Life Insurance Marketing in India Product & Pricing Norms *

Abstract:

The case is the last of a three-part series about the changes sweeping the Indian insurance industry on the marketing front after the sector was opened up for private players in the year 2000. The case examines the pricing and product development strategies being adopted by the new, private players. A brief history of the Indian insurance industry before 2000 is provided, which highlights the lack of innovative product development strategies and consumer-friendly pricing practices in the Indian insurance industry. The case provides a detailed account of the kind of products that private players and the pricing strategies they adopted. The case also discusses the changes taking place within LIC and examines the implications of the changes in the pricing and product development strategies, taking place all over the insurance industry.

Issues: » Information and Broadcasting Ministry India

Questions for Discussion:

1. Discuss the evolution of the Indian insurance industry over the decades and critically comment on LIC's products and pricing practices. Why do you think the average Indian insurance customer has largely been a buyer of money back and endowment policies?
2. Analyze the different kinds of innovative products being offered by various insurance companies in India in the early 21st century, highlighting the essential differences as compared to LIC's product portfolio.
3. Critically comment on LIC's decision to shuffle its portfolio in response to the product/pricing moves of the new companies. Do you think that the private players would be able to make a significant difference to the market with their strategies in the long run? Give reasons to support your stand.

Key words:
Three-part series, changes sweeping, Indian insurance industry, marketing front, sector, private players, year 2000, pricing, product development, private players, Indian insurance industry, 2000, lack of innovative , product development strategies, consumer-friendly, pricing practices, Indian insurance industry

*Note : This case is a simplified version of a longer case study, and is intended for learners for whom English is a foreign language. The longer version of this case study (MKTG028) is available at: http://www.icmrindia.org/casestudies/catalogue/Marketing/MKTG028.htm