'Pest: Investment and Insurance Industry Essay\r'

'PEST analysis (Political, Economic, favorable and Technological analysis) describes a frame do work of macro-environmental agentive roles utilise in the environmental s raisening parting of strategic watchfulness. Insurance is one of the operate factor that are expected to go to drive growth in the economy. olibanum the policy sector play valuable role in supporting economical ,social and technology exploitation. Economical factor interest rate at bank real much affect to insurance sedulousness, because good deal always attract by high return. Therefore, they do not take set down return policy.\r\nUnemployment similarly affects insurance perseverance, because the unemployment hoi polloi will not have earning, so saving also affect to manner insurance sector. Life insurance industry will directly affected by Earthquake, Monsoon, and Natural calamity. Because of these events turns into lots of death, so the demeanor insurance companies have to pay arrogate agai nst policy. Infant mortality rate and gestation mortality rate are also bear on to insurance. Typical consumer want elevated product against low income, so that they prefer installment or annuity (EMI), so thatthey may not have unnecessary saving to invest in look insurance.\r\nSocial factor The population in the age throng 15-55 is usually regarded as the insurable population, since this hobo be considered as the main â€Å"active” age meeting ( in the sense of working, earning and supporting others), and beyond this range spirit risk may be considered to be not cost insuring. On the other hand, people everyplace the age of 50 rarely mount for fresh manners insurance, mainly because in Malaysia the normal retirement age is just nigh 55- 60 years. Also, a high parcel of the population in the commence income group does not remain â€Å"insurable” afterward the age of 50.\r\nA single answerer is less plausibly to purchase life insurance than a marrie d responder. given up that a married respondent is likely to have family members or dependents to care for, it is fairish to expect that a married respondent is more likely to think and programme for his/her family members should an unfortunate circumstances fall upon him or her. Higher education is not a driver in the demand for life insurance.\r\nAlthough the higher educated individuals may find and appreciate insurance more than the lower educated individuals, they may be ore concerned in wealth management and wealth creation products than insurance. The higher educated individuals may view the new wealth management products as a more appealing way of managing their finances than insurance. Technology factor earnings as an intermediary , guest is not aware about the intrinsical value of insurance. Internet can be an effective medium for educating the consumers about insurance. It serves as a single window for disseminating product, parade and procedural breeding to the consumers.\r\nProduct development and tar gravel marketing through the Internet: with increase in the number of insurance companies there will be a need for market segmentation and later on product designed for each of them. In such a scenario Internet can be a effective way for pushing product specific information to a particular market segment. Consumer feedback about a particular product as well as suggestions for different types or covers can also be generated through the Internet. For example, maintaining the database.\r\nThe most important fact that is affecting the insurance industry is the marinating the database of the customers. The insurance industry having a bulky list of the customers. In order to maintain it in manual of arms format it is really the work of stupidity. With the alternate in time the computers has taken the work of this things. therefore with the development of the technology it has meet possible to maintain such huge database very easily. A pers on can switch over to the computer and get the details of the customer very easily. Thus maintaining the database has really become easy cod to the development in technology.\r\n'