Insurance
Content
Insurance is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss. Insurance is nothing but a system of spreading the risk of one onto the shoulders of many.
Risk Management, the practice of appraising and controlling risk, has evolved as a discrete of field of study and practice
Evolution of Insurance Sector
1818: Oriental Life Insurance Company, the first life insurance company on Indian soil started functioning. 1870: Bombay Mutual Life Assurance Society, the first Indian life insurance company started its business. 1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate the life insurance business. 1938: Earlier legislation consolidated and amended to by the Insurance Act with the objective of protecting the interests of the insuring public.
1956: 245 Indian and foreign insurers and provident societies are taken over by the central government and nationalized. LIC formed by an Act of Parliament, viz. LIC Act, 1956, with a capital contribution of Rs 5 crore from the Government of India.
The 1st general insurance company was developed by britishers in 1850.
Services in Insurance Sector
Term Life Insurance Life Insurance Permanent Life Insurance Fire Insurance Marine Insurance General Insurance Mediclaim
Insurance
Accidental
Motor Vehicle
Benefits of Insurance Services
Financial Stability for household and firms. Mobilization of Resources and channel savings. Relieve pressure on Government budget.
Minimization of total risk.
Quality Work Life (QWL). Increased Social Stability.
Organization System of Insurance
Organizations providing Insurance in India are broadly classified into three groups Departmental Organizations Corporations Organizations Government Companies Marketing orientation and customer sensitivity are two important considerations for an insurance sector
Marketing Mix of Insurance Sector
Product Mix-Fire Insurance -Marine Insurance -Misc. Insurance Pricing MixImportant factor that influences the price decisions of insurance business is risk. Tariff advisory committee was constituted as per Insurance Act 1968. Fixation of rates as per the risk is devised by this committee.
Marketing Mix Continues...
Place Mix-Door to door Marketing. -Through agents. -Internet Based Marketing (ICICI Lombard). Promotion Mix-Direct Marketing. -Internal Marketing- Personal Sales Force -External Marketing- Electronic & Print Media -Persuasive Advertising -Sales Promotion and Publicity
Contemporary Mixes…
People Mix-Customers -Agents -Advisors Process Mix-Hospitality Marketing -Interactive Marketing Physical Evidence Mix-Insurance Certificates. -Premium payments Receipts.
Emerging Services in Insurance Sector
Electronic Clearance Services (ECS):- A policy
holder having an account in any bank which is a member of the local clearing house can opt for ECS debit to pay premiums.
Call Centre & SMS Services:- 24 x 7 Interactive
Voice Response System (IVR) .
LPG Concept:- Liberalization, Privatization &
Globalization
Consolidation of Insurance Operations
Closer ties between insures & banks:- Tieups between insurers & banks through bancassurance ( Bank + Insurance) or conglomerates ( financial groups).
Offshoring:- Offshore centers aim to attract
international insurance business through attractive concessions & liberal incorporations requirements Increased public Awareness
Claim settlement services
Current status of GATS on insurance services.
Identifying sectors for further liberalization:intermediation, risk assessment services, reinsurance etc..
Identifying nature of commitments Liberalization of trading norms. Ascertaining transparency issues in trade of insurance. Identifying cross-cutting issues:- normalization of
regulatory barriers. Customer Relationship Management (CRM).
Kottler group. U.S.P
Consolidated insurance services :- a type of
insurance service covering all the aspects of risk right from life insurance to all other general insurances such as fire, marine, wealth-assurance, children's education plans etc. Basic tenet of idea:- cumbersome policy availing procedures n premium payment services are burden on the part of customer. So to ease this we have come up with an idea of “Synergy Insurance Services” i.e.
(SES).
References
WWW.UNCTAD.ORG/en/docs/ditctncd2010 WWW.TARGETSTUDY.COM/KNOELEDGE WWW.WIKIPEDIA.ORG Marketing management – Philip Kottler. Service marketing – K. Ramamohana Rao. WWW.ICICILOMBARD.COM WWW.OPPAPERS.COM WWW.LICINDIA.COM WWW.IRDA.GOV.IN
Risk Management, the practice of appraising and controlling risk, has evolved as a discrete of field of study and practice
Evolution of Insurance Sector
1818: Oriental Life Insurance Company, the first life insurance company on Indian soil started functioning. 1870: Bombay Mutual Life Assurance Society, the first Indian life insurance company started its business. 1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate the life insurance business. 1938: Earlier legislation consolidated and amended to by the Insurance Act with the objective of protecting the interests of the insuring public.
1956: 245 Indian and foreign insurers and provident societies are taken over by the central government and nationalized. LIC formed by an Act of Parliament, viz. LIC Act, 1956, with a capital contribution of Rs 5 crore from the Government of India.
The 1st general insurance company was developed by britishers in 1850.
Services in Insurance Sector
Term Life Insurance Life Insurance Permanent Life Insurance Fire Insurance Marine Insurance General Insurance Mediclaim
Insurance
Accidental
Motor Vehicle
Benefits of Insurance Services
Financial Stability for household and firms. Mobilization of Resources and channel savings. Relieve pressure on Government budget.
Minimization of total risk.
Quality Work Life (QWL). Increased Social Stability.
Organization System of Insurance
Organizations providing Insurance in India are broadly classified into three groups Departmental Organizations Corporations Organizations Government Companies Marketing orientation and customer sensitivity are two important considerations for an insurance sector
Marketing Mix of Insurance Sector
Product Mix-Fire Insurance -Marine Insurance -Misc. Insurance Pricing MixImportant factor that influences the price decisions of insurance business is risk. Tariff advisory committee was constituted as per Insurance Act 1968. Fixation of rates as per the risk is devised by this committee.
Marketing Mix Continues...
Place Mix-Door to door Marketing. -Through agents. -Internet Based Marketing (ICICI Lombard). Promotion Mix-Direct Marketing. -Internal Marketing- Personal Sales Force -External Marketing- Electronic & Print Media -Persuasive Advertising -Sales Promotion and Publicity
Contemporary Mixes…
People Mix-Customers -Agents -Advisors Process Mix-Hospitality Marketing -Interactive Marketing Physical Evidence Mix-Insurance Certificates. -Premium payments Receipts.
Emerging Services in Insurance Sector
Electronic Clearance Services (ECS):- A policy
holder having an account in any bank which is a member of the local clearing house can opt for ECS debit to pay premiums.
Call Centre & SMS Services:- 24 x 7 Interactive
Voice Response System (IVR) .
LPG Concept:- Liberalization, Privatization &
Globalization
Consolidation of Insurance Operations
Closer ties between insures & banks:- Tieups between insurers & banks through bancassurance ( Bank + Insurance) or conglomerates ( financial groups).
Offshoring:- Offshore centers aim to attract
international insurance business through attractive concessions & liberal incorporations requirements Increased public Awareness
Claim settlement services
Current status of GATS on insurance services.
Identifying sectors for further liberalization:intermediation, risk assessment services, reinsurance etc..
Identifying nature of commitments Liberalization of trading norms. Ascertaining transparency issues in trade of insurance. Identifying cross-cutting issues:- normalization of
regulatory barriers. Customer Relationship Management (CRM).
Kottler group. U.S.P
Consolidated insurance services :- a type of
insurance service covering all the aspects of risk right from life insurance to all other general insurances such as fire, marine, wealth-assurance, children's education plans etc. Basic tenet of idea:- cumbersome policy availing procedures n premium payment services are burden on the part of customer. So to ease this we have come up with an idea of “Synergy Insurance Services” i.e.
(SES).
References
WWW.UNCTAD.ORG/en/docs/ditctncd2010 WWW.TARGETSTUDY.COM/KNOELEDGE WWW.WIKIPEDIA.ORG Marketing management – Philip Kottler. Service marketing – K. Ramamohana Rao. WWW.ICICILOMBARD.COM WWW.OPPAPERS.COM WWW.LICINDIA.COM WWW.IRDA.GOV.IN
