Page 233 - DCOM309_INSURANCE_LAWS_AND_PRACTICES

Insurance Laws and Practices

Notes with rising customer awareness about customised, personalised and flexible products. Flexible
products and new technology will play a crucial role in reducing the cost and, therefore, the
price of insurance products.

Example: Finding niche markets, having the right product mix through add-on benefits
and riders, effective branding of products and services and product differentiation will be some
of the challenges faced by new companies.
Technology

In today’s highly competitive financial services environment, effective organisations will employ
technology in a strategic way so to achieve a competitive edge. Technology will play an increasing
role in aiding design and administering of products, as well in efforts to build life-long customer
relationships. At the same time, investment in technology will only help as long as firms find
the right people: people with the right attitude, values, and ethics, commitment to excellence,
and focus on customer service.

Notes The critical success factor is a top-down emphasis on exceeding customer expectations
with quality people, excellent products, and legendary service.

As has been seen in other financial services, the entry of private players ensures that the customer
will be the beneficiary in the long run. It will also result in enlarging the market and extending
the reach of insurance across the country.

Competition

Thus, apart from the normal issues facing any new company, many new Indian private insurance
players will need to cope with the challenges of working with a joint venture partner. They will
be competing with large and well-entrenched government-owned players. They have to
overcome regulatory hurdles, change the attitude of new recruits and satisfy some very high
customer expectations. Also, the players will have to consider the Indian market as a long-term
investment, and maintain clear-cut objectives and constant monitoring at all levels.

Table 13.1: Major Players in the Insurance Sector Today

S.No. Date of Reg. Name of the Company
1 23.10.2000 HDFC Standard Life Insurance Company Ltd.
2 23.10.2000 Royal Sundaram Alliance Insurance Company Limited
3 23.10.2000 Reliance General Insurance Company Limited.
4 15.11.2000 Max New York Life Insurance Co. Ltd.
5 24.11.2000 ICICI Prudential Life Insurance Company Ltd.
6 04.12.2000 IFFCO Tokio General Insurance Co. Ltd
7 10.01.2001 Kotak Mahindra Old Mutual Life Insurance Limited
8 22.01.2001 TATA AIG General Insurance Company Ltd.
9 31.01.2001 Birla Sun Life Insurance Company Ltd.
10 12.02.2001 Tata AIG Life Insurance Company Ltd.
11 30.03.2001 SBI Life Insurance Company Limited.
Contd...

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