Marketing of Insurance Products

Marketing of Insurance Products
1
Project on
Submitted in the partial fulfilment of the requirements

for the award of Degree Bachelor of commerce Banking
and Insurance (SEM VI) 2010-11
Submitted by: Miss. Saily Pillewar
Roll no: B025
Under the guidance of
Prof. Seema Pawar
University of Mumbai
Kets V.G.VAZE COLLEGE OF ARTS COMMERCE AND

SCIENCE, MITHAGAR ROAD
MULUND - EAST
Mumbai- 81
2
DECLARATION
I Miss Saily Pillewar student of KET’s V.G.VAZE COLLEGE

OF Art’s COMMERCE AND SCIENCE studying in TY
Banking and Insurance SEM VI (2010 – 11) hereby
declare that I have completed the project on “Marketing
of Insurance Products” under the guidance of Professor
Seema Pawar
The information collected is original and true to the best

of my knowledge.
Date:
Saily Pillewar
Roll No-B025
3
ACKNOWLEDGEMENT
The satiation and euphoric that accompany the successful

completion of task, would be incomplete without the mention of
the people who made it possible. After all, the success is the
epitome of hard work, severance, undeterred, zeal, stead fast
determination and most of all encouraging guidance. So with
immense gratitude, I acknowledge Dr.B.B Sharma principal of
KET’s V.G.VAZE College. I would like to express my profound
sense of gratitude to Prof. Seema Pawar my project guide for
giving me valuable suggestions and advice through out the
execution of the project.
Last but not the least, I would like to thank almighty God, my
parents, and my friends who helped me gather these data and have
sat with me for hours discussing about the project.
4
Index
5
MarketingChp
of Insurance Products
Topic Pg no
No
INSURANCE
1.1 Definition & Meaning of
1 1.2
Insurance
History of Insurance 1-22
1.3 Concept of Insurance
1.4 Overview of Insurance
1.5 Principles of Insurance
Marketing of Insurance
2.1 Marketing of Insurance
2.2 Insurance Marketing
2 strategies
23-39
2.3 Meaning & Definition of
marketing
2.4 Indian Insurance Marketing
2.5 Problems face by insurance

companies 6
DESING OF THE STUDY
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Objectives
 To know how Insurance companies are benefited through

marketing.
 To understand what is marketing.
Limitations
 The project is limited to the marketing strategies of LIC.

 Time, length, and depth of the study are limited as per the
requirements of Mumbai University.
Scope
 The project begins with a brief mention of what

“MARKETING” is and its need and importance in Insurance
8
Companies. It further goes on to show the challenges faced

by the Insurance Companies
Methodology of study
Data for the project is obtained from secondary source
 Secondary source-
Secondary data for the project has been gathered from various
Marketing & Insurance books and internet.
Period
The period of study was from 22nd February to 3rd March 2011.
Executive summary
9
Wherever there is uncertainty there is a risk. We do not have control on

uncertainties which involve financial losses. The risk may be certain events like
death, pension, retirement or uncertain events like theft, fire, accident etc.
Insurance is a financial service for collecting the savings of the public and
providing them with the risk coverage. The main function of insurance is to
provide against the possible chance of generating losses. It eliminates worries
and miseries of losses by destruction of property and death. It also provides
capital to the society as the funds accumulated are invested in the productive
heads.
Insurance comes under the service sector and while marketing this service,
due care is to be taken in quality product and customer satisfaction. While
marketing the services, it is also pertinent that they think about the innovative
promotional measures. It is not sufficient that you perform well but it is also
important that you let other know about the quality of your positive
contribution.
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The creativity in the promotional measures is the need of the hour. The
advertisement, public relations, word of mouth communication needs due
care and personal selling requires intensive care.
11
Chapter 1
INSURANCE
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1.1
Definition
A promise of compensation for specific potential future losses in exchange for a

periodic payment. Insurance is designed to protect the financial well-being of
an individual, company or other entity in the case of unexpected loss. Some
forms of insurance are required by law, while others are optional. Agreeing to
the terms of an insurance policy creates a contract between the insured and the
insurer. In exchange for payments from the insured (called premiums), the
insurer agrees to pay the policy holder a sum of money upon the occurrence of a
specific event. In most cases, the policy holder pays part of the loss (called the
deductible), and the insurer pays the rest. Examples include car insurance,
health insurance, disability insurance, life insurance, and business insurance.
The meaning of insurance

“Insurance is a policy from a large financial institution that offers a person,
company, or other entity reimbursement or financial protection against
possible future losses or damages”.
The meaning of insurance is important to understand for anybody that is
considering buying an insurance policy or simply understanding the basics of
finance. Insurance is a hedging instrument used as a precautionary measure
against future contingent losses.
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This instrument is used for managing the possible risks of the future.
Insurance is bought in order to hedge the possible risks of the future which may
or may not take place. This is a mode of financially insuring that if such a
incident happens then the loss does not affect the present well-being of the
person or the property insured. Thus, through insurance, a person buys security
and protection.
A simple example will make the meaning of insurance easy to understand. A
biker is always subjected to the risk of head injury. But it is not certain that the
accident causing him the head injury would definitely occur. Still, people riding
bikes cover their heads with helmets. This helmet in such cases acts as
insurance by protecting him/her from any possible danger. The price paid was
the possible inconvenience or act of wearing the helmet; this i.e. equivalent to
the insurance premiums paid.
Though loss of life or injuries incurred cannot be measured in financial terms,
insurance attempts to quantify such losses financially. Insurance can be defined
as the process of reimbursing or protecting a person from contingent risk of
losses through financial means, in return for relatively small, regular payments
to the insuring body or insurance company.
Insurance can range from life to medical to general (residential, commercial
property, natural incidents, burglary, etc)
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 Life Insurance:
It insures the life of the person buying the Life Insurance Certificate. Once a
Life Insurance is sold by a company then the company remains legally entitled
to make payment to the beneficiary after the death of the policy holder.
 Medical Insurance :
This is also known as mediclaim. Here, the policy holder is entitled to receive
the amount spent for his health purposes from the insurance company.
 General Insurance: :
This insurance type involves insuring the risks associated with the general life
such as automobiles, business related, natural incidents, commercial and
residential properties, etc.
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1.2
History of insurance
Refers to the development of a modern laws and market in insurance against
risks. In some sense we can say that insurance appears simultaneously with the
appearance of human society. We know of two types of economies in human
societies: money economies (with markets, money, financial instruments and so
on) and non-money or natural economies (without money, markets, financial
instruments and so on). The second type has been used much longer than the
first. In such an economy and community, we can see insurance in the form of
people helping each other. For example, if a house burns down, the members of
the community help build a new one. Should the same thing happen to one's
neighbour, the other neighbors must help. Otherwise, neighbours will not
receive help in the future.
Turning to insurance in the modern sense (i.e., insurance in a modern money
economy, in which insurance is part of the financial sphere), early methods of
transferring or distributing risk were practiced
by Chinese and Babylonian traders as long ago as the 3rd and 2nd millennia
BC, respectively. Chinese merchants travelling treacherous river rapids would
redistribute their wares across many vessels to limit the loss due to any single
vessel's capsizing. The Babylonians developed a system which was recorded in
the famous Code of Hammurabi, c. 1750 BC, and practiced by
early Mediterranean sailing merchants. If a merchant received a loan to fund his
shipment, he would pay the lender an additional sum in
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Exchange for the lender's guarantee to cancel the loan should the shipment be
stolen.
Achaemenian monarchs were the first to insure their people and made it official
by registering the insuring process in governmental notary offices. The
insurance tradition was performed each year in Nowruz (beginning of the
Iranian New Year); the heads of different ethnic groups as well as others willing
to take part, presented gifts to the monarch. The most important gift was
presented during a special ceremony. When a gift was worth more than 10,000
Derrik (Achaemenian gold coin) the issue was registered in a special office.
This was advantageous to those who presented such special gifts. For others,
the presents were fairly assessed by the confidants of the court. Then the
assessment was registered in special offices.
The purpose of registering was that whenever the person who presented the gift
registered by the court was in trouble, the monarch and the court would help
him. Jahez, a historian and writer, writes in one of his books on ancient Iran:
"whenever the owner of the present is in trouble or wants to construct a
building, set up a feast, have his children married, etc. the one in charge of this
in the court would check the registration. If the registered amount exceeded
10,000 Derrik, he or she would receive an amount of twice as much."
A thousand years later, the inhabitants of Rhodes created the 'general average',
which allowed groups of merchants to pay to insure their goods being shipped
together. The collected premiums would be used to reimburse any merchant
whose goods were jettisoned during transport, whether to storm or sink age.
The ancient Athenian "maritime loan" advanced money for voyages with
repayment being cancelled if the ship was lost. In the 4th century BC, rates for
the loans differed according to safe or dangerous times of year, implying an
intuitive pricing of risk with an effect similar to insurance.
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The Greeks and Romans introduced the origins of health and life insurance c.

600 BCE when they created guilds called "benevolent societies" which cared
for the families of deceased members, as well as paying funeral expenses of
Members. Guilds in the Ages served a similar purpose. The Talmud deals with
several aspects of insuring goods. Before insurance was established in the late
17th century, "friendly societies" existed in England, in which people donated
amounts of money to a general sum that could be used for emergencies.
Medieval and Early modern

Separate insurance contracts (i.e., insurance policies not bundled with loans or
other kinds of contracts) were invented in Genoa in the 14th century, as were
insurance pools backed by pledges of landed estates. The first known insurance
contract dates from Genoa in 1343, and in the next century maritime insurance
developed widely and premiums were intuitively varied with risks. These new
insurance contracts allowed insurance to be separated from investment, a
separation of roles that first proved useful in marine insurance. The first printed
book on insurance was the legal treatise On Insurance and Merchants'
Bets by Pedro de Santarem (Santerna), written in 1488 and published in 1552.
Insurance became far more sophisticated in post-Renaissance Europe, and
specialized varieties developed. The will of Robert Hayman, written in 1628,
refers to two policies he has taken out with a wealthy Londoner: one of life
insurance and one of marine insurance.[6] Toward the end of the 17th century,
London's growing importance as a centre for trade increased demand for marine
insurance. In the late 1680s, Mr. Edward Lloyd opened a coffee house that
became a popular haunt of ship owners, merchants, and ships’ captains, and
thereby a reliable source of the latest shipping news. It became the meeting
place for parties wishing to insure cargoes and ships, and those willing to
18
underwrite such ventures. Today, Lloyd's of London remains the leading market

(note that it is not an insurance company) for
Marine and other specialist types of insurance, but it works rather differently
than the more familiar kinds of insurance.
Insurance as we know it today can be traced to the Great Fire of London, which
in 1666 devoured 13,200 houses. In the aftermath of this disaster, Nicholas
Barbon opened an office to insure buildings. In 1680, he established England's
first fire insurance company, "The Fire Office," to insure brick and frame
homes.
The concept of health insurance was proposed in 1694 by Hugh the Elder
Chamberlen from the Peter Chamberlen family. In the late 19th century,
"accident insurance" began to be available, which operated much like
modern disability insurance. This payment model continued until the start of the
20th century in some jurisdictions (like California), where all laws regulating
health insurance actually referred to disability insurance.
The first insurance company in the United States underwrote fire insurance and
was formed in Charles Town (modern-day Charleston), South Carolina in 1732,
but it provided only fire insurance.
Industrial revolution
Benjamin Franklin helped to popularize and make standard the practice of
insurance, particularly against fire in the form of perpetual insurance. In 1752,
he founded the Philadelphia Contribution ship for the Insurance of Houses from
Loss by Fire. Franklin's company was the first to make contributions toward
fire prevention. Not only did his company warn against certain fire hazards, it
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refused to insure certain buildings where the risk of fire was too great, such as
all wooden houses.
The sale of life insurance in the U.S. began in the late 1760s.
The Presbyterian Synods in Philadelphia and New York founded the
Corporation for Relief of Poor and Distressed Widows and Children of
Presbyterian Ministers in 1759; Episcopalian priests created a comparable relief
fund in 1769. Between 1787 and 1837 more than two dozen life insurance
companies were started, but fewer than half a dozen survived.
Prior to the American Civil War, many insurance companies in the United
States insured the lives of slaves for their owners. In response to bills passed
in California in 2001 and in Illinois in 2003, the companies have been required
to search their records for such policies. New York Life for example reported
that Nautilus sold 485 slaveholder life insurance policies during a two-year
period in the 1840s; they added that their trustees voted to end the sale of such
policies 15 years before the Emancipation Proclamation.
Insurance is essentially a hedge against misfortune, in modern usage. In the
20th century ‘insurance’ was also used as a form or extortion, most notably
used by organized crime as a means of generating tax free income and to
control businesses, populations, and politics, usually on a local level.
In the USA, until the passage of the Social Security Act, the federal government
had never mandated any form of insurance upon the nation as a whole, but this
program expanded the concept and acceptance of insurance as a means to
achieve individual financial security that might not otherwise be available. That
expansion experienced its first boom market immediately after the Second
World War with the original VA Home Loan programs that greatly expanded
the idea that affordable housing for veterans was a benefit of having served.
The mortgages that were underwritten by the federal government during this
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time included an insurance clause as a means of protecting the banks and

lending institutions involved against avoidable losses. During the 1940s there
was also the GI life insurance policy program that was designed to ease the
burden of military losses on the civilian population and survivors.
During the 1970s and 1980s there was a growth in support for the requirement
for drivers to have insurance as a means of proving financial responsibility
since it was recognized that the automobile, in the case of an accident, could
cause significant collateral damage. It soon followed that car insurance became
a mandatory requirement for all drivers.
Health insurance in the United States

Accident insurance was first offered in the United States by the Franklin Health
Assurance Company of Massachusetts. This firm, founded in 1850, offered
insurance against injuries arising from railroad and steamboat accidents. Sixty
organizations were offering accident insurance in the US by 1866, but the
industry consolidated rapidly soon thereafter. In 1887, the African American
workers in Muchakinock, Iowa, a company town, organized a mutual protection
society. Members paid fifty cents a month or $1 per family for health insurance
and burial expenses. In the 1890s, various health plans became more common.
Disability insurance group disability policy was issued in 1911
Commercial insurance companies began offering accident and sickness
insurance (disability insurance) as early as the mid-19th century. Hospital and
medical expense policies were introduced during the first half of the 20th
century. The first group medical plan was purchased from The Equitable Life
Assurance Society of the United States by the General Tire & Rubber Company
in 1934. Before the development of medical expense insurance, patients were
expected to pay all other health care costs out of their own pockets, under what
21
is known as the fee-for-service business model. During the middle to late 20th

century, traditional disability insurance evolved into modern health insurance
programs. Today, most comprehensive private health insurance programs cover
the cost of routine, preventive, and emergency health care procedures, and also
most prescription drugs, but this was not always the case.
During the 1920s, individual hospitals began offering services to individuals on
a pre-paid basis. The first group pre-payment plan was created at the Baylor
University Hospital in Dallas, Texas. This concept became popular among
hospitals during the Depression, when they were facing declining revenues. The
Baylor plan was a forerunner of later Blue Cross plans. Physician associations
began offering pre-paid surgical/medical benefits in the late 1930s Blue Shield
plans. Blue Cross and Blue Shield plans were non-profit organizations
sponsored by local hospitals (Blue Cross) or physician groups (Blue Shield). As
originally structured, Blue Cross and Blue Shield plans provided benefits in the
form of services rendered by participating hospitals and physicians ("service
benefits") rather than reimbursements or payments to the policyholder.
Hospital and medical expense policies were introduced during the first half of
the 20th century. During the 1920s, individual hospitals began offering services
to individuals on a pre-paid basis, eventually leading to the development of
Blue Cross organizations. The Ross-Loos Clinic, founded in Los Angeles in
1929, is generally considered to have been the first health maintenance
organization (HMO). Henry J. Kaiser organized hospitals and clinics to provide
pre-paid health benefits to his shipyard workers during World War II. This
became the basis for Kaiser Permanente HMO. Most early HMOs were non-
profit organizations. The development of HMOs was encouraged by the passage
of the Health Maintenance Organization Act of 1973. The first employer-
sponsored hospitalization plan was created by teachers in Dallas, Texas in 1929.
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Because the plan only covered members' expenses at a single hospital, it is also
the forerunner of today's health maintenance organizations (HMOs).
Employer-sponsored health insurance plans dramatically expanded as a result of
wage controls during World War II. The labor market was tight because of the
increased demand for goods and decreased supply of workers during the war.
Federally imposed wage and price controls prohibited manufacturers and other
employers raising wages high enough to attract sufficient workers. When
the War Labor Board declared that fringe benefits, such as sick leave and health
insurance, did not count as wages for the purpose of wage controls, employers
responded with significantly increased benefits.
Employer-sponsored health insurance was considered taxable income until
1954.
In the United States, regulation of the insurance industry is highly Balkanized,
with primary responsibility assumed by individual state insurance departments.
Whereas insurance markets have become centralized nationally and
internationally, state insurance commissioners operate individually, though at
times in concert through a national insurance commissioners' organization. In
recent years, some have called for a dual state and federal regulatory system for
insurance similar to that which oversees state banks and national banks.
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1.3
Concept of Insurance
The functions of Insurance will give you an idea on how to go ahead with the
approach of insurance and what type of insurance to choose. In a layman's
words, insurance means, ‘a guard against pecuniary loss arising on the
happening of an unforeseen event’. In developing economies, the insurance
sector still holds a lot of potential which can be tapped. Majority of the people
in the developing countries remains unaware of the functions and benefits of
insurance and it is for this reason that the insurance sector is still to grow.
Tangible or intangible – an individual can insure anything! Be it a house, car,
factory, or the voice of a singer, leg of a footballer, and the hand of an
author.....etc. It is possible to insure all these as they have the possibility of
becoming non functional by any disaster or an accident.
Basic functions of Insurance

1. Primary Functions
2. Secondary Functions
3. Other Functions
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Primary functions of insurance

 Providing protection –
The elementary purpose of insurance is to allow security against future
risk, accidents and uncertainty. Insurance cannot arrest the risk from
taking place, but can for sure allow for the losses arising with the risk.
Insurance is in reality a protective cover against economic loss, by
apportioning the risk with others.
 Collective risk bearing

Insurance is an instrument to share the financial loss. It is a medium
through which few losses are divided among larger number of people. All
the insured add the premiums towards a fund and out of which the persons
facing a specific risk is paid.
 Evaluating risk –
Insurance fixes the likely volume of risk by assessing diverse factors that
give rise to risk. Risk is the basis for ascertaining the premium rate as
well.
 Provide Certainty
Insurance is a device, which assists in changing uncertainty to certainty.
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Secondary functions of insurance

 Preventing losses
Insurance warns individuals and businessmen to embrace appropriate
device to prevent unfortunate aftermaths of risk by observing safety
instructions; installation of automatic sparkler or alarm systems, etc.
 Covering larger risks with small capital
Insurance assuages the businessmen from security investments. This is
done by paying
small amount of premium against larger risks and dubiety.
 Helps in the development of larger industries
Insurance provides an opportunity to develop to those larger industries
which have more risks in their setting up.
Other functions of insurance

 Is a savings and investment tool
Insurance is the best savings and investment option, restricting
unnecessary expenses by the insured. Also to take the benefit of income
tax exemptions, people take up insurance as a good investment option.
 Medium of earning foreign exchange
Being an international business, any country can earn foreign exchange
by way of issue of marine insurance policies and a different other ways.
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 Risk Free trade

Insurance boosts exports insurance, making foreign trade risk free with the
help of different types of policies under marine insurance cover.
Insurance provides indemnity, or reimbursement, in the event of an

unanticipated loss or disaster. There are different types of insurance policies
under the sun cover almost anything that one might think of. There are loads
of companies who are providing such customized insurance policies.
1.4
OVERVIEW of INSURANCE :
The economic reforms undertaken in the last 15 years have brought about a
considerable improvement in the health of banks and financial institutions in
India. The banking sector is a very important sector of the Indian economy.
The sector has made a marked improvement in the liberalization period.
There has been extraordinary progress in the financial health of the
commercial banks with respect to capital adequacy, profitability, and asset
quality and risk management. Deregulation has opened new doors for banks
to increase revenues by entering into investment banking, insurance, credit
cards, depository services, mortgage, securitization, etc.
The limit for foreign direct investment in private banks has been increased
27
from 49% to 74%. In addition, the limit for foreign institutional investment
in private banks is 49%. Liberalization and globalization have created a more
challenging environment in the banking sector as well as in the other
segments of the financial sector such as mutual funds, Non Banking Finance
Companies, post offices, capital markets, venture capitalists, etc. Now the
challenges faced by the sector would be gaining profitability, reinforcing
technology, maintaining global standards, corporate governance, sharpening
skills, risk management and, the most important of all, to establish 'Customer
Intimacy'.
The insurance business is one of the most rapidly growing areas in the
financial sector. As an economy grows over the years, insurance sector
intensifies and broadens its reach. Every practical and futuristic individual
would want himself, his family and his assets to be insured. Insurance deals
mainly with life and general insurance. India has a large insurance market
commensurate with its population. The IRDA Act 1999 (Insurance
Regulatory and Development Authority of India Act) has given new
opportunities to private players to enter into the market on the fulfillment of
certain prerequisites. The IRDA is the licensing authority in the sector; the
current FDI cap/Equity in the sector stands at 26 percent. There is no doubt
the challenges ahead will become tougher with more companies competing
both in general and life Insurance. Also mortgage insurance will soon be
coming into the industry. New players have contributed to the launch of
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innovative products, services and value-added benefits.
Major foreign players have entered the country and announced joint
ventures in both life and non-life areas. These include New York Life,
Aviva, Tokio Marine, Allianz, Standard Life, Lombard General, AIG, AMP
and Sun Life among others.
Commercial banks are coming up with more and more vacancies, and the
banking sector now has more new jobs than any other sector. Right from the
branch level to the highest level, there is tremendous range of opportunities
available in the sector. Jobs in this sector can be both rewarding and
enjoyable, as you get opportunities to learn about business, interact with
people and build up clientele. The same is the case with insurance, as it is the
fastest growing industry under the financial sector. Both government and
private players are currently offering a plenty of jobs in this sector. So, this is
great news for you if you are thinking to go into the banking & insurance
streams.
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1.5
Insurance Principles
Main principles of Insurance:
 Utmost good faith
 Indemnity
 Subrogation
 Contribution
 Insurable Interest
 Proximate Cause
1. Utmost Good Faith (Uberrimae Fides)

As a client it is your duty to disclose all material facts to the risk being
covered. A material fact is a fact which would influence the mind of a
prudent underwriter in deciding whether to accept a risk for insurance
30
and on what terms. The duty to disclose operates at the time of inception,
at renewal and at any point mid term.
2. Indemnity
On the happening of an event insured against, the Insured will be placed
in the same monetary position that he/she occupied immediately before
the event taking place. In the event of a claim the insured must:
 Prove that the event occurred
 Prove that a monetary loss has occurred
 Transfer any rights which he/she may have for recovery from
another source to the Insurer, if he/she has been fully indemnified.
3. Subrogation
The right of an insurer which has paid a claim under a policy to step into
the shoes of the insured so as to exercise in his name all rights he might
have with regard to the recovery of the loss which was the subject of the
relevant claim paid under the policy up to the amount of that paid claim.
The insurer’s subrogation rights may be qualified in the policy.
In the context of insurance subrogation is a feature of the principle of
indemnity and therefore only applies to contracts of indemnity so that it
does not apply to life assurance or personal accident policies. It is
intended to prevent an insured recovering more than the indemnity he
receives under his insurance (where that represents the full amount of his
loss) and enables his insurer to recover or reduce its loss.
4. Contribution
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The right of an insurer to call on other insurers similarly, but not

necessarily equally, liable to the same insured to share the loss of an
indemnity payment i.e. a travel policy may have overlapping cover with
the contents section of a household policy. The principle of contribution
allows the insured to make a claim against one insurer who then has the
right to call on any other insurers liable for the loss to share the claim
payment.
5. Insurable Interest
If an insured wishes to enforce a contract of insurance before the Courts
he must have an insurable interest in the subject matter of the insurance,
which is to say that he stands to benefit from its preservation and will
suffer from its loss.
In non-marine insurances, the insured must have insurable interest when

the policy is taken out and also at the date of loss giving rise to a claim
under the policy.
6. Proximate Cause
An insurer will only be liable to pay a claim under an insurance contract
if the loss that gives rise to the claim was proximately caused by an
32
insured peril. This means that the loss must be directly attributed to an
insured peril without any break in the chain of causation.
33
CHAPTER 2
MARKETING OF INSURANCE
AN INTRODUCTION
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2.1
Insurance Marketing Strategies
Insurance marketing is basically just the marketing of insurance products.

Marketing of this sort is an important tool when it comes to the business of
insurance. The marketing of insurance readily happens in the life insurance
department as well as the non-life insurance department.
What type of advertising and marketing is most suitable for your
insurance business? This is not a one size fits all deal. You must consider how
much of a budget you have and work from there. You also need to know what
your target market is. For example, are you going to sell
one type of insurance such as life insurance or a variety, such as health
insurance, auto insurance and house insurance? What is the demographic you
are aiming for? The more you know the better able you will be to figure out
what type of insurance marketing you should do to grow your business.
Online advertising is one marketing tool that is worth the money. As the
Internet takes on more power and influence all of the time, having a web
presence will put you on the cyber map and get you noticed. It has been found
through studies that 75 percent of all households have access to a computer and
Internet resources. Find out what you need to do in order to get online before
that percentage gets any higher!
Block line advertising in trade journals, industry publications and periodicals is
the way to go. This is because industry professionals read these publications to
keep in
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the know. You are an industry professional so you need to get yourbusiness in

one or more of these publications as well.
Television ads and print ads are excellent forms of insurance marketing.
However the downside is that both can be very expensive. You may go way
beyond your budget if you decide to use either one of these methods. However
if you can afford it then your best course of action is to either consult with an
external advertising agency or hire one to help you develop a campaign that is
conducive to what you need most. Your goal of course is to gain exposure and
to increase your sales.
If you decide that print ads would suit your style and your budget just fine then
colored ads are the most expensive to produce but can be very appealing to the
eye. You can also choose a “reverse type” for your advertisements. Think back
to what black and white television looked like. The ad would have white
lettering on a stark black background. The black background sets off the
lettering and gives it that catchy effect.
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2.2
Meaning & Definition of Marketing
Marketing is the process of performing market

research, selling products and/or services to customers and promoting them
via advertising to further enhance sales. It generates the strategy that underlies
sales techniques, business communication, and business developments. It is an
integrated process through which companies build strong customer
relationships and create value for their customers and for themselves.
Marketing is used to identify the customer, to satisfy the customer, and to keep

the customer. With the customer as the focus of its activities, it can be
concluded that marketing management is one of the major components
of business management. Marketing evolved to meet the stasis in developing
new markets caused by mature markets and overcapacities in the last 2-3
centuries. The adoption of marketing strategies requires businesses to shift their
focus from production to the perceived needs and wants of their customers as
the means of staying profitable.
The term marketing concept holds that achieving organizational goals depends

on knowing the needs and wants of target markets and delivering the desired
satisfactions. It proposes that in order to satisfy its organizational objectives, an
organization should anticipate the needs and wants of consumers and satisfy
these more effectively than competitors.
37
Definition
The management process through which goods and
services move from concept to the customer. As a practice, it consists
in coordination of four elements called 4P's: 1) Identification, selection,
and development of a product,
2) Determination of its price,
3) Selection of a distribution channel to reach the customer's place, and
4) Development and implementation of a promotional strategy.
As a philosophy, marketing is based on thinking about the

business in terms of customer needs and their satisfaction. Marketing differs
from selling because (in the words of Harvard Business School's emeritus
professor of marketing Theodore C. Levitt) "Selling concerns itself with the
tricks and techniques of getting people to exchange their cash for your product.
It is not concerned with the values that the exchange is all about. And it does
not, as marketing invariably does, view the entire business process as consisting
of a tightly integrated effort to discover, create, arouse, and satisfy customer
needs."
38
2.3
Indian Insurance Marketing

The Indian insurance market in spite of having a history covering almost two
centuries took a turn after the establishment of the Life insurance Corporation
in India in 1956. From being an open competitive market to being nationalized
and then back to a liberalized market again, the insurance sector has witnessed
all aspects of contest.
The Indian insurance market conventionally focused around life insurance
until recently, a various range of other insurance policies covering sectors like
medical, automobile, health and other classes falling under general insurance
came up, generally provided by the private companies. The life insurance of
India added 4.1% to the GDP of the economy in 2009, an immense growth
since 1999, when the gates were opened for the private company in the market.
Policy change in the Indian insurance market
The Insurance Regulatory Development Act, 1999 (IRDA Act) allowed the
entry of private companies in the insurance sector, which was so far the sole
prerogative of the public sector insurance companies. The act was passed to
protect the concerns of holders of insurance policy and also to govern and check
the growth of the insurance sector. This new act allowed the private insurance
companies to function in India under the following circumstances:
39
 The company should be established and registered under the 1956

company Act
 The company should only the serve the purpose of life or general
insurance or reinsurance business
 The minimum paid up equity capital for serving the purpose of
reinsurance business has been decreed at Rs 200 crores.
 The minimum paid up equity capital for serving the purpose of
reinsurance business has been decreed at Rs 100 crores
 The average holdings of equity shares by a foreign company or its
subsidiaries or nominees should not go above 26% paid up equity capital
of the Indian Insurance company.
Investment policy in the Indian insurance market

 A policy known by the name of 'Health plus Life Combi Product',
offering life cover along with health insurance has been granted
permission by the IRDA act and insurance companies are allowed to
provide it now.
 The FDI limit in the insurance sector has been capped at 26% for the
foreign marketers but the government is thinking to increase it to 49% and
a bill of this offer is pending at the Rajya Sabah
 A low cost pension scheme is supposed to be formed by the Pension
Fund Regulatory and Developmental Authority (PFRDA) on 1st April,
2010 to provide social security to the poorer class.
40
 The compulsory ceding by every General Insurance Corporation

(GIC), would go on to stay at 10% under current regulations as specified
by IRDA.
Future Of Indian Insurance Market
As per the report of 'Booming Insurance Market in India' (2008-2011),

concentration of insurance markets in many developed countries of the world
has made the Indian insurance market more magnetic in terms of international
insurance players. Furthermore, the report says
 Home insurance sector is likely to achieve a 100% growth since home
insurance are made compulsory for housing loan approvals by the
financial institutions.
 In the coming three years Health insurance sector is all set to become
the second largest business after motor insurance.
 During the period of 2008-09 to 2010-11 the non life insurance
premium is likely to have a growth of 25%.
Insurance Companies in Indian

Registration has been granted to 12 private life insurance companies and 9
general insurance companies so far by the IRDA. Considering the existing
public sector companies in the Indian insurance market there are 13 companies
functioning in both life and general insurance business respectively.
41
Some of the major insurance companies in public sector are

 Life Insurance Corporation (LIC) of India
 National Insurance Company Limited
 Oriental Insurance Limited
Some of the major insurance companies in Private sector are

 Tata AIG Life
 HDFC Standard
 Bajaj Allianz
 ICICI Prudential
 SBI Life
42
2.4
Types of insurance
What you should know about the various types of insurance policies before
getting insured. All policies are not the same. Some give coverage for your
lifetime and others cover you for a specific number of years. Here is a
snapshot of the types of policies and what they offer.
 Term Insurance
Term insurance covers you for a term of one or more years. It pays a death
benefit only if the policy holder dies during the period the insurance is in
force. Term insurance generally offers the cheapest form of life insurance.
You can renew most term insurance policies for one or more terms even if
your health condition has changed.
However, each time you renew the policy for a new term, premiums may
climb higher, just like a rent agreement every time you renew the lease. This
policy is particularly useful to cover any outstanding debt in the form of a
mortgage, home loan, etc.
For example if you have taken a loan of Rs10 lakhs, you will have an option
of taking an insurance to protect the loan in case of passing away before the
debt is repaid.
43
 Whole Life Insurance
Whole life insurance covers you for as long as you live if your premiums are
paid. You generally pay the same premium amount throughout your lifetime.
Some whole life policies let you pay premiums for a shorter period such as 15,
20 or 25 years. Premiums for these policies are higher since the premium
payments are made during a shorter period. There are options in the market to
have a return of premium option in a whole life policy. That means after a
certain age of paying premiums, the life insurance company will pay back the
premium to the life assured but the coverage will continue.
 Money Back Insurance
The money back plan not only covers your life, it also assures you the return
of a certain per cent of the sum assured as cash payment at regular intervals. It
is a savings plan with the added advantage of life cover and regular cash
inflow. This plan is ideal for planning special moments like a wedding, your
child's education or purchase of an asset, etc. Money back plan have
"participating" and "non participating" versions in the market.
 Endowment Assurance
Endowment insurance is a level premium plan with a savings feature. At

maturity, a lump sum is paid out equal to the sum assured (plus dividends in a
par policy). If death occurs during the term of the policy then the total amount
of insurance and any dividends (par policy) are paid out.
There are a number of products in the market that offer flexibility in choosing
44
the term of the policy namely you can choose the term from five to 30 years.
There are products in the market that offer non participating (no profits)
version, the premiums for which are cheaper.
 Universal Life
This is a flexible life insurance policy and is also market sensitive. You decide
on the several investment options on how your net premium are to be invested.
While the money invested has the potential for significant growth, such funds
are subject to market risks including the loss of the principal.
 Unit Linked Product
Market-linked plans or unit-linked insurance plans (ULIP) are similar to

traditional insurance policies with the exception that your premium amount is
invested by the insurance company in the stock market.
Market-linked insurance plans (MLP) mimic mutual funds and invest in a
basket of securities, allowing you to choose between investment options
predominantly in equity, debt or a mix of both (called balanced option).
The major advantage market-linked plans offer is that they leave the asset
allocation decision in the hands of investors themselves. You are in control of
how you want to distribute your money among the broad class of instruments
and when you want to do it or pull out. Any of the products mentioned above
except term products could be unit-linked.
 Riders
Riders are additional add-on benefits that you could opt to include in
45
your policy over and above what the policy may provide. However,
these additions come at an extra premium charge depending of the rider
you opt for. These riders cannot be bought separately and
independently. The extra premium, nature and characteristics of the
riders are based on the base policy that is offered.
Some riders available in the market are :
1.) Accident Death Benefit: Provides a additional amount in case

death occurs as a result of an accident.
2.) Term Rider: It allows the payment of an additional amount should

death of the insured happens.
3.) Waiver of Premium: In case of total and permanent disability of

life insured due to accident or any other means this rider allows
premiums on base policy or riders to be waived.
4.) Critical Illness: It provides payment of an additional amount on the

diagnosis of some critical illness.
46
2.5
What Problems Are Faced by Insurance Companies?
1. Factors in the economy, risk management, keeping costs low and

retaining business in a competitive market are issues insurance companies face
on a regular basis, according to Price Waterhouse Coopers. Uncertainty
regarding the economy along with changes in how people do business keep this
industry on its toes as it strives to meet the demands of consumers and ensure
long-term success.
Maintaining Funds in Hard Economic Times.
2. Price Waterhouse Coopers stated that instead of seeing collapsing assets,

insurance companies have to deal with problems relating to collapses in hedge
funds, structured securities and equities, according to the company's "Top Nine
Insurance Industry Issues in 2009" publication. As a result, credit markets
seized, sales in life insurance policies dropped, asset management fees lowered
and bond and mortgage insurers lost significant amounts of capital. In an effort
to hold on to whatever funds they have, insurance companies are doing what
they can to deny claims, pay less in settlements and defend their claim decisions
in court, a battle that can take several years, according to a 2007 CNN article.
47
3. Companies that offered whole and term life insurance began offering
"market-sensitive" products in an effort to expand product portfolios, according
to Price Waterhouse Coopers. This gave policyholders competitive returns and
gave
Insurance companies an edge in the financial service market. Consequently,
reserve calculations are subjective, more complex and the investment portfolios
require more attention in order to manage them so returns and cash flow align
with future liabilities. Market sensitive products that involve long- and short-
term investments for companies that sell life insurance are seeing low returns.
As a result, insurance companies need to look at other avenues to ensure
solvency and increase retention efforts.
4. Cost cutting efforts can have devastating consequences to insurance

companies, but is an issue they face in an effort gain capital. Insurance
companies, as they determine which costs to cut, must look at forces behind
costs. This helps them ensure a cut in one area does not increase the cost in
another, which can make an insurance company less competitive. For example,
cutting employee benefits reduces employee retention, or cuts in staff can lead
to long turn-around times. Financial Web states that as insurance company costs
increase, their capital decreases. Additionally, insurance companies face
difficulties when it comes to creating improvement plans that reduce costs when
the plans lack a basis in resources, priorities, dependencies and the integration
of the human element, such as training, communication and performance
management.
48
49
2.6
Challenges faced by Insurance Sector

Every business has risks but insurance companies do get a bigger share of these
unwanted possibilities. Anyone who's had to be screened for a policy knows
that specific criteria are used in determining the chances of being approved or
the actual price of premiums to be paid. This is because the more an individual
is likely to use coverage, the higher the risk that the insurer incurs losses. And
since insurance companies are business entities that need to make money, they
will have a natural aversion to individuals who are likely put them at risk as a
way of ensuring their survival.
One of the ways insurance companies determine risk is by using mortality
tables. For Self-Insured Medical Plans, for example, an age group that has
higher mortality will be required a higher premium or denied altogether.
Meanwhile, individuals who belong to the bracket where mortality is low enjoy
low fees. Providers also use past experiences with policy holders in gauging
whether or not a person is insurable or not. A basic example is someone who
has had a number of operations performed on him. Most probably, this person is
going to have another operation and then another. An insurance company which
gives him coverage is, thus, very likely to incur losses while providing for his
medical needs which are very likely to surface again and again.
When the losses are small, they are easily and automatically covered by all
insured individuals. However, when the losses are big, this is when insurance
companies become, to a degree, unstable. This is also the reason why they have
to be extra discerning in detecting risks. Providers partner with re-insurance
50
companies as a way of cushioning eventualities. This only means the risks are
spread and part of
them is managed by the reinsurance firms to ensure the insurer's survival in the
case of huge claims.
There are a number of risks that insurance companies face but the largest and
most obvious of these are the risk for underwriting losses. When a policy holder
claims coverage that is worth more than the amount that he has been paid for
the policy, an underwriting loss occurs. When underwriting losses balloon, they
could actually cause the company to be unstable or worse, dissolved.
Although insurance companies may feel like heroes for saving people from
covered expenses, they are not to be taken in the wrong context. Before the
service aspect is still the fact that insurers are around for business reasons, that
is, to make money. Therefore, people should understand why laxity is jut not
possible when these providers categorize insurable and non-insurable
individuals. It must be understood that careless management of risks could well
cost an insurance company its survival.
If you're considering getting insurance and would like to inquire about the
possibilities, a Missouri insurance agent could tell you more about Self-Funded
Medical Plans, Group Life and Disability and other options you may explore.
51
Chapter 3
Marketing Mix of Insurance
52
3.1
7P’s of Marketing Mix

Marketing professionals and specialist use many tactics to attract and retain
their customers. These activities comprise of different concepts, the most
important one being the marketing mix. There are two concepts for marketing
mix: 4P and 7P. It is essential to balance the 4Ps or the 7Ps of the marketing
mix. The concept of 4Ps has been long used for the product industry while the
latter has emerged as a successful proposition for the services industry.
53
The 7Ps of the marketing mix can be discussed as:
 Product
It must provide value to a customer but does not have to be tangible at
the same time. Basically, it involves introducing new products or
improvising the existing products.
 Price
Pricing must be competitive and must entail profit. The pricing strategy
can comprise discounts, offers and the like.
 Place
It refers to the place where the customers can buy the product and how
the product reaches out to that place. This is done through different
channels, like Internet, wholesalers and retailers.
 Promotion
It includes the various ways of communicating to the customers of what
the company has to offer. It is about communicating about the benefits of
using a particular product or service rather than just talking about its
features.
54
 People
People refer to the customers, employees, management and everybody
else involved in it. It is essential for everyone to realize that the
reputation of the brand that you are involved with is in the people's
hands.
 Process
It refers to the methods and process of providing a service and is hence
essential to have a thorough knowledge on whether the services are
helpful to the customers, if they are provided in time, if the customers are
informed in hand about the services and many such things.
 Physical (evidence)
It refers to the experience of using a product or service. When a service
goes out to the customer, it is essential that you help him see what he is
buying or not. For example- brochures, pamphlets etc serve this purpose.
55
3.2
Tip’s of on successful Insurance Marketing

Anything can be marketed effectively, and the basic principles of marketing
remain the same, no matter what's being sold: You focus on what the benefit is
to the person who's buying the product; you emphasize the points of
differentiation between your product and the others in your market segment,
and then close with the pitch.
We're going to make an example out of insurance marketing here to illustrate
the point. The reason for insurance marketing is because everyone needs
insurance, and the market is saturated with a lot of products competing. Writing
insurance marketing tips for a saturated market is an example of how you, as an
internet entrepreneur, can make money by being a liaison to local businesses in
your area.
So, let's look at the big questions from up top - what's the big benefit for taking
insurance? It's buying a specific sort of peace of mind. It's providing coverage
in case there's a disaster. Let's focus that into marketing insurance: "Wouldn't
you like to know that your family will be taken care of, if something happens to
you?" is one way to state the benefit. Another one is "It's cheaper to buy
insurance for your car than to get into an accident without it. And while you
may be a good driver, can you be certain of everyone else?" Both of these are
fairly straightforward ways to insurance marketing and its benefits to the end
customer.
56
Now, when I write insurance marketing tips, I'm constantly looking for the
edge, the out - the hook. What makes this product work for the reader and
prospective buyer?
To answer that question, I start with doing some research on Google, and look
for page ranks for specific permutations of insurance buying search terms, like
"cheap health insurance" or "cheap life insurance" or "auto insurance Michigan"
- anything that will help narrow down the search fields. Then I look at what
others are doing on those pages that pull up. It is extremely important to
understand what your competitors are doing. It helps you keep track of market
trends and makes sure you keep your edge.
Are they competing primarily on price, or are they competing on features?

Insurance is a mature product category, so it's difficult to differentiate on new
features. Difficult doesn't mean "impossible", though. There are combinations
of features on policies that can form a competitive advantage; in the field, these
tend to be short lived, because someone else will notice what you're selling and
emulate it. Unlike technology where an advance can last for six to eighteen
months before you get significant product penetration from competitors, writing
a new policy package doesn't take much. So the other differentiators are on
price (which is the primary driver in insurance policies) and service (which is
where insurance companies trying to maintain margins on policies try to set
themselves up as upscale.
57
Chapter 4
Case study
58
Case study
The Life Insurance Corporation of India (LIC) is the largest state-owned life

insurance company in India, and also the country's largest investor. It is fully
owned by the Government of India. It also funds close to 24.6% of the Indian
Government's expenses. It has assets estimated of 9.31 trillion (US$202.03
billion). It was founded in 1956 with the merger of more than 200 insurance
companies and provident societies.
Headquartered in Mumbai, financial and commercial capital of India, the Life

Insurance Corporation of India currently has 8 zonal Offices and 101 divisional
offices located in different parts of India, at least 2048 branches located in
different cities and towns of India along with satellite Offices attached to about
some 50 Branches, and has a network of around 1.2 million agents for soliciting
life insurance business from the public.
History
The Oriental Life Insurance Company, the first corporate entity in India
offering life insurance coverage, was established in Calcutta in 1818 by Bipin
Bernard Dasgupta and others. Europeans in India were its primary target
market, and it charged Indians heftier premiums. The Bombay Mutual Life
Assurance Society, formed in 1870, was the first native insurance provider.
Other insurance companies established in the pre-independence era included,
 Bharat Insurance Company (1896)

 United India (1906)
 National Indian (1906)
59
 National Insurance (1906)

 Co-operative Assurance (1906)
 Hindustan Co-operatives (1907)
 Indian Mercantile
 General Assurance
 Swadeshi Life (later Bombay Life)
The first 150 years were marked mostly by turbulent economic conditions. It
witnessed, India's First War of Independence, adverse effects of the World War
I and World War II on the economy of India, and in between them the period of
world wide economic crises triggered by the Great depression. The first half of
the 20th century also saw a heightened struggle for India's independence. The
aggregate effect of these events led to a high rate
of bankruptcies and liquidation of life insurance companies in India. This had
adversely affected the faith of the general public in the utility of obtaining life
cover.
The Life Insurance Act and the Provident Fund Act were passed in 1912,
providing the first regulatory mechanisms in the Life Insurance industry. The
Indian Insurance Companies Act of 1928 authorized the government to obtain
statistical information from companies operating in both life and non-life
insurance areas. The subsequent Insurance Act of 1938 brought stricter state
control over an industry that had seen several financially unsound ventures fail.
A bill was also introduced in the Legislative Assembly in 1944 to nationalize
the insurance industry.
60
Nationalization
In 1955, parliamentarian Amol Barate raised the matter of insurance fraud by

owners of private insurance companies. In the ensuing investigations, one of
India's wealthiest businessmen, Ram Kishan Dalmia, owner of the Times of
India newspaper, was sent to prison for two years. Eventually, the Parliament of
India passed the Life Insurance of India Act on 1956-06-19, and the Life
Insurance Corporation of India was created on 1956-09-01, by consolidating the
life insurance business of 245 private life insurers and other entities offering life
insurance services. Nationalization of the life insurance business in India was a
result of the Industrial Policy Resolution of 1956, which had created a policy
framework for extending state control over at least seventeen sectors of the
economy, including the life insurance.
Current status
LIC building, at Connaught Place, New Delhi, designed by Charles Correa,

1986.
Over its existence of around 50 years, Life Insurance Corporation of India,

which commanded a monopoly of soliciting and selling life insurance in India,
created huge surpluses, and contributed around 7 % of India's GDP in 2006.
61
The Corporation, which started its business with around 300 offices, 5.6 million
policies and a corpus of INR 459 million (US$ 92 million as per the 1959
exchange rate of roughly Rs. 5 for a US $ , has grown to 25000 servicing
around 180 million policies and a corpus of over 8 trillion (US$173.6 billion).
The recent Economic Times Brand Equity Survey rated LIC as the No. 1
Service Brand of the Country. The slogan of LIC is "Zindagi ke saath bhi,
Zindagi ke baad bhi"in Hindi. In English it means "with life also, after life
also’’.
According to The Brand Trust Report 2011, LIC is the 8th most trusted brand of
India.
62
Some of the important milestones in the life insurance business in India

are:
1818: Oriental Life Insurance Company, the first life insurance company on
Indian soil started functioning.
1870: Bombay Mutual Life Assurance Society, the first Indian life insurance
company started its business.
1912: The Indian Life Assurance Companies Act enacted as the first statute to
regulate the life insurance business.
1928: The Indian Insurance Companies Act enacted to enable the government
to collect statistical information about both life and non-life insurance
businesses.
1938: Earlier legislation consolidated and amended to by the Insurance Act with
the objective of protecting the interests of the insuring public.
1956: 245 Indian and foreign insurers and provident societies are taken over by
the central government and nationalized. LIC formed by an Act of Parliament,
viz. LIC Act, 1956, with a capital contribution of Rs. 5 crores from the
Government of India.
63
The General insurance business in India, on the other hand, can trace its roots to
the Triton Insurance Company Ltd., the first general insurance company
established in the year 1850 in Calcutta by the British.
Some of the important milestones in the general insurance business in

India are:
1907: The Indian Mercantile Insurance Ltd. set up, the first company to transact
all classes of general insurance business.
1957: General Insurance Council, a wing of the Insurance Association of India,

frames a code of conduct for ensuring fair conduct and sound business
practices.
1968: The Insurance Act amended to regulate investments and set minimum
solvency margins and the Tariff Advisory Committee set up.
1972: The General Insurance Business (Nationalization) Act, 1972 nationalized

the
general insurance business in India with effect from 1st January 1973.
107 insurers amalgamated and grouped into four companies’ viz. the National
Insurance Company Ltd., the New India Assurance Company Ltd., the
Oriental Insurance Company Ltd. and the United India Insurance Company
Ltd. GIC incorporated as a company.
64
Objectives of LIC
 Spread Life Insurance widely and in particular to the rural areas and to
the socially and economically backward classes with a view to reaching
all insurable persons in the country and providing them adequate
financial cover against death at a reasonable cost.
 Maximize mobilization of people's savings by making insurance-linked
savings adequately attractive.
 Bear in mind, in the investment of funds, the primary obligation to its
policyholders, whose money it holds in trust, without losing sight of the
interest of the community as a whole; the funds to be deployed to the
best advantage of the investors as well as the community as a whole,
keeping in view national priorities and obligations of attractive return.
 Conduct business with utmost economy and with the full realization that
the moneys belong to the policyholders.
 Act as trustees of the insured public in their individual and collective
capacities.
 Meet the various life insurance needs of the community that would arise
in the changing social and economic environment.
 Involve all people working in the Corporation to the best of their
capability in furthering the interests of the insured public by providing
efficient service with courtesy.
 Promote amongst all agents and employees of the Corporation a sense
of participation, pride and job satisfaction through discharge of their
duties with dedication towards achievement of Corporate Objective.

65
Mission
"Explore and enhance the quality of life of people through financial security by
providing products and services of aspired attributes with competitive returns,
and by rendering resources for economic development."
Vision
"A trans-nationally competitive financial conglomerate of significance to
societies and Pride of India."
66
Chapter 5
Suggestion & conclusion
67
Suggestion and conclusion
There are many aids of marketing of products but the challenges are also there.
The external environment of insurance market changes time to time, the
customer expectations are increased, they need good technology services at
quick.
The aim of marketing of insurance product is to create customer and generate

profit through customer satisfaction. The insurance marketing focuses on the
formulation of an ideal mix for insurance business so that the insurance
organization survives and thrives in the right perspective.
The government policy changes and low productivity and high cost of agency
organization, Illiteracy of people many challenges, by giving high technology
services to the customer, giving special training to the agents so that they can
convince the customers in rural areas.
The marketing of insurance really helps the companies and customers to know
what type of insurance are in the market.
So in today’s world “MARKETING” is the life of Insurance companies
68
BIBLIOGRAPHY
1. Insurance principles and practices – M.N. Mishra
2. Marketing in Banking & Insurance – Romeo Mascarenhas
WEBLIOGRAPHY
WWW.GOOGLE.COM
WWW.WIKIPEDIA.COM
WWW.licindia.in
69

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Marketing of Insurance Products

Marketing of Insurance Products

Submitted in the partial fulfilment of the requirements

Submitted by: Miss. Saily Pillewar

Roll no: B025

Under the guidance of

Prof. Seema Pawar

Kets V.G.VAZE COLLEGE OF ARTS COMMERCE AND

I Miss Saily Pillewar student of KET’s V.G.VAZE COLLEGE

The information collected is original and true to the best

The satiation and euphoric that accompany the successful

1.1 Definition & Meaning of

2.1 Marketing of Insurance

2.2 Insurance Marketing

2.4 Indian Insurance Marketing

2.5 Problems face by insurance

DESING OF THE STUDY

 To know how Insurance companies are benefited through

 The project is limited to the marketing strategies of LIC.

 The project begins with a brief mention of what

Companies. It further goes on to show the challenges faced

Data for the project is obtained from secondary source

Wherever there is uncertainty there is a risk. We do not have control on

A promise of compensation for specific potential future losses in exchange for a

The meaning of insurance

The Greeks and Romans introduced the origins of health and life insurance c.

Medieval and Early modern

underwrite such ventures. Today, Lloyd's of London remains the leading market

time included an insurance clause as a means of protecting the banks and

Health insurance in the United States

is known as the fee-for-service business model. During the middle to late 20th

Basic functions of Insurance

Primary functions of insurance

 Collective risk bearing

Secondary functions of insurance

Other functions of insurance

 Risk Free trade

Insurance provides indemnity, or reimbursement, in the event of an

innovative products, services and value-added benefits.

1. Utmost Good Faith (Uberrimae Fides)

The right of an insurer to call on other insurers similarly, but not

In non-marine insurances, the insured must have insurable interest when

Insurance Marketing Strategies

Insurance marketing is basically just the marketing of insurance products.

the know. You are an industry professional so you need to get yourbusiness in

Meaning & Definition of Marketing

Marketing is the process of performing market

Marketing is used to identify the customer, to satisfy the customer, and to keep

The term marketing concept holds that achieving organizational goals depends

As a philosophy, marketing is based on thinking about the

Indian Insurance Marketing

Policy change in the Indian insurance market

 The company should be established and registered under the 1956

Investment policy in the Indian insurance market

 The compulsory ceding by every General Insurance Corporation

Future Of Indian Insurance Market

As per the report of 'Booming Insurance Market in India' (2008-2011),

Insurance Companies in Indian

Some of the major insurance companies in public sector are

Some of the major insurance companies in Private sector are

 Whole Life Insurance

 Money Back Insurance

Endowment insurance is a level premium plan with a savings feature. At