You are on page 1of 10

“LIFE INSURANCE”

1

N.E.S RATNAM COLLEGE OF ART, SCIENCE AND COMMERCE
BHANDUP (W) MUMBAI 400078

POWERPOINT PRESENTATION
ON
SCOP OF LIFE INSURANCE MARKETING


STD: TYBCOM (BANKING AND INSURANCE)
SUBJECT: MARKETING IN BANKING AND INSURANCE

SUBMITTED BY: PINKY SINGH 39
SINI SATYAN 40





PROF. INCHARGE: MRS. RIYA RUPANI SUBMITTED ON: 16/09/2013

“LIFE INSURANCE”
2

ACKNOWLEDGEMENT

We are over whelmed in all humbleness and gratefulness to
acknowledge our depth to acknowledge our depth to all those
who have helped us to put these ideas, well above the level of
simplicity and into something concrete.
We are very thankful to our guide MRS. Riya Rupani for
her valuable help. She was always there to show us the right
track when we needed her help. With the help of her
valuable suggestions, guidance and encouragement, we were
able to perform this project work.
I am greatly indebted to their help, which has been of
immense value and has played a major role in bringing this to
a successful completion.

We would also like to thank our colleagues, who often
helped and gave us support at critical junctures during the
making to this project.


“LIFE INSURANCE”
3

MEANING:


Insurance is a protection against financial hammering
arising on the happening of an unexpected event. Insurance
policy helps in not only mitigating risks but also provides a
financial militate against adverse financial loads suffered.
Insurance is a contract between two parties, the insurer or the
insurance company, and the insured, the person seeking the
cover. Within this contract, the insurer agrees to pay the insurer
for financial losses arising out of any unforeseen events or risk
in return for a regular payment of premium.
Therefore, these insurance plans are also called as a Risk
Cover Plans, which means to financially compensate for losses
that occur uncertainly through accident, illness, theft, natural
disaster.


“LIFE INSURANCE”
4

 SCOPE OF LIFE INSURANCE MARKETING


In the present day insurance marketing scenario, the
LIC and GIC play the role of an encouraging and
supporting force to the entrepreneurs, corporate sector,
investors, Government, Co-operatives, individuals and
general public. There is vast scope for LIC to enlarge its
operations both in domestic and international market.
The following areas are identified for the scope of
insurance marketing:






“LIFE INSURANCE”
5


1. Changing policy of LIC :
With the opening up of the insurance sector at the dawn of
the 21st century, LIC has revised its objectives and has
focused its vision, mission, values and culture. By
constantly analysing the challenges and opportunities, and
also considering its strength and weakness. LIC is
designed to plan, price, promote and distribute want
satisfying products and services to present and potential
consumers.

2. Evolving Consumer Needs :

Insurance today has emerged as an attractive and stable
investment alternative that offers total protection in life,
health and wealth. In terms of returns, insurance products
today offer competitive returns ranging between 7% and 9
%. Besides returns, what really increases the appeal of
insurance is the benefit of life protection from insurance
products along with health cover benefits. Consumers
today also seek a variety of insurance products that offer
flexible options, prefer insurance schemes with benefits
unbundled and customizable to suit their diverse needs.
This offers good opportunity to insurance marketers to
extend the area of operations.

“LIFE INSURANCE”
6

3. Multi- channel Distribution :

The intermediaries in the insurance business and the
distribution channels used by carriers will perhaps be the
strongest drivers of growth in the sector. Multi-channel
distribution and marketing of insurance products will be
the smart strategy for the Indian Market. While tied
agents will continue to play an important role in
distribution of insurance products, alternative channels
like Development Officers, Inspectors, and Executives will
assume a greater role in distribution of insurance
schemes. The trend is expected to continue in future.

4. Development of Rural Markets:


Nepal is a predominantly rural country of more than one
million people; mass marketing is always a profitable and
cost effective option for gaining market share. The rural
sector is a perfect case for mass marketing.

“LIFE INSURANCE”
7

The predominant insurance market leader, the LIC of
Nepal, feels that the lion's share of its new business comes
from the rural and semi-rural markets. The development
of rural insurance market offers tremendous opportunity
to insurance market.



4. Innovations in Insurance Marketing :


The Nepali insurance market has witnessed innovations in
the constantly explored avenues to increase the number of
distribution channels through a variety of distribution
patterns, given the rapidly changing customer profile.
Internet and telemarketing is also expected to play an
increasingly critical role in customer relationship.
Rational intermediaries have played an important role as
a distribution outlet for insurance services and products.
This is likely to provide good business to insurance
marketers in future.




“LIFE INSURANCE”
8


6. Entry of Public Sector Banks :


The Insurance Regulatory and Development Authority Act
1999 seeks to open up the insurance sector for private
companies with a foreign equity of 26 percent. It is also
aimed at ending the monopoly of the Life Insurance
Corporation (LIC) and General Insurance Corporation
(GIC) in the insurance sector of the country.

LIC entered into strategic alliance with corporative banks
at the corporate level to improve its reach and also take
advantages of mutually beneficial competencies. It also
tied up with several other banks and organizations for
marketing its insurance products and rendering services
like collection of premium.








“LIFE INSURANCE”
9


7. Pension Plans: As a result of liberalization and
globalization the competition in the insurance sectors is
becoming intense. To survive in the competition, the
Insurance Regulatory Authority is permitting insurance
companies into the pension business without forming
separate companies for the purpose. As the Hindu joint
family concept intended to disintegrate the social security
cover it has thus far provided was no longer available to a
population increasingly adding numbers to the old
generation. This is likely to provide good business to
Insurance companies in future.


The above discussion highlights, that the scope of
insurance business is vast and there lie immense
opportunities ahead of insurance companies.





“LIFE INSURANCE”
10

CONCLUSION:

Insurance is a nice-looking option for investment but most people are
not aware of its advantages as an investment option. Remember that
foremost and first, insurance is about risk cover and protection. By
buying life insurance, you buy peace of mind. Insurance also serves as
an excellent tax saving mechanism. The Government of India has
provided tax incentives to life insurance products in order to facilitate
the flow of funds into productive assets.
The insurance sector has opened up for private insurance companies
with the enactment of IRDA Act, 1999. A large number of companies
are competing under both general and life Insurance. The FDI
cap/equity in this sector is 26% and the proposals have to be cleared
by Insurance Regulatory and Development Authority (IRDA)
established to protect the interest of holder of Insurance policy and act
as a regulator and facilitator in the industry.
Some of the major players in this sector are LIC, Max New York Life
Insurance, Bajaj Allianz, ICICI Prudential, HDFC Standard Life,
MetLife Insurance, Birla Sun Life Insurance, etc.