• TASK OF PRIVATE INSURERS AND ECONOMIC DEVELOPMENT

  Filed under Economic
  Dec 28

  Entry of private insurance players has brought alternative distribution channels to suit customer’s needs.  Today’s interface between the customer and long-drawn meeting with the insurance agent no longer characterize the insurance company.  New companies are emphasizing on speed, convenience and ease of transactions.  At present insurance sector is expected to be sold just about anywhere.  This paper deals with Life Insurance of present future trend and issues. The insurance sector is set to see a sea change in the way business was traditionally done, with new innovative products, distribution network etc.  Changes in the external environment for the life insurance market will have to be suitably understood in order to avoid excessive selling & mis-selling out of over enthusiasm. Insurance sector is now experimenting with direct marketing plans to attract the attention of customers.  Internet and direct mailers are the easiest ways to reach the consumers.  The future of insurance depends upon the company’s ability to create more innovative, novel way of distribution & channel systems so as to reach and match the customer’s expectations more effectively.

  Although different sectors of the economy do not grow in isolation and contribute to each other’s development, yet the development experience in both developed and developing economies disclose that as the economy progresses, the service sector assumes a prime role and its share in the national income rises.

  The financial sector constitutes one of the foremost apparatus of the services sectors, and within that sector, insurance services assume vital significance.  The role of insurance services in contributing to the course of economic development has not been properly valued in economic text.  While a large number of studies and research material are available on the role played by other services such as banking, transport, communication, public administration, defence, etc. in accelerating the national income of an economy, there is a dearth of material on inter linkages between economic  development on the one hand and insurance services on the other.

  CONCLUSION

  The main objective of this paper is to make the participants familiar with the role of insurance in economic development and to expose them to the major issues concerning the role of insurance in developing countries in general and India in particular.  The paper also attempts to evaluate the insurance penetration achieved in the country as compared to world standards and traces further scope for this sector as a facilitator for economic and financial development of the country.

  Bookmark to:
  

  Related posts:

  1. Olympics not to Become Watershed of China’s Economic Development
  2. Strategic Planning For Economic Development
  3. Cyclic Character of Modern Economic Development
  4. How Islamic Union Will Affect the Economic Development
  5. Transitioning to an Investment Campaign Model Can Dramatically Boost Funding Economic Development Organizations
  Tagged as: Development, Economic, INSURERS, PRIVATE, TASK
  
  No Comments

Leave a Reply