new study on gi marketing in india

8/3/2019 New Study on Gi Marketing in India

1/6

STUDY ON MARKETING IN INDIA FOR NON LIFE

INSURANCE

Chapter - I

Industry Profile : In law and economics, insurance is a form of

risk management primarily used to hedge against the risk of a

contingent, uncertain loss. Insurance is defined as the

equitable transfer of the risk of a loss, from one entity to

another, in exchange for payment. An insurer is a company

selling the insurance; an insured, or policyholder, is the

person or entity buying the insurance policy. The insurance rate

is a factor used to determine the amount to be charged for a

certain amount of insurance coverage, called the premium. Riskmanagement, the practice of appraising and controlling risk, has

evolved as a discrete field of study and practice.

The transaction involves the insured assuming a guaranteed and

known relatively small loss in the form of payment to the

insurer in exchange for the insurer's promise to compensate

(indemnify) the insured in the case of a financial (personal)

loss. The insured receives a contract, called the insurance

policy, which details the conditions and circumstances under

which the insured will be financially compensated.

Company Profile: -ICICI Lombard GIC Ltd. is the largest private

sector general insurance company in India with a Gross Written

Premium (GWP) over 3,694.80 crore (US$823.94 million) as of

March 2010. The company issued over 44 lakh policies and settled

over 62 lakh claims and has a claim disposal ratio of 96% of

total reported claims. ICICI Lombard GIC Ltd. is a 74:26 joint

venture between ICICI Bank Limited, Indias second largest bank

and Fairfax Financial Holdings Limited, a Canada based USD 30

billion diversified financial services company. The company has

strength of 4,634 employees working in 350 branches

across India.

Product / Service Profile: -ICICI Lombard GIC Ltd. offers wide

range of general insurance products & services.
http://en.wikipedia.org/wiki/Lawhttp://en.wikipedia.org/wiki/Economicshttp://en.wikipedia.org/wiki/Risk_managementhttp://en.wikipedia.org/wiki/Hedge_(finance)http://en.wikipedia.org/wiki/Riskhttp://en.wikipedia.org/wiki/Uncertaintyhttp://en.wikipedia.org/wiki/Risk_managementhttp://en.wikipedia.org/wiki/Risk_managementhttp://en.wikipedia.org/wiki/Decision_modelhttp://en.wikipedia.org/wiki/Indemnifyhttp://en.wikipedia.org/wiki/Contracthttp://en.wikipedia.org/wiki/Insurance_policyhttp://en.wikipedia.org/wiki/Insurance_policyhttp://en.wikipedia.org/wiki/Crorehttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/Crorehttp://en.wikipedia.org/wiki/Insurance_policyhttp://en.wikipedia.org/wiki/Insurance_policyhttp://en.wikipedia.org/wiki/Contracthttp://en.wikipedia.org/wiki/Indemnifyhttp://en.wikipedia.org/wiki/Decision_modelhttp://en.wikipedia.org/wiki/Risk_managementhttp://en.wikipedia.org/wiki/Risk_managementhttp://en.wikipedia.org/wiki/Uncertaintyhttp://en.wikipedia.org/wiki/Riskhttp://en.wikipedia.org/wiki/Hedge_(finance)http://en.wikipedia.org/wiki/Risk_managementhttp://en.wikipedia.org/wiki/Economicshttp://en.wikipedia.org/wiki/Law


2/6

Product RangeBusiness Solutions

Burglary Insurance

Industrial All Risk

All Risk Insurance

Consequential Loss(Fire) Insurance

Electronic Equipment InsuranceFidelity Insurance

Fire and Special Perils

Tea Corp Insurance

Marine export import

Machinery

Boiler Insurance

Inland Transit Insurance

Project SolutionsContractors All Risk

Contractors Plant & Machinery

Erection All Risk

Performance Guarantee

Liability SolutionsDirectors & Officers Liability

Event Insurance

Product Liability

Public Liability

Workmens Compensation

Professional Indemnity

Export SolutionsExport Import Transit

Export Credit

Rural SolutionsWeather Insurance

Janata Personal Accident

Tractor

Farmers Package

Personal SolutionsHealth Insurance

Health

Personal Accident

Group Personal Accident

Group Health

Travel InsuranceDomestic Travel

Individual Overseas Travel

Student Overseas Travel

Senior Citizen Overseas Travel

Corporate Overseas Travel

Pravasi Bhartiya Bima Yojana


3/6

Motor InsuranceTwo Wheeler

Four Wheeler

Home Insurance

Chapter II

Scope of the Study: - To understand the current generalinsurance sector to provide customer satisfaction, and

ethical solutions awareness of insurance products and

services.

Identification of Problem: - The purpose of the study isto identify the problems in general insurance sector and

required marketing solutions.

Government of India has set out a goal where it would be in 2020 in

different

dimensions. In this paper, we posit the role insurance will play in

this scenario.

First, we assess the general macroeconomic trends in India. In

doing so, we

discuss policy goals, economic realities to achieve those policy

goals and political

realities to implement them.

India has professed to commit itself to a long term goal: a

quadrupling the real

Gross Domestic Product by the year 2020 (Planning Commission,

2003). To make this

vision a reality, simple arithmetic shows that it requires a 7%-8%

growth in real GDP

over a period of 17 years (2004-2020).

The proponents of this vision are quite positive about this vision.

They write,The compounded effect of achieving the targeted annual GDP growth

rate of 8.5 to 9 per

cent over the next 20 years would result in a quadrupling of the

real per capita income

and almost eliminating the percentage of Indians living below the

poverty line. This will

raise India's rank from around 11th today to 4th from the top in

2020 among 207


4/6

countries given in the World Development Report in terms of GDP.

Further, in terms of

per capita GDP measured in ppp India's rank will rise by a minimum

of 53 ranks from the

present 153 to 100. This will mean, India will move from a low

income country to an

upper middle income country. This is a very real possibility for usto seize upon and

realise.

How realistic is this vision? We examine that question first.

Goldman Sachs Model Projection

3

In 2003, economists at Goldman and Sachs used a routine model of

economic

growth1 to project the total GDP for a number of countries up to

2050. In the following

table, we have reproduced a selection of those up to 2020. The

simple conclusion is that

total real GDP in India will be on par with France and the UK by

2020 and somewhat

smaller than Germany.

The authors of the paper do not use optimistic assumptions to come

up with these

figures. They also point out that if the same model were applied to

Japan/Korea in 1960,

they would underestimate the current actual GDP of Japan/Korea.

Saving, Investment and Economic Growth

The ask rate is critically dependent on how the economy is able to

absorbmacroeconomic shocks. Specifically, it depends how well the economy

can cope with

risks of bad monsoons. Let us examine the positives and the

negatives of this equation.

The Positives

When India became independent in 1947, it was a vastly rural

economy where

traditional agriculture dominated the economic landscape. This

situation has been

changing steadily over the past five decades. The changinglandscap

Research Objectives: - To understand current marketingscenario in general insurance industry for the

substantial participation in the overall development in

India.


5/6

working population depends either directly or indirectly on

agriculture. Dependence of

agriculture is problematic. The amount of land under irrigation

(even with generous

definition) is less than 40%

(http://planningcommission.nic.in/plans/planrel/plsec3.pdf,

page 44). This leaves a huge gap between what is irrigated and whatis not. To put it

8

differently, more than half of the land under cultivation is at the

mercy of Mother Nature.

Thus, a large chunk of the economic output depends on the

generosity of monsoons. In

addition, micro-climatic conditions do not allow uniform outcome in

every part of the

country. Therefore, there will always be variation across the

country even at a given point

in time.

Moreover, the natural phenomena such as floods and cyclones also

affect India at

an elevated rate. Some 2.25% of Indian GDP and 12.15% of Central

Government outlay

has been eaten up by the vagaries of weather. The following table

(Table 4) shows how

high Indias vulnerability is. Along with Bangladesh, India ranks

among the top five

spots on vulnerability index (constructed using the frequency and

severity of weather

related phenomena). The other countries in top five are island

nations (with the exceptionof Bangladesh).

For the insurance industry, high vulnerability can be an

opportunity. If, for

example, weather related insurance products take off, India can

become a big market.

There are already some small beginnings. For example, instead of

traditional crop

insurance (which always loses money) rainfall index related

policies are being sold to small farmers in Andhra Pradesh.

Limitation of study: - The sample limitation for thisindustry is non awareness of insurance requirement,unfair selling, false claim and customer

dissatisfaction.

Chapter III
http://planningcommission.nic.in/plans/planrel/plsec3.pdfhttp://planningcommission.nic.in/plans/planrel/plsec3.pdf


6/6

Review of literature: - Through various surveys, books,articles, newspaper etc.

Chapter IV (Methodology)

Chapter - V

Data analysis & interpretations: - Tables, charts &inferences.

Chapter - VI

Findings Suggestions Conclusion

Chapter - VI

Annexure: - Questionnaire, Bibliography, Glossary

new study on gi marketing in india

Documents