An industry can be called successful only after we see the status of all the stake holders. We saw how the employees and the sales force was feeling. Let us see something about the ‘customers’ and the ‘owners’.

The customers of the life insurance industry can be divided into 3 categories:

a. Those who understood what they bought, why they bought and what the policy will do for their families if they are not around.

b. Those who think they understood what they bought

c. Those who know that they do not understand what they bought.

In markets like India talking of %ages makes no sense. In category (a) there are about 10,000 people. All others are in b or c – which should run into millions if not crores. Financially speaking those in b and c think they have bought an investment product – they will be disappointed NOT BECAUSE the product is bad, but because they will jump ship at a horrid time to exit. So God save them.

Term insurance will pay ON DEATH. Some people have bought Term insurance – hoping to get ‘some’ return. Obvious disappointment awaits them.

The owners – I remember meeting some of them have all toned down. In fact to the best of my knowledge many sale mandates are out in the market – some at a discount too.

SBI, Icici, Hdfc, Kotak, Religare, etc. will also need to raise money from the equity markets to stop the bleeding. Funding Rs. 300 crores year on year is not easy even if your surname is the legendary Tata, Birla or Ambani!

So overall who is happy with the life insurance industry?

The early employees, a few vendors, people whose offices could be given on rent (landlords), hotels where conferences and trainings are held, the caterers (did you know IRDA even mandates the menu of the food on the training days?), airlines (at the airport you run into 2 or 3 life insurance guys (gals) traveling from one state capital to another), Meru taxi services, 2nd, 3rd…..20th grade MBA schools – a huge shortage ensured everybody got placed, …..will fill up seems to be quite a bit!

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  1. I really enjoy your sarcasm. Hoping to get ‘some returns’ on term insurance, may God bless their souls! 20th grade MBA schools…, Mr.Subra, nobody can match your sarcastic sense of humour.

  2. Write something in haste about the pithamahar and try to kiss his derriere in each of his posts! What an annoyingly nice strategy, Mr. Muthu!

  3. James- Thesaurus defines Derriere as ‘Ass’ or ‘Buttocks’. Why you are so much full of filth and hatred, especially in public domain? What I wrote about him initially, I’ve explained the context and Mr.Subra has also provided his clarification. There ends the matter. When we are not carrying it, what is bothering you James?

    What is the ‘nice strategy’ you are referring to?

    When you’ve right to post a comment, the same right vest with me too. Mr.Subra has a right to disapprove, delete or modify any of the comments in his blog.

    I like his blog and I’ve right to post my perspective, criticism or appreciation.

    Do not use dirty words when this blog is read by women too.

  4. Mr.Subra – I would like to reiterate again that I’m not using your blog to promote myself. Initially I wrote as emails to you and then posted the same in your blog. That is the reason why it contained my signature (contact details). The same has been subsequently rectified.

    If some one thinks that I’m trying to get more readers to my blog by posting my comments in your blog, he is living in fool’s paradise.

    All I can then humbly tell him is please don’t visit my blog.

    Since I do not host any ads and is paying to keep my site ads free, what gain I get if people like James visit my blog. I don’t gain anything by more hits as I primarily started my blog as repository of the emails I send to my clients and wellwishers regularly.

    I started my blog because some of my clients suggested that what I write to them regularly through emails, if put in public domain, may be of use to some others too. My professional practice is mainly restricted to Chennai market and my profession is being built through referrals only. We don’t solicit business from anyone.

    Though many comments in your blog are fair to me, some are being totally unfair, the reason for same I’m unable to fathom. I’m forced to write this long comment as the attack is becoming filthier and filled with hatred.

    I enjoy reading, sharing and writing. I’m not soliciting anyone to visit my blog by piggy backing on Mr.Subra’s popularity.

  5. I think Muthu must take a break – say for 30 days or so. It’s tiring after sometime to read your comments section. I am a big fan of subra’s post but dread to visit these days because of your long and boring comments. I would love to read the comments sections and can’t help but notice your name there. Please don’t get me wrong.. I am not hard on you. Please leave the rest alone for sometime. Thanks.

  6. Swami- Perspective varies. There are good number of people who says my comments are informative and interesting. I’m posting my comments only for last 6 days and you want me to take a 30 day break!! Great idea.

    As much as I cannot change your perception, you cannot deny I’ve the same rights as the others viewers of Mr.Subra’s blog have. I don’t think I’m writing anything unrelated or useless.

    James made me to write long comments today because of his abusive and derogatory comments. My original comment to Mr.Subra’s posting was just 3 lines. I don’t understand why you guys drag me for an argument and then complaint about it. If you don’t like me, ignore me.

    If you or anyone criticize or abuse me, I’ve a right to defend myself.

  7. Muthu,

    You don`t need to defend / qualify yourself every time someone comments on you, it only escalates things. Just ignore and do your thing.

  8. Thanks Rahul for your inputs. I can defend when it relates it to perspective or facts. Plain malice, filth and unjustified criticism can at best be ignored. If James is going to abuse me with his filthy comments, it reflects on him more than me. If Swami cannot stand me, it is his problem, not mine. Henceforth I would restrict my response and ignore undeserving ones.

  9. Guys…no more advice to Muthu or from Muthu…all such comments will just be deleted, it is getting to be too much and too boring.

    comments should be related to the blog – look at this blog, there are 10 comments only 2 relevant to the post :).

    Can we treat advising Muthu as a closed chapter please 🙂 🙂

  10. Subra: I understand the premium flows will come down, because of lower commissions – and that’s what hurts insurer agent growth. But ULIP charges are still quite high, aren’t they, compared to other products – ICICI’s ULIP still charges 9% of first year, of which if even 5% is commission, the agents get a better deal peddling it compared to any mutual fund.

    How much is the change in surrender charges? Granted, the surrender revenue will continue for a while because of the policies sold in the last few years, but this hugely impacts future cash flow as new policy surrenders don’t add to impact. For most insurers, surrenders are significant percentages of cash flow today – or so it seems?

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