DYNAMIC CARE INSURANCE

Introduction
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.

History
Dynamic 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.

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

SWOT ANALYSIS IN DYNAMIC CARE INSURANCE

SWOT ANALYSIS OVERVIEW Dynamic care insurance STRENGTH Strength- 1. Strong operational network. 2. Domestics market position. 3. Strong financial positions.

Dynamic care insurance WEAKNESS

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

Dynamic care insurance OPPORTUNITIES

Opportunities- 1. Diversification in activities. 2. Direct marketing. 3. Growth prospect in emerging market.

Dynamic care insurance THREATS

Threats 1.competition in the insurance industry. 2. Effects of governmental policy and regulation. 3. Fluctuation in interest rate.

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 and various 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 future benefits 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.

2.CONTRIBUTION TO COUNTRYS G.D.P :

According to government sources, the insurance and banking services contribution to the countrys gross 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 in the 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 RBIs annual report for 2007-08, the insurance companies invested Rs.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 the biggest 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.

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 is no 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.

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.

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 insurer would be Rs 100 core to carry on life insurance business and Rs 200 core to exclusively do reinsurance business as per Section 6.

7 PS OF SERVICES MARKETING IN DYNAMIC CARE INSURANCE 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 like death, 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 provide protection 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. Insurance comes 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, it is 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 Insurance business 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 in selling 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 &

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

1. PRODUCT
A 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. A product 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, the Dynamic care insurance and the General Insurance Corporation (GIC) are the two leading companies offering insurance services to the users. Apart from offering Dynamic care insurance policies, they also offer underwriting and consulting services.

2. PRICING
With a view of influencing the target market or prospects the formulation of pricing strategy becomes significant. The pricing in insurance is in the form of premium 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 like South 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's willingness to invest in insurance. People would not be willing to put their funds to invest in insurance business if the interest rates provided by the banks or other financial instruments are much greater than the perceived returns from the insurance premiums.

3. PLACE
This component of the marketing mix is related to two important facets i) Managing the insurance personnel, and ii) Locating a branch. The management of agents and insurance personnel is found significant with the View 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 servicespromised and services offered is bridged over. In a majority of the service generating organizations, such a gap is found existent which has been instrumental in making worse the image problem. The transformation of potential policyholders to the actual policyholders is a difficult task that depends upon the professional excellence 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 country like 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 impersonal promotion strategies. In promoting insurance business, the agents and the rural career agents play an important role. Due attention should be given in selecting the promotional 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 to create 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 transformed into actual policyholders.

5. PEOPLE:
Understanding the customer better allows to design appropriate products. Being a service 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. Human resources 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 easy and convenient to the customers. Installment schemes should be streamlined to cater to the ever growing demands of the customers. IT & Data Warehousing will smoothen the process flow. IT will help in servicing large no. of customers efficiently and bring down overheads. Technology can either complement or supplement the channels of distribution cost effectively. It can also help to improve customer service levels. The use of data warehousing management and mining will help 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 banks have 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.

C. Customization: There are specialty counters at each branch to deal with customers 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 deposits counter and does not mingle elsewhere. This makes procedures not only simple but consume 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 not replace a distribution network though it will offer advantages like better customer service. Finance companies and banks can emerge as an attractive distribution channel for insurance in India. In Netherlands, financial services firms provide an entire range of products including bank accounts, motor, home and life insurance and 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 range of 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 business development goals, making plans-all in the context of changing environment.

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 loose network of alliance between insurers and banks will emerge, popularly known as bank assurance. Another innovative distribution channel that could be used are the non-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 information technologies and a team of personally committed employees. The development of human resources makes the ways for the formation of human capital.

Blueprint