Asian Journal of Management

Open Access Open Access  Restricted Access Subscription Access
Open Access Open Access Open Access  Restricted Access Restricted Access Subscription Access

A Conceptual Study of Malassurance – The Emerging High Potential Insurance Distribution Channel


Affiliations
1 Department of Management Studies, Panimalar Engineering College, Chennai, India
2 Department of Management Studies, Velammal Engineering College, Chennai, India
     

   Subscribe/Renew Journal


The insurance sector in India is on a high growth trajectory and has been growing at an attractive pace in the post liberalization era. Though insurance penetration has increased from 1.4% in 1999 to 4.7% currently, it also points out the huge potential that is waiting to be tapped. The liberalization of the sector in the year 1999, opened up the flood gates of competition. The intense competition has led to paradigm changes in the industry in terms of product offerings, introduction of riders, emergence of new distribution channels etc., The industry for a long time had been relying on the agency channel for garnering business. However the need for remaining competitive, reaching out to customers in different demographic segments and the imperative of faster growth have led insurers to innovate with regard to distribution channels also. In this context, a new emerging channel is malassurance, which is the distribution of insurance through malls. With the organised retail sector expanding at a rapid pace, there has been a phenomenal increase in the construction of malls. The rising foot falls in malls has motivated Future Generali Life Insurance Co., to tap the potential of this emerging trend and distribute insurance through malls. This paper discusses the concept of malassurance, the performance and potential of malassurance, the current scenario and also the measures taken by the company to make it successful.

Keywords

Insurance, Customer Acquisition, Innnovative Distribution Channels, Malls, Mallassurance
Subscription Login to verify subscription
User
Notifications
Font Size


  • Freny Patel (2004), Insurers Take to Innovative Distribution Channels, Business Standard, p.9

  • Jawaharlal (2012) Are You Being Served, The IRDA Journal, Vol.X, No.1, p.18

  • James P.C, (2009), ‘Playing The Vital Role – Innovations in Distribution’, irda Journal, Vol.7, No.9, September, pp.18-20.

  • Jothi A. Lenin (2011), Role of insurance sector on economic development of India, Asian Journal of Research in Banking and Finance, Volume : 1, Issue : 3, pp.27-39

  • Kaninika Mishra (2010) Fundamentals of Life Insurance : Theory and Applications, Prentice Hall of India, India

  • Kamesh Goyal (2009) Defining Strategies for the Future : Innovations and Developments in Insurance, The IRDA Journal, Vol. VII, No.9, pp.14-17

  • Lucinda Trigo Gamarra (2007) Single- versus Multi-Channel Distribution Strategies in the German Life Insurance Market: A Cost and Profit Efficiency Analysis, Thuenen Series of Applied Economic Theory, University of Rockstock, Institute of Germany.

  • Mayers, David and Clifford W. Smith Jr., 1981. “Contractual Provisions, Organizational Structure, and Conflict Control in Insurance Markets.” Journal of Business, 54: 407-434.

  • Mahesh R and Venkatesh S (2011), An ethical introspection of selling life insurance in India, Asian Journal of Development Matters, Volume : 5, Issue : 3, pp.16-24

  • Pandey Anoop and Manocha Sanjay (2011), A Study of Life Insurance Products : Innovative Distribution Channels, The Journal of Indian Management and Strategy 8M, Vol.16, No.1, pp.47-54

  • Posey, Lisa Lipowski and Abdullah Yavas, 1995. “A Search Model of Marketing Systems in Property-Liability Insurance. “ Journal of Risk and Insurance, 62: 666-689.

  • Robert I. Mehr (2002), Channels of Distribution in Insurance, The Journal of Risk and Insurance, Vol.36, No.5, pp.583-595

  • Rajendran and Natarajan (2010), The Impact of LPG on Life Insurance Corporation of India, Vol.3, No.3, pp.41-52

  • Regan, Laureen, 1997. “Vertical Integration in the Property- Liability Insurance

  • Industry: A Transaction Cost Approach,” Journal of Risk and Insurance, 64: 41-62.

  • Sanjay Manocha, Subhaash Chand Chitkara (2012), A Study of Choice of Customers Towards Distrbution Channels of Life Insurance Industry, Research Journal of Commerce and Behavioural Sciences, Vol.1, No.7 pp.34-40

  • Sanjiv Shankaran (2007), Distribution Channels Driving the Insurance Business in India, LiveMint, p.7

  • Som Sekhar Bhattacharyya and Jansaidavali Shaik, (2010), ‘Strategic Alliances – Perspectives from Indian Life Insurance Industry’, International Journal of Indian Culture and Business Management, Vol.3, No.1, pp.98-120

  • Venkateswara Rao (2004), Alternative Distribution Channels in India, 6th Global Conference in Actuaries.

  • Vrishti Beniwal, ( 2008), ‘Insurers banking on innovative ways to increase market reach’, The Hindu Business Line, December 25, p.12

  • Yassir A. Pitalwalla, (2008), ‘Future Generali acquires 1 Lakh Customers in record

  • Time’, The Hindu Business Line, June 5, p.6

  • Yassir A. Pitalwalla, (2010), ‘Biyani’s Biggest Bazaar Bet’, Business World, June 21


Abstract Views: 1364

PDF Views: 0




  • A Conceptual Study of Malassurance – The Emerging High Potential Insurance Distribution Channel

Abstract Views: 1364  |  PDF Views: 0

Authors

C. D. Balaji
Department of Management Studies, Panimalar Engineering College, Chennai, India
S. Praveen Kumar
Department of Management Studies, Panimalar Engineering College, Chennai, India
R. Arasu
Department of Management Studies, Velammal Engineering College, Chennai, India
K. Suresh Kumar
Department of Management Studies, Panimalar Engineering College, Chennai, India

Abstract


The insurance sector in India is on a high growth trajectory and has been growing at an attractive pace in the post liberalization era. Though insurance penetration has increased from 1.4% in 1999 to 4.7% currently, it also points out the huge potential that is waiting to be tapped. The liberalization of the sector in the year 1999, opened up the flood gates of competition. The intense competition has led to paradigm changes in the industry in terms of product offerings, introduction of riders, emergence of new distribution channels etc., The industry for a long time had been relying on the agency channel for garnering business. However the need for remaining competitive, reaching out to customers in different demographic segments and the imperative of faster growth have led insurers to innovate with regard to distribution channels also. In this context, a new emerging channel is malassurance, which is the distribution of insurance through malls. With the organised retail sector expanding at a rapid pace, there has been a phenomenal increase in the construction of malls. The rising foot falls in malls has motivated Future Generali Life Insurance Co., to tap the potential of this emerging trend and distribute insurance through malls. This paper discusses the concept of malassurance, the performance and potential of malassurance, the current scenario and also the measures taken by the company to make it successful.

Keywords


Insurance, Customer Acquisition, Innnovative Distribution Channels, Malls, Mallassurance

References