MARKETING STRATEGY OF LIFE INSURANCE CORPORATION OF INDIA IN THE CONTEXT OF

LIBERALIZATION

P. Purushotham Rao1, J. Seenaiah*

Affiliations
1Professor, Department of Commerce, Osmania University, Hyderabad- 500007, Telangana, India.
* Faculty Member, Department of Commerce, U CW, Osmania University, Hyderabad- 500007, Telangana, India.

ABSTRACT

Government made a paradigm shift in the economic policy by adopting the process of liberalization, privatization
and globalization at the end of previous decade. IRDA was set up as regulatory body and private sector was allowed
entry both in general and life insurance sector in India. Due to impact of private players came up with new and
innovative marketing strategies. For the effective functioning of any service organization, a well planned marketing
strategy is essential. In case of LIC also, consumer oriented marketing policy is essential to achieve its goal. But
unfortunately the need for developing consumer based marketing approach was recognized in LIC at the late stage.
The market share which the private companies were taking away from LIC was an eye opener for LIC who was
once enjoying monopoly position in the market. The private companies were taking away the market share by
bringing new and innovative products to suit the needs of customers, building a strong distribution network, strong
advertisement and finding new markets for their products.

KEYWORDS
Liberalization; Privatization; Life Insurance of India; Marketing; Strategy

JEL CLASSIFICATION
I1, M3, D1, L1, M0

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