IMPORTANCE OF INSURANCE SERVICE IN SELF HELP OF GROUPS IN OUR INDIA

The study is designed to evaluate the marketing strategies in life insurance service sector & how
these strategies boost sales & marketability of a product which ultimately lead to customer
satisfaction. The insurance scenario faces multiple challenges such as increased costs of
operation, regulatory pressures, and inflexible technology infrastructure. These pressures are
compounded by low to moderate premium growth & the increasing burdens of regulatory
compliance. Keeping all the above problems around the study would attempt to study all the
factors that contributed to the effective marketing strategies. This paper presents different
marketing strategies that are taken up in life insurance services keeping in view external and
internal environment of the firm. Marketing strategy is the basic approach that the business units
will use to achieve its objectives, and it consists of broad decisions on target markets, market
positioning and mix, and marketing expenditure levels. As the financial services sector has
become more competitive, financial institutions need to consider ,ways of developing relationships
with their existing customers in order to defend their market share. Strategic dimension of
marketing should focus on the direction that an organization would take in relation to a specific
market or set of markets in order to achieve a specified set of objectives. Every insurer must
recognize that its "strategic posture" depends partly on the competitive environment, partly on its
allocation of marketing resources. An insurance firm strategy is a plan for action that determines
how an insurer can best achieve its goals and objectives in the light of the existing pressures
exerted by competition, on the one hand, and its limited resources on the other hand. A wellperforming
life insurance industry benefits consumers, producers and insurance firm
stockholders alike. Unfavourable market conditions stress the need for life insurers to perform
well in order to remain solvent. Using a unique supervisory data set, this paper investigates
competition and efficiency in the Dutch life insurance market by estimating unused scale
economies and measuring efficiency-market share dynamics during 1995-2010. Large unused
scale economies exist for small and medium-sized life insurers, indicating that further
consolidation would reduce costs. Over time average scale economies decrease but substantial
differences between small and large insurers remain. A direct measure of competition confirms
that competitive pressures are at a lower level than in other markets. We do not observe any
impact of increased competition from banks, the so-called investment policy crisis or the credit
crisis, apart from lower returns in 2008. Investigation of product submarkets reveals that
competition is higher on the collective policy market, while the opposite is true for the unit-linked
market, where the role of intermediary agents is largest