It has been established that village co-operatives insured against loss of profit in an industry in the early days of the Aryan Civilization. There were contacts safeguarding risks of transport by sea or land. Further these well renowned joint-family system rendered services similar to those of present life assurances. However expecting the system of joint family all other gradually waned and insurance in the modern sense appeared in the late eighteenth and early nineteenth centuries by the established of seven Marine Insurance companies in Calcutta-the then center of trade and commerce in India. This was followed in due course by the opening of branches and or agencies in India by many British offices, and some continental and colonial insurers. Even the American offices did not lag behind.
The successful operation of the foreign insurers encouraged the formation of life offices in India in the late nineteenth century such as Bombay Mutual in 1871 and the oriental in 1874 and Hindustan cooperative in 1907 other life offices followed. The swadeshi movement at the beginning of the present century was responsible for the establishment of various insurers with Indian capital. Thus in 1907 the Indian Mercantile was the first Indian general insurance company followed later on by New India in 1919 and six other insurers. The year 1922 and 1923 were very critical for these young general insurers in as much as they had to compete with 150 foreign offices that had not only the experience of actual organization but also a tradition of general insurance business behind them. On the top of this the exchange banks provided impediments in one-way or the other. However patriotism of the Indian public saw the general insurers through this difficult period and national agitation insisting for legislative protection compelled the government of India to investigate into the matter.
[...] Nationalized insurance in brief is designed to bring insurance to the doors of even the humblest citizen whenever he may be the benefit of this social service to ensure complete security of the funds collected by way of premiums and to utilize them profitably for nation-building activities. The Indian insurance sector has seen drastic changes since the opening up of the sector to the private as well as foreign players. The private players along with their foreign collaborators have brought new life into the life insurance industry. [...]
[...] HDFC Standard Life now has operations in Mumbai, Delhi, Chennai and Bangalore PROFILE OF THE PRODUCT Product range of HDFC Standard Life Insurance LIFE INSURANCE Savings/Investment plans - Endowment Assurance, Money Back, Single Premium Whole of Life, Children's Plan Pure protection plans - Term Assurance, Loan Cover Term Assurance GROUP INSURANCE Group Term Insurance Plan Development Insurance Plan RETIREMENT PLANNING Personal Pension Plan Individual Products Each of us leads a unique life and so has unique needs. HDFC Standard Life offers a range of products and invites you to choose the one that suits you best. [...]
[...] There are six major sources of barriers to entry and the following table summarizes them in the context of the insurance sector in India with emphasis on the functioning of HDFC Standard Life. Factors indicating the threat of entry. Economies of scale HDFC Standard Life has a large corpus of funds. The wide spread distribution network and the large number of agents puts HDFC Standard Life in a position to exploit the advantage of scale. Product differentiation Significant brand equity for HDFC Standard Life. [...]
[...] Strength Strengthen its market leadership National presence in India Quality agent advisors Invested crores in IRDA Weakness 21 days training program Lack of Advertisements New entrepreneur in the market Less awareness of the public about the product Opportunities Market share to be increased by the number of applications and revenue generation Widen the service among rural areas To improve market visibility Threats Being a private organization No trust among public Strong competitors STATEMENT OF THE PROBLEM This particular topic has been chosen as a result of the increasing competition in the insurance sector from the private insurers as well as the nationalized insurers. [...]
[...] The agency force has been an effective and a successful factor in insurance industry and hence must be developed with interest HDFC Standard Life has to improve its marketing strategies in order to become the largest private insurer in the market and also become a major competitor to LIC A generic finding: Mutual funds have picked up since the late 1990's, HDFC Standard Life should take initiative and go into new innovative capital market solutions like equities, funds, derivatives, group family insurance, hybrid products to attract new segments of customers. [...]
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