TITLE - “STUDY OF AGENT’S ATTITUDE TOWARDS THE MARKETING OF PRODUCTS OF LIC OF INDIA”

TITLE - “STUDY OF AGENT’S ATTITUDE TOWARDS THE MARKETING OF PRODUCTS OF LIC OF INDIA”

Chapter 01

1.1 Introduction

The role of agents and intermediaries in insurance marketing whether life or general is of great significance, an agent is a primary source for procurement of insurance business and as such his role is the corner stone for building a solid edifice of any life insurance organization. Thus, agents play a vital role in insurance marketing. Due to poor insurance awareness on the part of the people, the insurance industry works as a sellers’ market instead of being a buyers’ market. Free interaction between the buyers and sellers in the insurance industry is not a common occurrence. The development officers who are vital for the internal sale force of the life insurance companies have a heavy schedule in the day to day operations for achieving the target fixed by the company, based on which their increments and perquisites are worked out .

Naturally, they will evince a keen interest in canvassing business of big nature to collect large amounts of premium. They would not care for the potential insurance which covers premiums of small amount. It is not being presumed that they neglect small business, but the constraint of achieving the target marks them in millions of rupees. Another undeniable fact to be noted in this regard is that the development of manpower is not commensurate enough to make the insurance product reach the remotest village of the great Indian subcontinent. Therefore, there is an obvious need for building up a network of external sales force noted as ‘agents’ to act as intermediaries between the insurance company and the client.

The efficacy of the company in utilizing the agents depends upon the interest shown by it in engaging the agents to procure insurance business of varying nature; and motivation of the development officer who keeps a direct contact with the agents to boost their morale to bring flourishing business. Sales personnel by providing enough information to the customers, enables them in forming their assessment about the products or services, which ultimately becomes customer value.

Customer satisfaction and acumen orientation significantly influence the future business opportunities and if the salespersons are able to foster their relationships with the clients, clients will be more satisfied and more willing to trust, and thus secure the long term demand for the services (Tam and Wong, 2001).

According to Crosby et al. (1990) the lack of concreteness of many services of which insurance is one, increases the value of the persons responsible for delivering them. Putting the customer first, and, exhibiting trust and integrity have been found essential in selling insurance (Slattery, 1989). In marketing life insurance, insurance agents are often considered to be marketing complex services (Nik Kamariah, 1995). Insurance sales agents fully understand the customers’ needs and requirements as well as build a trusting relationship between themselves and their clients to promote long-term mutually beneficial relationship (Crosby et al., 1990). The agent has to deal with the dilemma between making sales (self interest) and providing service (customer benefit) (Oakes, 1990). Customers are, therefore, likely to place a high value on their agent’s integrity and advice (Zeithaml et al., 1993).

To read more…….

Contact us -

Writekraft Research & Publications LLP

www.writekraft.com

OR Call us @ +91- 7753818181, 9838033084

Or email us: writekraftuk@gmail.com