«Published Annually Vol. 6, No. 1 ISBN 978-0-979-7593-3-8 CONFERENCE PROCEEDINGS Sawyer School of Business, Suffolk University, Boston, Massachusetts ...»
Several global insurers are today operating in Indian soil with the Indian partner. Prudential of United Kingdom, Aviva plc the major British insurer, AIG the America, Dutch insurance firm AEGON, French firm AXA and many more have entered the market and are earning now major share in the insurance market. With vast experience about the insurance business and cash rich pockets these companies have changed the total way of business in India.
With expertise in there work they have designed best products and best management practices have helped the customers to have these products at their end. The competition by large has provided an equal opportunity employability in India. With Conference papers © Knowledge Globalization Institute, Pune, India, 2012 global business practices the cultural changes in working place has been able to seen in India. Best management styles of working today have helped to create best process not only the front end process but also the backed technological driven process. With customer relationship management (CRM) coming into picture the data storage and information sharing became must easier for all the insurers.
A consumer remains the most important centre of the insurance sector. After the entry of the foreign players the industry is seeing a lot of competition and thus improvement of the customer service in the industry is been seen and is also been practiced.
Customers have tremendous choice from a large variety of products from pure term (risk) insurance to unit-linked investment products. Customers are offered unbundled products with a variety of benefits as riders from which they can choose. More customers are buying products and services based on their true needs and not just traditional money back policies, which is not considered very appropriate for long-term protection and savings. There is lots of saving and investment plans in the market.
Insurance industry is a data-rich industry, and thus, there is a need to use the data for trend analysis and personalization.
With increased competition among insurers, service has become a key issue. Moreover, customers are getting increasingly sophisticated and tech-savvy. People today don’t want to accept the current value propositions, they want personalized interactions and they look for more and more features and add ones and better service The insurance companies today must meet the need of the hour for more and more personalized approach for handling the customer. Today managing the customer intelligently is very critical for the insurer especially in the very competitive environment; customer gone is gone for ever and will never ever come back to the same insurer. Companies need to apply different set of rules and treatment strategies to different customer segments.
With educating the customers by Insurance Regulatory Development Authority (IRDA) and the steps taken by them has been able to help the customers to know many things about the insurance. Also the detailed about their policy, the investment patterns, the charges applied, the expected returns on the policy the benefits and all fine prints about the policy has been provided by the regulator and also by the insurer to the customer, hence making customer a real “ King “ and keeping him at the center stage. Proper process for his queries, provision of district, state and nation form to clear the ambiguities and any thing related by law are now addressed properly by the process came into picture. This has not only safeguarded the interest of the customer but also his involvement in the business by telling him his rights as a customer and the privilege he owns by giving the business to the insures across India.
Distribution and Intermediaries:
The insurance agents still remain the main source through which insurance products are sold. With growing competitive ness and good marketing strategies has given rise to other distribution channels. The present channels for insurance sale in India available are Direct Agents Direct Selling Group Selling Bancassurance Brokers Cooperative Societies Conference papers © Knowledge Globalization Institute, Pune, India, 2012 These new channels apart from the direct agents are able to penetrate the market much deeper than the traditional way of selling insurance through the agents. The channel partners are also been benefited by this as more value is generated in their business by adding one more product and customer also gets benefited of there valuable and professional advice. These partners for insurance companies has been the major benefit for increase in sale of there products. Also with there wide reach in market and better customer relationship skills has widen the horizon of there business as they are able to get another product at there end to sell to there valued and loyal customers. Thus enhancing there relationships with the customers.
Insurance industry has witnessed major changes over period of time. The regulator has been keen over the proper functioning of the business, with keen watch over the business capital to be invested with advancement in business also keen over creating awareness about unfair business practices nurtured by the insurer. Not only it has safe guarded the interest of the customer but has also played a keen role in educating the customer. With constant competitive environment the business delivery has been niche and constantly working toward been excellent.
The best are the one to survive in the business. We may see big companies taking over the troubled one.
Fuelled competition, increased awareness will bring the customers on the centre stage. Customer will be the single most important factor driving change in the life insurance business. Customer experience will be the key differentiator. Service will focus on enhancing the customer experience and maximizing the customer convenience.
Apart from the new distribution channels evolved, internet will be another effective media to sell the insurance by effective comparison shopping. Technology will be playing a crucial role in delivering the highest standard of service to both, the end customer and also to the intermediary
Regulatory Frame work:
The regulator till date has been firm tightening the business. Same would be seen from there end in coming future. While the regulator authority has done a superb job in putting place a framework, it needs to focus now to maintain consistency in the regulations applicable to each provider so as not to create a disadvantageous position for any one provider.
Simplification of Law:
Another cause of concern is the delay in the formulation of unified Act for issues relating to the insurance. Also with new modules coming in the financial planning arena, it is again necessary to frame out some laws to control the activities in future.
With fee regime coming slowly into the market, regulating and controlling over the same will be require as a need of hour.
India has seen an exit of one insurer (AMP Sanmar). The role of regulator in monitoring the risk profile of each participant will be crucial to maintain the good health of the sector. Insurers will need to take appropriate risk mitigation measures to minimize risk, while the regulator will need to strengthen their armory of risk measuring tools.
The Rural Market:
Insurance companies have established a presence and extended coverage in the rural areas as well, but there a lot more that needs to be done. The insurance companies need to design products that meet their need. Service delivery mechanisms will be crucial to success in rural areas. Mainly lesser premium a year will be required to explore the market.
Foreign Direct Investment (FDI):
One of important reform the industry is looking for. Lobbing has been done for implementing the 49 per cent FDI in insurance sector. This will not only helped the sector but also helped the Indian partner in a big way. The precautionary measures have to be taken for safeguarding the existence of Indian partner if at all it is allowed in the sector.
Conference papers © Knowledge Globalization Institute, Pune, India, 2012
An important area of business which has been a key segment for insurers worldwide and will be critical to the growth and development of the insurance industry of India. Been a pensions fund at most care has to been taken for implementation as will affect many senior citizens.
Since the opening of insurance sector to private players there has been many significant developments like product innovations, introduction of riders, new channels of distribution i.e., banks, corporate agents, group insurance business etc.
While these changes are most welcome and will benefit the growth of the industry and the customers, there are some key issues that need to be addressed immediately namely regulating framework, simplification of insurance laws, risk management, the rural market and the pension and role for insurance companies. This market has the potential to grow into one of the largest markets in the world within the foreseeable future. However, if appropriate steps are not taken now to get the structural aspects right, this industry will face many challenges that affect the growth References IC- 33. Book on Insurance for Agents Insurance journal of India Prasad K.N., “Indian Economy- Before and since the reform”, Atlantic Publishers and Distributors, New- Delhi, 2003
6. http://www.irda.gov.in Conference papers © Knowledge Globalization Institute, Pune, India, 2012 Globalization of Entrepreneurship: Policy Considerations for SME Development in Laos
As with most newly emerging economies, Laos needs to develop its small and medium sized enterprises (SMEs), which is the key engine for growth for all Southeast Asian countries. Laos is the one of the few remaining communist countries in the world, but it too has recently transited to a market economy like its neighbor Vietnam The country is resource rich but faces tremendous challenges of a landlocked less developed country. The transition from a closed to an open market economy is a daunting task. This paper evaluates the strategy and policy that needs to be in place for the country to succeed in private sector development with particular emphasis on creating the environment for stimulating economic activity particularly towards privatization and development of SMEs.
The government has identified infrastructure development, streamlining business regulations and improving finance as main priorities. The new Enterprise Law of 2004 defines directions and policies for development of SMEs in Laos. While it heralds a good start to the process of privatization its implementation leaves a lot to be desired. Numerous rules and regulations need clarification, there is a dire shortage of credit and financing and entrepreneurial and management training facilities and programs. The infrastructure including education and the legal system is still underdeveloped and needs major improvements.
Modern technology is still unavailable to many businesses. Market access is also limited while competition from neighboring countries, especially due to participation in the ASEAN Free Trade Area.
KEYWORDS: 1.Globalization 2.Development 3.Policy 4.Entrepreneurship Introduction As with most growing economies, Laos needs to develop its small and medium sized enterprises (SMEs), which is the key engine for growth for all Southeast Asian countries. Laos is the one of the few remaining communist countries in the world, but it too has recently transited to a market economy like its neighbor Vietnam. It is a relatively small country about the size of Utah.