Page 43 - MARKETING & PUBLIC RELATIONS EBOOK IC88

 High Court judge, appointed by some insurers, to review claims which have been
repudiated on grounds of misrepresentation or fraud.
 Other organizations like hospitals (for health care and medical insurances) or garages
(for motor repairs) who facilitate the claims settlements.

(d) Bancassurance

The regulations in India allow individuals as well as firms and companies to become insurance agents.
Some of the companies, who become agents, may already have a large body of clients in their line of
business. Such clients could be ready prospects for insurance also. Similarly banks, which have large
client bases and are also in the business of wealth creation and protection, can link up with insurance
companies to mutual advantage.

The aim of Bancassurance is to obtain synergies of two similar businesses. Both insurance companies
and banks have large networks of outlets and large numbers of clients both individuals and corporate
bodies Almost all of them would need banking as well as insurance products. If they work together, the
reach could be greater and there could be economies of scale, leading to lesser marketing costs. The
customers would have the advantage of meeting their needs at one place. Either of them can leverage
the strength of the other in distribution and infrastructure (office, staff, communication linkages, etc).
There could be product integration and organizational integration. They could work as a joint venture, or
as separate units sharing facilities.

The success of Bancassurance abroad is not necessarily a pointer to the possibilities in India. The Indian
consumer is different from the western consumer, in his behaviour towards insurance as well as to
banking. Cash transactions are much more in India than in western countries. Even in the western
countries, the business done through Bancassurance does not exceed 20%. It is more in France than in
any other country. Personal selling by individual agents accounts for more than 75% of the life insurance
business. In India, private insurers have been able to take better advantage of the banks as agents.

(e) Direct Marketing

1. Insurers abroad have resorted to Direct Marketing wherein the provider of the service gets in
touch with the customer without the aid of an intermediary. The advantage is reduction of
costs. The media used for Direct Marketing are

 Direct mail - letters sent to consumers on the basis of addresses available from
sources like telephone directory, membership lists of clubs and professional associations, stock
exchange brokers or registrars to companies
 Telephone contacts, again on the basis of subscriber lists
 Television programmes, of relatively longer duration and content than the usual advertisements
of 15 to 30 seconds duration
 Advertisements and loose insertions in main line as well as professional and trade journals, with
slips to be returned to the insurer, showing interest in the product advertised
 Displays in conferences, seminars, for specialized products linked to the themes of the seminars.
 Direct contact from the insurer's salaried staff
 Stalls in exhibitions and even solo exhibitions in remote areas with large potential customers.

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