PRESENTED BY

PRI YANKA VI JAYAN

REG : 343
Marketing of Insurance
Insurance = Collective bearing of Risk.

Insurance is a financial arrangement that redistributes the
costs of unexpected losses.

Insurance, whether life or non-life, provides people with a
reasonable degree of security and assurance that they will
be protected in the event of a calamity or failure of any sort.


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.



Type of insurance Life insurance General insurance Re-Insurance
Public Sector 01 06 01
Private Sector 23 18 00
Total 24 24 01
Insurance Marketing
Design and distribution of insurance services with
customer orientation so as to achieve the right balance
between customer satisfaction and profit generation.
Insurance marketing includes:
Knowing the market
Developing a need oriented product
Formulating the product mix
Making suitable pricing decisions
Designing sensitive promotional strategies & effective
distribution

Objective : attain organizational goals of growth and
expansion of business by mobilizing savings and, at the
same time, ensuring social interests.
Strong sales orientation : rarely sell themselves

Users and their behavior
Individuals, corporate, industries, institutions
Actual policy holder
Potential Policy holder : Motivate
Studying the users behavior : frame the marketing
strategies
Categorize & understand the users
Rural & Urban : awareness & safety
Individual & industries

Insurance Products
Guaranteeing compensation in the event of any loss or
damage to property or death.
Product Vs Service
Sell service in the form of an assurance : inseparable
Intangible, variable, perishable
Products are:
Life insurance : Swarna Vishranti of Bajaj Allianz
Medical insurance : ICICI Pru Crisis Cover
Child insurance : ICICI Pru SmartKid Premier
Vehicle insurance:
Home insurance

Life Insurance Corporation of India
Bajaj Allianz General Insurance
ICICI Prudential Life Insurance
SBI Life Insurance
Birla Sun Life Insurance
TATA AIG General Insurance
Max New York Life
Reliance Life
Oriental Insurance Company
HDFC Standard Life Insurance




Marketing Segmentation
Huge Market
Many Potential policy holder : huge diversity of needs and
requirements
Different Market Segments are:
Household Sector
Salaried, self-employed, retired employees class
Industrial Sector
Public and Private
Trading Sector
Institutional Sector
Universities, schools, colleges, hospitals and institutions
Marketing Mix
Product, pricing, promotion & effective distribution
Redesign : growing rate of risk & uncertainty
Existing & new policies
Effective pricing policies
Agents and rural career agents
Product Planning and Development
Organizations objectives, resources & environment
Allocating the resources according to the new trends in the
business environment.
Provide adequate financial coverage at a reasonable cost.
Economic wisdom
Pricing the Offer
Pricing highly relates to the perceived value of the
product.
Company offers a product/service that the customer
wants, with the quality he desires, for the lowest cost
would be the most preferred one.
Premiums charged by the insurers.
Risk characteristics of an insurance
Important variable that determines the cost of life
insurance products are mortality, rate of interest in the
economy etc.
Interest charged for the defaulting on the payment of the
premium.
Credit facilities, commission charged
Competition

Distribution and distributors
People factor is closely associated with the distribution
channel
Converting potential policy holders to actual holders
LIC of India Regulation, 1972
Agents acts as a link between the potential policy holders
and the Insurance Corporation
Customer management & responding to the emerging
marketing environment.
The physical distribution network has to achieve the
maximum reach in terms of geography and target market.

Designing of Promotional Strategies
Socio-economic environment
High dependence on effective promotional strategies
Awareness : Personal & impersonal communication
Agents : personal communication
Advertising, mass publicity, conferences, seminars, road
shows : impersonal communication

Personal promotional strategies
Generate a feeling of insecurity in the minds of the target
and bring them to the selling point
Protection, legal compulsion, investment option
Features to be projected according to the potential
customers.
Rural career agents
Impersonal Strategies
Advertising, public relations
Print or electronic media
Rural areas: exhibitions in fair and festivals, wall paintings