SSM

INSURANCE SERVICES DEFINITION OF INSURANCE:

Insurance is a mechanism through which assets are insured against risk of being destroyed or lost or made non-functional due to any accidental occurrences, so that the owner of the assets can cope with economic consequences of such an event. Insurance can thus be defined as a means of protection of the economic value of assets. It is a method of spreading over a large number of persons a possible loss too serious to be conveniently borne by an individual. Insurance is a contract between the insurer and the insured under which the insurer undertakes to compensate the insured for the losses arising from the risk insured against. The insured agrees to pay a premium regularly. The person whose risk is insured is called insured or assured. The person who agrees to compensate called insures or assures or underwriter. Insurance marketing: The team insurance marketing refers to the design and distribution of insurance services with customer orientation so as to achieve the right balances between customer satisfaction and profit generation. It means knowing the market and developing a need oriented product formulating the product mix, making suitable pricing decisions, designing sensitive production strategies and making distribution. It also refers to the marketing of insurance services with the motto of customer orientation and profit generation. A fair blending of profit generation and customer satisfaction makes the way for development and expansion. Marketing mix: The insurance business deals in selling services and therefore due weightage 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 organisations 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 foreign insurance companies and private insurance players are snatching away the business of the public sector insurance organisation.

MARKETING MIX

Product

Pricing

Promotion

People

Process

Physical Distribution

Product mix: A product means what we produce. If we produce goods, it means tangible product and when we product or generate services, it means intangible service product. The insurance organisation generates services in different forms. A product is both what a seller has to sell and a buyer has to buy. Thus any enterprise that has something to sell tangible or intangible is selling a product. An insurance company