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Types of insurance

Any risk that can be quantified can potentially be insured. Specific kinds of risk that may
give rise to claims are known as perils. An insurance policy will set out in detail which
perils are covered by the policy and which are not. Below are non-exhaustive lists of the
many different types of insurance that exist. A single policy may cover risks in one or
more of the categories set out below. For example, vehicle insurance would typically
cover both the property risk (theft or damage to the vehicle) and the liability risk (legal
claims arising from an accident). A home insurance policy in the U.S. typically includes
coverage for damage to the home and the owner's belongings, certain legal claims against
the owner, and even a small amount of coverage for medical expenses of guests who are
injured on the owner's property.

Business insurance can take a number of different forms, such as the various kinds of
professional liability insurance, also called professional indemnity (PI), which are
discussed below under that name; and the business owner's policy (BOP), which
packages into one policy many of the kinds of coverage that a business owner needs, in a
way analogous to how homeowners' insurance packages the coverages that a homeowner

[edit] Auto insurance

Main article: Vehicle insurance

A wrecked vehicle in Copenhagen

Auto insurance protects the policyholder against financial loss in the event of an incident
involving a vehicle they own, such as in a traffic collision.

Coverage typically includes:

1. Property coverage, for damage to or theft of the car;

2. Liability coverage, for the legal responsibility to others for bodily injury or
property damage;
3. Medical coverage, for the cost of treating injuries, rehabilitation and sometimes
lost wages and funeral expenses.
Most countries, such as the United Kingdom, require drivers to buy some, but not all, of
these coverages. When a car is used as collateral for a loan the lender usually requires
specific coverage.

[edit] Home insurance

Main article: Home insurance

Home insurance provides coverage for damage or destruction of the policyholder's home.
In some geographical areas, the policy may exclude certain types of risks, such as flood
or earthquake, that require additional coverage. Maintenance-related issues are typically
the homeowner's responsibility. The policy may include inventory, or this can be bought
as a separate policy, especially for people who rent housing. In some countries, insurers
offer a package which may include liability and legal responsibility for injuries and
property damage caused by members of the household, including pets.[19]

[edit] Health insurance

Main articles: Health insurance and Dental insurance

Great Western Hospital, Swindon

Health insurance policies issued by publicly-funded health programs, such as the UK's
National Health Service will cover the cost of medical treatments. Dental insurance, like
medical insurance, protects policyholders for dental costs. In the U.S. and Canada, dental
insurance is often part of an employer's benefits package, along with health insurance.

[edit] Funeral insurance

Funeral insurance is a very old type of health insurance which is payed out upon death to
cover funeral expenses of the insuree. The Greeks and Romans introduced funeral
insurance circa 600 AD when they organized guilds called "benevolent societies" which
cared for the surviving families and paid funeral expenses of members upon death. Guilds
in the Middle Ages served a similar purpose.

[edit] Accident, sickness and unemployment insurance

Workers' compensation, or employers' liability insurance, is compulsory in some

• Disability insurance policies provide financial support in the event of the

policyholder becoming unable to work because of disabling illness or injury. It
provides monthly support to help pay such obligations as mortgage loans and
credit cards. Short-term and long-term disability policies are available to
individuals, but considering the expense, long-term policies are generally
obtained only by those with at least six-figure incomes, such as doctors, lawyers,
etc. Short-term disability insurance covers a person for a period typically up to six
months, paying a stipend each month to cover medical bills and other necessities.
• Long-term disability insurance covers an individual's expenses for the long term,
up until such time as they are considered permanently disabled and thereafter.
Insurance companies will often try to encourage the person back into employment
in preference to and before declaring them unable to work at all and therefore
totally disabled.
• Disability overhead insurance allows business owners to cover the overhead
expenses of their business while they are unable to work.
• Total permanent disability insurance provides benefits when a person is
permanently disabled and can no longer work in their profession, often taken as
an adjunct to life insurance.
• Workers' compensation insurance replaces all or part of a worker's wages lost and
accompanying medical expenses incurred because of a job-related injury.

[edit] Casualty

Main article: Casualty insurance

Casualty insurance insures against accidents, not necessarily tied to any specific property.
It is a broad spectrum of insurance that a number of other types of insurance could be
classified, such as auto, workers compensation, and some liability insurances.

• Crime insurance is a form of casualty insurance that covers the policyholder

against losses arising from the criminal acts of third parties. For example, a
company can obtain crime insurance to cover losses arising from theft or
• Political risk insurance is a form of casualty insurance that can be taken out by
businesses with operations in countries in which there is a risk that revolution or
other political conditions could result in a loss.

[edit] Life

Main article: Life insurance

Life insurance provides a monetary benefit to a descendant's family or other designated

beneficiary, and may specifically provide for income to an insured person's family,
burial, funeral and other final expenses. Life insurance policies often allow the option of
having the proceeds paid to the beneficiary either in a lump sum cash payment or an

Annuities provide a stream of payments and are generally classified as insurance because
they are issued by insurance companies, are regulated as insurance, and require the same
kinds of actuarial and investment management expertise that life insurance requires.
Annuities and pensions that pay a benefit for life are sometimes regarded as insurance
against the possibility that a retiree will outlive his or her financial resources. In that
sense, they are the complement of life insurance and, from an underwriting perspective,
are the mirror image of life insurance.

Certain life insurance contracts accumulate cash values, which may be taken by the
insured if the policy is surrendered or which may be borrowed against. Some policies,
such as annuities and endowment policies, are financial instruments to accumulate or
liquidate wealth when it is needed.

In many countries, such as the U.S. and the UK, the tax law provides that the interest on
this cash value is not taxable under certain circumstances. This leads to widespread use of
life insurance as a tax-efficient method of saving as well as protection in the event of
early death.

In the U.S., the tax on interest income on life insurance policies and annuities is generally
deferred. However, in some cases the benefit derived from tax deferral may be offset by a
low return. This depends upon the insuring company, the type of policy and other
variables (mortality, market return, etc.). Moreover, other income tax saving vehicles
(e.g., IRAs, 401(k) plans, Roth IRAs) may be better alternatives for value accumulation.

[edit] Property

Main article: Property insurance

This tornado damage to an Illinois home would be considered an "Act of God" for
insurance purposes

Property insurance provides protection against risks to property, such as fire, theft or
weather damage. This may include specialized forms of insurance such as fire insurance,
flood insurance, earthquake insurance, home insurance, inland marine insurance or boiler
insurance. The term property insurance may, like casualty insurance, be used as a broad
category of various subtypes of insurance, some of which are listed below:

US Airways Flight 1549 was written off after ditching into the Hudson River

• Aviation insurance protects aircraft hulls and spares, and associated liability risks,
such as passenger and third-party liability. Airports may also appear under this
subcategory, including air traffic control and refuelling operations for
international airports through to smaller domestic exposures.

• Boiler insurance (also known as boiler and machinery insurance, or equipment

breakdown insurance) insures against accidental physical damage to boilers,
equipment or machinery.

• Builder's risk insurance insures against the risk of physical loss or damage to
property during construction. Builder's risk insurance is typically written on an
"all risk" basis covering damage arising from any cause (including the negligence
of the insured) not otherwise expressly excluded. Builder's risk insurance is
coverage that protects a person's or organization's insurable interest in materials,
fixtures and/or equipment being used in the construction or renovation of a
building or structure should those items sustain physical loss or damage from an
insured peril.[20]
• Crop insurance may be purchased by farmers to reduce or manage various risks
associated with growing crops. Such risks include crop loss or damage caused by
weather, hail, drought, frost damage, insects, or disease.[21]

• Earthquake insurance is a form of property insurance that pays the policyholder in

the event of an earthquake that causes damage to the property. Most ordinary
home insurance policies do not cover earthquake damage. Earthquake insurance
policies generally feature a high deductible. Rates depend on location and hence
the likelihood of an earthquake, as well as the construction of the home.

• Fidelity bond is a form of casualty insurance that covers policyholders for losses
incurred as a result of fraudulent acts by specified individuals. It usually insures a
business for losses caused by the dishonest acts of its employees.

Hurricane Katrina caused over $80bn of storm and flood damage

• Flood insurance protects against property loss due to flooding. Many insurers in
the U.S. do not provide flood insurance in some parts of the country. In response
to this, the federal government created the National Flood Insurance Program
which serves as the insurer of last resort.

• Home insurance, also commonly called hazard insurance, or homeowners

insurance (often abbreviated in the real estate industry as HOI), is the type of
property insurance that covers private homes, as outlined above.

• Landlord insurance covers residential and commercial properties which are rented
to others. Most homeowners' insurance covers only owner-occupied homes.

Fire aboard MV Hyundai Fortune

• Marine insurance and marine cargo insurance cover the loss or damage of vessels
at sea or on inland waterways, and of cargo in transit, regardless of the method of
transit. When the owner of the cargo and the carrier are separate corporations,
marine cargo insurance typically compensates the owner of cargo for losses
sustained from fire, shipwreck, etc., but excludes losses that can be recovered
from the carrier or the carrier's insurance. Many marine insurance underwriters
will include "time element" coverage in such policies, which extends the
indemnity to cover loss of profit and other business expenses attributable to the
delay caused by a covered loss.

• Supplemental natural disaster insurance covers specified expenses after a natural

disaster renders the policyholder's home uninhabitable. Periodic payments are
made directly to the insured until the home is rebuilt or a specified time period
has elapsed.

• Surety bond insurance is a three-party insurance guaranteeing the performance of

the principal.

The demand for terrorism insurance surged after 9/11

• Terrorism insurance provides protection against any loss or damage caused by

terrorist activities. In the U.S. in the wake of 9/11, the Terrorism Risk Insurance
Act 2002 (TRIA) set up a federal Program providing a transparent system of
shared public and private compensation for insured losses resulting from acts of
terrorism. The program was extended until the end of 2014 by the Terrorism Risk
Insurance Program Reauthorization Act 2007 (TRIPRA).

• Volcano insurance is a specialized insurance protecting against damage arising

specifically from volcanic eruptions.

• Windstorm insurance is an insurance covering the damage that can be caused by

wind events such as hurricanes.

[edit] Liability

Main article: Liability insurance

Liability insurance is a very broad superset that covers legal claims against the insured.
Many types of insurance include an aspect of liability coverage. For example, a
homeowner's insurance policy will normally include liability coverage which protects the
insured in the event of a claim brought by someone who slips and falls on the property;
automobile insurance also includes an aspect of liability insurance that indemnifies
against the harm that a crashing car can cause to others' lives, health, or property. The
protection offered by a liability insurance policy is twofold: a legal defense in the event
of a lawsuit commenced against the policyholder and indemnification (payment on behalf
of the insured) with respect to a settlement or court verdict. Liability policies typically
cover only the negligence of the insured, and will not apply to results of wilful or
intentional acts by the insured.

The subprime mortgage crisis was the source of many liability insurance losses

• Public liability insurance covers a business or organization against claims should

its operations injure a member of the public or damage their property in some
• Directors and officers liability insurance (D&O) protects an organization (usually
a corporation) from costs associated with litigation resulting from errors made by
directors and officers for which they are liable.
• Environmental liability insurance protects the insured from bodily injury, property
damage and cleanup costs as a result of the dispersal, release or escape of
• Errors and omissions insurance is business liability insurance for professionals
such as insurance agents, real estate agents and brokers, architects, third-party
administrators (TPAs) and other business professionals.
• Prize indemnity insurance protects the insured from giving away a large prize at a
specific event. Examples would include offering prizes to contestants who can
make a half-court shot at a basketball game, or a hole-in-one at a golf tournament.
• Professional liability insurance, also called professional indemnity insurance (PI),
protects insured professionals such as architectural corporations and medical
practictioners against potential negligence claims made by their patients/clients.
Professional liability insurance may take on different names depending on the
profession. For example, professional liability insurance in reference to the
medical profession may be called medical malpractice insurance.

[edit] Credit
Main article: Credit insurance

Credit insurance repays some or all of a loan when certain circumstances arise to the
borrower such as unemployment, disability, or death.

• Mortgage insurance insures the lender against default by the borrower. Mortgage
insurance is a form of credit insurance, although the name "credit insurance" more
often is used to refer to policies that cover other kinds of debt.
• Many credit cards offer payment protection plans which are a form of credit

[edit] Other types

• All-risk insurance is an insurance that covers a wide-range of incidents and perils,

except those noted in the policy. All-risk insurance is different from peril-specific
insurance that cover losses from only those perils listed in the policy.[22] In car
insurance, all-risk policy includes also the damages caused by the own driver.

High-value horses may be insured under a bloodstock policy

• Bloodstock insurance covers individual horses or a number of horses under

common ownership. Coverage is typically for mortality as a result of accident,
illness or disease but may extend to include infertility, in-transit loss, veterinary
fees, and prospective foal.
• Business interruption insurance covers the loss of income, and the expenses
incurred, after a covered peril interrupts normal business operations.
• Collateral protection insurance (CPI) insures property (primarily vehicles) held as
collateral for loans made by lending institutions.
• Defense Base Act (DBA) insurance provides coverage for civilian workers hired
by the government to perform contracts outside the U.S. and Canada. DBA is
required for all U.S. citizens, U.S. residents, U.S. Green Card holders, and all
employees or subcontractors hired on overseas government contracts. Depending
on the country, foreign nationals must also be covered under DBA. This coverage
typically includes expenses related to medical treatment and loss of wages, as
well as disability and death benefits.
• Expatriate insurance provides individuals and organizations operating outside of
their home country with protection for automobiles, property, health, liability and
business pursuits.
• Kidnap and ransom insurance is designed to protect individuals and corporations
operating in high-risk areas around the world against the perils of kidnap,
extortion, wrongful detention and hijacking.
• Legal expenses insurance covers policyholders for the potential costs of legal
action against an institution or an individual. When something happens which
triggers the need for legal action, it is known as "the event". There are two main
types of legal expenses insurance: before the event insurance and after the event
• Locked funds insurance is a little-known hybrid insurance policy jointly issued by
governments and banks. It is used to protect public funds from tamper by
unauthorized parties. In special cases, a government may authorize its use in
protecting semi-private funds which are liable to tamper. The terms of this type of
insurance are usually very strict. Therefore it is used only in extreme cases where
maximum security of funds is required.
• Livestock insurance is a specialist policy provided to, for example, commercial or
hobby farms, aquariums, fish farms or any other animal holding. Cover is
available for mortality or economic slaughter as a result of accident, illness or
disease but can extend to include destruction by government order.

• Media liability insurance is designed to cover professionals that engage in film

and television production and print, against risks such as defamation.
• Nuclear incident insurance covers damages resulting from an incident involving
radioactive materials and is generally arranged at the national level. (See the
nuclear exclusion clause and for the U.S. the Price-Anderson Nuclear Industries
Indemnity Act.)
• Pet insurance insures pets against accidents and illnesses; some companies cover
routine/wellness care and burial, as well.
• Pollution insurance usually takes the form of first-party coverage for
contamination of insured property either by external or on-site sources. Coverage
is also afforded for liability to third parties arising from contamination of air,
water, or land due to the sudden and accidental release of hazardous materials
from the insured site. The policy usually covers the costs of cleanup and may
include coverage for releases from underground storage tanks. Intentional acts are
specifically excluded.
• Purchase insurance is aimed at providing protection on the products people
purchase. Purchase insurance can cover individual purchase protection,
warranties, guarantees, care plans and even mobile phone insurance. Such
insurance is normally very limited in the scope of problems that are covered by
the policy.
• Title insurance provides a guarantee that title to real property is vested in the
purchaser and/or mortgagee, free and clear of liens or encumbrances. It is usually
issued in conjunction with a search of the public records performed at the time of
a real estate transaction.
• Travel insurance is an insurance cover taken by those who travel abroad, which
covers certain losses such as medical expenses, loss of personal belongings, travel
delay, and personal liabilities.


In a Permanent Life contract, a portion of the money paid as premiums is invested in a

fund that earns interest on a tax-deferred basis. Thus, over a period of time, this policy
will accumulate certain "cash value" which you will be able to get back either during the
period of the policy or at the end of the policy.

Your need for life insurance can change over a lifetime. At any age, you should consider
your individual circumstances and the standard of living you wish to maintain for your
dependents. In most cases, you need life insurance only if someone depends on you for
support. Your life insurance premium is based on the type of insurance you buy, the
amount you buy and your chance of death while the policy is in effect. This type of
policy not only provides protection for your dependents by paying a death benefit to your
designated beneficiary upon your death, but it also allows you to use some part of the
money while you are alive or at the end of the policy. Some examples of such policies
are :- Whole Life, Universal Life and Variable-Universal Life.


These policies provide for period payment of premiums and a lump sum amount either in
the event of death of the insured or on the date of expiry of the policy, whichever occurs


These policies provide for periodic payments of partial survival benefits during the term
of the policy itself. A unique feature associated with this type of policies is that in the
event of death of the insured during the policy term, the designated beneficiary will get
the full sum assured without deducting any of the survival benefit amounts, which have
already been paid as money-back components. Moreover, the bonus on such policies is
also calculated on the full sum assured.


This policies / funds require the insured to pay the premium as a single lump sum or
through installments paid over a certain number of years. The insured in return will
receive back a specific sum periodically from a specified date onwards (the returns can
can be monthly, half yearly or annually), either for life or for a fixed number of years. In
case of the death of the insured, or after the fixed annuity period expires for annuity
payments, the invested annuity fund is refunded, usually with some additional amounts as
per the terms of the policy.
Annuities / Pension funds are different from from all other forms of life insurance as an
annuity policy / fund does not provide any life insurance cover but merely offers a
guaranteed income either for life or a certain period. Therefore, this type of insurance is
taken so as to get income after the retirement.

Industry structure
Currently, a US$41 billion industry, India is the world's fifth largest life insurance market
and growing at a rapid pace of 32-34% annually as per Life Insurance Council studies.

Currently, in India only two million people (0.2 % of the total population of 1 billion) are
covered under Mediclaim, whereas in developed nations like USA about 75 % of the total
population are covered under some insurance scheme. With more and more private
companies in the sector, the situation may change soon.

[edit] Specialisation

ECGC, ESIC and AIC provide insurance services for niche markets. So, their scope is
limited by legislation but enjoy special powers.

The insurance sector went through a full circle of phases from being unregulated to
completely regulated and then currently being partly deregulated. It is governed by a
number of acts.

The Insurance Act of 1938[1] was the first legislation governing all forms of insurance to
provide strict state control over insurance business.

Life insurance in India was completely nationalized on January 19, 1956, through the
Life Insurance Corporation Act. All 245 insurance companies operating then in the
country were merged into one entity, the Life Insurance Corporation of India.[2]

The General Insurance Business Act of 1972 was enacted to nationalise the about 100
general insurance companies then and subsequently merging them into four companies.
All the companies were amalgamated into National Insurance, New India Assurance,
Oriental Insurance and United India Insurance, which were headquartered in each of the
four metropolitan cities.[3]

Until 1999, there were not any private insurance companies in India. The government
then introduced the Insurance Regulatory and Development Authority Act in 1999,
thereby de-regulating the insurance sector and allowing private companies. Furthermore,
foreign investment was also allowed and capped at 26% holding in the Indian insurance

In 2006, the Actuaries Act was passed by parliament to give the profession statutory
status on par with Chartered Accountants, Notaries, Cost & Works Accountants,
Advocates, Architects and Company Secretaries.

A minimum capital of US$20 million(Rs.100 Crore) is required by legislation to set up

an insurance business.

Investment policies
With-profits policies:

Main article: With-profits policy

Some policies allow the policyholder to participate in the profits of the insurance
company these are with-profits policies. Other policies have no rights to participate in the
profits of the company, these are non-profit policies.

With-profits policies are used as a form of collective investment to achieve capital

growth. Other policies offer a guaranteed return not dependent on the company's
underlying investment performance; these are often referred to as without-profit policies
which may be construed as a misnomer.

Investment Bonds

Main article: Insurance bond

Pensions: Pensions are a form of life assurance. However, whilst basic life assurance,
permanent health insurance and non-pensions annuity business includes an amount of
mortality or morbidity risk for the insurer, for pensions there is a longevity risk.

A pension fund will be built up throughout a person's working life. When the person
retires, the pension will become in payment, and at some stage the pensioner will buy an
annuity contract, which will guarantee a certain pay-out each month until death.

Main article: Life annuity

An annuity is a contract with an insurance company whereby the insured pays an initial
premium or premiums into a tax-deferred account, which pays out a sum at pre-
determined intervals. There are two periods: the accumulation (when payments are paid
into the account) and the annuitization (when the insurance company pays out). IRS rules
restrict how you take money out of an annuity. Distributions may be taxable and/or

Tax and life insurance

Taxation of life insurance in the United States

Premiums paid by the policy owner are normally not deductible for federal and state
income tax purposes.

Proceeds paid by the insurer upon death of the insured are not included in gross income
for federal and state income tax purposes;[8] however, if the proceeds are included in the
"estate" of the deceased, it is likely they will be subject to federal and state estate and
inheritance tax.

Cash value increases within the policy are not subject to income taxes unless certain
events occur. For this reason, insurance policies can be a legal and legitimate tax shelter
wherein savings can increase without taxation until the owner withdraws the money from
the policy. On flexible-premium policies, large deposits of premium could cause the
contract to be considered a "Modified Endowment Contract" by the Internal Revenue
Service (IRS), which negates many of the tax advantages associated with life insurance.
The insurance company, in most cases, will inform the policy owner of this danger before
applying their premium.

The tax ramifications of life insurance are complex. The policy owner would be well
advised to carefully consider them. As always, the United States Congress or the state
legislatures can change the tax laws at any time.

Taxation of life assurance in the United Kingdom

Premiums are not usually allowable against income tax or corporation tax, however
qualifying policies issued prior to 14 March 1984 do still attract LAPR (Life Assurance
Premium Relief) at 15% (with the net premium being collected from the policyholder).

Non-investment life policies do not normally attract either income tax or capital gains tax
on claim. If the policy has as investment element such as an endowment policy, whole of
life policy or an investment bond then the tax treatment is determined by the qualifying
status of the policy.

Qualifying status is determined at the outset of the policy if the contract meets certain
criteria. Essentially, long term contracts (10 years plus) tend to be qualifying policies and
the proceeds are free from income tax and capital gains tax. Single premium contracts
and those run for a short term are subject to income tax depending upon your marginal
rate in the year you make a gain. All (UK) insurers pay a special rate of corporation tax
on the profits from their life book; this is deemed as meeting the lower rate (20% in
2005–06) liability for policyholders. Therefore a policyholder who is a higher rate
taxpayer (40% in 2005-06), or becomes one through the transaction, must pay tax on the
gain at the difference between the higher and the lower rate. This gain is reduced by
applying a calculation called top-slicing based on the number of years the policy has been
held. Although this is complicated, the taxation of life assurance based investment
contracts may be beneficial compared to alternative equity-based collective investment
schemes (unit trusts, investment trusts and OEICs). One feature which especially favors
investment bonds is the '5% cumulative allowance' – the ability to draw 5% of the
original investment amount each policy year without being subject to any taxation on the
amount withdrawn. If not used in one year, the 5% allowance can roll over into future
years, subject to a maximum tax deferred withdrawal of 100% of the premiums payable.
The withdrawal is deemed by the HMRC (Her Majesty's Revenue and Customs) to be a
payment of capital and therefore the tax liability is deferred until maturity or surrender of
the policy. This is an especially useful tax planning tool for higher rate taxpayers who
expect to become basic rate taxpayers at some predictable point in the future (e.g.
retirement), as at this point the deferred tax liability will not result in tax being due.

The proceeds of a life policy will be included in the estate for death duty (in the UK,
inheritance tax (IHT)) purposes, except that policies written in trust may fall outside the
estate. Trust law and taxation of trusts can be complicated, so any individual intending to
use trusts for tax planning would usually seek professional advice from an Independent
Financial Adviser (IFA) and/or a solicitor.

Pension Term Assurance

Although available before April 2006, from this date pension term assurance became
widely available in the UK. Most UK product providers adopted the name "life insurance
with tax relief" for the product. Pension term assurance is effectively normal term life
assurance with tax relief on the premiums. All premiums are paid net of basic rate tax at
22%, and higher rate tax payers can gain an extra 18% tax relief via their tax return.
Although not suitable for all, PTA briefly became one of the most common forms of life
assurance sold in the UK until the Chancellor, Gordon Brown, announced the withdrawal
of the scheme in his pre-budget announcement on 6 December 2006. The tax relief
ceased to be available to new policies transacted after 6 December 2006, however,
existing policies have been allowed to enjoy tax relief so far.

Various challenges faced in Insurance Markets are

1. Industry Challenges

(i) Commoditization in personal line products.

(ii) Shifting consumer requirements( everyone wants products tailored to them,

(iii) Heightened competition.

(iv) Global economic meltdown.

2. Business Challenges

The key business challenge for most of the insurers is to reduce the turnaround time and
improve their speed to market their products.

Distribution Channel pressures and emerging consumer demands for mass customization
and hydrid products are moving rapid product development from being a competitive
advantage to a necessity.

3. Process Challenges

Lack of stream lined processes, change management,automated processes,central



1. New approaches and technology are needed to manage and develop insurance
products which reduces the cost and time to market.

2. Speed, quality, efficiency and capacity are different dimentions to counter the above

3. Product Solutions

Deliver new products/product customizations efficiently, quickly and in a flexible


Making change to existing products quickly.

Meeting demand for combination products i.e developing products that encompass
multiple features in todays products.

Speed to match the competition (If market embraces a particular product feature launched
by the competitor, other insurer tend to quickly follow suit to meet competition.
Example: Consevative LIC introduced Unit Linked Plans to meet competition.

Real time underwriting based on customer segmentation.

Organisational Solutions

For robust performance and growth empower front-line staff and equip them with
multiple skills.
Insurance marketers face a daunting task in today's marketplace. Compliance
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challenges can seem immense.

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marketing campaigns? Do they have direct mail lists, email templates and print ads
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Edgar Rodriguez, Executive Vice President of Marketing at Distribion.

"Too many insurance marketers look at those questions and realize that the end result of
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