India's insurance industry private and public, has it's roots in the 19th century. Under British rule many Insurers operated in India. In 1938 British passed Insurance Act, comprehensive insurance legislation, which remains the cornerstone of the insurance industry today. In 1956, Indian Government nationalized the insurance industry and combined 154 Insurance providers and formed Life Insurance Corporation (LIC) of India.
When the ideological winds of change blew in the early 1990s, the Indian Government set about liberalizing its insurance market. It set up a Commission of Enquiry and the central outcome of the Commission was the establishment of Insurance Regulatory and Development Authority (IRDA), that intern laid the framework for the entry of private (including foreign) insurance companies. Now there are 16 companies operating, including LIC. Aviva is UKs largest and world's fifth largest insurance group. With a history dating back to 1696, Aviva has 35 million customer base worldwide and more than £332 billion of assets under management.
[...] Offer “seamless service” not Be Profit Oriented rather than Growth Oriented Company's assets at all times must remain more than liabilities Risk management practices to become the underwriting philosophy of the company Insurance is selling a concept- the concept of security Make extra effort to understand the customers Insurers are in the business of paying claims; hence they must guarantee their ability to pay claims Maintain confidence of Policy Holders as well as Investors. What then are the formulae that promise marketing success? [...]
[...] Multi channel distribution and marketing of insurance products will be the smart strategy. While tied agents will continue to play an important role in distribution, alternative channels like corporate agents, brokers will play a greater role in distribution. The time has come for the industry to gradually move from traditional individual agents towards new distribution channels, with a paradigm shift in creating awareness and not just selling products. Worksite marketing, relatively inexpensive and easy to launch is one potential distribution channel. [...]
[...] The importance of insurance as a risk covers, as a tax saving and investment product is being highlighted. Reaching such informed and sophisticated customers in an efficient manner, providing better financial advice depending on the need and requirement of each customer, offering augment product, ensuring quality customer service and this delighting the customer is a challenge for every company. Customers want the best of all the worlds; price reduction, wider product coverage, more returns, excellent claims settlement. One that is available, customer would ask what next? [...]
[...] People's understanding of the concept of insurance differs a lot. Somebody's views it as tax saving plan, somebody, as covering financial risk against uncertain events and somebody thinks that, if it is beneficial only in case of my death. Why should I waste my hard- earned money? Therefore the public need to be informed about the real value of the insurance. Also there is need of customized research on consumption behavior and attitudes and each element of marketing decisions need to be fine-tuned to reflect the needs, aspirations and attitudes of customers who show distinctiveness in preference, tastes, habits and knowledge about insurance. [...]
[...] class income (In Million) (In Million) (In Rs.) Households Estimated Households Estimated population population Destitute (Source: Kotler and Keller “Marketing Management”) These changes in economic well being of the population created great opportunities for the industry as a whole, in terms of higher demand for existing products as well as for new offers. Life insurance industry is showing triple digit growth from last three years. The industry has shown Premiums rise over Nov 2005. Following table shows the Fist year's premium under written by the life insurers for the half year ended SEPT Insurers Premium U/W (Rs.in Lacs.) No. [...]
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