Globalization of the Indian economy and the subsequent liberalization of the insurance sector lead to a need of differentiating strategies, innovative products and customer service. The main challenges in the industry are that each company has a similar class of products, similar pricing policies and as far as selling is concerned the same type of distribution channels are present in the market. Thus, the only differentiation a company can make is through the method of selling. This article is an attempt to study the differentiating selling strategies of different life insurance companies. The focus is on the use of Need Identification approach to recommend the appropriate amount and type of insurance.

Life insurance in its existing form came to India from the United Kingdom with the establishment of a British firm, Oriental Life Insurance Company in Calcutta in 1818. Till the late 1990s, the Indian life insurance industry was completely in the hand of the Life Insurance Corporation of India (LIC). LIC was nationalized in 1956 to increase the penetration of life insurance in the country with a motive to cover the risk of the society.

Privatization of the insurance sector on the recommendation of the Malhotra Committee in 1994 resulted in immense competition in this sector. Each insurance company came up with differentiating strategies, innovative products and customer service. It is clear that the face of life insurance is changing. But with the changes come a host of challenges and it is only the credible players with a long-term vision and a robust business strategy that will survive.

Insurance is a phenomenon where by several individuals get together in a group to pool their finances in order to face any uncertainty or loss that may occur to any of the individuals and his family due to his premature death within the group. One very strange phenomenon in the context of the Indian life insurance scenario is that, insurance is seen more as an investment and tax saving tool by the proposed insured rather than as a protection against the risk of life and its uncertainty.

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