India, with a middle class household population of around 200 million, presents a huge untapped potential for players in the insurance industry. Its per capita income is expected to grow at over 6% in the next 10 years, which paired with the ever increasing awareness levels of the masses pose an attractive venture for the insurance providers. Another factor that has added to the cause is the growing insecurity amongst the people with the random & repetitive unrest around the world. People fear death all the more now and the insurance seems to be the only way out, at least as referred by the insurance companies. RIES & TROUT in their famous book MARKETING WARFARE talk about mountains in the mind and their occupancy by products. Well, in the Indian insurance market, the whole mountain of the mind is occupied by LIC. With the entry of players like AIG, Sun Life, New York Life, ING, Allianz, Cardiff, Prudential etc has rejuvenated the erstwhile monopoly player LIC, which has responded to the competition in admirable fashion by launching new products and improving service standards. The scope of expansion is still unlimited as virtually all the players are concentrating on large cities and towns except for LIC. Advice and need based selling is emerging through much better trained advisers and sales force. However, there is still a long way to go and various customer surveys indicate that the standards are still below customer expectation levels. Innovative channels of distribution have been adopted like the internet or the bancassurance route, to name a few.
[...] AWARENESS ‘About Group life, Gratuity, Superannuation' All were aware of gratuity were aware of group life and 11 were aware of superannuation ‘About ING VYSYA Life Insurance' Almost 75% companies were unaware about the group insurance services offered by ING VYSYA. The rest had a fair idea about it. MIND SHARE OF CONSUMERS: Most of them were aware about LIC and the ESI services. ADVERTISING MEDIUM PREFERRED According to the companies, print was the most convenient media to promote their products. [...]
[...] Now in the tapped market of 19% the major share goes to LIC with TATA AIG and BIRLA SUN LIFE having a small share of the pie each. TOTAL DORMANT MARKET IN GROUP SUPERANNUATION WITHIN THE AREAS COVERED Only 19 companies had group superannuation cover whereas the other 103 companies are still uncovered or have self financed scheme of the tapped market is covered by LIC. Birla Sun Life gets the rest. TOTAL DORMANT MARKET IN GROUP GRATUITY WITHIN THE AREAS COVERED 30 companies have group gratuity cover. [...]
[...] SHARE: Here also gratuity had the maximum share in the market with 62% followed by superannuation with 255 and group life having 13%. POTENTIAL: Group life had 8 companies yet to be covered whereas superannuation and gratuity had 10 and 7 companies respectively. MYSORE ROAD, CHANDAPURA, SINGASANDRA, BOMMANAHALLI companies) Mysore road starts from the junction of K.R Road and Avenue Road towards the south western part of Bangalore. Chandapura industrial area is near Bommasandra and is approachable via Hosur Road. [...]
[...] Therefore, IVL should take special care of the existing customers to bring in new ones Few approaches ING could take to make the market yield something higher: Give more benefit to the employer and the same to the employee Give more to the employee and same to the employer Give more benefit to both Concentrate on smaller cities, as there is a large potential awaiting to be explored there. CONCLUSION The employees engaged in companies in the areas like Jigani, Attibele etc, mainly are of low salary brands and are unable to pay the premium amount required for life insurance. [...]
[...] Sundaram Finance group is exploring the potentials of Tier II and Tier III market viz., the semi- urban and rural markets with a target of acquiring 40,000 customers. Group Products Every organization faces some employee turnover. However the fact remains that an organization also needs to have a pool of good working staff that chooses to stay for the long haul. Today, as top management churn has increased, loyal staffs have become more important to companies. Employee benefits schemes including Group Insurance policies can help retain and create a bonding between the employee and the company. [...]
Online readingwith our online reader
Content validatedby our reading committee