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7p's of marketing mix of insurance sector?

1) Max Life Insurance Company Products


A product means what we produce. If we produce goods, it means tangible product and when we produce or generate services, it means intangible service product. A product is both what a seller has to sell and a buyer has to buy. Thus, an Insurance company sells services and therefore services are their product

The products of Max Life Insurance may be mentioned as below:

Savings Plans
Our range of savings plans

Max Life Max Life Whole Life (Par)

Max Life Whole Life Participating Plan is designed to provide you a lifetime of security along with potentially higher returns. The plan builds a Cash Surrender Value, which can be used to fund your sudden monetary requirements. In addition, you are eligible for bonuses 3 years after the policy comes into effect.

Max Life Life gaiN PLus 20 (Par)


Max Life Life GainTM Plus 20 Participating plan requires you to pay premiums only over a limited period, while you get cover for the entire policy tenure, i.e., up to 20 years. It ensure growth of your money resulting in a substantial lump sum on maturity. Bonuses and terminal illness benefit along with the flexibility to add value to your plan with various rider options makes it an ideal plan for achieving your financial goals. Max Life Guaranteed Monthly Income Plan

Future needs to be planned. Planning for future requires planning for future income. To be able to guarantee future income is to guarantee your childs education, your retirement or any other financial goal that you have set. For complete peace of mind this income should be guaranteed and not subject to swings of markets. But how do you go about securing such an income? Max Life Insurance brings to you a solution that takes care of all your worries. The Max Life Guaranteed Monthly Income Plan not just ensures safety of your investments but also ensures that your savings are cushioned from ill-effects of inflation. Additionally it ensures that the lifestyle of your family is protected against any exigencies.

Max Life 20 Year Endowment (Par)

UIN 104N003V01

Max Life 20 year Endowment Participating Plan is a perfect money-saver solution. On its maturity at the end of 20 years, it not only gives you a guaranteed sum but also gives any bonus that it accumulates. With this plan, you get a death benefit (guaranteed for the term of the policy) and in case you have any unforeseen expenses during the policy term, you can access any Cash Surrender Value that accumulates with complete convenience.

Max Life Endowment To Age 60 (Par)

UIN 104N007V01

Max Life Endowment to Age 60 (Par) Plan is a plan that helps you meet all your post retirement commitments with complete convenience and security. It will mature on the policy anniversary after your 60th birthday, and enable you to use the maturity proceeds in many ways, from paying for your medical costs to children's marriage expenses. It also protects your family from financial uncertainties in case of your untimely death before reaching age 60.

Max Life Life gaiN PLus 25 (Par) Max Life Life GainTM Plus 25 Participating Plan requires you to pay premiums only over a limited period, while you get cover for the entire policy tenure, i.e., up to 25 years. It ensure growth of your money resulting in a substantial lump sum on maturity. Bonuses and terminal illness benefit along with the flexibility to add value to your plan with various rider options makes it an ideal plan for achieving your financial goals. Max Life Life Pay MONey Back

Max Life Life PayTM Money Back is a uniquely designed plan that caters to your present as well as future needs. It offers regular financial assistance so that you can meet your expenses conveniently and secures the balance for your long-term saving needs. With Max Life's Life PayTM Money Back plan, you can always protect your family from financial hardships and fulfill all your dreams without making any compromises. Max Life Life GainTM Endowment

Max Life Life GainTM Endowment Plan not only takes care of your savings and investment needs but also guarantees you a life cover protection. It provides you with an insurance cover that is guaranteed during the tenure of the policy. This policy also builds cash value, which you can use during your lifetime to fund any unforeseen needs either by surrendering accumulated Paid Up Additions (PUAs) or taking a loan.

Child Plans
Max Life Shiksha Plus II
The needs of children go much beyond securing admissions in the best schools and exploring opportunities for education. Max Life Shiksha Plus II understands this and has designed a plan to ensure that your children not just get the best of education but also explore and develop their hidden talents.

Max Life College Plan


Following is the cost of education with the average fee structure - (yearly)

Pre-school Kinder Garten (KG) Primary School High School College and Higher Education

Rs. 5,000 to Rs. 30,000 Rs. 10,000 to Rs. 40,000 Rs. 15,000 to Rs. 50,000 Rs. 15,000 to Rs. 50,000 Rs. 30,000 to Rs. 5,00,000 Average cost in 2025 (in Rs. ) 18.8 Lakh 20.9 Lakh 25.1 Lakh 20.1 Lakh 17.1 Lakh

Following is what college education might cost in the next 15 years -

Field of study Engineering Management Medicine Law Fashion Designing

Average cost in 2010 (in Rs. ) 4.5 Lakh 5 Lakh 6 Lakh 4.8 Lakh 4.1 Lakh

2. PRICING:
In the insurance business the pricing decisions are concerned with: i) The premium charged against the policies, ii) Interest charged for defaulting the payment of premium and credit facility, and iii) Commission charged for underwriting and consultancy activities. With a view of influencing the target market or prospects the formulation of pricing strategy becomes significant. In a developing country like India where the disposable income in the hands of prospects is low, the pricing decision also governs the transformation of potential policyholders into actual policyholders. The strategies may be high or low pricing keeping inview the level or standard of customers or the policyholders. The pricing in insurance is in the form of premium rates. The three main factors used for determining the premium rates under a life insurance plan are mortality, expense and interest. The premium rates are revised if there are any significant changes in any of these factors. Mortality (deaths in a particular area): When deciding upon the pricing strategy the average rate of mortality is one of the main considerations. In a country like South Africa the threat to life is very important as it is played by host of diseases. Expenses: The cost of processing, commission to agents, reinsurance companies as well as registration are

all incorporated into the cost of installments and premium sum and forms the integral part of the pricing strategy. Interest: The rate of interest is one of the major factors which determines people's willingness to invest in insurance. People would not be willing to put their funds to invest in insurance business if the interest rates provided by the banks or other financial instruments are much greater than the perceived returns from the insurance premiums

3. PLACE:
This component of the marketing mix is related to two important facets -i) Managing the insurance personnel, and ii) Locating a branch. The management of agents and insurance personnel is found significant with the viewpoint of maintaining the norms for offering the services. This is also to process the services to the end user in such a way that a gap between the services- promised and services -- offered is bridged over. In a majority of the service generating organizations, such a gap is found existent which has been instrumental in making worse the image problem. The transformation of potential policyholders to the actual policyholders is a difficult task that intensive training programme to focus mainly on behavioral management. Another important dimension to the Place Mix is related to the location of the insurance branches. While locating branches, the branch manager needs to consider a number of factors, such as smooth accessibility, availability of infrastructural facilities and the management of branch offices and premises. In addition it is also significant to provide safety measures and also factors like office furnishing, civic amenities and facilities, parking facilities and interior office decoration should be given proper attention. Thus the place management of insurance branch offices needs a new vision, distinct approach and an innovative style. This is essential to make the work place conducive, attractive and proactive for the generation of efficiency among employees. The branch managers need professional excellence to make place decisions productive. Channels Of Distribution - agency ,broker/corporate agent and banks

Mrs. Sharma had just lost her husband to a terminal illness. He was wise to invest in life insurance to secure her and their 4 year old son. Mrs. Sharma realised, through her husbands wise financial planning, that life insurance really was a life saver. Although she had a decently paying job, she never quite had to worry about financial planning while her husband was alive. Well, it was time for her to get a life insurance policy of her own to secure her future and the future of her son. For the first time, she had to start thinking of long term savings and the protection of her loved ones future. She was clear that life insurance is a very healthy option. The question, however, was how does she get life insurance? Whom does she approach? Can she invest in a policy herself or does she need to do it through an agent? There was no time for her to just sit and wonder. She started her research on the Internet, took advice from her friends and spoke to other who already had life insurance. She had to get the best policy to suit her long term needs and the future she envisioned for her young son. With all the information at her disposal, she had chosen the course she was going to take. She started to look at the information on how to choose the right company and about the various channels of distribution, deciding on the best channel to use. Mrs. Sharma reads: Life insurance products are sold by companies that have been licensed by the Insurance Regulatory and Development Authority (IRDA). The products are sold through distribution channels that are licensed by IRDA as well. These individual agencies, brokers, corporate agencies or even banks have to follow certain codes of conduct when dealing with and helping a person choose a suitable policy. It is important to select a life insurance company which is financially solid, keeps its customers interests at the forefront and provides good quality service. The second important thing to do is to select a suitable channel to invest in life insurance. The representative of the channel should assess the various needs of the individual that can be met by life insurance and help the person make decisions like how much to protection cover is required, what is the most suitable policy, the most suitable premium payment options.

Things You Must Know About Your Intermediaries

The information Mrs. Sharma just read gave her a lot of insight into how she should select a good company and a good channel of distribution. Well, if she was going to put her money into a long term plan to derive certain benefits for herself and her son, she couldnt just invest with anyone. It had to be a trusted company and a dependable intermediary, with the experience to identify her needs and helping her plan for long term savings and the protection of her loved ones future. Flipping through some more information Mrs. Sharma reads further: Some important things you should know about your life insurance agent: It is essential to choose a trusted channel of distribution that has received a legitimate license from the IRDA. Always ask the agent for proper identification. Get information about the agents company, the agents manager and the address and contact details of the office. Always seek references for selecting the right life insurance agent by simply asking around, such as among family members, trusted friends, colleagues or business partners. Mrs. Sharma had a clearer picture of life insurance and what to look for in a channel of distribution. She was now more confident that she could choose a good channel of distribution. Lets learn, as Mrs. Sharma has, to be wise when we choose a channel of distribution for our life insurance policy. We are investing for the future, we are securing the lives of our children, we are preparing for unforeseen situations that might leave us financially crippled.

Must Do Steps While Buying Insurance

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Of course, now that Mrs. Sharma was gathering all this information her interest grew further. She continues reading: What are the 'must do' steps to buy life insurance? Select a reputable insurance company that is financially solid, keeps its customers interests at the forefront and provides good quality service. Check your agents credentials like his ID, license, company, etc. Talk to your agent and make sure that the agent gauges your your life insurance needs by carefully assessing the gap between your assets and liabilities, your annual income and standard of living, your spending habits and your long term objectives and goals. The agent should do a risk profiling exercise to understand and suggest what kind of plan suits your need - a traditional insurance plan or Unit Linked Insurance Plan. In case, you are offered a ULIP, the agent should advise you on what kind of an investment fund fits your profile. Decide, with the help of the agent, what is the best insurance policy based on your needs, future plans, standard of living, income and liabilities, expected benefit for yourself and your dependents, etc. Ask your agent important questions like

"What would I have to pay for insurance?" "What are the inclusions and exclusions in the policy?" "What riders can I add to my policy?" "What are the various premium payment options and modes?"
Fill in the proposal form yourself in entirety and make sure you provide all the required details without leaving out any information. It is important to disclose all the information. Do not withhold or provide wrong information regarding your health, financial condition, lifestyle, occupation and other insurance policies as this can lead to the cancellation of the contract in future and non payment of claims Provide your agent with all the documents that are required to purchase a policy. It is always advisable to opt for ECS when choosing a premium payment option as this reduces any chances of renewal premium payments getting missed out Make sure that the policy is delivered to you within the period specified by the agent. In case the policy is not delivered, you should get in touch with the insurance company immediately. Once you get the policy, make sure that you read and fully understand the terms and conditions listed in the policy during the stipulated 'free look period'. If you have any doubts or concerns, you should get in touch with the agent or the insurance company. Mrs. Sharma has learnt not only how to choose the right channel of distribution, but also the right steps to follow when she buys insurance. Through Mrs. Sharma's example, we now understand how important it is to do adequate research and take enough time tofind the right person, follow the right procedure and select the right policy that meets your needs so that you can ensure that your and your loved ones' future is secured.

Questions You Must Ask Before Buying Life Insurance

The right advice makes all the difference Buying Life insurance is one of the most important decisions of our lives. We believe that you must be aware of everything that you need to know about your life insurance policies. As a prospect who wants to buy a life insurance policy, you must be clear about the policy details, its features and benefits before you actually decide to buy a life insurance policy. Here are 5 questions that you MUST ask a life insurance agent before buying a life insurance policy 1)Is the Agent Advisor qualified or authorized to suggest me a life insurance solution? 2) What are my financial needs current and future? 3) What is the product that will suit my needs the best and what are its benefits? 4) What are the differentiators of this product? 5) What to do if you think a product has been mis-sold to you?

What To Look For In Your Insurance Contract


What To Look For In Your Insurance Contract Life insurance is the only financial tool which offers the triple advantage of risk coverage, long term savings, and tax benefit. It offers financial protection to an individual after taking into account the present and future value of his assets and liabilities. However, consumers need to develop a better understanding of the life insurance products that they buy. There are a number of things that you must understand regarding your life insurance policy and this document is a guide to help you check the same. Mentioned below are 10 key parameters to weigh once you receive the policy document. Verify personal details

Personal data provided to the life insurance company forms a very important part for policy servicing and settlement of all claims. Please make sure that all personal details such as your name, age, address, etc. are mentioned correctly. Moreover, do be certain that all aspects related to personal habits or health details are mentioned correctly as per the disclosures made by you in the proposal form.
Analyze the benefits

The benefits of your life insurance policy must correspond with your long-term goals. After the receipt of policy document, go through the features and benefits of the product and check if they match with promises made during the purchase. Crosscheck features such assum assured, premium amount, flexibility of the plan, etc.
Check the riders

In addition to life coverage, you may have purchased add-on covers known as "riders" for other types of contingencies. Go through the insurance contract to understand the rider coverage.
Consider the payment tenure

Please check for how long you need to pay premiums and also what mode of payment you may have chosen, for example half yearly, quarterly, annual, etc.

You may sometime get a wrong advice like "you need to pay for only 3/5 years". Please do not fall for such advice. Life insurance is a long-term savings and protection tool and its benefits can be seen only if one buys it for the long-term.
Authenticate the returns

Do not blindly believe the returns promised. Once you get the policy document, check out the benefit illustrations of returns. The illustration shows what would be your illustrative benefits in a hypothetical situation if your investment were to provide a gross return of 6% and 10%, as per the IRDA's mandate. Study carefully what is guaranteed and what is not.
Comb through the policy contract

In addition to the benefits specified in policy documents, it is necessary to carefully read the terms and conditions of the policy. In case you find any difficulty in understanding any aspect of terms and conditions, please check with the life insurer the impact of those terms and conditions.
Confirm surrender charges

Very rarely, a situation may arise where you face a cash crunch and need to surrender your policy or make partial withdrawals. For times like these, make sure to examine the exact surrender charges mentioned in the policy document, so that you can plan finances and minimize losses accordingly.
Examine exclusions

Exclusions in the policy define aspects or situations that will not be included in the coverage. An exclusion that one is not aware of can make the cover redundant. Read the exclusions carefully. These may include suicide, death which occurs during the commission of a crime, acts of war or terrorism, death due to a natural calamity, etc. Some exclusion may be only for a specified period and may be called restrictions instead.
Claims settlement process

Check if the nominee's details are captured correctly. You have the option of including one or more nominees and specify their share ofclaim. The policy should also list down all details on how to file aclaim.
What to do when you think a life insurance policy has been mis-sold

The life insurers provide a free-look period of 15 days to the policyholder during which a policyholder can review the policy document and if he/she is not satisfied, then he/she is free to return the policy and claim refund of the premium paid post deduction of applicable charges. IRDA has also set-up various Ombudsmen offices across the country, which can take up policyholder grievance and complaints.

Services You Should Expect From A Life Insurance Company Or Intermediary


Mrs. Sharma's task did not end when she selected her agent. Her bank of information emphasized equally on what she should expect from her life insurance agent before and after she takes a policy. Her research offered her more information: What should I expect from my life insurance agent? An agent should possess a valid license, identity proof and business card of the company represented. An agent should provide you with information on all the life insurance products available. An agent should understand your needs based on a judgement of your asset liability gap, annual income, standard of living and age and recommend a solution that fulfils your long term savings and protection goals. The agent should do a risk profiling exercise to understand and suggest what kind of plan suits your need - a traditional insurance plan or Unit Linked Insurance Plan. In case, you are offered a ULIP, the agent should advise you on what kind of an investment fund fits your profile. The agent should inform you about the premium you will have to pay for your policy and you need to be informed of the various premium payment terms and options available to you. Your agent has to inform you of all the information required on the proposal form and the importance of the information for the purchase of the insurance contract. Your agent should also advise you to provide all necessary correspondence details like complete postal address, primary and alternate contact numbers, email ID, etc. Your agent has to clearly mention to you the importance of disclosing vital information pertaining to your health, income, lifestyle, occupation and other insurance policies and the consequences of non-disclosure. Your agent should provide details of all the documents that are required at the time of filling the proposal form. The agent has to advise you to appoint a nominee, who will ensure that the terms in the policy are carried out in your unfortunate absence. The agent should inform you of the various means of communication that you can use to contact the insurance company for matters related to your policy and for policy servicing.

The agent must provide assistance and help arrange for all the medical tests and other related formalities. The agent should guide you on the various tax benefits that you can avail from your insurance policy. The agent should visit you at least once a year and conduct an assessment or review of your other needs that might have arisen in due time and provide you solutions accordingly. The agent should help you with respect to any changes that you want to make to your policy, e.g. changing bonus options, switching and redirecting premiums and assist you in taking a loan against your policy. It is the duty of an agent to remind you to pay your premiums on time to avoid your policy from lapsing. The agent should provide assistance to revive your lapsed policy, if required. The agent must provide the necessary assistance to the beneficiary in complying with the requirements to settle a claim

4. PROMOTION:
The insurance services depend on effective promotional measures. In a country like India, the rate of illiteracy is very high and the rural economy has dominance in the national economy. It is essential to have both personal and impersonal promotion strategies. In promoting insurance business, the agents and the rural career agents play an important role. Due attention should be given in selecting the promotional tools for agents and rural career agents and even for the branch managers and front line staff. They also have to be given proper training in order to create impulse buying. Advertising and Publicity, organisation of conferences and seminars, incentive to policyholders are impersonal communication. Arranging Kirtans, exhibitions, participation in fairs and festivals, rural wall paintings and publicity drive through the mobile publicity van units would be effective in creating the impulse buying and the rural prospects would be easily transformed into actual policyholders.

5. PEOPLE:
Understanding the customer better allows to design appropriate products. Being a service industry which involves a high level of people interaction, it is very important to use this resource efficiently in order to satisfy customers. Training, development and strong relationships with intermediaries are the key areas to be kept under consideration. Training the employees, use of IT for efficiency, both at the staff and agent level, is one of the important areas to look into. 6. PROCESS: The process should be customer friendly in insurance industry. The speed and accuracy of payment is of great importance. The processing method should be easy and convenient to the customers. Installment schemes should be streamlined to cater to the ever growing demands of the customers. IT & Data Warehousing will smoothen the process flow. IT will help in servicing large no. of customers efficiently and bring down overheads. Technology can either complement or supplement the channels of distribution cost effectively. It can also help to improve customer service levels. The use of data warehousing management and

mining will help to find out the profitability and potential of various customers product segments. 7. PHYSICAL DISTRIBUTION: Distribution is a key determinant of success for all insurance companies. Today, the nationalized insurers have a large reach and presence in India. Building a distribution network is very expensive and time consuming. If the insurers are willing to take advantage of India's large population and reach a profitable mass of customers, then new distribution avenues and alliances will be necessary. Initially insurance was looked upon as a complex product with a high advice and service component. Buyers prefer a face-to-face interaction and they place a high premium on brand names and reliability. As the awareness increases, the product becomes simpler and they become off-the-shelf commodity products. Today, various intermediaries, not necessarily insurance companies, are selling insurance. For example, in UK, retailer like Marks & Spencer sells insurance products. The financial services industries have successfully used remote distribution channels such as telephone or internet so as to reach more customers, avoid intermediaries, bring down overheads and increase profitability. A good example is UK insurer Direct Line. It relied on telephone sales and low pricing. Today, it is one of the largest motor insurance operator. Technology will not replace a distribution network though it will offer advantages like better customer service. Finance companies and banks can emerge as an attractive distribution channel for insurance in India. In Netherlands, financial services firms provide an entire range of products including bank accounts, motor, home and life insurance and pensions. In France, half of the life insurance sales are made through banks. In India also, banks hope to maximize expensive existing networks by selling a range ofproducts. It is anticipated that rather than formal ownership arrangements, a loose network of alliance between insurers and banks will emerge, popularly known as bancassurance. Another innovative distribution channelthat could be used are the non-financial organisations. For an example, insurance for consumer items like fridge and TV can be offered at the point of sale. This increases the likelihood of insurance sales. Alliances with manufacturers or retailers of consumer goods will be possible and insurance can be one of the various incentives offered.