A Study on the Product Development and Marketing Strategies of the Life Insurance Corporation of India

Abstract

Insurance Regulatory and Development Authority (I.R.D.A) came into operation on 19^th April, 1999 as an autonomous body in the life insurance sector in India. The main objective of IRDA is to regulate and register the life insurance companies operating in India. With the advent of competition, LIC of India was forced to change its business processes. In January 2000, it adopted three-sided business strategies for business, which involved reduction in premiums, higher returns and introduction of new products. International consultants Booze Allen & Hamilton were hired in 2000, to advise the LIC of India on the changes needed in the organization. In 2001, LIC of India tied up with two payment gateways- Billjunction.com and Timesofmoney.com to set up a facility for policyholders to pay premiums through the Internet. It also tied up with ICICI Bank, HDFC Bank, UTI Bank and Bank of Punjab to receive the policy premiums paid by customers. In this context, this paper analyses the recent trends in the product development and marketing strategies adopted by the LIC of India to attract more and more of customers to it is fold.