Dynamic Care Insurance (Final)

8/12/2019 Dynamic Care Insurance (Final)

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DYN MIC C RE INSUR NCEIntroduction

DYNAMIC CARE is a private limited company. Dynamic care offers individuals

plans, pension plans, special plans, & group scheme. Dynamic care offers child

plan & health insurance plans.

HistoryDynamic care was started in 1993 after the liberalization policy came into effect

The company was started as insuring the nearby school & colleges. The company

intitially employed only 100 people comprising of 15 agents. We grew at 50%

increase in next 3 years (1996). The next half decade proved to be the most

effective in the insurance sector at quarterly growth of 30%. Now, we have a

strong family of 1100 people around half a million people insured.

Vision

To be the most admired insurance company by securing the financial future of our

customers.

Mission

To strive for every customers vaniety and grow within a improvise our valuable

customers.


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Core values

Our core values are based on our culture of respect for our values, our goals, our

people, our partners and our customers.

Our culture of protection

P- PRIDE

R- RELATIONSHIP

O- OPPORTUNITY

T- TALK

E- ELEGANT

C- CARE

T - TOGETHER

I- IDEALISTIC

O- OPTIMISTIC

N - NASCENT


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SWOT ANALYSIS IN DYNAMIC CARE INSURANCE

SWOT ANALYSIS OVERVIEW

Dynamic care insuranceSTRENGTH

Strength- 1. Strong operational network.2. Domestics market position.

3. Strong financial positions.

Dynamic care insuranceWEAKNESS

Weakness- 1.increase in expense ratio.2. Change in government policy.

Dynamic care insuranceOPPORTUNITIES

Opportunities- 1. Diversification in activities.2. Direct marketing.

3. Growth prospect in emerging market.

Dynamic care insuranceTHREATS

Threats1.competition in the insurance industry.2. Effects of governmental policy and regulation.

3. Fluctuation in interest rate.


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PEST ANALYSIS OF DYNAMIC CARE INSURANCE

A.POLITICAL FACTORS:

1. INCREASED SERVICE TAX ON PREMIUM:The imposition of service tax on the services provided by the insurers has

been increased significantly over past few years by the government.

2. ENDING OF GOVERNMENT MONOPOLY:A great revolution in the insurance sector came in the year 1999 when

IRDA passed the bill, lifting all entry restrictions for private players and allowing

foreign players to enter the market with some limits on direct foreign ownership.

3. INCREASE IN FDI LIMIT:The hike in the insurance foreign direct investment (FDI) limit to 49 per

cent from 26 per cent has proved to be very beneficial for the insurances industry

in India.

4. FAVOURABLE REGULATIONS FOR RURAL INSURANCE:To encourage insurance sector to increase its spread in rural

India, government has made regulations more favorable for rural people by

decreasing the amount of premiums, introducing new group insurance plans andvarious other special plans for farmers.

B. ECONOMIC FACTORS:

1. INCREASE IN GROSS DOMESTIC SAVINGS:The gross domestic savings of people in India have increased significantly, due to

which they are moving towards new ways of investing money for the futurebenefits including various insurance plans. As compared to previous year

i.e.2007,the insurance industry thus expected to grow by about 40% during this

fiscal year, i.e.2008.


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2.CONTRIBUTION TO COUNTRYS G.D.P:According to government sources, the insurance and banking services

contribution to the countrysgross domestic product is 7% out of which the gross

premium collection by various insurance companies forms a significant part.

3. ROLE IN GOVT. SECURITIES MARKET :Insurance companies are fest emerging as one of the most prominent players in the

govt. securities market. The share of insurance companies in overall investment inthe G-sec market has more than doubled to 23% during 2007-08 from 9%during

the previous fiscal year.

4. BIGGEST DOMESTIC PLAYER IN EQUITY MARKETS :According to RBIsannual report for 2007-08, the insurance companies investedRs.35880 crore in the G-sec market, which is over 173.06% higher than

theRs.13880 core they invested in 2006-07. Thus insurers have emerged as thebiggest domestic institutional players in the equity markets.

C. SOCIAL FACTORS:

1. LOW INSURANCE COVERAGE:

In India insurance is considered as which is pushed upon the customers to buy.

People are unwilling to buy insurance due to lack of awareness.

2. INCREASE IN LIFE SPAN AND RISE IN ELDERLY

POPULATION:

In India lifespan has increased over past few years due to which the elderly

population in India is rising day by day. To live a happy and independent life, more

no. of educated peoples is moving towards investing in insurance to ensure a

respectful and independent life even in old age.


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3. UNCERTAINITY ABOUT LIFE:

Due to increasing no. of events of terrorist attacks in various parts of the country,

people have started viewing life as more uncertain. It has developed a kind of fear

factor in the minds of people leaving them more worried about their family and

kids. Due to this reason they are moving more and more towards buying insurance

policies in order to secure their familys future.

4. INDIAN PERCEPTION:

In India earlier people used to view insurance as a tax saving device or as a method

of investment. But, nowadays a great change in the perception has come. People

have started realizing the importance of getting insured. Now more no. of people is

viewing it as a transfer of risk for a good future.

5. CHANGE IN FAMILY SYSTEM:

Since past, joint family system was the most prevalent in all the stratus of Indian

society. At that time, in case of a mans death, there were other people in the

family to take care of his wife and kids. But, with the passage of time, a big change

in our culture has come. More no. of people is moving towards nuclear family

system. In todays scenario there isno one to help a widow and her kids because

everyone is busy with his/her family. In such a situation more no. of people are

opting for insurance to secure their spouse and childrens future.

6. INCREASE IN LIFE STYLE DISEASES:

Due to modernization, the life has become very fast. Many changes have taken

place in the life style of people, due to which a large no. of new life style diseases

have made their place in our country. Thus, more no. of people is opting for health

insurance etc to lead a better and more secured life.


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D. TECHNOLOGICAL FACTORS:

1. AUTOMATION OF PROCESSES:

Nowadays, with advancement in technology the whole process of insurance has

become automated. Earlier it used to take 15days to45days for the issuance of

policy documents. But, nowadays the whole process gets completed within 5 to 7

days.

2. INTERNET DRIVEN INFORMATION ERA:

With an increase in internet usage and its increasing spread, it has become easier

for people to get informed about everything at their home only. Now they dont

have to waste time in gathering information before taking any financial step. Every

information is now-a-days is available on the net.

3. BUSINESS PROCESS MONITORING:

It has become easier fo0r people to track every event in a business process. It has

resulted in more transparency in every aspect of business processing.

4. E-BANKING FACILITY:

More no. of people in urban sector are moving towards e- banking and credit card

facilities etc, which has made payment of premium much easier, convenient and

hassle free for customer.

E. LEGAL FACTORS:

1. REGULATORY BODIES:

IRDA (Insurance Regulatory Development Authority) keeps on changing policies

related to insurance which makes difficult for the companies to adopt quickly.


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2. RENEWAL OF REGISTRATION:

An insurer, who has been granted a certificate of registration, should have the

registration renewed annually with each year ending on March 31 after the

commencement of the IRDA Act.

3. REQUIREMENTS AS TO CAPITAL:

The minimum paid up equity capital, excluding required deposits with the RBI and

any preliminary expenses in the formation of the country, requirement of an insurerwould be Rs 100 core to carry on life insurance business and Rs 200 core to

exclusively do reinsurance business as per Section 6.


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7 PS OF SERVICES MARKETING IN DYNAMIC CAREINSURANCE

INTRODUCTION

Wherever there is uncertainty there is risk. We do not have any control over

uncertainties which involves financial losses. The risks may be certain events likedeath, pension, retirement or uncertain events like theft, fire, accident, etc.

Insurance is a financial service for collecting the savings of the public and

providing them with risk coverage. The main function of Insurance is to provideprotection against the possible chances of generating losses. It eliminates worries

and miseries of losses by destruction of property and death. It also provides capital

to the society as the funds accumulated are invested in productive heads. Insurancecomes under the service sector and while marketing this service, due care is to be

taken in quality product and customer satisfaction. While marketing the services, itis also pertinent that they think about the innovative promotional measures. It is

not sufficient that you perform well but it is also important that you let others know

about the quality of your positive contributions.

Insurance marketing

The term Insurance Marketing refers to the marketing of Insurance services with

the aim to create customer and generate profit through customer satisfaction. The

Insurance Marketing focuses on the formulation of an ideal mix for Insurancebusiness so that the Insurance organization survives and thrives in the right

perspective.

Marketing --Mix For Insurance Companies

The to best meet the needs of its targeted market. The Insurance business deals inselling services and therefore due weight-age in the formation of marketing mix for

the Insurance business is needed. The marketing mix includes sub-mixes of the 7

P's of marketing i.e. the product, its price, place, promotion, people, process &


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physical attraction. The above mentioned 7 P's can be used for marketing ofInsurance products in the following manner:

1. PRODUCTA product means what we produce. If we produce goods, it means tangible product

and when we produce or generate services, it means intangible service product. Aproduct is both what a seller has to sell and a buyer has to buy. Thus, an Insurance

company sells services and therefore services are their product. In India, theDynamic care insurance and the General Insurance Corporation (GIC) are the two

leading companies offering insurance services to the users. Apart from offeringDynamic care insurance policies, they also offer underwriting and consulting

services.

2. PRICINGWith a view of influencing the target market or prospects the formulation of

pricing strategy becomes significant. The pricing in insurance is in the form ofpremium rates. The three main factors used for determining the premium rates

under a life insurance plan are mortality, expense and interest. The premium rates

are revised if there are any significant changes in any of these factors.

Mortality:(deaths in a particular area) When deciding upon the pricing strategy

the average rate of mortality is one of the main considerations. In a country likeSouth Africa the threat to life is very important as it is played by host of diseases.

Expenses:The cost of processing, commission to agents, reinsurance companies

as well as registration are all incorporated into the cost of installments and

premium sum and forms the integral part of the pricing strategy.

Interest:The rate of interest is one of the major factors which determines people'swillingness to invest in insurance. People would not be willing to put their funds toinvest in insurance business if the interest rates provided by the banks or other

financial instruments are much greater than the perceived returns from theinsurance premiums.


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3. PLACEThis component of the marketing mix is related to two important facetsi) Managing the insurance personnel, and

ii) Locating a branch.

The management of agents and insurance personnel is found significant with theView point of maintaining the norms for offering the services. This is also to

process the services to the end user in such a way that a gap between the services-

promised and services offered is bridged over. In a majority of the servicegenerating organizations, such a gap is found existent which has been instrumentalin making worse the image problem. The transformation of potential policyholders

to the actual policyholders is a difficult task that depends upon the professionalexcellence of the personnel. The agents and the rural career agents acting as a link,

lack professionalism.

4. PROMOTION:The insurance services depend on effective promotional measures. In a countrylike India, the rate of illiteracy is very high and the rural economy has dominance

in the national economy. It is essential to have both personal and impersonalpromotion strategies. In promoting insurance business, the agents and the rural

career agents play an important role. Due attention should be given in selecting thepromotional tools for agents and rural career agents and even for the branch

managers and front line staff. They also have to be given proper training in order tocreate impulse buying. Advertising and Publicity, organization of conferences and

seminars, incentive to policyholders are impersonal communication. Arranging

Kittens, exhibitions, participation in fairs and festivals, rural wall paintings and

publicity drive through the mobile publicity van units would be effective in

creating the impulse buying and the rural prospects would be easily transformedinto actual policyholders.


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5. PEOPLE:Understanding the customer better allows to design appropriate products. Being aservice industry which involves a high level of people interaction, it is very

important to use this resource efficiently in order to satisfy customers. Training,development and strong relationships with intermediaries are the key areas to be

kept under consideration. Training the employees, use of IT for efficiency, both at

the staff and agent level, is one of the important areas to look into. Humanresources can be developed through education, training and by psychological tests.

Even incentives can inject efficiency and can motivate people for productive and

qualitative work.

6. PROCESS:The process should be customer friendly in insurance industry. The speed and

accuracy of payment is of great importance. The processing method should be easyand convenient to the customers. Installment schemes should be streamlined to

cater to the ever growing demands of the customers. IT & Data Warehousing willsmoothen the process flow. IT will help in servicing large no. of customers

efficiently and bring down overheads. Technology can either complement orsupplement the channels of distribution cost effectively. It can also help to improve

customer service levels. The use of data warehousing management and mining willhelp to find out the profitability and potential of various customers product

segments.

A. Flow of activities: all the major activities of banks follow RBI guidelines.There has to be adherence to certain rules and principles in the banking operations.

The activities have been segregated into various departments accordingly.

B. Standardization: banks have got standardized procedures got typical

transactions. In fact not only all the branches of a single-bank, but all the bankshave some standardization in them. This is because of the rules they are subject to.Besides this, each of the banks has its standard forms, documentations etc.

Standardization saves a lot of time behind individual transaction.


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C. Customization: There are specialty counters at each branch to deal withcustomers of a particular scheme. Besides this the customers can select their

deposit period among the available alternatives.

D. Number of stores:numbers of steps are usually specified and a specific pattern

is followed to minimize time taken.

E. Simplicity:in banks various functions are segregated. Separate counters exist

with clear indication. Thus a customer wanting to deposit money goes to depositscounter and does not mingle elsewhere. This makes procedures not only simple butconsume less time. Besides instruction boards in national boards in national and

regional language help the customers further.

7. PHYSICAL Evidence:Distribution is a key determinant of success for all insurance companies. Today,the nationalized insurers have a large reach and presence in India. Building a

distribution network is very expensive and time consuming. Technology will notreplace a distribution network though it will offer advantages like better customer

service. Finance companies and banks can emerge as an attractive distributionchannel for insurance in India. In Netherlands, financial services firms provide an

entire range of products including bank accounts, motor, home and life insuranceand pensions. In France, half of the life insurance sales are made through banks. In

India also, banks hope to maximize expensive existing networks by selling a rangeof products. The physical evidences include signage, reports, punch lines, other

tangibles, employees dress code etc.

A. Tangibles:banks give pens, writing pads to the internal customers. Even the

passbooks, cheque books, etc reduce the inherent intangibility of services.

B. Punch lines:punch lines or the corporate statement depict the philosophy and

attitude of the bank. Banks have influential punch lines to attract the customers.

Banking marketing consists of identifying the most profitable markets now and in

future, assessing the present and future needs of customers, setting businessdevelopment goals, making plans-all in the context of changing environment.


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Conclusion

In India, banks hope to maximize expensive existing networks by selling a range of

products. It is anticipated that rather than formal ownership arrangements, a loosenetwork of alliance between insurers and banks will emerge, popularly known as

bank assurance. Another innovative distribution channel that could be used are thenon-financial organisations. We cant deny the fact that if foreign banks are

performing fantastically, it is not only due to the sophisticated information

technologies they use but the result of a fair synchronization of new informationtechnologies and a team of personally committed employees. The development ofhuman resources makes the ways for the formation of human capital.


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Blueprint

Dynamic Care Insurance (Final)

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