. :hile i# is %ssible # wri#e a

#ac#ical &ar+e#in' %lan wi#h"# a s"n$* well cnsi$ere$ s#ra#e'y* i#9s is n#

rec&&en$e$. :i#h"# a s"n$ &ar+e#in' s#ra#e'y* a &ar+e#in' %lan has n

!"n$a#in. Mar+e#in' s#ar#e'ies ser(es as #he !"n$a&en#al "n$er%innin' !

&ar+e#in' %lans $esi'ne$ # reach &ar+e#in' b-ec#i(es. I#9s i&%r#an# #ha# #hese

b-ec#i(e ha(e &eas"rable res"l#s. A '$ &ar+e#in' s#ra#e'y sh"l$ in#e'ra#e

an r'ani)a#in9s &ar+e#in' 'als* %licies* an$ ac#in se"ence in# a chesi(e

whle. The b-ec#i(e ! &ar+e#in' s#ra#e'y is # %r(i$e a !"n$a#in !r&

which a #ac#ical %lan is $e(el%e$.

The !llwin' #echni"es are i&%le&en#e$ # $e(ice #he &ar+e#in' s#ra#e'y !r

#he %r$"c# an$ ser(ices.

8 se'&en#a#in

8 #ar'e#in'

8 %si#inin'

Se'&en#a#in

Mar+e# se'&en#a#in is wi$ely $e!ine$ as bein' c&%le, %rcess cs#in' in#

#w &ain %hases as !llws

8 I$en#i!ica#in ! bra$* lar'e &ar+e#

8 se'&en#a#in ! #hese &ar+e#s in r$er # selec# #he &s# a%%r%ria#e #ar'e#

&ar+e# an$ $e(el%e$ &ar+e#in' &i,es accr$in'ly.

Psi#inin'

Si&%ly* %si#inin' is hw y"r #ar'e# &ar+e# $e!ines y" in rela#in # y"r

c&%e#i#rs a '$ %si#inin' is


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8 wha# &a+es y" "ni"e

8 #his is cnsi$ere$ by y"r #ar'e# &ar+e#.

Psi#inin' is i&%r#an# beca"se y" are c&%e#in' wi#h all #he nise "# #herec&%e#in' !r y"r %#en#ial !ans a##en#in i! y" can s#an$ "# wi#h "ni"e

bene!i#s* y" ha(e chan'e$ #heir 'e##in' #heir a##en#in. I#9s i&%r#an# #

"n$ers#an$ y"r %r$"c# !r& #he c"s#&er9s %in# ! (iew rela#i(e #

c&%e#i#in.

Tar'e#in'

Tar'e#in' in(l(es brea+in' a &ar+e# in# se'a&en# an$ #hen cncen#ra#in' y"r

&ar+e#in' e!!r#s n ne r !ew +ey se'a&en#s. Tar'e# &ar+e#in' can be #he +ey# s&all b"siness9s s"ccess. The bea"#y ! #ar'e# &ar+e#in' is #ha# &a+es #he

%r&#in* %ricin' an$ $is#rib"#in ! y"r %r$"c# an$ ser(ices easier an$

&re cs# e!!ec#i(e. Tar'e# &ar+e#in' %r(i$es a !c"sse$ # all ! y"r

&ar+e#in' ac#i(i#ies.


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4 IMPORTANT STRATEGIES

These are #he D &s# i&%r#an# s#ra#e'ies !r nline ins"rance &ar+e#in'. Firs#*

b"il$in' lin+s # y"r websi#e is #he bes# #hin' y" can $ # hel% y"r websi#e

ran+ be##er. The reasn lin+s are s i&%r#an# is beca"se #hey c"n# as a 0(#e1

!r y"r si#e # #he search en'ines. :hen search en'ines ran+ websi#es #hey #a+e

in# acc"n# #he n"&ber ! lin+s 2(#es3 %in#in' a# #ha# si#e an$ #he "ali#y !

#hse lin+s.

T &a,i&i)e y"r res"l#s !r& lin+ b"il$in'* y"r &ar+e#in' %lan sh"l$

incl"$e b"il$in' lin+s !r& a n"&ber ! $i!!eren#* ye# rela#i(e* nline s"rces.

S&e %laces y" can 'e# #hese lin+s are !r& !r"& %s#s* bl' c&&en#s* lcal

$irec#ries !r y"r ci#y* r e(en wri#in' ar#icles !r ar#icle $irec#ries. Ma+es"re # chse # b"il$ lin+s a# websi#es #ha# are als 0#r"s#e$1 by G'le #ha#

will be seen as 0hi'h "ali#y1 by #he en'ines. Lin+s !r& 0s%a&&y1 l+in'

si#es wn6# $ y" a bi# ! '$.

Ar#icle :ri#in'

The cnce%# here is # wri#e D # @ wr$ ar#icles ab"# an ins"rance #%ic

an$ %s# i# a# (ari"s ar#icle $irec#ries. I! y" are a!rai$ y" wn6# +nw wha#

# wri#e -"s# !c"s n #he "es#ins #ha# y" are &s# c&&nly as+e$ by y"r

clien#s an$ s#ar# wri#in' !r& #here. Pre#en$ y"6re answerin' #hse "es#ins as

y" wri#e each ar#icle.

7" crea#e #he lin+ bac+ # y"r websi#e #hr"'h #hese ar#icle $irec#ries by

"sin' #he res"rce r a"#hr6s b, lca#e$ benea#h #he !inishe$ ar#icle #ha# is

%r(i$e$ by #he websi#e. S* y"6re 'e##in' a #r"s#e$ bac+ lin+ an$ sharin' s&e

! y"r ins"rance ac"&en.

http://www.localinsurancemarketing.com/http://www.localinsurancemarketing.com/


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:ebsi#e Twea+s

There are a l# ! ba$ websi#es "# #here n #he In#erne# #$ay an$ "n!r#"na#ely

#he wr$ 0ba$1 $esn6# re!er # #he 'ra%hic $esi'n r a%%earance* b"# s&e#hin'

&re i&%r#an#. In r$er !r y"r websi#e # ran+ well !r* le#s say 07"r TwnA"# Ins"rance1* y" nee$ # ha(e #ha# +eywr$ in #he ri'h# "an#i#ies n y"r

websi#e.

7" sh"l$ a$$ #he +ey %hrase # y"r si#e6s &e#a $escri%#in* &e#a +eywr$s*

#he h> hea$line #a' an$ #he %a'e6s #i#le #a'. :hile i#6s #r"e #ha# nly ab"#


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CHAPTER 12

!IMITATION OF INSURANCE MARKETING

S&e ! #he $i!!ic"l#ies an$ li&i#a#ins !ace$ by &e $"rin' &y #rainin'

are as !llws4

!ac + a?areness a,+n= )*e 0e+0e

This is #he bi''es# li&i#a#in !"n$ in #his sec#r. Ms# ! #he %e%le are

n# aware ab"# #he i&%r#ance an$ #he necessi#y ! #he ins"rance in #heir

li!e. They are n# aware hw "se!"l li!e ins"rance can be !r #heir !a&ily&e&bers i! s&e#hin' ha%%ens # #he&.

Perce0)-+n + )*e 0e+0e )+?ar/s -nsurance sec)+rB

Pe%le s#ill cnsi$er ins"rance -"s# as a Ta, sa(in' $e(ice. S #$ay als

#here is always a r"sh # b"y an Ins"rance Plicy nly a# #he en$ ! #he

!inancial year li+e an"ary* Febr"ary an$ March &a+in' #he #her

&n#hs $ry !r #his b"siness.


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Insurance /+es n+) =-


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CHAPTER 13

CONC!USION


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CHAPTER 14

REFERENCE

Problems in Insurance Marketing

Documents

Transcript of Problems in Insurance Marketing