Open Access Subscription Access
Open Access Subscription Access
Pricing in Indian Life Insurance Industry:An Assessment of Key Issues
The insurance sector in India has accomplished its full circle from being an open competitive market to nationalised market and reverse geared to a liberalised market again. This kind of developments in the Indian insurance sector reveals the 360 degree spin observed over a long period, almost of two centuries. This was done in order to improve the customer services and increase the coverage of the insurance industry. The new players have to formulate strong marketing strategy to compete with the giant of the market (LIC). Product, price, place, and promotional aspects would be their main goals, where pricing of their product would be huge problem for them. The scope of the present paper is restricted to discuss the problems of pricing of insurance products in life insurance arena of our insurance market. For this, initially, three factors have been drawn with the help of Exploratory Factor Analysis (EFA); afterwards to test the significance, one-way ANOVA and student t-test have been applied across demographics (age, gender, qualification, hierarchy, and type of organisation). Analysis reveals that insurance companies should consider customers and their needs while pricing the insurance products and the policy should be flexible. The pricing policy should be integrated part of company's policy.
Pricing Strategies, Indian Life Insurance, EFA, ANOVA, Hierarchy, Demographics.
- Bajpai, O. P. (1975). Life insurance finance in India. Vishwidyalya Parkashan, 6-8.
- Gupta, S. (1996). Insurance sector: Many sided growth. Productivity Promotion, 110-120.
- Gupta, V. (2004). Insurance industry: An Indian perspective. Insurance Chronicle, 36-41.
- Hasanbanu, S., & Nagajoythi, R. S. (2007). A study of insurance prespective in Uthamapalayamtaluk. Indian Journal of Marketing, 10-16.
- Hollyway, R., & Narayanan, S. (2003). A firm leap. Asia Insurance Post, 29-30.
- Israni, S. D. (1999). More products. better services but at a cost. Capital Market, 7, 65-66.
- Jawaharlal, U. (2003). Distribution: The key to insurance marketing. Insurance Chronicle, 23-25.
- Kulkarni, L. (2006). Life revalued. Asia Insurance Post, 39-45.
- Mehta, Sangeeta (1999). Insurance: Premium for a safe market. Business Standard, 53-55.
- Mehta, S. (2000). Bank’s foray into insurance: RBI’s dos and don’ts. Business Standard, 51-53.
- Mishra, K. C., & Mishra, S. (2000). Making of the IRDA in India. The Management Accountant, 262-264.
- Mishra, K. C. (2002). Economy begs for a shake of Indian insurance industry. Insurance Chronicle, 15-21.
- Mittal, K. C. (1997). A new era in insurance cover. Business World, 26-29.
- Mittal, K. C. (1998). Non-life insurance worldwide. The journal: The insurance institute of India, 14-33.
- Mukherjee, S. S. (2003). Future of insurance industry in India. The Insurance Times, 18-24.
- Nishanth, P. V., & Mitra, A. (2002). Structure of world insurance. Yojana, 10-12.
- Rangachary, N. (2002). Strategic positioning in a liberalizing market. Insurance Chronicle, 36-38.
- Rangarajan, C (1993). Insurance and risk management in a liberalized economy. RBI Bulletin. 1245-1248.
- Rao, C. S. (2004). Insurance industry: The heaping sector. Chartered Financial Analyst, 46-48.
- Rao, B. S. R. (1976). Functioning of the LIC-An appraisal. Institute for Financial Management and Research, 391.
- Thampy, A., & Sitharamu, S. (2002). Life insurance potential in India: An economic approach. The Journal of Business Perspective, 12-26.
Abstract Views: 152
PDF Views: 2