dynamic care insurance (final)
TRANSCRIPT
-
8/12/2019 Dynamic Care Insurance (Final)
1/15
DYN MIC C RE INSUR NCEIntroduction
DYNAMIC CARE is a private limited company. Dynamic care offers individuals
plans, pension plans, special plans, & group scheme. Dynamic care offers child
plan & health insurance plans.
HistoryDynamic care was started in 1993 after the liberalization policy came into effect
The company was started as insuring the nearby school & colleges. The company
intitially employed only 100 people comprising of 15 agents. We grew at 50%
increase in next 3 years (1996). The next half decade proved to be the most
effective in the insurance sector at quarterly growth of 30%. Now, we have a
strong family of 1100 people around half a million people insured.
Vision
To be the most admired insurance company by securing the financial future of our
customers.
Mission
To strive for every customers vaniety and grow within a improvise our valuable
customers.
-
8/12/2019 Dynamic Care Insurance (Final)
2/15
Core values
Our core values are based on our culture of respect for our values, our goals, our
people, our partners and our customers.
Our culture of protection
P- PRIDE
R- RELATIONSHIP
O- OPPORTUNITY
T- TALK
E- ELEGANT
C- CARE
T - TOGETHER
I- IDEALISTIC
O- OPTIMISTIC
N - NASCENT
-
8/12/2019 Dynamic Care Insurance (Final)
3/15
SWOT ANALYSIS IN DYNAMIC CARE INSURANCE
SWOT ANALYSIS OVERVIEW
Dynamic care insuranceSTRENGTH
Strength- 1. Strong operational network.2. Domestics market position.
3. Strong financial positions.
Dynamic care insuranceWEAKNESS
Weakness- 1.increase in expense ratio.2. Change in government policy.
Dynamic care insuranceOPPORTUNITIES
Opportunities- 1. Diversification in activities.2. Direct marketing.
3. Growth prospect in emerging market.
Dynamic care insuranceTHREATS
Threats1.competition in the insurance industry.2. Effects of governmental policy and regulation.
3. Fluctuation in interest rate.
-
8/12/2019 Dynamic Care Insurance (Final)
4/15
PEST ANALYSIS OF DYNAMIC CARE INSURANCE
A.POLITICAL FACTORS:
1. INCREASED SERVICE TAX ON PREMIUM:The imposition of service tax on the services provided by the insurers has
been increased significantly over past few years by the government.
2. ENDING OF GOVERNMENT MONOPOLY:A great revolution in the insurance sector came in the year 1999 when
IRDA passed the bill, lifting all entry restrictions for private players and allowing
foreign players to enter the market with some limits on direct foreign ownership.
3. INCREASE IN FDI LIMIT:The hike in the insurance foreign direct investment (FDI) limit to 49 per
cent from 26 per cent has proved to be very beneficial for the insurances industry
in India.
4. FAVOURABLE REGULATIONS FOR RURAL INSURANCE:To encourage insurance sector to increase its spread in rural
India, government has made regulations more favorable for rural people by
decreasing the amount of premiums, introducing new group insurance plans andvarious other special plans for farmers.
B. ECONOMIC FACTORS:
1. INCREASE IN GROSS DOMESTIC SAVINGS:The gross domestic savings of people in India have increased significantly, due to
which they are moving towards new ways of investing money for the futurebenefits including various insurance plans. As compared to previous year
i.e.2007,the insurance industry thus expected to grow by about 40% during this
fiscal year, i.e.2008.
-
8/12/2019 Dynamic Care Insurance (Final)
5/15
2.CONTRIBUTION TO COUNTRYS G.D.P:According to government sources, the insurance and banking services
contribution to the countrysgross domestic product is 7% out of which the gross
premium collection by various insurance companies forms a significant part.
3. ROLE IN GOVT. SECURITIES MARKET :Insurance companies are fest emerging as one of the most prominent players in the
govt. securities market. The share of insurance companies in overall investment inthe G-sec market has more than doubled to 23% during 2007-08 from 9%during
the previous fiscal year.
4. BIGGEST DOMESTIC PLAYER IN EQUITY MARKETS :According to RBIsannual report for 2007-08, the insurance companies investedRs.35880 crore in the G-sec market, which is over 173.06% higher than
theRs.13880 core they invested in 2006-07. Thus insurers have emerged as thebiggest domestic institutional players in the equity markets.
C. SOCIAL FACTORS:
1. LOW INSURANCE COVERAGE:
In India insurance is considered as which is pushed upon the customers to buy.
People are unwilling to buy insurance due to lack of awareness.
2. INCREASE IN LIFE SPAN AND RISE IN ELDERLY
POPULATION:
In India lifespan has increased over past few years due to which the elderly
population in India is rising day by day. To live a happy and independent life, more
no. of educated peoples is moving towards investing in insurance to ensure a
respectful and independent life even in old age.
-
8/12/2019 Dynamic Care Insurance (Final)
6/15
3. UNCERTAINITY ABOUT LIFE:
Due to increasing no. of events of terrorist attacks in various parts of the country,
people have started viewing life as more uncertain. It has developed a kind of fear
factor in the minds of people leaving them more worried about their family and
kids. Due to this reason they are moving more and more towards buying insurance
policies in order to secure their familys future.
4. INDIAN PERCEPTION:
In India earlier people used to view insurance as a tax saving device or as a method
of investment. But, nowadays a great change in the perception has come. People
have started realizing the importance of getting insured. Now more no. of people is
viewing it as a transfer of risk for a good future.
5. CHANGE IN FAMILY SYSTEM:
Since past, joint family system was the most prevalent in all the stratus of Indian
society. At that time, in case of a mans death, there were other people in the
family to take care of his wife and kids. But, with the passage of time, a big change
in our culture has come. More no. of people is moving towards nuclear family
system. In todays scenario there isno one to help a widow and her kids because
everyone is busy with his/her family. In such a situation more no. of people are
opting for insurance to secure their spouse and childrens future.
6. INCREASE IN LIFE STYLE DISEASES:
Due to modernization, the life has become very fast. Many changes have taken
place in the life style of people, due to which a large no. of new life style diseases
have made their place in our country. Thus, more no. of people is opting for health
insurance etc to lead a better and more secured life.
-
8/12/2019 Dynamic Care Insurance (Final)
7/15
D. TECHNOLOGICAL FACTORS:
1. AUTOMATION OF PROCESSES:
Nowadays, with advancement in technology the whole process of insurance has
become automated. Earlier it used to take 15days to45days for the issuance of
policy documents. But, nowadays the whole process gets completed within 5 to 7
days.
2. INTERNET DRIVEN INFORMATION ERA:
With an increase in internet usage and its increasing spread, it has become easier
for people to get informed about everything at their home only. Now they dont
have to waste time in gathering information before taking any financial step. Every
information is now-a-days is available on the net.
3. BUSINESS PROCESS MONITORING:
It has become easier fo0r people to track every event in a business process. It has
resulted in more transparency in every aspect of business processing.
4. E-BANKING FACILITY:
More no. of people in urban sector are moving towards e- banking and credit card
facilities etc, which has made payment of premium much easier, convenient and
hassle free for customer.
E. LEGAL FACTORS:
1. REGULATORY BODIES:
IRDA (Insurance Regulatory Development Authority) keeps on changing policies
related to insurance which makes difficult for the companies to adopt quickly.
-
8/12/2019 Dynamic Care Insurance (Final)
8/15
2. RENEWAL OF REGISTRATION:
An insurer, who has been granted a certificate of registration, should have the
registration renewed annually with each year ending on March 31 after the
commencement of the IRDA Act.
3. REQUIREMENTS AS TO CAPITAL:
The minimum paid up equity capital, excluding required deposits with the RBI and
any preliminary expenses in the formation of the country, requirement of an insurerwould be Rs 100 core to carry on life insurance business and Rs 200 core to
exclusively do reinsurance business as per Section 6.
-
8/12/2019 Dynamic Care Insurance (Final)
9/15
7 PS OF SERVICES MARKETING IN DYNAMIC CAREINSURANCE
INTRODUCTION
Wherever there is uncertainty there is risk. We do not have any control over
uncertainties which involves financial losses. The risks may be certain events likedeath, pension, retirement or uncertain events like theft, fire, accident, etc.
Insurance is a financial service for collecting the savings of the public and
providing them with risk coverage. The main function of Insurance is to provideprotection 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. Insurancecomes under the service sector and while marketing this service, due care is to be
taken in quality product and customer satisfaction. While marketing the services, itis also pertinent that they think about the innovative promotional measures. It is
not sufficient that you perform well but it is also important that you let others know
about the quality of your positive contributions.
Insurance marketing
The term Insurance Marketing refers to the marketing of Insurance services with
the aim to create customer and generate profit through customer satisfaction. The
Insurance Marketing focuses on the formulation of an ideal mix for Insurancebusiness so that the Insurance organization survives and thrives in the right
perspective.
Marketing --Mix For Insurance Companies
The to best meet the needs of its targeted market. The Insurance business deals inselling services and therefore due weight-age in the formation of marketing mix for
the Insurance business is needed. The marketing mix includes sub-mixes of the 7
P's of marketing i.e. the product, its price, place, promotion, people, process &
-
8/12/2019 Dynamic Care Insurance (Final)
10/15
physical attraction. The above mentioned 7 P's can be used for marketing ofInsurance products in the following manner:
1. PRODUCTA product means what we produce. If we produce goods, it means tangible product
and when we produce or generate services, it means intangible service product. Aproduct is both what a seller has to sell and a buyer has to buy. Thus, an Insurance
company sells services and therefore services are their product. In India, theDynamic care insurance and the General Insurance Corporation (GIC) are the two
leading companies offering insurance services to the users. Apart from offeringDynamic care insurance policies, they also offer underwriting and consulting
services.
2. PRICINGWith a view of influencing the target market or prospects the formulation of
pricing strategy becomes significant. The pricing in insurance is in the form ofpremium rates. The three main factors used for determining the premium rates
under a life insurance plan are mortality, expense and interest. The premium rates
are revised if there are any significant changes in any of these factors.
Mortality:(deaths in a particular area) When deciding upon the pricing strategy
the average rate of mortality is one of the main considerations. In a country likeSouth Africa the threat to life is very important as it is played by host of diseases.
Expenses:The cost of processing, commission to agents, reinsurance companies
as well as registration are all incorporated into the cost of installments and
premium sum and forms the integral part of the pricing strategy.
Interest:The rate of interest is one of the major factors which determines people'swillingness to invest in insurance. People would not be willing to put their funds toinvest in insurance business if the interest rates provided by the banks or other
financial instruments are much greater than the perceived returns from theinsurance premiums.
-
8/12/2019 Dynamic Care Insurance (Final)
11/15
3. PLACEThis component of the marketing mix is related to two important facetsi) Managing the insurance personnel, and
ii) Locating a branch.
The management of agents and insurance personnel is found significant with theView point of maintaining the norms for offering the services. This is also to
process the services to the end user in such a way that a gap between the services-
promised and services offered is bridged over. In a majority of the servicegenerating organizations, such a gap is found existent which has been instrumentalin making worse the image problem. The transformation of potential policyholders
to the actual policyholders is a difficult task that depends upon the professionalexcellence of the personnel. The agents and the rural career agents acting as a link,
lack professionalism.
4. PROMOTION:The insurance services depend on effective promotional measures. In a countrylike India, the rate of illiteracy is very high and the rural economy has dominance
in the national economy. It is essential to have both personal and impersonalpromotion strategies. In promoting insurance business, the agents and the rural
career agents play an important role. Due attention should be given in selecting thepromotional tools for agents and rural career agents and even for the branch
managers and front line staff. They also have to be given proper training in order tocreate impulse buying. Advertising and Publicity, organization of conferences and
seminars, incentive to policyholders are impersonal communication. Arranging
Kittens, exhibitions, participation in fairs and festivals, rural wall paintings and
publicity drive through the mobile publicity van units would be effective in
creating the impulse buying and the rural prospects would be easily transformedinto actual policyholders.
-
8/12/2019 Dynamic Care Insurance (Final)
12/15
5. PEOPLE:Understanding the customer better allows to design appropriate products. Being aservice industry which involves a high level of people interaction, it is very
important to use this resource efficiently in order to satisfy customers. Training,development and strong relationships with intermediaries are the key areas to be
kept under consideration. Training the employees, use of IT for efficiency, both at
the staff and agent level, is one of the important areas to look into. Humanresources can be developed through education, training and by psychological tests.
Even incentives can inject efficiency and can motivate people for productive and
qualitative work.
6. PROCESS:The process should be customer friendly in insurance industry. The speed and
accuracy of payment is of great importance. The processing method should be easyand convenient to the customers. Installment schemes should be streamlined to
cater to the ever growing demands of the customers. IT & Data Warehousing willsmoothen the process flow. IT will help in servicing large no. of customers
efficiently and bring down overheads. Technology can either complement orsupplement the channels of distribution cost effectively. It can also help to improve
customer service levels. The use of data warehousing management and mining willhelp to find out the profitability and potential of various customers product
segments.
A. Flow of activities: all the major activities of banks follow RBI guidelines.There has to be adherence to certain rules and principles in the banking operations.
The activities have been segregated into various departments accordingly.
B. Standardization: banks have got standardized procedures got typical
transactions. In fact not only all the branches of a single-bank, but all the bankshave some standardization in them. This is because of the rules they are subject to.Besides this, each of the banks has its standard forms, documentations etc.
Standardization saves a lot of time behind individual transaction.
-
8/12/2019 Dynamic Care Insurance (Final)
13/15
C. Customization: There are specialty counters at each branch to deal withcustomers of a particular scheme. Besides this the customers can select their
deposit period among the available alternatives.
D. Number of stores:numbers of steps are usually specified and a specific pattern
is followed to minimize time taken.
E. Simplicity:in banks various functions are segregated. Separate counters exist
with clear indication. Thus a customer wanting to deposit money goes to depositscounter and does not mingle elsewhere. This makes procedures not only simple butconsume less time. Besides instruction boards in national boards in national and
regional language help the customers further.
7. PHYSICAL Evidence:Distribution is a key determinant of success for all insurance companies. Today,the nationalized insurers have a large reach and presence in India. Building a
distribution network is very expensive and time consuming. Technology will notreplace a distribution network though it will offer advantages like better customer
service. Finance companies and banks can emerge as an attractive distributionchannel for insurance in India. In Netherlands, financial services firms provide an
entire range of products including bank accounts, motor, home and life insuranceand pensions. In France, half of the life insurance sales are made through banks. In
India also, banks hope to maximize expensive existing networks by selling a rangeof products. The physical evidences include signage, reports, punch lines, other
tangibles, employees dress code etc.
A. Tangibles:banks give pens, writing pads to the internal customers. Even the
passbooks, cheque books, etc reduce the inherent intangibility of services.
B. Punch lines:punch lines or the corporate statement depict the philosophy and
attitude of the bank. Banks have influential punch lines to attract the customers.
Banking marketing consists of identifying the most profitable markets now and in
future, assessing the present and future needs of customers, setting businessdevelopment goals, making plans-all in the context of changing environment.
-
8/12/2019 Dynamic Care Insurance (Final)
14/15
Conclusion
In India, banks hope to maximize expensive existing networks by selling a range of
products. It is anticipated that rather than formal ownership arrangements, a loosenetwork of alliance between insurers and banks will emerge, popularly known as
bank assurance. Another innovative distribution channel that could be used are thenon-financial organisations. We cant deny the fact that if foreign banks are
performing fantastically, it is not only due to the sophisticated information
technologies they use but the result of a fair synchronization of new informationtechnologies and a team of personally committed employees. The development ofhuman resources makes the ways for the formation of human capital.
-
8/12/2019 Dynamic Care Insurance (Final)
15/15
Blueprint