You have been appointed as the CEO of a newly started life insurance company. Indicate how you intend to market the products of the company in the Indian market. (Your answer will have to indicate the various sources ava

Insurance companies need to market their products because they are in competition with other insurers for the same customers, and in addition to this, the insurance company are also competing with banks and mutual fund companies too. Many times the only thing that distinguishes a company's products is price as well as the advertising message. The marketing of insurance products can be done directly by an insurance company as well as through agents or company representatives. There are various agencies available for intermediation in the marketing and sale of insurance products, agents, brokers, tied agency relationship, corporate agents, bank assurance, tele- marketing, direct sale etc. Life Insurance policies are canvassed and sold on the basis of personal and consistent efforts on the part of individual agents. It is this category that sustains the business. All over the world, life insurance business is generated and sustained to a large extent by individual agents. The commission paid to such agents has to be market driven. Efforts are being made by the IRDAI to cut down drastically rates of commission payable to individual agents, so that this move can easily be categorized as "non-progressive". The pace of growth of life policies depends on the efforts of the individual agency force which has to be reasonably compensated. Corporate agencies or bank assurance schemes are being pushed through vehemently by the IRDAI. The proposal to convert all bank assurance schemes to bank brokerage business does not seem to have a good start. Most of the insurance companies in India have a bank as a partner. But, banks have to attend to their core business of banking and to concentrate on insurance selling may affect their business. However, the banks have the advantage of huge customer base and they can target these customers easily. The various other sources as available to the Life Insurance Company to market products are as follows. Direct mail-letters sent to consumers on the basis of addresses available from various sources like telephone directory etc. Telephone contacts, on the basis of subscriber lists Television programmes Advertisements and loose insertions in main line as well as professional and trade journals Displays in conferences, seminars for specialized products Direct contact from the salaried staff Stalls in exhibitions and even solo exhibitions in remote areas with large potential customers Kiosks with touch technology Internet Out of above sources product selling through insurance agent networks and bancassurance are preferable.