Insurance Market in Pakistan

1. 1
Insurance Marketing
Submitted To :-
Sir Tassawar Abbas
Jaffery

2. 2
Presented by:-
Ali Khalid
Mi15MBA062
Muzammil Iqbal
Mi15MBA066
Hassan Hanif
Mi15MBA021
Ali Haider
Muzammil Iqbal
Mi15MBA066
Muzammil Iqbal
Mi15MBA066
Ali Haider
Mi15MBA059
Ali Haider
Mi15MBA059Muhammad Sigher
Mi15MBA067

3. 3
Prof. Dr. Khawaja Amjad Saeed
Birth: March 21 1936
Death: January 30 2014
Founder Principal of the Hailey College of Banking and Finance

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First of all, we are thankful to Allah who blessed us the potential and
ability to accomplish this project. Then we deep it a great privilege to
record sense for gratitude to our respected teacher Sir Tassawer
Abbass Jaffery for the construction and exuberant stage of teaching.
We gratefully acknowledge the encouragement and support received
from him. The interest, commitment, patience and valuable advices
given by him remained a source of inspiration and motivation for us….

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Table of Contents
Sr.No. Contents Pages
1 Group Members Detail 2
2 Acknowledgement 4
3 Introduction
 Process of Research
 Sample Size
 Sampling Technique
6
4  Insurance Marketing 7
5  Drawbacks of Insurance Marketing 7
6  Objectives 7
7  Methodology
 Segmentation
8
8 Why we choice Areas 8
9  Personnel Experience 9
10  Problem facing 10
11  Public Response 10
12  Analysis:-
 Qualitative Analysis
 Quantitative Analysis
11
12
13  CONCLUSION 19
14  Recommendations 19
51 APPENDIX 20

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Introduction:-
This report is about to know Awareness level of insurance among different class of
businesses.
 Process of Research:-
 Sample Size:-
Sample size was 20 in Lahore city.
 Sampling Technique:-
Samples were chosen from different areas of Lahore i.e. fortress, Moon
Market, Shad Bagh hard road and tried to maintain 1:1 ratio of businessman, employees.
QUESTIONAIRE
OBJECTIVES
REPORT
CONCLUSION
COMMUNICATION

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Marketing
The action or business of promoting and selling products or services, including market research
and advertising.
Insurance
Insurance is a contract, represented by policy, in which an individual or entity receives financial
protection or reimbursement against losses from an insurance company. The company pools
clients to make payment more affordable for the insured.
Insurance Marketing
Insurance marketing not just mean that advertisement of the insurance product, it also create
understanding about the insurance among the general public. Most of the people belongs to rural
areas of Pakistan where people are illiterate and do not know the benefits of the insurance.
Insurance marketing helps in different ways.
Drawbacks of Insurance Marketing
The drawbacks of insurance marketing not only relates from insurance company to agents but
also from agents to the insurance company.
 Insurance marketing mostly done by the insurance agents or marketing officers, most of
the time they don’t done their work effectively or efficiently.
 During insurance marketing, there is no job surety.
 The commission of the agents or marketing officers are very low.
 The agents tells the high premium instead of the basic premium to the policy holder, in
this way they exploit the policy holder.
 Mostly agents are not highly qualified, they are not able to advertise the insurance
product during insurance marketing properly.
 The company has to pay commission to the agents for the insurance marketing, due to the
cost of the company increased.
Objective
 To study the perception of public towards insurance policies in Lahore
 To identify how many people are aware about insurance
 To know which attributes people consider most important.
 What are the types of policy they buy?
 what are the sources of awareness

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 Risk Assessment.
 Nature of risk.
 Any arrangement to minimize the loss.
 Identify any survival plan for the business.
 Identify the insurance Islamic views among people.
 Identify the people trust about the insurance mechanism or not.
 Any business approach insurance company to buy insurance product or not.
 To check the awareness level about insurance among people.
 Estimate that the business able or willing to buy insurance policy or not.
Methodology
 Segmentation :-
Is the process of dividing a broad work or place into sub-groups
(known as segments)
 Why we choice these Area
 Easy Accessible
 Recommended
 Many loss exposure observed
 Less costly
 Wish to visited there where major losses is to be covered
 To observed that how people to mitigate the risk
Hard Road
Shad Bagh
Moon Market
Fortress
Lahore

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Personnel Experience:-
Insurance marketing project is first experience for us to known that…
 Factors Influencing to buy Insurance.
 Four Types of Buying Behavior
 Public point of view about insurance mechanism
 What type of losses business is to be faced
 Business ready to bear the major losses or not
 Business having any there backup plans or not
 Business able or will to buy insurance or not
 Personnel communication skill Improvement
 Examine layout of business

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Problem faces
 Not properly guide about its business worth
 People hesitate to exposure any information
 People show less interest
 People lies
Public response
 Public consider insurance is totally haram
 Public not satisfied about insurance mechanism
 Public face many problem while gaining a claim
 Public consider insurance is intangible product that why he not interest to buys insurance
product
 Public while surfer loess due to agent
 Agent cheat potential customer of insurance product
 Psychological Factors
Motivation
Perception
Learning
Beliefs and attitudes

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Analysis:-
This process as a method of studying the nature of something or of determining its essential
feature and their relations.
 Qualitative analysis :-
It is the scientific study of data that can be observed, but not measured. It is
concerned with cataloguing the qualities of what is studied.
 People does not purchase insurance product due to Unawareness.
 People Assume that purchase of insurance as it is a loss of money
 Mostly Business is on franchised Base
 Mostly Business having no any firefighting arrangement
 Mostly Business have no any compensation plans
 Mostly Business do not know about insurance
 Mostly Business does not trust on Insurance
 Mostly Business having no personal capacity/willing to buy Insurance product

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Quantitative analysis
It is the study of data that can be measured, the quantities of a category of data.
 Quantitative:-
Q1). Business type
We visit four different markets. We ask this question from 20 people or business. We were
replied that there are 16 own businesses and 4 franchises.
Q2). working since year
 10% people were conducting their business for less than one year.
 30% people were conducting their business from last 1 to 5 years.
 30% people were conducting their business from last 6 to 10 years.
 30% people were conducting their business from more than 10 years.
Business Type
own Franchies
2
6 6 6
0
1
2
3
4
5
6
7
Less than One year 1 to 5 6 to 10 above
Working period
in market
Series 1

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Q3). Any firefighting arrangement observed.
When we visit the markets than we observed mostly people are not any arrangement of
firefighting in their work place . only 8 business arrangement of firefighting but 12 business not.
Q4). Any kind of loss occurred in past
40 % people response that they had any financial loss in the past. And, 60% told they had not
passed from the experience of loss in the past.
8
12
yes
no
0
2
4
6
8
10
12
Yes NO
Loss in Past
Series 1

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Q5). Loss compensation?
According to survy we asked the question if any loss happened than how to managed it? People
tell there feedback. 40% people tell if any loss happened than managed their own resoures. 25%
people tell loss indemnify by insurance company. 35% people tell no answer.
Q6). If Loss occurred, do you have any plan of Business survival?
According to our survcy
Asked the about their survival plan after loss. Result show that
 Only 40% people having survival plan after loss.
 But still 60% have not survival plan after loss.
8
5
7
Loss compensation
By self
by compeny
On ans
8
12
0
2
4
6
8
10
12
14
Yes Not
Survival Plan
Series 1

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Q7). Do you known about insurance?
According to above diagram show that many people known about insurance but they have not
any insurance cover.
 70% people know about insurance
 30% have not knowledge
Q8). Are you insured?
We asked from people are you insured ? But result very shocking very few people having insured
major class of group not any insured cover.
 Only 20% People have insured
 But 80% un insured.
0
5
10
15
Yes No
Know about insurance
Series 1
0
5
10
15
20
Yes Not
You insured?
Series 1

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Q9). If you take policy than your experiences with insurance company?
According to survey we asked people how experience with insurance result are following
 30% people have good experience
 40% people have good experience
 10% people have good experience
 20% people have good experience
Q10). Do you know that insurance can protect possible losses on very low cost?
When we conduct survey very low people know if loss happened than cover it very low cost
 Only 45% people know if loss happened then cover on low cost
 But 55% people not know if loss happened then cover on low cost.
0
2
4
6
8
Good Avg Not bad bad
Exprience with insurer
Series 1
9
11
loss cover on low cost
Yes No

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Q11). Do they know that due to insurance many businesses secure their future?
Due to survey we know 50 50 % people know future of the business by using insurance policy
Q12). Do you trust insurance mechanism?
According to survey we asked from people do you trust on insurance mechanism ?
But very few people trust on insurance mechanism
 Only 30% people trust on insurance mechanism. It very low rate there for insurance not
work properly in Pakistan.
 70% people not trust on insurance mechanism.
1010
Business secure by Insurance
Yes No
6
14
They trust on Insurance
Yes no

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Q13). Do they ever launch a claim with insurer?
According to Pie the rate of claim happened with insurer very low only 20% claim of loss with
insurer but 80% claim of loss by self or own.
Q14). Do they willing to buy insurance?
According to survey at the end we asked last question. Do you willing to buy insurance? But
65% willing to buy but they are not buy insurance. 35% not w
4
16
Claim With Insurer
Yes No
13
7
Willing to Buy
Yes No

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 CONCLUSION:-
 We conclude from our project about insurance marketing that public is unaware of the
insurance product almost, they don’t know what benefits the insurance companies are
providing to them. We also conclude that mostly people are confused in the concept of halal
or haram. The labor force are getting basic salaries of Rs. 13000 per month. So, it is very
difficult for the poor family who lives from hand to mouth to pay the basic premium yearly.
Stages in the process include:
Recommendations
 Government support
 Proper and broad level advertisement
 Innovation in insurance products from time to time for the attraction of public
 Improve expertise
 Cooperative behavior with the customer
 Provide proper facilities as possible
 APPENDIX
Awareness Interest Evaluation Trial Adoption

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Thanks You