2.2. PESTLE ANALYSIS
2.2.1. POLITICAL FACTORS Life insurance industry is affected by many political factors. In political sphere, hike in FDI limit up to 49 percent but, the Parliamentary Standing Committee on Finance has rejected foreign direct investment (FDI) to 49 per cent, in the Insurance Laws Bill (Amendment) 2008 (News, 2011). Increase in FDI limit attracts foreign investors and provide fund for penetrate in market.
Insurance companies need capital to expand and penetrate their business, now IRDA approved initial public offer (IPO) to raise capital from Indian market, and it may lead to life insurance industry (Ernst & Young, 2010).
Customers have to pay 10.3 percent tax on insurance premium including investment components of traditional …show more content…
It is growing will be 43.21 percent in 2016 (International Monetary Fund, 2011). Increase in Gross national saving is a growth sign for life insurance industry. Initially when LIC was formed, insurance was promoted as a best saving tools with life insurance, and it worked, since there were no much option for saving and investments. Today scenario is different, investment and saving instruments are available as per priority and requirement hence it has become easier to investors to invest in insurance …show more content…
TECHNOLOGICAL FACTORS
Technology will play a very important role in the development of the insurance industry and the insurance market itself. Online activity will be of increasing importance. Now life insurance buyers use internet to compare and purchase insurance products. In this process user-friendliness of insurer website play an important role in product selling. Now insurer needs to manage their websites more effectively, understand their customers’ needs and monitor customer behaviour (Keynote, 2007). Automation of process in life insurance helps business to save cost and ease in process.
Increase in CRM solutions: Data management and proper flow of data are important problem for life insurer. Customer relationship management has taken a step forward to deciding what kind of data to look at in the first place. This instant service has made life insurance industry quite easy accessible (Keynote, 2007).
Business Process Monitoring (BPM): Insurance is a long-term deal with anybody, effective monitoring ensure renewal in time, at the same time new customer. A perennial issue for insurers is outsourcing. Outsourcing appears to be growing in the insurance industry, but insurers need to take into account the level of service provided as well as the financial
2.2.1. POLITICAL FACTORS Life insurance industry is affected by many political factors. In political sphere, hike in FDI limit up to 49 percent but, the Parliamentary Standing Committee on Finance has rejected foreign direct investment (FDI) to 49 per cent, in the Insurance Laws Bill (Amendment) 2008 (News, 2011). Increase in FDI limit attracts foreign investors and provide fund for penetrate in market.
Insurance companies need capital to expand and penetrate their business, now IRDA approved initial public offer (IPO) to raise capital from Indian market, and it may lead to life insurance industry (Ernst & Young, 2010).
Customers have to pay 10.3 percent tax on insurance premium including investment components of traditional …show more content…
It is growing will be 43.21 percent in 2016 (International Monetary Fund, 2011). Increase in Gross national saving is a growth sign for life insurance industry. Initially when LIC was formed, insurance was promoted as a best saving tools with life insurance, and it worked, since there were no much option for saving and investments. Today scenario is different, investment and saving instruments are available as per priority and requirement hence it has become easier to investors to invest in insurance …show more content…
TECHNOLOGICAL FACTORS
Technology will play a very important role in the development of the insurance industry and the insurance market itself. Online activity will be of increasing importance. Now life insurance buyers use internet to compare and purchase insurance products. In this process user-friendliness of insurer website play an important role in product selling. Now insurer needs to manage their websites more effectively, understand their customers’ needs and monitor customer behaviour (Keynote, 2007). Automation of process in life insurance helps business to save cost and ease in process.
Increase in CRM solutions: Data management and proper flow of data are important problem for life insurer. Customer relationship management has taken a step forward to deciding what kind of data to look at in the first place. This instant service has made life insurance industry quite easy accessible (Keynote, 2007).
Business Process Monitoring (BPM): Insurance is a long-term deal with anybody, effective monitoring ensure renewal in time, at the same time new customer. A perennial issue for insurers is outsourcing. Outsourcing appears to be growing in the insurance industry, but insurers need to take into account the level of service provided as well as the financial