Page 235 - DCOM309_INSURANCE_LAWS_AND_PRACTICES

Insurance Laws and Practices

Notes
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Caution Firms will need to constantly innovate in terms of product development to meet
ever-changing consumer needs. However, product innovations are quickly and easily
cloned.
Pricing will also not vary significantly, with most product premiums hovering around a narrow
band.
In this competitive scenario, a key difference will be the customer experience that each life
insurance player can offer in terms of quality of advice on product choice, along with policy
servicing, and settlement of claims. Service should focus on enhancing the customer experience
and maximising customer convenience. Long-term growth in the business will depend greatly
on the distribution network, where the emphasis must evolve from merely selling insurance to
acting as financial advisors, helping customers plan their finances depending on life stage and
personal requirements. This calls for a strong focus on training of the distribution force to act as
financial consultants and build a lasting relationship with the customer. This would help create
a sustainable competitive advantage that cannot be easily matched.

Self Assessment

Fill in the blanks:
13. While boundaries between various financial products are blurring, people are increasingly
looking not just at products, but at integrated ………………………………………………
that can offer stability of returns along with total profits.

14. Today’s consumers are increasingly interested in products to help build wealth and provide
for ……………………………………….. income.
15. Product ………………………………… are quickly and easily cloned.

Case Study General Insurers may not see Many Losses
from ‘Phailin’

he general insurance industry is unlikely to see much losses arising from the cyclonic
storm Phailin that hit the eastern coast last night, as most commercial installations
Tand ports along Odisha and Andhra are relatively less affected coupled with poor
retail penetration in the region, say industry officials.
They, however, said not only the domestic general insurance industry is closely watching
the event, but global re-insurers are also having a close tab on the developments in the
east coast.

Around 9 pm last night, the very severe cyclonic storm ‘Phailin’ had the landfall in Gopalpur
in Odisha. Before the cyclonic storm hit the coast, some people lost their lives even as the
authorities evacuated over five lakh (at the last count), from the storm affected areas of the
two states.
“Though it’s very difficult to predict the amount of losses that will arise from ‘Phailin’, we
don’t expect huge losses from this calamity,” Bajaj Allianz General Insurance managing
director and chief executive Tapan Singhel told PTI.
Contd...

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