jacky garg, 1273557, Mba 4 F1, Comment on Product pricing, innovation and simplicity in Non-Life Insurance

Introduction

Product pricing

Competition is forcing insurers to adjust rates more frequently to retain existing customers and attract new ones. Insurers looking to implement a price optimization strategy must consider these essential components.

• Information management. Key to the success of using price optimization is the quantity and quality of the available data, especially claims and customer data.
• Data exploration. The emergence of business analytics software, like data exploration and visualization tools, helps insurers refine their analysis and evaluation of certain risk elements. For example, 20 years ago, credit score was probably deemed unimportant. Now it is probably the most used variable in determining premium rates.
• High-performance analytics. To process the large data quantity and perform complex analytical calculations, insurers need an in-memory or distributed computing environment.

Simplicity of non life insurance

The MS&AD Insurance Group is developing business processes utilizing the Internet and PCs to make products and services simpler and more convenient for customers. We also have systems to provide information about insurance products and services to a wide range of customers regardless of age and ability.

MSI offers "SumaHo," a free application for smart phones.
 

Innovation

The word “innovation” means different things to different people. For some, it only refers to groundbreaking discoveries that fundamentally change the competitive landscape. Against that benchmark, many observers perceive that insurers are slow to embrace product innovation, especially when applied to non-life insurance. But according to Swiss Re’s latest sigma publication “Product innovation in non-life insurance,” innovation in non-life insurance is more common than believed, although it tends to happen incrementally and be transaction led.
Conclusion

“Insurance has a poor image of not being very innovative, but often people don’t appreciate the range and degree of risks that insurers routinely take on,” Pain says. Cyber insurance, supply chain disruption cover, and alternative risk transfer solutions are all recent examples of innovations in non-life insurance. Yet in developing new products, insurers always need to be cautious that innovations do not overstep the boundaries of insurability.

The London Market provides a focus for many insurance companies and syndicates operating under a Lloyd’s of London banner to write large commercial risks such as supermarkets, football players and other very specific risks. It consists of a number of insurers, reinsurers, [P&I Clubs], brokers and other companies that are typically physically located in the City of London. Business is typically written through specialist brokers. The London Market also participates in personal lines and commercial lines, domestic and foreign, and provides reinsurance.

1273577 Monika, F1, Q47 – Comment on making sales and marketing more responsible and answerable in Insurance industry

Question 1- 

http://youtu.be/FZIUypW3mhg

Question 2-

Introduction

The importance of promotion in marketing is gradually increasing. Marketing specialists have mentioned that use of sales promotion has dramatically increased in past decade. The producers have spent much more amount on sales promotion than on advertisement. Sales promotion is equally important to producers, middlemen and consumers.

 There are insurance marketing strategies that can take any insurance agency from mediocre to success when utilized correctly. Breaking into a new business climate and finding customers is hard work, but when equipped with innovative ideas and proven techniques, financial markets sales personnel can become extremely successful. Getting an education and training is very important in insurance industry, sales is certainly no exception.

Discussion

Key insurance marketing strategies will always include an in-depth review of the  value of follow-up.

 Follow-up says to a consumer that they are important, thought of, and that their business would be greatly appreciated. The consumer today not only wants a product at a great price, they also want a personal relationship, especially when it comes to financial system sales, such as various insurances. Letters and phone calls are gentle reminders that the salesperson intends to serve with his or her whole heart. And, once a sale is secured, a thank you call is strongly advised. 

Various Strategies for making sales and marketing more responsible and answerable- 

Create an Insurance Marketing Parthenon-An insurance company needs for insurance marketing Parthenon. An Insurance Marketing Parthenon means having multiple different sources of insurance revenue and lead generation instead of relying on just one.

Consistency-Insurance company needs to create a marketing plan and a marketing budget for the year, and stick to it.

Sequenced Mailings-An insurance company can arrange sequential meeting with their clients.

Monthly Newsletters-An insurance company can send newsletter to their existing clients.

Prospecting-Selling anything begins with prospecting -- finding people who are interested enough in your product to listen long enough for you to make a sale.

Niche Marketing- Your life insurance niche could be a specific kind of policy, a population or region, or simply being the insurance guy in an interest club.

Finding Value-When selling to a new prospect, don't talk about the policy itself. Insurance is boring and death is scary. Instead, focus the conversation on what the policy represents.

Conclusion-An insurance company need to analyze the success of marketing efforts. An insurance company needs to manage their budget for sales and marketing efforts. In meeting the significant potential, the industry has an increased role and responsibility. Three areas of focus could be — a) product innovation matching the risk profile of the policy holders b) re engineering the distribution and more significantly c) making sales and marketing more responsible and answerable. An insurance Company needs to identify the most valuable customers. An insurance company needs to align strategies and actions in order to make sales and marketing more responsible and answerable.

Question (Q2) Allocation for Assignment 2

1273499 Q1

1273500 Q2

1273501 Q3

1273502 Q4

1273505 Q5

1273507 Q6

1273510 Q7

1273511 Q8

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1273515 Q11

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1273524 Q16

1273525 Q17

1273528 Q18

1273532 Q19

1273533 Q20

1273535 Q21

1273537 Q22

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1273544 Q25

1273547 Q26

1273548 Q27

1273549 Q28

1273550 Q29

1273551 Q30

1273552 Q31

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1273557 Q33

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1273559 Q35

1273560 Q36

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1273562 Q38

1273564 Q39

1273565 Q40

1273566 Q41

1273568 Q42

1273569 Q43

1273571 Q44

1273572 Q45

1273576 Q46

1273577 Q47

1273578 Q48

1273579 Q49

1273580 Q50

1273581 Q51

Assignment No 2

Assignment - 2

Banking and Insurance Operations (MB 927)

MBA 4^th Semester Jan-Apr 2014

Date of Assignment: 19^th Mar 2014

Last Date of Submission: 25^th Mar 2014 11:00 am                                                         Max Marks: 10

Assignment writing guidelines

1.     Your lecture notes will give you the basic framework ONLY of the ideas, theories and concepts you will need to complete the assignment. These notes will therefore NOT be sufficient on their own. You will need to make use of the required reading, extra references and any other material you come across in the course of researching your assignment Question(s).

2.     When you are taking notes for your assignment, try and `translate' what the author is saying into your own words. Don't just copy out huge chunks from other people’s work, otherwise they will probably end up in your assignment with very little of the wording changed (which is plagiarism). Also try to think about what is being said from your own point of view - do you agree or disagree with the points that the author is making?

3.     Take down basic points from as many sources as you can manage and compare what the authors are saying as you are reading. There will be both similarities and differences in their views and it helps if you can begin to classify authors together.

4.     Remember, for referencing purposes, to take down page numbers of all the quotes you reproduce from other people’s work, and full citation details for each source you use. See the referencing guidelines for details of how to reference academic work.

5.     Try to stick to the introduction/ discussion/ conclusion format in your Assignment  for Q2 – i.e., set the context of the essay and outline the structure of your argument, cover the relevant material, and then tie the discussion up by summarizing what has been said and offering YOUR opinion on what the question is asking about, based on the sources you have used. Restrict to 500 words maximum.

6.     You will be assigned one question each (for Q2). The question No will be given to you by your instructor and all questions will be posted on the blog spot.

7.     The Assignment has to be posted on the blog spot http://gjimt2014managersf1.blogspot.com & http://gjimt2014managersf2.blogspot.com as new blog by 11:00 am of 25^th of Mar 2014 by each one of you. The subject line should contain your roll no, name, section, Question No and the Question e.g. <1234567 Gurdeepak Singh, F1, Q23 – Why Euro Crisis is affecting Global economy?>

Q1)       To be done individually. You have to interview your best friend from the MBA – 2^nd year batch – The Seniors (the friend can’t be from your MBA Class) with a questionnaire prepared by you and then interview the chosen friend and record on video? There should not be more than 3 questions with 40 seconds of video maximum and one student can’t be interviewed twice. The interview should highlight the hidden skills of your best friend which the MBA senior class is not aware of? Then upload the video on YouTube and post the link in the blogspot by giving the title [Your Roll No - Your name – Section – Senior’s name you have interviewed – Senior section] e.g <1234567 - Ramandeep – F1 – Rampal – MBA F2>.                                                            - 5 marks

Q2)       All questions are on Insurance - 5 marks

1.     Comment on Slowing growth

2.     Comment on Rising costs

3.     Comment on Deteriorating distribution structure

4.     Comment on Stalled reforms

5.     Comment on insurance industry landscape in Asia-Pacific

6.     Despite strong improvement in penetration and density in the last 10 years, India largely remains an under-penetrated market. Comment?

7.     The market today is primarily dependent on push, tax incentives and mandatory buying for sales. Why?

8.     In the long run the insurance industry is still poised for a strong growth as the domestic economy is expected to grow steadily. Comment

9.     Comment on Insurance growth drivers in India

10.  Comment on Growing of the financial industry as a whole

11.  Comment on Growth of life and non-life industry

12.  Comment on Promoting innovation and removing inefficiency in Insurance Industry

13.  Comment on Competition and orderly growth in the sector

14.  Comment on Growth of specific insurance segments such as motor insurance

15.  Comment on Emerging trends in Insurance Sector

16.  Comment on Multi-distribution i.e. increasing penetration through new modes of distribution such as the internet, direct and telemarketing and NGOs

17.  Comment on Product innovation i.e. increased levels of customization through product innovation

18.  Comment on Claims management i.e. timely and efficient management of claims to prevent delays which can increase the claims cost

19.  Comment on Profitable growth i.e. expanding product range, developing innovative products and expanding distribution channels

20.  Comment on Regulatory trends i.e. mandated regulatory changes by the IRDA to promote a competitive environment in both the life and non-life insurance sectors

21.  Discuss the key challenges in Life Insurance

22.  In FY12, the life insurance industry witnessed a decline in the first year premium collected which dropped from INR1, 258 billion in FY11 to INR1, 142 billion, a drop of approximately 10%. Comment on reasons?

23.  Comment on Products strategy and design in the present scenario

24.  Comment on Cost factor in the Insurance sector

25.  Comment on Taxation part of Insurance sector

26.  How effective is Distribution in Insurance sector

27.  Comment on Prospects and challenges of various channels in Insurance

28.  Comment on Compensation in Insurance sector

29.  Comment on Customer service in Insurance sector

30.  Comment on Governance and regulatory issues in Insurance sector

31.  Comment on factors impacting growth in Non-life insurance

32.  The non-life insurance industry has been growing in excess of 20% over the last two years however the penetration was as low as 0.7% of the GDP in FY10. Comment?

33.  Comment on Product pricing, innovation and simplicity in Non-Life Insurance

34.  Comment on Distribution in Non-Life Insurance

35.  Comment on Compensation in Non-Life Insurance

36.  Comment on Micro-insurance in non-life widening reach

37.  Comment on Governance and regulatory changes in Non-Life Insurance

38.  Comment on Health insurance

39.  Comment on Innovative products to counter the competition in Non-Life Insurance

40.  Comment on Improved fraud control mechanisms in Non-Life Insurance

41.  Comment on Standardization to reduce claims loss in Non-Life Insurance

42.  Comment on Reducing inefficiencies by revisiting third party administrator (TPA) agreements in Non-Life Insurance

43.  The Indian insurance market is poised for strong growth in the long run. Comment

44.  The insurance market has a considerable amount of latent potential, given the fact that the Indian economy is expected to do well in the coming decades leading to increase in per capita incomes and awareness. Comment

45.  Comment on product innovation matching the risk profile of the policy holders

46.  Comment on Re engineering the distribution in Insurance sector

47.  Comment on making sales and marketing more responsible and answerable in Insurance industry.

48.  The alignment of economic incentives with distribution dynamics should be driven by market forces rather than regulatory intervention. Comment

49.  The Insurance industry should be given time to adjust to regulatory changes in a phased manner aligned with a regulatory impact assessment. Comment

50.  Regulations need to drive transparency and simplification of products and services. Comment

51.  The stakeholders should work toward maintaining a favourable environment for stable growth, increasing the penetration of insurance to rural and under penetrated areas and increasing the contribution to the economy. Comment?