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Some important Service industries
in India
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Hospitality Industry
Health Industry
Education & Entertainment services
Insurance Industry
Telecom IndustryBPO /ITES services
Financial services
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Tourism & Hospitality Industryin India
A service sector growth industry
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The Service Culture
The service culture focuses on servingand satisfying the customer
Empowers employees to solve customerproblems
Majority of many countries GDP isservice based
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India: An emerging superpower
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Indias GDP will exceed
Italys in 2020,
Frances in 2020
Germanys in 2025 and
Japans in 2035
Goldman Sachs Projections (US 2003 $ Billion)
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Why these brands areLeaders?
Marriott
Disney
British Airways
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Ritz-Carlton Leadership Center offers innovativeways to:
Increase employee retention and loyalty
Increase customer retention and loyalty
Achieve service excellence in yourindustry
Effectively drive your organizations
culture, philosophy, vision, and mission
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The Invisible Organizationand System
A service organization management must
decide what they want the guest to seeand what they want to keep out of the
guests vision
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Contact Personnel
Contact personnel have a direct impact on the satisfaction of customers
Characteristic of inseparability of customer and employee during service
delivery system
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Tourism growth in India
According to World Tourism Organizationestimates, India will lead in South Asia with
8.9 million arrivals by 2020
India is poised to emerge as the 2nd fastest growing (8.8%) tourism economy in the
world over 2005-14 according to the WorldTravel & Tourism
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Foreign earnings
There has been a growth of more than 13%in foreign tourist arrivals at 3.9 million during
2005, up from 3.4 million foreign tourists whovisited India during previous year.
Foreign exchange earnings from foreign
tourists were up by more than 20% at $5,730.86 million in 2005, up from $4,769million earned the previous year.
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Indian air travel to grow 20% each year for the next 5years
Government and private operators will invest $20 billionin aircraft and infrastructure over the next five years
Air India will be adding 68 aircraft to its present fleet,Indian Airlines 43 and private airlines around 275
By 2010, Indian airports will be handling between 90and 100 million passengers (59 million domestic & 35million international passengers)
Air travel and India
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Tourist destinations
North East States such as Sikkim, Assam andNagaland have emerged as major players. The majorfocus in 2005 was to develop tourism infrastructure inthe region.
New States Uttaranchal attracted 14 million touristsand in 2004 witnessed a growth of 40% in 2005. Majorfocus on marketing to attract high spending tourists,initiatives to create world-class infrastructure.
Beautiful South Aggressive marketing has helpedachieve over 25% growth in tourism in southernstates. Andhra Pradesh and Karnataka are witnessingan upswing in foreign tourists.
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Forms of tourism
Cultural tourism & Round Trips covering thepopular circuits comprising of the Golden Triangle,Rajasthan, N. India & in South the well knowntemples, backwaters & beaches.
Mass tourism Goa is a tourism based economyand a leader in this sector, is all set to promotemass tourism. Goa also won the 2nd most popularwinter destination in UK.
Commonwealth Games 2010 the government is investing in infrastructure, to further developtourism in and around Delhi.
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An all-year round destination.
Throughout the world,India is perceived as aOctober to April winterdestination.
Marketing initiativesby both theGovernment and theprivate sector is nowsuccessfullyaddressing & changingthis perception.
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New Tourism Products
Monsoon magic - focus on months from April toOctober
Rural & village tourism - the tourism ministry is
laying special emphasis on infrastructure development in various rural destinations in India.
Medical tourism - the Indian Healthcare Deliverymarket is estimated at US$ 18.7 billion. The industry is
growing at about 13 per cent annually.
Luxury tourism e.g. Palace on Wheels, Palaces
Adventure tourism with emphasis on eco-tourism
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Ecotourism in Kerala
There has been a majorgrowth in ecotourismthat is sustainable and
environmentally non-invasive.
Resorts are designedusing local labour forcesand local materials.
Energy sources aresustainable: cow dungand wood
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The market for Ecotourism
Ecotourism tendsto be geared to a
young andwealthy market.
Activities aremarketed and lifestyle emphasised.
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Medical tourism in India
Medical care in the USA and private health care in UK is veryexpensive. India has well-trained doctors who will work for alower fee than they could expect abroad.
Medical tourism offers people the option of kneereplacements, hip replacements, heart care, cosmetic &dental surgery in India.
Hundreds of people have treatment abroad, saving them agreat deal of money in treatment costs.
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Managing Employees as Part of the Product
Employees are critical
Training and motivating employees toprovide good customer service isinternal marketing
A point-of-encounter is any point at which the employee encounters the
customer
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Common Virtues RegardingService Quality
1. Customer obsessed
2. History of top management commitment toquality
3.H
igh service quality standards set
4. Monitor performance closely
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Stress Advantages ofNonownership
The customer does not have ownershipof service product
Stress as a benefit
Rather than own and staff corporate
lodging, negotiate a rate with a hotel andpay for only what you use
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Managing Employees asPart of the Product
Employees are critical
Training and motivating employees to providegood customer service is internal marketing
A point-of-encounter is any point at whichthe employee encounters the customer
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Internal and Interactive
MarketingInternal marketing means the servicefirm must effectively train and
motivate customer contact employees
Interactive marketing means theperceived service quality dependsheavily upon the buyer-sellerinteraction during the serviceencounter
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Bottom line
Managers do not control thequality of the product when the
product is a service . . . .The quality of the service is in aprecarious state
it is in the hands of the serviceworkers who produce and deliverit.
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Marketing Education: What is it?
What Does It Do?
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Mission of MarketingEducation
The Mission of Marketing Education is toenable students to understand and apply
marketing, management, andentrepreneurial principles; to make rationaleconomic decisions; and to exhibit socialresponsibility in a global economy.
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The Marketing EducationCurriculum should:
Encourage students to think critically.
Stress the integration of and articulation
with academics. Be sequenced so that broad-based
understandings and skills provide afoundation to support advanced study of marketing.
Stress the importance of interpersonalskills in diverse societies.
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Enable students to acquire broad
understandings of and skills in marketing sothey can transfer their skills and knowledgebetween and among industries.
Enable students to understand and use
technology to perform marketing activities. Foster a realistic understanding of work.
Foster an understanding and appreciation of business ethics.
Utilize a variety of types of interactions withthe business community.
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Marketing EducationStandards
Marketing Education integrates academicconcepts and technology applicationsthroughout the curriculum Academic Concepts: The study of marketing
incorporates many academic understandingsincluding math, reading, writing, speaking,sociology, psychology, geography.
Technology Applications: The successfulimplementation of marketing requires the useof technology.
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Professional Development
Analyze employer expectations in thebusiness environment.
Identify employment opportunities inmarketing and business.
Utilize resources that can contribute toprofessional development.
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Marketing Education CurriculumPlanning Guide
The complete list of performanceindicators for the Foundations and the
Functions can be found in the national Marketing Education CurriculumPlanning Guide.
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INDIA IN THE NEW KNOWLEDGE ECONOMY
The Changing Scenario
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INDIA IN THE N EW K NO WLE DG E EC ONOMY
Transition from BP O to KP O Destination
Growth of Services sector
Contribution to India¶s GDP
8 + %
51 + %
Knowledge Process Ou tsou rcing - To grow 46% to $ 17 Billion by 2010
PRODUCT DEVELOPMENT REQUIRES ONE ± FOURTH THE INVESTMENT IN INDIA
INDIA IN THE NEW KNOWLEDGE ECONOMY
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INDIA IN THE NEW KNOWLEDGE ECONOMY
Healthcare
Pharma & Biotechnology
Information & CommunicationTechnology (ICT)
Indian Healthcare : The Changing Scenario
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Indian Healthcare : The Changing Scenario
Current Healthcare Landscape
Indian Healthcare : The Changing Scenario
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Indian Healthcare : The Changing Scenario
INDIA SPENDS US $ 22.7 BILLION ON HEALTHCARE
3.7 19
22.7
5.2% ofGDP
TotalHealthc
are
Market
Pharmamarket
*
Healthcare
delivery
market
Indian Healthcare : The Changing Scenario
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Indian Healthcare : The Changing Scenario
THE HEALTHCARE DELIVER Y SECTOR PLAYS ANIMPORTANT ROLE IN THE ECONOMY TODAY
Sector Direct employment Revenues/GDP
Million, 2000-2001 Per cent, 2000-2001
4.0
5.3
1.0
1.2
1.6
0.8
1.7
0.4
5.2
4.8
3.5
3.0
1.8
1.4
0.9
1.7
Healthcare
Education
Retail banking
Power
Railways
Telecom
Hotels, restaurants
IT
Healthcare is the
largest serviceindustry in termsof revenues and
the secondlargest after education in
terms of employment
By 2012, the sector could account for 7 to 8 per cent of GDP and provide
direct and indirect employment of 9 million
Indian Healthcare : The Changing Scenario
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Indian Healthcare : The Changing Scenario
IN TERMS OF DELIVER Y, PRIVATE PROVIDERS CAPTURE 63%0F THE US $ 19 BILLION SPEND
6337
Government and publicemployers*
Healthcare provision, 2002
Per cent of total spending
Private providers(individual, charitableand for-profit)
100% = US $ 19 billion
* Including government spend (20%), public employers¶ spend (11%) and out-of-pocket spend at government providers (6%)
Source: McKinsey analysis
Indian Healthcare : The Changing Scenario
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Indian Healthcare : The Changing Scenario
INDIA: AN EMERGING HEALTHCARE HUB
INDIAN HEALTHCARE CAPABILITY
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Over 60,000 cardiac surgeriesdone per year with out comes atpar with international standards
Multi organ transplants like Renal,Liver, Heart, Bone MarrowTransplants, are successfullyperformed at one tenth the cost.
Patients from over
55countriestreated at Indian Hospitals.
INDIAN HEALTHCARE CAPABILITYFACT#1: Proven Indian healthcare system
INDIA HAS THE OPPOURTUNITY TO PROVIDE THE BEST OF
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Ayurveda recognized as anofficial healthcare system inHungary.
Doctors in the west areincreasingly prescribing Indian
Systems of Medicine
More than 70% of theAmerican population prefer anatural approach to health
Americans are said to
spend around $25bn onnon-traditional medicaltherapies and products *
Ayurveda
Yoga
Siddha
India¶s Gift to the World
INDIA HAS THE OPPOURTUNITY TO PROVIDE THE BEST OFTHE WEST & EASTERN HEALTCARE SYSTEMS
Indian Systems Of Medicine ³ Staging a Comeback´
HEALTHCARE THE SUNRISE INDUSTRY
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Physicians, Nurses, Medical Technicians and Other ScientificOccupations will Become Growth Industries to Rival the IT Sector
within the Next Decade
- India Vision 2020 Report
HEALTHCARE.THE SUNRISE INDUSTRY
Indian Healthcare : The Changing Scenario
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HUGE GROWTH POTENTIAL ± TO GROW BETWEENUS $ 43 ± US $ 60 BILLION IN 2012
* With 6% GDP real growth per year
US $ IN BILLION at 2000-2001 prices
2001
Private
spending
Government
spending
ESTIMATE
2012
Scenario 1:Baselineincrease in
private spend
2012
Scenario 2:Baselinewith
insurance inmiddle class
2012
Scenario 3:Baseline withinsurance and
highgovernment
spending
19
43
51.0
60.0
3.76
15.24
8.0
8.0
17.0
35.0
43.043.0
KeyAssumption 1% GDP
GovernmentSpending 1% GDP 2% GDP
Indian Healthcare : The Changing Scenario
Indian Healthcare : The Changing Scenario
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INDIA OFFERS HUGE POTENTIAL FOR INVESTMENTS INHEALTHCARE OVER THE NEXT 10 YEARS
Investment requirements in India (Estimates)
US $ in Billion Next 10 years
Healthcare
Power**
Telecom**
Roads**
22-31
24-33
40-51
95-126
* Estimates based on analysis detailed in Chapter 3 of this report
** Estimates computed by scaling 2002-06 estimates from Rakesh Mohan committee report by a factor of 1.5-2.0
Investment needsof the healthcare
sector arecomparable to
other infrastructuresectors
Indian Healthcare : The Changing Scenario
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India¶s Growth Sectors -
Pharmaceuticals & Biotech
INDIA IN THE NEW KNOWLEDGE ECONOMY
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The Indian Pharmaceutical Industry has practically achieved
Self sufficiency
&
Global recognition
as a
Low cost producer
of High-quality bulk drugs & formulations
KEY ACHIEVEMENTS
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KEY ACHIEVEMENTS
India has the 2nd highestnumber of qualified doctors
in the world. Of every sixmedical doctors in the US,
one is Indian
700,000 science and
engineering graduates &1500 PhDs qualify annually.Over 15,000 scientists
Investigational New Drugstage costs about $100 to
150 million in US, butcosts only around $10 to
15 million in India
Indian companies are offeringcustom synthesis services at
30-50% cost savings comparedto global costs
While clinical trials cost
approximately $300 to350 million in US, theycost only about $25
million in India
India¶s huge populationand the prevalence of a
wide spectrum of diseaseconditions offer a wide
patient-resource for clinicaltrials
CHANGING FACE OF INDIAN PHARMA
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CHANGING FACE OF INDIAN PHARMA
Players thinkinglocal
Players thinkingglobal
Top 5 Companies Sales & ExportR
evenues
Source: Company reports
Rank Company Sales ($ mn) Exports ($ mn) Exports %
1 Ranbaxy 969 736 76%
2 Cipla 400 163 41%3 Dr .Reddy's Lab 336 212 63%
4 Aurobindo Pharma 264 128 48%5 Lupin 210 92 44%
Pharmaceutical exportsincreased at a CAGR of 23%
during FY1995-FY2002
Indian pharma companies filed thelargest number of Drug Master Files(DMFs) for APIs and 23% of ANDAswith the USFDA during 2003
Ranbaxy acquired RPG Aventis,France; Wockhardt acquired CP Pharmaceuticals, UK; Zydus Cadilaacquired Alpharma, France
Export revenues now contributeover half the total revenues for
the Indian pharma majors
CHANGING FACE OF INDIAN PHARMA
CHANGING FACE OF INDIAN PHARMA
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CHANGING FACE OF INDIAN PHARMA
MNC-DomesticCompetition
MNC-DomesticCollaboration
New Drug Research
Glaxo SmithKline'srecent R&D alliance withRanbaxy Laboratories
Clinical Trials
Novartis, Astra Zeneca andEli Lilly making India a
global hub for clinical trials
Co-marketing
Glaxo-Cipla,Wockhardt-Bayer,
Ranbaxy-Knoll tie-ups
In-licensing
Ranbaxy licensingagreement with KSB, UKfor marketing TransMID
Pharma - IT
Novartis processes drugsafety data and is designing
clinical development software
Local research
Astra Zeneca¶s $40 millionR&D facility in Bangalore
for TB drug discovery
COLLABORATION
CHANGING FACE OF INDIAN PHARMA
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BIOTECHNOLOGY
INDIA IN THE NEW KNOWLEDGE ECONOMY
Market A Consistent Uptrend
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Market - A Consistent Uptrend
2002-03
2010
25% growth in investment
70% growth in employment
74% growth in R&Dmanpower
10% of global industry
1 million skilled jobs
USD 5 billion annual
revenues
SOURCE FROM INDIA
GOING GLOBAL IN BIOTECH
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S
Indias first geneticallyengineered vaccine costsless than half the price of
competing vaccines
Bio Agri -
India (2nd
largest producer of food) offerssignificant opportunities
to source products
Biogenerics -$25 billionbiological
products goingoff patent in2004. Indiancompaniesstrong in
biogenerics
Biocon was the first enzyme company globallyto receive ISO certification
in 1993
India: largest producer of Measles &
DTP vaccines. Vaccine exports toover 130 countries
Clinton Foundationsourcing HIV treatment from four firms - threeof which are from India
Shantha Biotech-
SHANVAC-B meets40% of the global
demand of HepatitisB vaccine.
The India Advantage
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The India Advantage
Trained manpowerand knowledge base
Rich biodiversity Extensive clinical trialsopportunities
Excellent networkof research laboratories
Well-developedbase industries
INDIA IN THE NEW KNOWLEDGE ECONOMY
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Information & Communication
Technology (ICT)
INDIA IN THE NEW KNOWLEDGE ECONOMY
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INSUR ANCE SECTOR
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Insurance, in law and economics, is a form of risk management
primarily used to hedge against the risk of a contingent loss.
Insurance is defined as the equitable transfer of the risk of a potentialloss, from one entity to another, in exchange for a premium.
Insurance rate is a factor used to determine the amount, called the
premium, to be charged for a certain amount of insurance coverage
Risk management, the practice of appraising and controlling risk, has
evolved as a discrete field of study and practice
What is INSURANCE?
Evolution India
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Evolution India
1818 - Oriental Life Insurance Company ± 1st Insurance Company.
1870 - Bombay Mutual Life Assurance Society ± 1st Life Insurance
Company.
1912 - The Indian Life Assurance Companies Act enacted the 1st Law to
Regulate the Life Insurance Business.
1928 - The Indian Insurance Companies Act enacted to enable the
government to collect statistical information about both life & non-lifeinsurance businesses.
Contd«..
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1938: Earlier legislation consolidated & amended the Insurance Act with theobjective of protecting the interests of the insuring public.
1956: 245 Indian & foreign insurers & provident societies are taken over by the central government & nationalized.
LIC formed by an Act of Parliament, viz. LIC Act, 1956, with a capitalcontribution of Rs. 5 crore from the Government of India.
The first General Insurance Company established in the year 1850 inCalcutta by the British.
T f I
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Types of Insurance
Life insurance
Non - Life Insurance
(general insurance)
Property (eg.Builders risk insurance)
Aviation(eg.Private aircraft insurance)
Marine (eg. Marine hull insurance)
Miscellaneous (eg.Purchase insurance)
Insurance Sector Reforms
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In 1993, Malhotra Committee - headed by former Finance Secretary & RBI
Governor R.N. Malhotra.
Objective - to create more efficient & competitive financial system.
Key recommendations of the reform;
1.Structure: ± a. government stake 50% in insurance companies.
2.Competition:
Private Companies with a minimum paid up capital of Rs.1bn should be
allowed to enter the sector. No Company should deal in both life and general insurance through a
single entity.
Foreign companies may be allowed to enter the industry in collaborationwith the domestic companies.
Regulatory Body:
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g y y
The insurance act should be changed.
An insurance regulatory body should be set up.
Controller of insurance-a part of the Finance Ministry ± should be made
independent.
Investments :
Mandatory Investments of LIC Life Fund in government securities to be
reduced from 75% to 50%.
GIC and its subsidiaries are not to hold more than 5% in any company.
Customer Service:
LIC should pay interest on delay on payment beyond 30 days.
Insurance companies must be encouraged to set up unit link pension plans.
THE GLOBAL PLAYERS
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TH E GLOBAL PLAYERS
in Life insurance
AVIVA
American International Group, Inc. American International Group, Inc.
(AIG) (AIG)
Prudential PLC Prudential PLC
A i Lif I
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Aviva is the fifth-largest insurance group of the world & the biggest in theUK.
They are among the leading providers of life & pensions products in
Europe.
Aviva has a 35 million-customer base worldwide and more than £332 billion
of assets under management.
The mission of Aviva is: ³to provide prosperity and peace of mind for our
customers´.
Aviva Life Insurance
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Aviva was the first foreign insurance company in India to set up itsrepresentative office in 1995.
In India Aviva has a joint venture with Dabur.
Aviva has 112 Branches in India.
Aviva products are available in 392 towns & cities across India.
Annual sales turnover is over Rs.12 billion.
AVIVA INDIA
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Provides value for money
Flexibility
Transparency.
It has been among the 1st to
introduce the more modern Unit
Linked Products in the market.
[eg.whole life insurance(life long)]
Good products to offer.
Reasons for Growth
American International Group Inc
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AIG is the world's leading international insurance & financial
services org, with operations in more than 130 countries & jurisdictions.
In the United States, AIG companies are the largest underwritersof commercial & industrial insurance.
AIG companies are the largest underwriters. AIG also has one of the
largest U.S. retirement savings.
AIG American General is a top-ranked life insurer.
A major focus of AIG's insurance business model is the concept of an
American International Group, Inc.(AIG)
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Tata AIG General Insurance company is a joint venture between the
Tata Group & American International Group, Inc
The Tata AIG General Insurance companys offers a complete range of insurance solutions
The Tata AIG s product innovation
The rural difference
The enhancement of distribution channels
TATA AIG
R f G h
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Innovative Offers,
Customer-Centric Products,
Increasing Awareness Levels of
Consumers Enhanced Service Standards,
Reaching out to the customerthrough a number of distribution
and communications channels
Providing advice to thecustomer
Reasons for Growth
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Prudential PLC is an international financial services company.
It has a product range of personal banking, insurance, pensions andretail investments, to institutional fund management and propertyinvestments .
In the UK Prudential is a leading life & pensions provider witharound 7 million customers.
It is Asias leading European life insurer with life and fundmanagement operations in 12 countries serving some seven millioncustomers.
PRUDENTIAL PLC Est.1848
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ICICI Prudential Life Insurance Company is a joint venture between ICICI
Bank & Prudential PLC.
I
CI
CI
Prudential was amongst the first private sector insurance companies to begin operations in December 2000.
The company has a network of about 56,000 advisors; as well as 7 banc
assurance and 150 corporate agent tie-ups.
For the past four years, ICICI Prudential has retained its position as the No. 1
private life insurer in the country.
ICICI PRUDENTIAL
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Lucrative offers
High standard service
Customer-centric products
Good communication
techniques
Use of customer feedback
in improvement of offers.
Reasons for Growth
LIFE INSURANCE CORPORATION
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LIFE INSUR ANCE CORPOR ATION
FORMATION:
Insurance corporation LIC was formed in September 1956 by an act of parliament
LIC was formed with the capital contribution of 5 crores from the govt. of India and has the sole mandate of conducting life insurance business inIndia.
Before the formation of LIC there where 245 Indian and foreign insurers inIndia.
OBJECTIVES:
To maximize mobilization of peoples savings by making insurance linked
saving adequately attractive.
To spread life insurance much more widely and in particularly in rural area,
providing them with insurance at reasonable price and adequate finance
cover.
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LIC has come a long way since its nationalization in 1956 over 40 yearslater in 1997
LIC had grown from Rs. 3.78 billion of new business in 1957 to Rs 555.5
billion
The rural India accounting for around 40% of the business.
In 1997, LIC had spread to the farthest corners of the country with anextensive network of over 8 lakh agents, 2048 branches(1370cities), 100Divisional office, 7 Zonal offices and 1 Central office.
LIC has branch offices in U.K., Mauritius, & Fiji. In U.K .
G ROWTH:
Reasons for Growth
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³LIC IS TO BE IDENTIFIED AS AN EPITOME OF CUSTOMER
CARE AND CONCERN I N THE ENTIRE SERVICE I NDUSTRY´
-Chairman G N BAJPAI
The IT initiative
The company, has invested over Rs. 400 crore in technology up gradation.
LIC now plans to increase the MAN to 33 more Cities by the end of the year
so that they have 4 I cities on the WAN. That will make it the biggest
network in the whole country, including that of the railways
LIC¶s Game Plan:
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THE CUSTOMER FOCUS INITIATIVE
Premium payment facility through internet, smart card, credit card
Tie up with banks for payment of premium through ATM¶S
Market focus initiative
Launching schemes for the rural areas designed to meet their
requirement. Derive 60% of its new business from rural areas
The corporation will soon go in for restructuring and is talking withleading management institutes such as the IIM of Lucknow for brushingup its marketing skills, IIM Ahmedabad for fine-tuning its investmentskills & IIM Bangalore for polishing its IT skills.
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The Sub-Prime Crisis Effect
The property/casualty and life insurance industry will not be materiallyaffected by credit market developments.
Because both by law and by the nature of their business, insurers generallylimit themselves to the low-risk end of the investing universe.
A small number of P/C insurers provide insurance on the credit-worthinesson mortgage-backed securities.
The loss ratios for the credit insurance products of these companies arelikely to rise due to increased delinquencies and defaults.
Contd..
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At least half of these companies are parts of larger financial servicesgroups, so that the experience of this line of business is, for them, a small
part of their overall operations.
As such, it is much too early to estimate the dimensions of the claimsexperience that may emerge from the recent credit market developments.
Of course some companies will be affected more than others, and the depth
and length of the credit market ³challenges´ might be more adverse than
many experts currently foresee .
But for now, these developments do not appear poised to adversely affect
the insurance industry¶s ability to pay its claims and continue to have
financially successful operations.
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INDIAN SCENARIO OFINSUR ANCE
The 15 private players together saw their business grow 32 % to Rs 848 crore
with a market share of 28 44 %
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with a market share of 28.44 %.
I nsurers Premium[Rs.Cr.]
ICICI Prudential 271.00
Bajaj Allianz 124.00
SBI Life 90.00
HDFC Standard 70.00
Max New York Life 69.00
Tata AIG 48.00
Aviva 39.00
Reliance Life 33.00
y Birla Sunlife 28.00
y Kotak Mahindra Old
Mutual 26.00
y ING Vysya 22.00
y Met Life 19.00
y Shriram Life 4.50
y Sahara Life 1.70
y Bharti Axa Life 0.72
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ICICI Prudential - premium income rising 84.5 % to Rs 271 crore - 9.08% marketshare.
Bajaj Allianz - 15 % in business - collected Rs 124 crore - 4.16 % market share.
general insurance industry grew 16 % in April,
New India - With 8 % growth in premium collection at Rs 651 crore, retained itsnumber one slot by cornering 20.72 % of market share.
ICICI Lombard - new premium 36 % to Rs 448 crore - a market share of 14.28 %
ICICI Lombard - the second-largest non-life insurance player.
Oriental Insurance premium collection at Rs 413 crore & a market of 13.16 %.
United India - 3 % growth in business at Rs 407 crore & 12.97 % of the market.
³Indian Insurance Industry: New Avenues for Growth 2012´,
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The potential of the Indian insurance industry is huge. HOW???
«.. It has an annual growth rate of 15-20% &
«..the largest number of life insurance policies in force.
Total value of the Indian insurance market (2004-05) is at Rs. 450 billion
(US$10 billion).
Insurance & Banking Services¶ contribution to the country's gross domestic
product (GDP) is 7%
The funds available with the state-owned Life Insurance Corporation (LIC) for
investments are 8% of GDP.
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The year 1999 saw a revolution in the Indian insurance sector------the ending of
government monopoly -----the passage of the I nsurance Regulatory and
Development Authority ( I RDA) Bill
³A foreign partner can hold 26% equity in an insurance company, but there was a proposal to increase this limit to 49%.
Foreign investments of Rs. 8.7 billion have poured into the Indian market & 21private companies have been granted licenses.
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LIC PRIVATE PLAYERS
Growth ² 21.87% Growth ² 129%Earned ² Rs.197.86 billion[04-05]
Sold ² 2.4 billion policies
Earned ² Rs.55.57 billion[04-05]
Against Rs.24.29 billion [03-04]
Market share ²
87.04% 78.07% 75%
Market share ²
13% 22% 24%
India's insurance sector to see 500 per cent growth by 2010: Study
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India's insurance sector - 500 % growth over the next three years -60 billion-dollar industry by 2010
India's more than one billion people are uninsured, the study by the Associated Chambers of Commerce and Industry (Assocham) said.
'A large part of rural India is still untapped due to poor distribution, largedistances & high costs relative to returns, said Assocham president
Anil K Agarwal
He said the study had revealed that rural & semi-urban India wouldcontribute 35 billion dollars to the Indian insurance industry by2010.
The study added that the urban sector insurance was estimated to reach 25 billion dollars by 2010, life insurance 15 billion and non- lifeinsurance 10 billion dollars.
Source: Business News
Re-Insurance Business
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Re Insurance Business
retain only a part of the risk less than 10%.
balance risk is re-insured.
re-insurance is insurer's insurance.
the backbone of the insurance business.
provides a better spread of risk in the international market, allows primaryinsurers to accept risks beyond their capacity, settle accumulated lossesarising from catastrophic events & maintain their financial stability.
GIC - the major re-insurer.
all insurance companies have to give 20 per cent of their reinsurance business to GIC.
GIC reinsures the amount further with international companies such asSwissre (Switzerland), Munichre (Germany), and Royale (UK).
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Careers
Jobs in insurance involve helping individuals and business
manage risk to protect themselves from catastrophic losses
and to anticipate potential risk problems.
Insurance brokers and agents
Claims handlers [are responsible for investigating incidents and paying claims. They decide the extent and validity of the claim]
Underwriters [assess risks and decide whether to accept applicationsfor insurance cover - and on what terms]
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Insurance can be summed up as
´Praying for the best ««being PREPARED for the
WORESTµ.
Conclusion
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.Where Do I Keep My Money?.Evaluating Financial Services
.Banks, Yesterday and Today
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Where Do I Keep My Money?
Overview
The functions of banks
The cost of alternative financial services
The stability of banks
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PLACES TO SAVE MONEY
Would you save your money in any of theseplaces? Why? Why not? Can you think of otherplaces to save money?
Bed & Mattress Cookie Jar
Pillow Wallet Money Belt Small House Safe
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ALTERNATIVE FINANCIAL SERVICES
Check-Cashing Services
Check-Deferrals, Cash Advances, Payday Loans
Pawn Shops
Rapid Tax Refunds
Rent-to-Own
Other Financial Services
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Overview
Formal and informal financial services
Costs of alternative financial services and
average bank accounts Advantages of establishing a banking relationship
Evaluating Financial Services
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INFORMALFINANCIALSERVICES
Payday lenders Check cashing services Rent-to-own stores Pawn shops Title lenders Loans from family/friends
Cultural savings clubs Remittances offered through
nonfinancial institutions
FORMALFINANCIALSERVICES
Accounts Credit cards Loans Investment vehicles Direct deposit Wire transfers/ remittances
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ADVANTAGES OF ESTABLISHING ABANKING RELATIONSHIP
Nearly everyone needs a bank account to help manage his
or her day-to-day money.
Bank accounts can help you to: Pay bills Manage your money Receive money
Send money to a friend or family member Keep your money secure Start building wealth Earn interest
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Banks, Yesterday
and TodayOverview
The many traditional financial services provided
by a bank
Other expanded financial services provided by a
bank
The impact of banks throughout the community
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EXPANDEDSERVICESOF BANKS
Insurance Sales Small Business Advising
and Loans Investments Credit Cards
Remittances
TRADITIONALSERVICESOF BANKS
Checking Accounts Savings Accounts CDs (Certificates of
Deposit) Savings Bonds
Loans Car Home Personal
Safe Deposit Boxes
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FINANCIAL SERVICESMODERNIZATION ACT (1999)
Transformed the banking industry. Eliminated many
restrictions among companies in the securities,banking, and insurance industries.
Results? Banks may offer some insurance and investment
services.
Investment and insurance companies may offersome traditional banking services. Investments arenot insured by FDIC.
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SOME COMMUNITY-RELATEDSERVICES OF BANKS
Bank employees mentor students in areas of basic financial skills.
Bank employees serve on communityorganizations boards of directors.
Banks provide scholarships to students goinginto the banking profession.
Banks fund affordable housing construction.
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Do you know?
New survey results from Demandwareindicate that retailers are not prepared
to meet the demands of smart consumers who use multiple, web-enabled touch points to interact withbrands. The data highlights a gap
between the touch points that retailerscurrently offer and the ways consumersexpect to interact with brands now and
in the future.
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More women are launching online
shopping ventures and taking on high-profile roles at such companies,especially sites devoted to fashion, food
and other segments where shoppersare overwhelmingly female, this storysays. Sites including Gilt Groupe, Rent the Runway, and One Kings Lane were
all founded by women, and suchventures make up a rare niche forwomen in the male-dominated
technology industry.
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McCormick and Schmicks RestaurantsGains New Insight into Dining Trends
and Financial Performance with IBMCognos Express ( BI & planningsolutions )
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Online sales of groceries and consumerpackaged goods are on track to hit $25
billion by 2014, more than double theexisting level, according to Nielsen. Thecompany partnered with MyWebGrocerto launch a service that tracks online
grocery sales.
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France's Carrefour is developing aninformation technology platform to
facilitate online shopping in India.Subhodip Bandyopadhyay, a director at Carrefour, said the platform is beingcreated while "keeping in mind the
Indian IT growth story and tech-savvybusiness establishments all over India,particularly in National Capital Region.