Marketing in Banking and Insurance Essay

7122 Words Sep 21st, 2010 29 Pages

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
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Investment in insurance is exempt from tax. The urban class may also be motivated take insurance to avail of the tax concession and other incentives. On the other hand, the needs of the rural class would be considerably different either due to their lower awareness or because of their income priorities. Things like insurance take back seat for most of them. It may also be due to less concentration of insurance companies in rural areas.

Insurance services should analyze and anticipate the needs and requirements of industrial users. In case of industrial users, products like fire, marine, motor and miscellaneous policies are important. Industrial customers are generally well aware of the products available in the market, and hence selling takes precedence over marketing here.

The insurance business deals in selling services and therefore due weight age in the formulation of marketing mix for the Insurance business is needed. The marketing mix includes sub-mixes of marketing such as the people, the process and the physical attraction.

The public sector insurance organizations have not been formulating and innovating the marketing mix to cater to the changing needs and requirements and increasing level of satisfaction of the users.

Majority of the policy-holders are dissatisfied with the service-profile and they often complain regarding the detonating quality of services. Due to this the

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