B. PRICING i. In the insurance business the pricing decisions are concerned with: ii.

The premium charged against the policies, iii. Interest charged for defaulting the payment of premium and credit facili ty, and iv. Commission charged for underwriting and consultancy activities. With a view of influencing the target market or prospects the formulation of pri cing strategy becomes significant. In a developing country like India where the disposable income in the hands of prospects is low, the pricing decision also go verns the transformation of potential policyholders into actual policyholders. T he strategies may be