Service Marketing Insurance Sector context

Synergy Insurance Service (SES)

Introduction to Insurance

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

Insurance

Life Insurance

Term Life Insurance

Permanent Life

Insurance

General Insurance

Fire Insurance

Marine Insurance

Mediclaim

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 InsuranceMarine InsuranceMisc. Insurance

Pricing Mix- Important 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 ForceExternal Marketing- Electronic

& Print MediaPersuasive AdvertisingSales Promotion and Publicity

Contemporary Mixes…

People Mix-CustomersAgentsAdvisors

Process Mix-Hospitality MarketingInteractive 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:- Tie-ups 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 commitmentsLiberalization 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/ditctncd2010WWW.TARGETSTUDY.COM/KNOELEDGEWWW.WIKIPEDIA.ORGMarketing management – Philip Kottler.Service marketing – K. Ramamohana Rao.WWW.ICICILOMBARD.COMWWW.OPPAPERS.COMWWW.LICINDIA.COMWWW.IRDA.GOV.IN

Group:- Kottler

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