Life Insurance Marketing

An Introduction To Life Insurance Marketing Life Insurance Marketing is one of the most strenuous jobs for those who are involved in the insurance marketing.. It is because of the ever lasting conflict between the insurance companies which want to profit the most and the insured person who wants to get as much compensation as possible from the insurance company. Commissions for the Life Insurance companies are very high and they seldom make profits out of the policies. Also the insurance policy needs to be transparent so that the potential customer understands it totally and should not feel that they have been treated unfairly by the insurance company. Reasons For Life Insurance Marketing The Life insurance companies were paid very little premiums by young children or healthy people and thus the scope for profit was very small and those who paid high rates of premium were the older beings who died and the Life insurance companies compensate for that. However nowadays the Life insurance premiums are almost the same for an young adult and an old person who just had a major operation. As the Life Insurance Marketing Companies already deals with this type of a scenario, what one can do is to change the public perception about the Life insurance companies. One can connect himself or herself with companies whose workers need a plan for Life Insurance. One can also go to crowded places and advertise for the Life insurance company. The Life insurance companies also offer fliers and hanging banners. One can also offer free Life check in a reputed place to the insured for at least once. One should always give the life

insurance policy holders existing a chance to prefer the marketing techniques that the insurance company is presenting. If the policy holder does this at a regular basis then the company has a high chance of succeeding. This is making the competition much tougher for the Life insurance companies as most of the companies offer similar types of premiums and facilities. So it has become very important for the life insurance companies to concentrate on Life Insurance Marketing and attract as many people as possible towards their company. The Life Insurance Companies prefer to go for Group Life Insurance for a group of people from a particular company or a family so that they get a group of customers and even if they compensate for some of them for various reasons they usually make it up with other's premiums. They also get less papers to control and also they provide better facilities for their clients. So to promote this type of policy they need to have social and industrial connections. Life Insurance market helps developing that. Even for other policies like term life insurance and permanent life insurance one needs to be aware of making people realize the profits of the policy by various means provided by marketing agencies. So before going for a Life Insurance Marketing one actually needs to know the market target and the desires of the people who are actually seen as potential insurance customers. The confusion about the way a Life Insurance Marketing conductor can draw the potential Insurance holder's attention evaporates fast if he knows his targets and aims clearly. So, it is important to conduct a sound survey and then attract people.

Life Insurance Marketing Strategies

A very common way to promote a Life insurance company through Life Insurance Marketing is to make the name of the company familiar to others by means of television commercials, handling out pamphlets, hanging banners in populated areas and by providing exciting offers. Telephone marketing is another way of Life Insurance Marketing. One can see the telephone companies send messages about various offers and they even make phone calls. Web Insurance Marketing is another good strategy to promote insurance policies. The pop ups that one sees while using Internet are actually a very effective way of sending messages across the potential insurance customers. One should listen to the existing Life Insurance Policy Holders as well as the potential Life insurance policy holders and listen to what people who actually matters have to say. One common problem that the insured persons face is that the insurance companies do not inform its clients about the hike in the premium rates. These things should be kept in mind. Not only that, a client should be informed about everything related to his policy and the Life insurance company should keep the transparency as much as possible. Community Life Insurance Marketing is another different way to get promotion and a high recognition for the Life insurance company. Eminent workers join local community institutions, such as Chamber of Commerce,

and by signing up there one can help out various projects that take place. These kinds of activities and social works on behalf of the Life insurance company helps the company to get free publicity as their names are published in news paper and in media also. Doing charity works also helps the Life insurance companies to come across various people who act as volunteers and can act as their potential Life insurance clients. People also like to deal with like minded people and companies and this is how many deals are made.

A Life Insurance Company should not charge different Life insurance client different charges for the same policy. This kind of policy gives the Life insurance policy holders the feeling that they are being treated unfairly and also that the Life insurance companies are only looking for profits and not the betterment of customer welfare. When a Life insurance claim is filed, especially for a very big hefty amount, the Life insurance company should help out the policy holder in processing out the paperwork. One should not let bureaucracy enter and make it so difficult for the one making the claim so that he gives his claim .This has always been a common tactic on the insurance company's part to avoid paying claims claimed by the policy holder. This though makes a short term profit for the company but it hurts in the long run as the reputation of the company is hampered severely. People in this Life insurance industry should always try to keep in constant contact with the existing customers as well. The competition in the insurance market is so fierce

today that no company wants to loose out on a customer to another company. Clients who are not contacted for a longer period of time normally fail to remain loyal to the insurance company and look for a different Life insurance company. The company can keep the records of the client's birthday and days like anniversary and sent him or her small tokens of love or loyalty at a regular basis. If the company can afford a little more it can send dinner coupons to the Life insurance policy holder. These things play a major role and can be considered as an effective Life Insurance Marketing strategy.

May be the most crucial thing in insurance marketing is to always speak about unity and honesty while dealing with a business. A Life Insurance Holder can find so many frauds in various life insurance companies today, that life insurance customers are going for products and services which are trustworthy to them. Feeling safe is about insurances and other things are most important as far as the insurance holder is concerned. So, if a company remains loyal to its customers it will itself do Life Insurance Marketing for itself. So, only by remaining loyal to its customers the company can do a world of good to its reputation and this would in itself bring more potential Life Insurance Holders to the company, because the customers prefer safety more than anything else these days.

To know more about Life Insurance Marketing one can go to christianet.com, insurance.com

The Indian Insurance Industry

India insurance is a flourishing industry, with several national and international players competing and growing at rapid rates. Thanks to reforms and the easing of policy regulations, the Indian insurance sector been allowed to flourish, and as Indians become more familiar with different insurance products, this growth can only increase, with the period from 2010 - 2015 projected to be the 'Golden Age' for the Indian insurance industy. India Insurance Policies at a Glance
Indian insurance companies offer a comprehensive range of insurance plans, a range that is growing as the economy matures and the wealth of the middle classes increases. The most common types include: term life policies, endowment policies, joint life policies, whole life policies, loan cover term assurance policies, unit-linked insurance plans, group insurance policies, pension plans, and annuities. General insurance plans are also available to cover motor insurance, home insurance, travel insurance and health insurance. Due to the growing demand for insurance, more and more insurance companies are now emerging in the Indian insurance sector. With the opening up of the economy, several international leaders in the insurance sector are trying to venture into the India insurance industry.

India Insurance: History

The history of the Indian insurance sector dates back to 1818, when the Oriental Life Insurance Company was formed in Kolkata. A new era began in the India insurance sector, with the passing of the Life Insurance Act of 1912. The Indian Insurance Companies Act was passed in 1928. This act empowered the government of India to gather necessary information about the life insurance and non-life insurance organizations operating in the Indian financial markets. The Triton Insurance Company Ltd formed in 1850 and was the first of its kind in the general insurance sector in India. Established in 1907, Indian Mercantile Insurance Limited was the first company to handle all forms of India insurance.

Indian Insurance: Sector Reform

The formation of the Malhotra Committee in 1993 initiated reforms in the Indian insurance sector. The aim of the Malhotra Committee was to assess the functionality of the Indian

insurance sector. This committee was also in charge of recommending the future path of insurance in India. The Malhotra Committee attempted to improve various aspects of the insurance sector, making them more appropriate and effective for the Indian market. The recommendations of the committee put stress on offering operational autonomy to the insurance service providers and also suggested forming an independent regulatory body. The Insurance Regulatory and Development Authority Act of 1999 brought about several crucial policy changes in the insurance sector of India. It led to the formation of the Insurance Regulatory and Development Authority (IRDA) in 2000. The goals of the IRDA are to safeguard the interests of insurance policyholders, as well as to initiate different policy measures to help sustain growth in the Indian insurance sector. The Authority has notified 27 Regulations on various issues which include Registration of Insurers, Regulation on insurance agents, Solvency Margin, Re-insurance, Obligation of Insurers to Rural and Social sector, Investment and Accounting Procedure, Protection of policy holders' interest etc. Applications were invited by the Authority with effect from 15th August, 2000 for issue of the Certificate of Registration to both life and non-life insurers. The Authority has its Head Quarter at Hyderabad. Detailed information on IRDA is available at their web-site www.irdaindia.org

Protection of the interest of policy holders:

IRDA has the responsibility of protecting the interest of insurance policyholders. Towards achieving this objective, the Authority has taken the following steps:

IRDA has notified Protection of Policyholders Interest Regulations 2001 to provide for: policy proposal documents in easily understandable language; claims procedure in both life and non-life; setting up of grievance redressal machinery; speedy settlement of claims; and policyholders' servicing. The Regulation also provides for payment of interest by insurers for the delay in settlement of claim. The insurers are required to maintain solvency margins so that they are in a position to meet their obligations towards policyholders with regard to payment of claims. It is obligatory on the part of the insurance companies to disclose clearly the benefits, terms and conditions under the policy. The advertisements issued by the insurers should not mislead the insuring public. All insurers are required to set up proper grievance redress machinery in their head office and at their other offices. The Authority takes up with the insurers any complaint received from the policyholders in connection with services provided by them under the insurance contract.

The project title is"MARKETING STRATEGIES OF HDFC STANDARD LIFE INSURANCE". Insurance means Spreading of Losses or Sharing of Risks: Life is full of risks. For property, there are fire risks; for shipment of goods, there are perils of sea; for human life there are risks of death or disability; so on and so forth. The risks are uncertain-may or may not occur. People facing common risks come together and give their small contribution to the common fund. While it may not be possible to tell before, which persons will suffer, but it is possible to tell how many persons on an average out of the group will suffer loss. If any case risk occurs, loss is made good out of common fund. In this way, common risk is shared by all. Insurance thus broadly be understood as the process of spreading of losses of an individual over the group of individuals or the process of sharing of risk by those who face common risk. People who suffer loss get relief because their loss is made good out of common fund. People who do not suffer loss get relief because they are free of any worry of loss. Following 2 examples explain the above concept of insurance. Insurance in India has been under public sector for over four decades. Life Insurance was nationalized way back in 1956 by merging 245 private insurance companies thus forming Life Insurance Corporation (LIC) of India. Similarly after nationalization of general insurance in 1972, General Insurance Corporation (GIC) was formed by merging 106 private insurance companies. General Insurance Corporation currently has four subsidiary companies operating in India. When the insurance industry was nationalised, it was considered a landmark and a milestone on the way to the socialistic pattern of society that India had chosen after independence. But now four decades after the Insurance sector was nationalized, the nationalised sector companies could not cater to the Indian market to cover its entire potential. So the main objectives of privatization are 1. To provide for proper back ups if there is any unforeseen economic shocks. 2. To make sure there is a win-win situation for both the common man and the industry players. The other reasons for opening up the insurance sector to the private insurers are as under: 1. To provide better Insurance coverage to Indian citizens. To augment the flow of long-term financial resources to finance the growth of Infrastructure. 2. The Public Sector Insurance Companies had not succeeded in extending the insurance cover to all the needy people of the country due to various reasons. Hence this onerous responsibility now has been entrusted to the private insurers. 1. Penetration of Insurance: LIC and GIC could not ensure very fast growth of insurance in India even in a long period extending over four decades. Hence the penetration of insurance is very low in India. The objectives of the project: - To study the benefits of this product provided by HDFC Standard Life Insurance company. - To know the consumer feedback. - To know the marketing strategies adopted to promote these products. - To make the private players responsible to the investors and not to the government. - To increase the competition in this sector so that the common people has the advantage of enjoying quality services at a reasonable cost - Insurance has a far reaching effect in synchronizing between the various service sectors. So if this sector can grow, the prospects of the various other service sector remains to be promising.