Wherever there is an uncertainty there is risk. We do not have any control over uncertainties which involves 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 public and providing them with risk coverage. The main function of insurance is to provide protection against the possible chances 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 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 others know about the quality of your positive contributions.
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 our intensive care. Insurance companies tend towards having a strong sales orientation. Since the services they sell, although certainly are ones that rarely sells themselves. Potential customers are usually reluctant to think about disaster or death. So, they postpone planning for these possibilities, until they are contacted and influenced by agents or company representatives. The insurance business is based on the skill and excellence of agents and this makes a strong case in favor of personal selling. ORIGIN AND GROWTH OF INSURANCE SECTOR:
Insurance in the modern form originated in the Mediterranean during the 13th century. The earliest reference to insurance has been found in Babylonia, Greece and the Rome. Marine Insurance is the oldest form of Insurance followed by Life Insurance and Fire Insurance.
Life Insurance activity to its modern form started in India in 1818 to provide insurance for English widows. Oriental Life Insurance Company was incorporated in Calcutta, followed by Bombay Life Insurance Company in 1823 and Triton Insurance Company for general insurance in 1850. Insurance regulation formally began in India through the sparking of two Acts, the Life Insurance Companies Act of 1912 and the Provident Fund Act of 1912.
However, the first comprehensive legislation was introduced with the Insurance Act of 1938 that provided strict state control over insurance business in the country. After independence, the business of insurance grew at a faster pace as complication among all the Indian companies intensified. The decision of nationalization of Life Insurance business was taken in 1956 when 245 Indian and foreign Insurance Provident Societies were first merged and then nationalized.
The term Insurance Marketing refers to the marketing of Insurance services with the aim to create customer and generate profit through customer satisfaction. It means knowing the market and developing a need oriented product, formulating the product mix, making suitable pricing decisions, designing sensitive promotional strategies and effective distribution. It also involves a scientific approach to management of agents, who distribute insurance product, so that qualitative improvements are made possible. 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.
USERS OF INSURANCE SERVICES:
The main users of insurance services are individuals, corporate, industries, institutions and various other groups. The insurance industries lay considerable emphasis on the policy holders. Therefore, the individuals or the institutions who are already members of the scheme...