Assistant Professor,
Distribution Channel is the most important element of the marketing mix of insurance industry. This is the sole key for insurance business. The article discusses the effectiveness of the innovative distribution channels along with traditional distribution channels in present era of Indian life insurance Industry. LIC a Public insurer and 23, Private insurers are running their life Insurance business in IRDA regime. Whole industry proved a remarkable growth in IRDA regime, Indian life insurance business ranked 9th among the 156 countries (Swiss Re) through their mixed bag of distribution in 2010-11.
India”s estimated life insurance premium grew by 4.2 per cent (inflation adjusted). However, during the same period, the global life insurance premium expanded by 3.2 per cent. The share of Indian life insurance sector in global market was 2.69 per cent during 2010, as against 2.45 per cent in 2009. The article found that public insurer is still getting its new individual business approx..97% or more in last five years through its individual agents a traditional form of insurance. While other 23 Private insurers are using innovative channels up to large extent, they are getting approx. 40% or more new individual business through innovative channels in last five years.
