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
AMIT KUMAR ROYSHASHANK TRIPATHIVIVEK SINGHRATANDEEP GAUTAMPANKAG KUMARSHASHIKANTSUNAINA VERMANITIN VERMASHIVAM GHAI