INSURANCE

INSURANCE

Marketing of General Insurance

1.     Introduction: –

a.       It is essential for all businessmen to capture the market but the silence of GICI’s in India make us surprised. Other insurance companies such as LICI and other (Private)Life & Non-Life insurance companies are very keen on to capture the market but the reasons of inertness of GICI’s in this respect is not clearly known to us.

b.       In the second part of this paper, there is a discussion on different terms related to insurance that will help to understand this paper clear.

c.       It has been mentioned in the third part of this paper, the distinction between Marketing & Selling.

d.       Forth part of this paper relates to the measurement of awareness level of the people at the ‘Hat’ (periodic market) of karidhya Village adjacent to the Suri town, and in different places in a district town(Suri) the Sadar of Birbhum District of West Bengal, on the basis of man to man survey.

e.       Fifth part of this paper contains the marketing strategy which should be adopted by GICI’s to make it prosperous.

f.        Sixth part is the concluding part of this presentation.

v  Objectives: -The main objectives are as follows-

a) To examine the concept of Sales Promotion, Marketing, Selling, General Insurance (GI) & Life Insurance (LI).

b) To review the sales promotion technique with marketing strategy and differences between marketing and selling.

c) A few avenues have been suggested here for better marketing of different GICI’s in our country.

v Some important concept: -

         i.            Sales Promotion:-Sales promotion means those doings which are helpful to increase selling of commodities.

       ii.            Insurance:

     iii.            Insurance is nothing but a co-operative sector which spreads the losses caused due to an embedded risk- taking venture amongst many persons. The risk-bearing venture is more often than not profit yielding.

     iv.            General Insurance: – General Insurance (also known as Property and Casualty

       v.            Or P&C insurance) provides insurance cover against

     vi.            Property and liability risk and other forms of risk, sub-divided into

v Categories such as property, vehicle, aviation, marine, fire, personal accident and legal liability.

         I.            . Life Insurance:- Life insurance provides insurance cover against death, sickness and disability. Note that Life Insurance is different from other types of insurance in the sense that it deals with human life.

       II.            . Selling: – Selling is the heart of business. Selling means flow of goods at the same time service to the customer is a byproduct of the process. One of the major criteria to expand any business is to increase the volume of sale.

     III.            . Marketing: – Marketing is the basic aspect of modern business, which mainly aims to explore the demand of any product among the customer that enables the manufacturer to attain a product-specific production targets.

v Marketing, involves threefold processes

, (i) Ascertaining the size of the market.

(ii) Ordering production according to the scales of demand, and

(iii) Transfer of ownership through a process of sale and purchase.

v Difference between marketing & Selling:-

MARKETING SELLING

i.The main objective of marketing is to ascertain the demand of the customer and to make production and distribution accordingly.

ii. It is a long term process.

iii. Marketing is not only related to production but also related to distribution ie, Marketing works from production to distribution.

iv. The area and scope of marketing are very large.

v MAIN OBJECTIVE

i. The main objective of selling is to sell the present articles but does not care about demand.

ii. . It is a short term process.

iii. Selling is only related to the distribution.

iv.The scope of selling is not so vast

v  Survey report:

It has been noted from keen survey that most of the people are almost ignorant about GI but they are not only sincere but also active about LI irrespective of private or central Govt. undertaking companies.

Some percentages of city dwellers know about GI but villagers are completely in dark about GI, though vast market of general insurance is awaiting in the rural areas.

v Hypothesis: –

 An assumption or statement about the population is called a statistical Hypothesis. There are two types Hypothesis

i) Null Hypothesis, denoted by the symbol H0 (In test of significance we start with a certain hypothesis about the population characteristics this is called Null hypothesis)

ii) Alternative Hypothesis is denoted by the symbol H1( Any hypothesis which differs from the null hypothesis is called alternative hypothesis)

v The following Null hypotheses (Ho) have been formulated for the study.

I) Ho: The public is not so aware about GI; rather they are interested with LI.

II) Ho: A huge market is waiting for GI and the marketing network should not be confined to the urban areas and must be extended to the rural areas also.

May be there is an alternative hypothesis i.e.

I) H1:- The public is aware of both GI &LI.

II) H1:-The market is saturated both in Village and Town.

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