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Insurance
Insurance is actually a contract between 2 parties whereby one party is called insurer undertakes in exchange for a fixed sum called premium to pay the other party happening of a certain event.
History
Insurance in India was started by the Europeans in Kolkata in the year 1818 to cater the needs of the European community. The oldest insurance company in india is National insurance company Ltd, which was founded in 1906. In the year 1999 govt of India opened the insurance sector by allowing private company to enter into India by depositing 100 cr in government reserve and allowing FDI upto 26%.
Many overseas insurance companies have opened their branches in india by depositng required amount to the government of india. In the earlier days insurance industry comprises of two things
1. General Insurance Corporation of India (GIC) 2. Life Insurance Corporation of India (LIC)
Market Share
7Ps PRODUCT
When a company produces or generate services, it means intangible service product. An insurance company sells services and therefore services are their product. Apart from providing policies they provide consulting services. Facilities of claims and easily availability of compensation.
PRICE
In the insurance business price is concerned with:
Premium charged against policies Interest charged for defaulting payment Commission charged for consultancy services
There are 3 main important factor while deciding the premium rates under life insurance:
Mortality Rates (Death Rates) Expenses (Installment, Commission, Registration) Interest Rates
Place
While locating the branches of insurance offices the company has to keep certain points in mind they are: Smooth accessibility Availibility of infrastrucutre facility Office furnishing Parking Facilities Interior decoration
Place management of insurance branches needs distinct approach and innovative style. It is necessary to make the working place more attractive and proactive for generating efficiency among the working employees.
Insurance service depends upon the effective promotional measures. Major part of the Indian economy consist of illiterate people thats why it is necessary to have both personal and impersonal promotional strategies.
Advertisement Publicity Events & Exhibition Wall Paintings
Promotion
People
Understand the customer needs and design the appropriate products. As a service industry it requires high level of interaction with the customer so training and development of the employees is necessary so that long term relationship is maintained with the customer.
Process
The process should be customer friendly. Speed and Accuracy in payment. Data warehousing and data mining will help to find out the profitable customer. Installment scheme should be streamlined to cater the ever growing demand of the customer. Technology can reduce the channels of distribution cost effectively.
Physical Evidence