Evised by firms that safeguard the interest of the client.
There are several insurance companies that offer different types of insurances. There are
several life insurance companies and general insurance companies offering
different services to the clients. The
insurance requires the customers to pay a certain insurance fees for a specified period of
time. The mode of payment and the nature of compensation depend upon the
insurance policy a person buys. There are many players and several
packages being offers to the
customers. Insurance marketing is very
vital for the success of insurance
companies and to attract customers to
the insurance policies. But the
Indian insurance players face a lot of
difficulties in marketing their products. People of India do not show
interest in buying the policies of different players. They do
not find any immediate benefit by purchasing policies of both life
insurances ane general insurers. Some general insurance policies are purchased because of legal compulsion as for
instance motor insurance or transit or fire
insurance as a precondition for bank credit. Life policies also may be
very rarely purchased compulsorily as a collateral for a housing or educational loans. Barring these minor exceptions, Life
policies are always sold and not purchased willingly for the following
reasons.
(1) Life insurance is intangible and not tangible like a washing machine or a bath soap which are needed and which
give instant satisfaction. The satisfaction in life insurance comes after a long period to the
customer when it meets some specific money milestones in his life such as a marriage
or own retirement or is of immense
benefit to his family in case of his early death. Many do not understand what
life insurance does to them or their family. They never feel it as a need as they
seldom realize that the suddenness of untimely death is a very likely event in their own lives. The
agent has to explain this situation in an acceptable manner to uncover the need and to convert it
into a want so that the customer buys it immediately. (2) There is always a tendency to defer the
decision even when the need is accepted as the possibility of death is very
often ignored or not realized as imminent. The pressing requirements of today
takes the front seat pushing the life
insurance providing to the back
seat or for a tomorrow that never comes.
(3) Religious and cultural beliefs, conservatism, the usual fatalistic
attitude of leaving every thing to fate
of God all these come in the way of the purchase of life insurance.
(4) There is a strong
notion that life insurance is a not a
good investment by making a improper comparisons. (5) People do not know that
life insurance can be purchased only if they are in reasonable good health and it is not granted if they are
in bad health. Life insurance may become
impossible when they finally decide. (6) The idea of insurance requires personal explanation of the benefits and features by an agent.
Every prospect has a different need and there are policies suitable for each need. (7) Purchases of life
insurance involves a long a
term commitment putting aside considerable amount of money regularly for a benefit which rather vague and far a and in taking the decision the agent has to play a big role. All these reason make
insurance marketing difficult and different at the same time. In order to attract the
potential customers to the insurance company and to earn more revenue by
selling more policies , the insurer will have to adopt certain
marketing strategies with regard
to product the insurer will have
to adopt certain customer service
management. Before we discus in detail about the marketing strategies of Indian
insurance players, let us first understand the concept of insurance market and insurance marketing.
CONCEPT OF INSURANCE MARKET: The term market
refers to a place where sellers and buyers sell and buy goods directly or through intermediaries. According
to the Federation of insurance
Institute, Mumbai the term Insurance Market comprises the insurer, buyers and
intermediaries who bring the two
together. As such like other commodity or service market an
insurance market also consists of three parties i.e, (1) Seller:
Insurance companies or insurer: (2) Intermediaries: Insurance agents or brokers
or bankers: and (3) Buyers: Insureds of prospective buyers. The key players
sellers in the Indian insurance market
include: In public sector: LIC of Indian, National Insurance company LTD.,
Oriental Insurance Co. Ltd., New India
assurance Co. Ltd. and United India Insurance Co Ltd., IN PRIVATE SECTOR: Bajaj Allianz, ING Vysya
, SBI Life,
CONCEPT OF INSURANCE MARKETING: The term Insurance Marketin
refers to the marketing insurance
services with the motto of customer orientation and profit generation. A fair
blend of profit generation and customer satisfaction makes by the way for development and
expansion. The insurance marketing
focuses on the formulation of an ideal
mix for the insurance business so that
the insurer survive and thrive in a right perspective. The quality of
services can be improved by formulating a fair mix of a the core and
peripheral services. The persuasion
process can be speeded up with the support of creative can be made promotional measures. The premium and bonus
decision can be made3 motivational the gap between the service promised and
service offered can be bridged, the quality and value based personnel can make performance-orientation
possible and these developments can make
the insurance organizations strong
enough to face the challenges and threats in the market, . Thus the marketing
concept in insurance business focuses on
the formulation of marketing mix or a control over the whole group of
marketing mix or a control over a the
whole group of marketing activities that
make up an integrated marketing
strategy. From the above the following facts regarding the concept of insurance marketing are derived. (1) It is a managerial process. (2) It is a
conceptualization of marketing
principles .(3) It is a process of
formulating the marketing mix. (4) It is
a device which makes consumer
orientation possible. (5) It is an attempt to help profit maximization .
(6) It is even a social process that paves a avenues for social transformation. (7) It makes the
products attractive. (8) It is to
energies the process of quality up
gradation.