Insurance - For Merge

8/10/2019 Insurance - For Merge

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INTRODUCTION TO INSURANCE

NEEDFORINSURANCE:

From cave age till date, the story of evolutio of ma!id is i fact a saga

of cotiuous search for security" #is $ro%lems have remaied the same throughthe ceturies though the from has chaged &ith the chages i ecoomic adSocial circumstaces"

INSURANCEASASOCIA'SECURIT(TO'')

Idividual*s icome is de$edet u$o the ivestmet of his time" Over a+eriod of time, he saves sufficietly to $rovide for the time, &he he is too oldto ear" ut o %ody ca guaratee him this time" This ucertaity of timeleads him to the ivetio of isurace" The story goes of a e&s$a$er ha&!er

%oy &ho used to ear his livelihood" Oe day, &he he left his cycle outside ahouse ad &et i to deliver the e&s$a$er, his cycle got stole" #e hadthereafter o meas to ru aroud" -al!ig &ould %e a slo& $rocess ad hisIcome &ould d&idle" The %oy &as a smart oe" he called his other %rotherha&!er ad arrated his story" .ay others i the same /o% had similar storiesto tell" They /ust hit u$o a idea" A cycle say &ould cost rs" 01123" There &erealmost 011 ha&!ers" Almost every year oe cycle &as gettig stole" Oly ifthey could have a fud of rs" 01123such a loss suffered %y ay of them could %ecom$esated" Ad the creatio of a fud of rs"01123 merely meas a

cotri%utio of rs"023 $er $erso $er year" The coce$t of isurace &as %or" Aco3o$erative society &as created, &here each mem%er of the family cotri%uteda small $ortio to $rovide for a $ossi%le %ig loss &hich &as too %ig for ay oeto %ear"

-e call life isurace a social security tool %ecause &ithout the $rovisioof isurace, this huma society &ould cosist of ha$less old $eo$le, hel$less&ido&s, ad u$rotected or$has" The ecoomy &ould ot survive let aloegro&" The factories &ould ot restart after a earth4ua!e or a cycle or a

motorcycle for that matter could*t %e re$laced after %eig stole" Uli!e asocialist society &here the state ta!es care of idividuals &ho %ecome destituteor de$rived, i a develo$ig society li!e ours, the State is too $oor to ta!e u$such res$osi%ilities"

Isurace is %ased u$o the uiversal a5iom" 67od hel$s him, &ho hel$shimself8" There are oly three sources of icome &he calamity has %efalle3savig, charity ad isurace" Savig eeds time to accumulate" Normally icase of huma %eigs, 91: of the icome comes from his savig ad 01: fromivestmet of his time" That is the ideal situatio" ut &ho ca guaratee him

the time ; time to save ade4uately so as to reverse this ratio" The secodalterative3 charity is too demeaig to %e eve cosidered as a $ro$eralterative" The oly via%le alterative therefore is isurace" It is a $roduct of

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idividual*s farsightedess, his $reset sacrifice for a future gai" It iscommesurate &ith his self3res$ect ad digity"

AD


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Cosideratio should %e $aid for a reci$rocal %eefit"

+arties to the cotract must %e of oe mid"

It is &ell !o& that the $ro$oser of life isurace has to eter ito a validlegal cotract" #o&ever &here the isured $erso is a child, his father or mother

ca $ro$ose for the isurace of the child, as the $arets are acce$ted as legalguardias ad authori?ed to eter ito legal cotract o %ehalf of their &ard"

The $ro$osal from costitute a offer letter %y the $ro$oser, &herei the$ro$oser is e5$ected to as&er all 4uestio truthfully ad should ot &ithholday iformatio regardig his health, ha%it ad occu$atio" Uder ormalcotract of $urchase of sale of commodities, lad etc, the %uyer has the 4ualityof the o%/ect that he is %uyig, 6uyer %e&are8 or caveat em$tor is the

$rici$le, %ecause the %uyer has o right to come at a late date ad as! for thetermiatio of the cotract o the groud of deficiecy i 4uality of 4uatity" It

is true that i the $reset age, &he the commodities li!e T


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ANCASSURANCE

acassurace i its sim$lest form is the distri%utio of the isurace$roducts through the %a!*s distri%utio chaels" I cocrete terms

%acassurace, &hich is also !o& as Allfia? ; descri%es a $ac!age offiacial services that ca fulfill %oth %a!ig ad the isurace eeds at thesame time it ta!es various forms i various climate of the coutries de$edigu$o the demogra$hy ad ecoomic ad legislative climate of the coutry"Demogra$hic $rofile of the coutry decides the !id of $roducts %acassurace&ill %e dealig &ith, ecoomic situatio &ill determie the tred i terms ofturover, mar!et share etc" -hereas legislative climate &ill decide the

$eri$hery &ithi &hich the %acassurace &ill o$erate"

The motives %ehid %acassurace also very for %a!s it is a meas of$roduct diversificatio ad a source of additioal fee icome" Isuracecom$aies see %acassurace as a tool for icreasig their mar!et $eetratioad the $remium turover" The customer sees %acassurace as a %oa?a iterms of reduced $rice, high 4uality $roduct ad delivery at doorste$" Actuallyeveryoe is a &ier here"

Esta%lished o the strog foudatio of trust ad security %acassuraceis a mutual relatioshi$ %et&ee the %a!s ad isurers" A relatioshi$ &hich isama?igly com$lemets each others S-OTs"

A very commo ad highly acce$ted $heomeo iteratioally B&ith as$ecial metio of Euro$e has acce$ted the Indian Economy for %etter"-hether its year old $rivate $layers or year %ig 'IC all are advocatig

%acassurace although slo&ly ad steadily"

acassurace is actually the %u??&ord i isurace idustry, today" Theidustry is %oomig ad reachig their all time high" Accordig to the e5$ertsthe idustry is here to stay" -ith a&areess ad iformatio %eig the !ey gotthe success ad the distri%utio %ecomes the %ac!%oe of the system" Also

%a!ig idustry is goig glo%al ad elevatig their status from mere %a!s toht ultimate fiacial istitutios" The com%iatio of the t&o results i &i3 &isituatio for %oth %a!s ad the isurers" Ifarct &e ca say it*s a &i ; &i ;&i situatio &ith the customer %eig the third ad the ultimate &ier"

-#(S#OU'DANSENTERINSURANCEG

There are several reasos &hy %a! should seriously cosider%acassurace, the most im$ortat of &hich is icreased retur o assets

BROA" O of the %est &ays to icrease ROA, assumig a costat asset %ase, isthrough fee icome" a!s that %uild fee icome ca cover more of theiro$eratig e5$eses, ad oe &ay to %uild fee icome is through the sale of

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isurace $roducts" a! that effectively cross3sell fiacial $roducts caleverage their distri%utio ad $rocessig ca$a%ilities for $rofita%le o$eratige5$ese ratio"

y leveragig their stregths ad fidig &ays to overcome their&ea!ess, %a! could chage the face of isurace distri%utio" Sale of $ersoallie isurace $roducts through %a!s meets a im$ortat set of cosumereeds" .ost large retail %a! egeder a great deal of trust i %road segmets ofcosumers, &hich they ca leverage i sellig them $ersoal lie isurace

$roducts" I additio, a %a!s %rach et&or! allo&s the face to face cotactthat is so im$ortat i the sale of $ersoal isurace"

Aother advatage %a!s have over traditioal isurace distri%utors isthe lo&er cost $er sales lead made $ossi%le %y their si?a%le, loyal customer

%ase" a!s also e/oy sigificat %rad a&areess &ithi their geogra$hic

regios, agai $rovidig for lo&er $er3lead cost &he advertisig through $rit,radio ad2or televisio" a!s that ma!e the most of these advatages are a%leto $eetrate their customer %ase ad mar!ets for a%ove3average mar!et share"Other %a!s stregths are their mar!etig ad $rocessig ca$a%ilities"

ENEFITSTOINSURERS

Isurers have much to gai from mar!etig through %a!s" +ersoal3liescarriers have foud it difficult to gro& usig traditioal agecy systems %ecause

$rice com$etitio his drive do& margis ad icreased the com$esatio

decade, life agets have sold fe&er ad larger $olicies to a more u$scale cliet%ase" .iddle3i come cosumers, &ho com$rise the %ul! of %a! customers, getlittle attetio from most life agets" y ca$itali?ig o %a! relatioshi$s,isurers &ill reca$ture much of this uder served mar!et"

CO''AORATIONIST#EE()

I their atural ad traditioal roles ad &ith their curret s!ills, either%a! or isurace com$aies could effectively mout a %acassurace start3u$

aloe" Colla%oratio is the !ey to mar!etig this e& chael &or!"a!s %rig a variety of ca$a%ilities to the ta%le" .ost o%viously, they o&$ro$rietary data%ases that ca %e ta$$ed for middle mar!et &arm leads" Iadditio, they ca leverage their ame recogi?atitio at %oth local ad regioallevels" Strog $layers also e5cel at maagig multi$le distri%utio chaels,crossig3sellig %a!ig $roducts ad usig direct mail" #o&ever, most %a!lac! e5$eriece i several areas critical to successful %acassurace strategies,i $articular, develo$ig isurace $roducts, sellig through face3to3face6$ush8 chael uder&ritig, ad maagig log tail isurace $roducts"-here a %a! usually fall short, a strog isurer &ill e5cel" .ost havesu%statial $roduct ad uder&ritig e5$eriece, strog 6$ush8 chaelca$a%ilities ad ivestmet maagemet e5$ertise" O the other had, they tedto lac! e5$eriece of a%ility i the areas &here %a!s $revail" They have little of

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o %ac!groud i maagig lo&3cost distri%utio chaels they ofte lac! localad regio ame recogitio ad re$utatio ad they seldom $ossess access toor e5$eriece &ith the middle mar!et"

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STANDARED C#ARTERED AN

Stadard chartered is the &orld*s leadig emergig mar!et %a!head4uartered i 'odo" Its %usiess ho&ever, has al&ays %eeover&helmigly iteratioal" This is summary of the mai evets i the

history of Stadard Chartered a! ad some of the orgai?atio &ith &hich itmerged"

T#EEAR'((ERARS

Stadard Chartered is amed after t&o %a!s &hich merged i 099"They &ere origially !o& as the Stadard a! of ritish South Africa adthe Chartered a! of Idia, Australia ad Chia "Of the t&o %a!s, theChartered a! is the older havig %ee fouded i 0JH@ follo&ig the grat ofRoyal Charter from Kuee " of these e& %usiess, ots&aa, a?i%ar ad D"R"C" $rovedthe most difficult ad the %raches soo closed"

I Asia the Chartered a! e5$aded o$eig offices i, .yamar i0J>, &hat is o& +a!ista ad Idoesia i 0J@, the +hili$$ies i 0J>,

.alaysia i 0JH, Ma$a i 0JJ1 ad Thailad i 0J9" Some @ years after theChartered %a! a$$oited a aget i Sri 'a!a it o$eed a %rach i 0J9> tota!e advatage of %usiess from the tea ad ru%%er idustries" Durig 091 a

%rach o$eed i


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The e& milleium has thought &ith it t&o of the largest ac4uisitios ithe history of the %a! &ith the $urchase of 7rid 'ay a! from the AN7rou$ ad the ac4uisitio of the Chase Cosumer a!ig o$eratios i #ogog i >111"

.ISSION

Stadard Chartered +'C is listed o %oth the 'odo Stoc! E5chagead the Stoc! E5chage of #og og ad is i the to$ >H FTSE3011Com$aies, %y mar!et ca$itali?atio" It serves %oth cosumer ad &holesale

%a!ig coutries" Cosumer %a!ig $rovides credits cards, $ersoal loas,mortgages, de$osit ta!ig ad &ealth maagemet services to idividuals adsmall to medium si?ed eter$rises" -holesale a!ig $rovides cor$orate adistitutioal cliets &ith services i trade fiace, cash maagemet, leadig,

securities services, foreig e5chage, de%t ca$ital mar!et ad cor$orate fiaceStadard Chartered is &ell esta%lished i gro&th mar!ets ad aims to %e theright $arter for its customers" The %a!s com%ie dee$ local !o&ledge &ithglo%al ca$a%ility"

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OUR INSURER AMAM A''IAN

The Stadard Chartered grou$ has ties u$ &ith a/a/ Allia? 'ifeIsurace Com$ay to offer our customers the %est solutio for their isuraceeeds"

-#(AMAMA''IAN

a/a/ Allia? s a uio %et&ee Allia? A7 of 7ermay, the -orld*sleadig isurer, ad a/a/ Auto, oe of Idia*s most res$ected ames

AOUTA''IANA7

Allia? A7, the &orld*s No 0 isurer &ith a gross &ritte $remium of

US@" %illio Pa$$ro5imately Rs" @11,111Q i a fiscal year"

-ith over 11 su%sidiaries ad a$$ro5imately 0J0,@H em$loyees&orld&ide

Allia? glo%al et&or! e5tets to over 1 coutries Euro$e,

South ad Norther Americas, Africa, .iddle East, Asia +acific

Assets uder maagemet 0>H %illio USDP Rs" 1 lac crsQ

AOUTAMAMAUTO

I the auto mar!et for the last HH years

A Rs" ,111 core auto giat Em$loys over 0H,111 em$loyees

The 'argest maufacturer of t&o3&heeler ad three3&heeler i Idia ad

oe of the largest i the &orld A com$ay &ith strog %rad image ad %rad loyalty, syoymous &ith

4uality ad customer focus

#O- -I'' A''IAN AMAM -I'' CARTER CUSTO.ERS"

a/a/ Allia? has $laced its Isurace Services Cosultats3 s$ecialists iIsurace i our %raches These s$ecialists are had $ic!ed %y a/a/ Allia?ad e5tesively traied to uderstad* eeds Customer eeds &ill %e aaly?edad oly the &ill they %e advised of the right $rotectio $la for them ad theirfamily The s$ecialist is salaried em$loyee of Allia? a/a/ the si?e of $remiumdoes ot guide his2her advice" #e 2 she &ill %e the customer*s oe $oit ofcotact" All after sales service re4uiremets &ill %e ta!e care of the %rachitself %y the s$ecialists The Isurace Service Cosultats &ill very soo %ea%le to offer $olicies olie"

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#O- -OU'D A''IAN AMAM TAE OF OUR CUSTO.ERSNEEDG

-e follo& a eed3%ased a$$roach to isurace &e ru you through isurace

eeds +laer ad assess" (our isurace eeds %ased o $arameters such as)

#ousehold e5$eses Outstadig loas Childre*s Educatio eeds

Other future e5$eses li!e childre*s marriage Assets = Resources

S$ouse*s cotri%utio to family icome

Oce &e !o& the level of isurace you &ould re4uire to ta!e care of yourfamily, &e &ould the select the $roduct you that &ould %e most suita%le foryour eeds"

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T#E +'ANS OFFERED ( T#E +'A(ERS IN T#EINDUSTR(

T#E TRADITIONA' +'AN)

-e have discussed i the $revious cha$ter the %asic ature of lifeisurace" -e have tal!ed of $ure isurace &here othig is $aya%le to the lifeassured &ho survived the duratio of $olicy" -e have tal!ed of savigselemets" -e ca thi! of a life isurace $olicy &he the sum assured is $aido survival oly ad othig $aya%le o death" ut this is o isurace" It is li!ea %a! de$osit ad therefore, %y itself caot %e cosidered a life isurace

$la" 'ife isurace Cor$oratio had a similar $la, &hich &as late o&ithdra&" #o&ever, the savigs factor ca %e added to the $ure isurace toform ifiite varieties of $la to meet differet eeds"

The $ure isurace is called ter isurace" It ca %e for ay legth of$eriod" -he its duratio is &hole life, it is called a &hole life $olicy" +remiumis $aya%le through out life ad the death claim" I"e" sum assured" .ostcom$aies $ay the claim &he the life assured attais age 011" It is a matter ofgrace, homage to the survivor" +aymet of $remium is also ot isisted u$o tilldeath" It is ormally &aived after the $remium has %ee $aid say of @H year orage J1 &hichever is later" A edo&met $lat is a com%iatio of a termassurace $la ad a $ure savig $la" The $remium amout is ehaced to

$rovide for the retur of the sum assured, it the life assured survives the $eriod"

UNIT'INED+'ANS

These $las ormally hold the $remium divided ito t&o categories ; that&hich is meat to cover the life ris! ad the other &hich is ivested i uits ithe mar!et to ear divided" As &e have said earlier, ormal life isurace

$lats though so charge for %oth life isurace ad savigs &hich is ivested" Itis ot accouted for se$arately i their %oo!s or is the $olicy holder iformed

a%out this divisio" Uit Trust of Idia is a mutual fud com$ay ad hadfloated the uit3li!ed $la i colla%oratio &ith 'IC" 'IC has therefore,clam$ed certai restrictios o the UTI so that UTI does ot %ecome aeffective com$etitor" UTI*s U'I+ $la caot %e for duratio loger tha 0Hyears or ca it %e for a amout more tha H,11123"

INDI


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ad 2 or survival de$edig u$o the coditio of the $la" I case of a /oit life

$la, the sum assured ca %e $aid o the first death or secod death or o %oth"

The grou$ $olicy is %ased o a differet %asis" #ere a grou$ of $eo$le,ormally %elogig to oe em$loyer, or oe occu$atio are isurace together"All the $erso o duty o the date of isurace are covered for a miimum sumisure, called free cover" No%ody has to udergo ay medical e5amiatio or isay $ro$osal form to %e filled i %y the idividual mem%er" The em$loyer ofay other odal agecy fills u$ the $ro$osal form, &hich cotais the ame adage of each $erso covered %y this master $olicy

-IT# +ROFIT AND -IT#OUR +ROFIT +O'OCIES)

The $rofit re4uiremet i a isurace $olicy is a moder coce$t iorder to ma!e life isurace more attractive" Oly if the sum assured as it is to

%e retured after years of $ayig the $remium, the life assured feels cheated" #etherefore, &ats that his $remium amout should also ear some $rofit ad thefial sum assured should %e much more"

The isurace com$aies charge a e5tra amout from the $olicy holderfor allo&ig such %eefit" This is called %ous loadig, &hich ca %e 4uitesu%statial" Thus &ithout $rofit $olicies are much chea$er com$ared to &ith

$rofit $olicies" The %ous ca %e $aid alog &ith the claim oly, thought it isdeclared every year" It is, the called reversioary %ous" Some isuracecom$aies may decide to $ay %ous i cash every year" I such a case, the

amout $aya%le has to %e ecessarily much less tha i case of a reversioary%ous"

'oger the term, higher is the %ous eared" 'IC had divided its %ousrate o the %asis of the legth of the term of $la" +olicies &ith a term of >years or more ear %ous at a higher rates tha the $olicies of term %et&ee >0years ad > years" The $olicies of less tha >0 years ear at a still lo&er rate"

-#O'E 'IFE +O'IC()

-hole life $olicies are ormally those &here the claim is $aid o death orat age 011 %y grace" It ca %e a &ith $rofit $olicy or a &ithout $rofit $olicy" The

$remium $ayig $eriod ca %e for the etire $eriod or limited to lesser um%erof years" It is called a limited &hole life $la" I fact the $remium $ayig $eriodca %e aythig from H years to H1 years or eve loger" For the same sumassured ad at the same age, the loger the duratio of $remium $ayig $eriod,the smaller is the 4uatum of $remium" The fial claim ca %e $aid i sigleistallmet or as a $esio $aya%le i several istallmets"

Sice i the &hole life $olices, the claim is $aya%le o death oly, theisurace com$aies ca ivest this moey i log3term $ro/ect ad thus ear

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higher divided" Therefore, the %ous rate i &hole life $olicies is morecom$ared to edo&met $olicies"

INTEREST SENTI


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Deferred auity)

This auity is $aid after the e5$iry of the selected $eriod" The $urchase$ride ca %e $aid i sigle $remium or istallmet over a $eriod" The date of$aymet of auity ca %e $refi5ed" The $eriod, durig &hich o auity is

$aid, is called defermet $eriod"

+O'ICIESFORFE.A'ES, C#I'DRENAND+#(SICA''(#ANDICA++ED)

The females hitherto &ere cosidered a se$arate grou$ form males forisurace $ur$ose for several reasos, some of &hich are ot valid today"

Females are cosidered &ea!er se5 %ecause they ca %e !illed easily tota!e %eefit from isurace" E5am$les of such deaths are may" Do&ry deaths,&ido& !illig are social scourges, &ith &hich &e lived for 4uite log" Suchcrimes are ram$at i certai commuities oly" This s$ecial ris! to the &omeis called i isurace $arlace 6moral ha?ard8"Childre are cosidered a s$ecial category %ecause child mortality is highertha adult mortality" #o& ever, &ith the medical advacemet eve this ris!differece is also first disa$$earig" Female child mortality is $articularly highi certai areas ad therefore, uder&riters are careful i acce$tig ris! o suchlives" Normally a &aitig $eriod of say t&o years is isisted u$o afterisurace %efore the life ris! is acce$ted o a child*s life"

+hysically hadica$$ed eed su$$ort as they caot ear themselves"7overmet allo&s a lot of ta5 %eefit to the $arets is ecouraged to ma!e

$rovisio for their hadica$$ed childre, i case of the $arets* death"

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ANCASSURANCE AS .ARETIN7

+ERSONA'USINESS7OA'S

a! as a aget you are i this %usiess maily for the follo&ig

reasos,There us ulimited icome $otetial(our icome is related directly to the effort that you*re $ut i"(ou are ide$edet ad ca ma!e your o& $rogramme"It is a creative /o% ad if you e/oy it, you have moey &ith etertaimet" It isa social service ad you get the $ride that goes &ith social service"

ut all these are good eough reasos, oly if, you also ear moey"Earig moey is the criterio of your success ad you caot cotiue &iththis &or!, uless you ma!e a decet livig out of it"

.oey ho&ever caot %e the sole cocer" Satisfactio of your customer,ethical sellig, ad $restige amout your clietal shall esure your log3termdevelo$met i this field of isurace ad therefore log3term icome as &ell"This eeds a cotiuous $laig &ith a $ositive attitude to succeed"

eig your o& master, you have to set your o& goal" Al&ays !ee$ imid ;

-hy am I hereG B(our missio

-here am I goigG B(our goal

#o& am I doigG BFeed%ac!

-hat &ill I getG BRe&ards

-here do I go, &he I eed hel$G

.ARETIN7ANDSE''IN7)

Activity is the %asis of your %usiess" Sales results directly from theamout ad 4uatity of your activities i your %usiess" Ad your %usiess ismar!etig ad ot sellig" .ar!etig is the $rocess of idetifyig $eo$le*seeds, clarifyig those eeds ad creatig ad su$$lyig the $roducts adservice a$$ro$riate to satisfyig those eeds" It is activity that focuses o theeeds of the %uyer" Sellig o the other had us e5chagig the $roduct for the

%uyer*s cash" It is the seller*s iitiative ad it is the seller*s eed to e5chage his$roduct" It is seller orieted" .ar!etig o the other had is %uyer orieted" It ishis ultimate satisfactio that decides the total $rocess of mar!etig"

#o&ever each activity is im$ortat for the society %ut it is ecessary touderstad the critical s!ills that you eed to develo$ ad a$$ly to succeed i

isurace mar!etig"

STE+S IN T#E .ARETIN7)

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o&ig the territory ad the $eo$le ad their %usiess"

Idetifyig the mar!et i &hich you feel you have a atural access or you

are comforta%le &ith" .a!e sure you uderstad eed of the mar!et ad that you have $roducts,

&hich ca satisfy those eeds"

#avig doe this macro study of your mar!et, idetifyig the idividuals&hom you &ould li!e to a$$roach" +ros$ectig is efforts, as to &hat is theiratural mar!et" No& is the time to idetify your mar!et ad s$ed time adeergy i develo$ig it" (ou ca e5$eriece im$roved sales ratio ad costeffectiveess i the mar!ets that are carefully selected ad are res$osive toyour efforts"

This &ill to a great e5ted de$ed u$o your $ast e5$eriece, the grou$ &ith&hom you have lived ad &or!ed i the $as" Oce you are ac4uaited &ill &itha grou$, you !o& their $articular eeds ad you ca tailor your a$$roach tosatisfy those eeds" For e5am$le, if you feel doctors are your atural mar!et,you &ill !o& &he to meet them, &hat are their cocers, that they are shortof time, of their $lace i the society ad their icome level"

All these hel$ to $la your sales a$$roach"

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RO'E OF ANER AS AN INSURANCE A7ENT

SE''IN7TEC#NIKUES)

SA'ES.ANS#I+ ; AN INTRODUCTION

(ou have ta!e to this /o% of isurace salesmashi$ %ecause )

(ou have see i this $rofessio a ulimited icome $otetial"

(our retur &ould %e commesurate &ith your efforts"

(ou &ill %e a ide$edet $erso ma!ig your o& time

schedule" (ou &ould %e your o& %oss, &or!ig durig hours of your

coveiece" (ou must have see it as a creative $rofessio ; creatig &at

&here it &as ever see ad goig ahead to suggest &ays to satisfyit ad,

it is a great social service, $rovidig fiacial assistace to

&ido&s, or$has ad old $eo$le

Selling Process:

+REA++ROAC#)

+re3a$$roach meas $re$arig to a$$roach the $ros$ect" ut, &ho is the$ros$ectG At the %egiig of the career, it is advisa%le that a isurace agetshould star i familiar surroudigs, amog frieds ad relatives" Stragely,may agets do ot a$$roach their o& relatives, %ecause of a $recoceived

%ias agaist isurace" They fell ho&ever ucosciously that isurace is otfor their o& $eo$le, isurace is oly for the $eo$le, the stragers" Nothig ca

%e far from truth" efore you a$$roach ay%ody, a$$roach yourself, %ecoviced that isurace is a good thig, i fact so good that &ithout ade4uateisurace" #o& ca oe slee$ at ight" Oly if the %read&ier &ould!o& orfeel &hat &ould ha$$e to his family, his loved oes, if he suddely disa$$earsG

#o& could oe resist a $ro$osal for life isurace It ma!es all the differece%et&ee agitated mid ad $eaceful mid" .y dear aget, %efore you starta$$roachig ay%ody for isurace, a$$roach yourself, self yourself the idea ofisurace, hoestly ad covicigly" The ad the aloe you &ill %e a &ier

INTER


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+ro$er aalysis of the eeds also icludes the aalysis of the e5istigassets" the e5istig savigs, the life isurace istrumets should %e allcosidered alog &ith the commitmets of e5$eses li!e childre educatio,marriage $articularly of female child &hich is 4uite e5$esive i the Idiacote5t ad of course the eeds of the family i case of death ad also i caseof survivig to the old age" Fid out if he has a house, free of ecum%races" Ifot it has to %e cosidered a im$ortat eed &hich must %e $rovided forG

Follo& a cosultative method" ee$ as!ig the $ros$ect as to &hat he&ould li!e to accom$lish fiacially, &hat is his attitude to&ards the fiacialo$$ortuities availa%le to him ad ho& dose he vie& his $reset situatioregardig $ersoal assets ad lia%ilities"Em$athy is critical to the discussio" (ou must uderstad the cliet*s eeds advalues" (our 4uestio must a$$ear relevat

OMECTIONS

O%/ectios, my dear aget, are your raiso d*etre" If $ros$ects &ould ot raiseo%/ectio, there &ould ot raise o%/ectios, there &ould %e o eed to e5$lai,ad if there is o sho$ to $urchase isurace as they do to %uy rice or dale"Isurace is a difficult coce$t to uderstad" A lot of misuderstadig

$revails i the mar!et &ith regard to life isurace" The eed is e5tremely$ersoal ad therefore o$e discussed &ith every%ody is ot $ossi%le" Isuraceis a log term commitmet" The isured gets othig e5$ect a $iece a $romise

to $ay i future" The $resece of aget is the oly time he is face to face &ithsome%ody &ho re$resets the isurig com$ay to clear all his dou%ts" #eshould satisfy himself that this ma offerig him to solve his fiacial $ro%lemis com$letely trust&orthy ; &orth his &eight i gold"-e ca categories the o%/ectios i the follo&ig four grou$s

(1)NONEED)

It is more ofte %or of igorace" #e thi!s all his savigs are good eough"#e has ot uderstood ho& is isurace differet from other modes of savigs"Sho& him ho& isurace scores over other forms of savig %y elimiatig theeed for time &hich is the essece of all savig $rogramme" O%/ectios ca ta!ethe form of 6i am too old to %uy isurace" I have a lot of savigs, i am sigle, ido*t eed isurace" I am goig to live a log time"8(2 NOTRUST)

A o trust* o%/ectio may relates to you, your $roduct or your com$ay,it may %e stated as i eed to discuss &ith my life, or la&yer or other agets etc"if it is a%out yourself, you have to esta%lish your credetials %y referece to

other frieds or %usiess associates &ho are your $olicy holders, your traiigad 4ualificatio, your $erformace ad stadig i the field of isurace" Clu%mem%ershi$ is a good trust certificate" -ife or la&yer ca %e cosulted i your

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$resece so that you ca clarify ay dou%t" e $re$ared to discuss &ith ay%odythe $ros$ect has trust i"

(2)NO#URR()

It is called a immortality com$le5" Everyday some %ody dies ad some day

every %ody shall die" ut I shall live for a log time" -oderful E5am$lesa%oud i our daily life &he $eo$le have died suddely" Tomorro& ca %e toolate" Isurace $rotects &hat death ta!es a&ay" It %roo!s3o delay, o tomorro&"It must %e doe today ad o&" ee$ a scra$ %oo! to sho& $ictures ho& deathca %e sudde"

(3)NO.ONE()

If $eo$le &ould oly &ait till they get all moey, they &ould eed oisurace" If he has a geuie $ro%lem to $ay $remium you should have !o&

at the time of fact fidig" Suggest to him a isurace $la &hich suits to his$oc!et, %ut also ade4uately meets his eed"

(5 C'OSIN7

As &e have discussed i $revious $aragra$hs, ay trasactio %et&eet&o itelliget huma %eig is ever a smooth affair" There are al&ays lots ofsli$s %et&ee cu$ ad li$s" ut that is a $art of the game or should &e say thatma!es such trasactio so iterestig, eve adveturous" O%/ectio ca %eraised at each $oit, eve for see!ig a itervie&, gettig iformatio or

discussig a $la" ut that is ho& your e5$eriece, your $resece of mid adsicerity are tested"

For you, isurace is a matter of daily discussio" For the $ros$ect hemay %e discussig it for the first time" #e is ot sure &hether he is ta!ig a &isedecisio" .ay $revious agets may have %luffed him i a $ast" #e &ats toma!e sure that he is ot %eig %luffed oce agai" Ta!e time to care" #is4uestios may a$$ear very foolish to you" ut they are im$ortat for him" The

$ro$er as&er to these 4uestios shall hel$ him to ta!e a decisio"

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'IST OF T#E +'A(ERS IN T#E ANCASSURANCEINDUSTR(

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INSURANCE CO.+ANIES ANS

irla Su 'ife Isurace Co" 'td"

a! of Ra/astha, Adhraa!, a! of .us!at,Develo$met Credit a!,Duetsche a! ad CatholicSyria a!

Da%ur C7U 'ife Isurace co" 'td"

Caara a!, 'a5mi


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0

50000

100000

150000

200000

250000

300000

2002-

03

2003-

04

2004-

05

standard

Chartered Bank

ICICI Bank

Centurion Bank

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.ATURIT( +ROF'E OF AMAM A''IAN INSURANCECO.+AN(

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ASSET A''OCATION OF AMAM A''IAN AS ON MU'(@0 >11H

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RES+ONSE OF T#E ANCASSURANCE FRO. T#ECUSTO.ERS

Res$ose to acassurace i Idia from the customers has %ee very&arm ad ecouragig as customers have far greater trust ad faith i a!s

&he it comes to fiacial $roducts" The coce$t of fiacial $laers does ote5ist i Idia ad traditioally a! .aagers i Idia have strog relatioshi$&ith the customers ad also act as their ivestmet advisor, es$ecially i smallerto&s ad cities"

This trust has also hel$ed our acassurace $arters to advise ovarious Isurace $las to hel$ secure their future ad $rovide gro&th to theirsavigs" The other advatage that a!s have i Idia is that i Idia, %a!igis still doe i the 6%ric! ad mortar8 model, &hich meas that most of the

customers still &al! ito the a! %raches to do their %a!ig trasactios"

O a average a isurace advisor i the %a! is a%le to sell isurace$roduct H3 times higher tha a isurace aget" This is %ecause of the largerum%er of customers availa%le &ith them as &ell as the um%er of &al!3icustomers, &here the %a! staff has the advatage of the trust ad credi%ility ofthe trust ad credi%ility of the customers ad the %a! %rad ame"

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STE+S TO E TAEN TO +O+U'ARIE T#EANCASSURANCE IN INDIA

acassurace is already cotri%utig aroud 0H30J : of the e&%usiess amogst the $rivate sector life isurace com$aies ad there is

immese $otetial i this chael"

acassurace cotri%utes more tha >H: of the e& %usiess of thecom$ay" a!s are s$edig lot of resources i traiig the a! staff forsellig isurace $roducts &hich are differet from sellig %a!ig $roducts"Isurace $roducts have to %e 6sold rather tha %ought8"


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ANCASSURANCE IN INDIA 3 A S-OT ANA'(SIS

Eve though, %a!s ad isurace com$aies i Idia are yet to e5chagetheir &eddig rigs, acassurace as a meas of distri%utio of isurace

$roducts is already i force i some form or the other" a!s are sellig

+ersoal Accidet ad aggage Isurace directly to their Credit Card mem%ersas a value additio to their $roducts" a!s also $artici$ate i the distri%utio ofmortgage li!ed isurace $roducts li!e fire, motor or cattle isurace to theircustomers" a!s ca straighta&ay leverage their e5istig ca$a%ilities i termsof data%ase ad face to face cotact to mar!et isurace $roducts to geeratesome icome for themselves &hich hitherto &as ot thought of"

Oce acassurace is em%raced i Idia &ith full force, a lot &ill %e atsta!e" #uge ca$ital ivestmet &ill %e re4uired to create ifrastructure

$articularly i IT ad telecommuicatios, a call ceter &ill have to %e created,to$ $rofessioals of %oth idustries &ill have to %e hired, a R = D cell &illeed to %e created to geerate e& ideas ad $roducts" It is therefore essetial tohave a S-OT aalysis doe i the cote5t of acassurace e5$erimet iIdia"

STREN7T#S

I a coutry of 0 illio $eo$le, s!y is the limit for $ersoal lies isurace$roducts" There is a vast uta$$ed $otetial &aitig to %e mied $articularly for

life isurace $roducts" There are more tha 911 .illio lives &aitig to %egive a life cover Btotal um%er of idividual life $olicies sold i 099J399 &as

/ust 90"@ .illio" There are a%out >11 .illio households &aitig to %ea$$roached for a householders isurace $olicy" .illios of $eo$le travelig iad out of Idia ca %e ta$$ed for Overseas .ediclaim ad Travel Isurace

$olicies" After discoutig the $o$ulatio %elo& $overty lie the middle mar!etsegmet is the secod largest i the &orld after Chia" The isurace com$aies&orld&ide are eyeig o this, &hy ot &e $reem$t this move %y doig itourselves

Our other stregth lies i a huge $ool of s!illed $rofessioals &hether it is %a!sor isurace com$aies &ho may %e easily relocated for ay acassuraceveture" 'IC ad 7IC %oth have a good rage of $ersoal lie $roducts alreadylied u$, therefore R = D efforts to create e& $roducts &ill %e miimal i the

%egiig" Additioally, 7IC &ith >11 o$eratig offices ad 'IC &ith >1J%rach offices are almost already omi$reset, &hich is so essetial for thedevelo$met of ay acassurace $ro/ect

-EANESSES

The IT culture is ufortuately missig com$letely i all of the futurecolla%orators i"e" %a!s, 7IC = 'IC" A late a&a!eig seems to have da&ed

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u$o %ut it is a case of too late ad too little" Elemetary IT re4uiremet li!eet&or!ig B'AN is ot i $lace eve i the head4uarters of these istitutios,&he the eed today is of -ide Area Net&or! B-AN ad acassurace


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7ermaie Act" A rush of /oit vetures too! $lace %et&ee %a!s ad isuracecom$aies ad all these failed due to the o3res$ose from the targetcustomers" US %a!s have o& agai Bsice late 0991s tured their attetio toisurace maily life isurace"The ivestors i the ca$ital may tur their face off i case the rate of retur o

ca$ital falls short of the e5istig rate of retur o ca$ital" Sice %a!s adisurace com$aies have ma/or $ortio of their icome comig from theivestmets, the retur from acassurace must at least match those returs"Also if the uholy alliaces are allo&ed to ta!e $lace there &ill %e fiercecom$etitio i the mar!et resultig i lo&er $rices ad the acassuraceveture may ever %rea!3eve"

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II'IO7RA+#(

.A7AINES

) Isurace -orld 3 Mue @0

-ESITES

&&&"stadardchartered"com

&&&"%a/a/lallia?"com

&&&"%imaolie"com

>9 acassurace
http://www.standardchartered.com/http://www.bajajlallianz.com/http://www.bimaonline.com/http://www.bajajlallianz.com/http://www.bimaonline.com/http://www.standardchartered.com/


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