Insurance is a social device which help the public to transfer the risk which is integrated part of the human life. It’s been years this term called insurance generated. Now one of the most emerging and greening sector in India is insurance. The needs and preference of a customer is changing day by day. The people are more aware about the need for diverting the risk to a third party by taking insurance. They also consider insurance as an investment. Now day’s insurance companies are following certain marketing strategies. It includes understanding needs and preference of the customers by conducting marketing research and customizing the products and services to the benefit of the society. The companies follow different retail and wholesale distribution channels to reach the customers. Agents, Bancassurance, Brokers and others are some of the distribution channels which prevail in the current market. This paper talks about considering the current facts and features of insurance sector in India, what will be the insurance scenario in 2020. It also talks about upcoming marketing strategies and distribution channels in 2020.
Objectives of the study
• Primary Objectives
o Identify the major changes in the Indian insurance sector on a road to 2020 • Secondary Objectives
o Analyze the consumer perception of insurance how it can be tackled by the insurance companies in the upcoming future o Identify the future marketing strategies of insurance as a business in 2020 o Identify the distribution channels of insurance in 2020 and how the features are differentiated themselves from the current distribution channels
Descriptive research method is followed in this study Change in Indian insurance industry by 2020
Indian insurance is expected to be going through a significant change of 70% as per the survey conducted by IBM insurance 2020 survey 2006. Among the 30 samples taken 30 % states that insurance industry will be having an incremental change of 30 % by the end of 2020.
There are some reasons for saying that the Indian insurance industry will be facing significant change. The customers are living in era of latest technology and advanced services in which customers are treated not as king, he is the god which decides the existence of a company whether it deal with products or services. If the business fails to please their lord i.e. customers then there won’t be any existence for that particular business. Because of the latest technologies strengthening the demand and bargaining power of customers the customers are active and well informed about the services that they can get from the insurance companies. Another reason would be the increasing competition among the players in Indian insurance sector. Each company is trying to get a competitive edge over other companies by giving most importance to the word ‘Innovation’. The companies can’t run their business without innovation because all the businesses believe in ‘survival of the fittest’. And more over the customer wants the companies should predict their needs and preference well in advance and to serve them. Last but not the least people consider insurance as a strategic investment in life or we can put forward like people consider insurance as life time planning which starts from cradle to graveyard. Now it’s time for us to think about the upcoming trend of Indian insurance industry in the coming years. The ultimate users of the insurance services are people. When companies target people for selling or marketing of insurance they will think only think about their demographic characters like age, income, family etc. But classifying the customers as per their demographic characters and social characters may not help the insurance companies to survive for future. Insurance companies need to further classify the people into innovators...