What challenges are faced by Insurance companies during this slowdown period ????

Earlier Insurance was sold by only individual agents, today lot of channles selling insurance, but the benefits are not reach to the customers.They are selling for the benefits of the agents/brokers/banks. During last year almost all the channales sold Ulip policies to the entire crowd, irresepctive of the age and earning potential by giveing miscalculations and mis information. some cases people not aware what policy they were got throug the agent.these misselling resulted badly in the current bad economy.  Intermidiatries are not able to face their customers. Evr insurance agent should sell the products depend upon the needs of customers.

Whether the insurer is old or new, private or public, expanding the market will present multitude of challenges & the main challenge lies in expanding into rural markets for the private sector companies. What you say guys ???

Our economy going slow so as insurance industry. this coming financial year will be full of many challenges like:

1. Re sizing of distribution network.

2. Due to no more exponential growth, havy pressure on cost.

3. Policy persistency will further add presure on revenue.

4. Innovation in product designing.

5. More proactive approach towards fund mgt. to provide good returns to policy holder.

6. Mis-sale

Its slowdown and job market is facing pressure. Its essential in this period to find quality manpower who not only able to absorb the current pressure due to crisis but also been able to get the knowledge and improve the productivity.

I guess there is very low level of consumer awareness regarding insurance, there are so much benefits that a consumer can have with insurance, but then whenever a Insurance guy approaches them they tend to say i already have insurance and i don't want another one, so in this regard there is very low level of consumer awareness which is a major challenge in the insurance sector.

In the Indian Context Insurance is still viewed as a tax instrument and not as a need. Customers are still not aware of the adequate insurance they need. Most of the customers have purchased insurance to save taxes and not for the reason that life is a pure risk which needs to be covered.  During a slow down sales staff should be given adequate support , sales training regarding various types of insurance products which are available in the market should be imparted at regular intervals espically about competitor products.  Training to handle customer queries and mock sessions should be conducted regularly. Close contact with front line sale staff should be maintained.  In FMCG like Coke and Pepsi you will find that even the CEO and top Executives make calls with Sales staff. Invariable Top Executives are not aware of the problems which are being faced by the Front Line Sales Executives.