Professional Documents
Culture Documents
INSURANCE SECTOR
IRDA regulation for setting new insurance company
•NEW COMPANY
•OWNERSHIP
Organizational Structure
Market Potential
Current market size of insurance industry in India
Forecasted market size for 2010
As per the forecasted market size
POLICIES SOLD : NON - LIFE , LIFE AND GENERAL
Total 46664145
57250259
Forecasted sales for 5 years
Competition
•Find information
•Observe Your
Competition
•Talk to Suppliers
•Talk to Customers
•Positioning of Business
Market Segmentation
Marketing plan .
Emphasize service and ongoing support. We must avoid selling only one
policy at the lowest price for each customer and concentration account selling
which greatly enhances client retention.
Build an Insurance Partnership. The customer does not want to shop every
year for a new broker. Concentrate on building a long term relationship with
our customers and make the client and our staff appreciate the value of a long-
term relationship.
•Distribution Strategy
•Positioning Strategy
•Pricing Strategy
•Sales Strategy
Initial steps for setting THE PEOPLE
INSURANCE in the market
•Small towns and local recruits
•Presence
•New location
•Agent recruitment
•Regional focus
FORECSTED PROFIT FOR 5 YEARS
Major costs for the company
Commission payment
Operating expenses
Employee expenses
Training expenses
TRENDS OF COST OF DIFFERENT COMPANIES IN LAKHS
CALCULATION OF NPV
NPV $30.78
CALCULATION OF IRR
CASH FLOW 1 86 . 9
IRR 17 %
As IRR is greater than the cost of capital that is 17 %
greater than
the 15 % we can accept the project .
THANK YOU