MARKET PROFILE OF INSURANCE COMPANIES IN INDIA
It absolutely was in 1818 when the first Life Insurance Firm was established in India simply by private and foreign insurance firms. In the twentieth century a large number of medium and enormous sized foreign as well as Indian Insurance companies opened with different targets all across India.
The Government of India issued an Code in 1956 on nationalizing the Life Insurance sector and Life Insurance Organization (LIC) has been around since in the same year. Living Insurance Organization (LIC) consumed a total of 245 Indian and overseas companies dealing in the business of insurance.
At present LIC is the most significant single mobilizer of money in the form of financial savings of the community for expense accounting for about 14% from the total cost savings of the Household sector.
Currently India is a US$41 billion sector, wherein just two million people (0. 2% in the total populace of 1 billion) are covered under Mediclaim. This is a clear , crisp contrast to developed nations like UNITED STATES where regarding 75% with the total population are covered under a lot of insurance scheme. With more and more private firms emerging inside the sector, the specific situation may alter soon.
Relating to sector observers, you should know for the reduced insurance transmission in India was the ineffective distribution and marketing strategies followed by LIC. The company reportedly never got any proper marketing strategy, and due to the monopolistic nature the need for serious marketing initiatives was by no means felt.
The advertising initiatives were restricted to some print and electric media advertising that typically talked about LIC's products getting great duty saving application for salaried individuals who came under the income-tax bracket. In spite of all this, LIC was associated with insurance in India and it had established a great enviable manufacturer image to get itself, especially in the rural areas and little towns.
Yet , with the access of new players, the insurance marketplace...