Role of Advertising in Growth of Insurance

ROLE OF ADVERTISING IN GROWTH OF BANKCOMPARATIVE STUDY ICICI PRUDENDIAL &HDFC STANDARD LIFE INSURANCE

BACHELOR OF COMMERCE BANKING & INSURANCE SEMISTER – VI

ACADEMIC YEAR 2008-09

Su !"##$% &' SWAPNA VISHWANATH SHETTY R()) N(* +,

S*K*SOMAIYA COLLEGE OF ARTS' SCIENCE & COMMERCE VIDYA NAGARI' VIDYAVIHAR

1

ROLE OF ADVERTISING IN GROWTH OF BANKS COMPARATIVE STUDY ICICI PRUDEND STANDARD LIFE INSURANCE

BANKING & INSURANCE SEMISTER – VI

I- P./#".) Fu)0"))!$-# (0 #1$ /$2u"/$!$-# 0(/ #1$ A3./% (0 D$4/$$ (0 B.51$)(/ (0 C(!!$/5$ – B.-6"-4 & I-7u/.-5$

Su !"##$% &' SWAPNA VISHWANATH SHETTY R()) N(* +,

S*K*SOMAIYA COLLEGE OF ARTS' SCIENCE & COMMERCE VIDYA NAGARI' VIDYAVIHAR*

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TABLE OF CONTENTS
PART:1 INSURANCE SECTOR 1.1 Brief History 1.2 Insurance Sector 1.3 IRDA 1.4 Players & ar!et S"ares PART:2 Advertising Boosting Insurance Sector 16 17 19 2#

2.1 Intro$uction 23 2.2 Insurance A$s %"an&in& nor's 26 2.3 %"an&in& A$(ertisin& & Pro'otional )or's 29 2.4 A$(ertise'ent %o$e *y IRDA 4# PART 3: ICICI PRUDENTIA AND !D"C STANDARD I"E INSURANCE 3.1 History 42 3.2 +"in&s ,ou Di$n-t .no/ A*out I%I%I Pru$ential 49 3.3 +"e a!in& 0f In$ia )o11 21 3.4 A*out HD3% 22 3.2 A$ By HD3% 26 PART:# SUR$E% TO &NO' T!AT E(CESSI$E AD$ERTISE)ENT DI UTED T!E BRAND CA ED !D"C STANDARD I"E INSURANCE RECO))ENDATION 62 CONC USION BIB O*RAP!% 66 67

Ac+no,-edge.ent

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Durin& +"e Perse(erance 0f +"is Pro4ect5 I 6as Su77orte$ By Different Peo7le5 6"ose )a'es If )ot entione$ 6oul$ Be Inconsi$erate 0n y Part. I 6oul$ 8i!e +o 9:ten$ e Into +"e

y Sincere ;ratitu$e An$ A77reciation +o Prof.A7arna 4ain 6"o Initiate$ Stu$y 0f <=Role of A$(ertisin& in ;ro/t" of Ban!s/

It Has In$ee$ Been A ;reat 9:7erience 6or!in& >n$er Her Durin& +"e %ourse 0f +"e Pro4ect 3or Her In(alua*le A$(ice An$ ;ui$ance Pro(i$e$ +"rou&" 0ut +"is Pro4ect. I Also 0/e y Sincere ;ratitu$e +o rs Par(ati enon Princi7al 0f 0ur %olle&e.

I 6oul$ Also 8i!e +o +"an!

y 3rien$s on Practical As7ects 0f +"is Su*4ect 6it"out

6"o' +"e Stu$y 6oul$ )ot Ha(e Been %arrie$ 0ut Successfully.

I 6oul$ Also 8i!e +o ;i(e

y Sincere ;ratitu$e +o All

y %olle&e 8i*rarian Staff

Because 0f 6"o' I A' A*le +o %o'7lete

y Drea' Pro4ect.

I2 0ou 3ave an AD

'E !A$E SPACE
S0no1sis
Economics Times

C-assi2ied
4

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“More than 1,500 messages a day!”
T3at4s one esti.ate o2 3o, .an0 advertise.ents are ai.ed at t3e average consu.er5 It 6ogg-es t3e .ind7 Su77ose it /ere only a tent" of t"at. +"e i$ea of e(en 12# 'essa&es ?e(ery $ay@ is "ar$ to co'7re"en$. It is clear t"at "o/ an$ /"enAan$ "o/ oftenAyou 7lace your 'essa&e is &oin& to 'a!e a $ifference.
I'a&ine a $ay in t"e life of an a(era&e ur*an In$ian 'ale li(in& in an a7art'ent *y "i'self.

et us see 3o, advertise.ent in2-uence 1eo1-e
!e ,a+es u1 ear-0 in t3e .orning to t3e sound o2 a 3i 8 tec3 a-ar. ,3ic3 3e 3as recent-0 6oug3t9 t3an+s to t3e ad o2 an a-ar. c-oc+ 3e seen on T$5 !e :u.1s out o2 6ed and s,itc3es on t3e radio to 3ear so.e good .usic on ") 1unctuated ,it3 so.e ne,s 3ead-ine5 T3e T$ is t3en s,itc3ed on to t3e c3anne- on Aero6ics ,3i-e 3e ,o+s out ,it3 t3ose s-i. ,o.en ,3o 1ro.ise a se;0 130si<ue in :ust a cou1-e o2 .ont3s. 'it3 a 6rus3 in 3is .out3 (of course with ‘Close – !" tooth!aste ‘for greater

confidence" and so that #eautiful girls may say ‘$al% to me"&, !e scans t3e ne,s1a1er 2or a <uic+ u1date ,3i-e 3e 1re1ares so.e 6rea+2ast (the fast and highly nutritious ‘'ellogs" which once again he !urchased #ecause of the attracti(e ad&) A2ter a ,ar. 6at3 (with ‘*ettol" soa! + for greater s%in !rotection and ‘,ead and -houlders" -ham!oo so that he is ne(er em#arrassed #ecause of dandruff&, and a coos3ave =,it3 t3e ver0 coo- >*i-ette S3aving 2oa.4 as s3aving crea. is out and s3aving 2oa. is in9 and t3e >)ac34 ? 2or t3e c-osest s3ave@9 3e 6at3es 3is c3ee+s ,it3 an a2ter s3ave =>O-d S1ice4 8 2or t3at .ac3o 2ee-ing@5

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!e das3es o22 to ,or+ (whi..ing !ast !osters, #ill#oards, hoardings – all #om#arding him with different messages, schemes, offers etc)&) !is 6us and train :ourne0 are never 6oring as 3e a-,a0s carries t3e -atest >India Toda0 4 to +ee1 3i. a6reast o2 t3e -atest 3a11enings5 !e is on t3e 2ie-d ,or+ing ,3en 3e 2ee-s thirsty #ut he cannot ma%e u! his mind whether to ha(e a ‘$hums – u!" – as he is grown u!, or to ha(e a ‘/e!si" – #ecause he wants to li(e young fore(er0 any way he decides to !lay safe and ha(e a ‘1isleri" !is .o6i-e sudden-0 6uAAes5 It4s a 1rogra..ed ca--9 re.inding o2 3is date5 !e rea-ises 3e is -ate5 At t3e s3o11ing center c-ose 60 3e 6u0s 3is date a card (an ‘2rchies – 3"m sorry Card" of course, #ecause no one can say it #etter than 2rchies&) O6vious-0 3is date reacts as s3e is e;1ected to 60 giving 3i. a 3ug =:ust -i+e t3e ad@5 A2ter t3e great date t3e0 return 3o.e5 A2ter so.e T$ snac+ing9 3e sets t3e .ood ,it3 so.e so2t .usic9 s1ruces 3i.se-2 (any guesses with what4 – yes with the se5iest, irresisti#le, ‘267" deo s!ray&) And t3e -ig3ts go out5 !e09 ,ait a secondB I 2orgot to .ention t3e e;tra so2tC5 >&ur-on4 .attress 3e 3ad recent-0 1urc3ased t3an+s to t3e s1ecia- Di,a-i o22er5

Design o2 stud0
In to$ay-s 'o$ern an$ fast /orl$ Insurance is &ainin& a lot of i'7ortance. +"is o*(iously 'eans t"at t"e Insurance or&aniBations are also 7ros7erin&C t"us t"ere is a lot of sco7e e'er&in& in t"is sector. Data "as *een researc"e$ fro' t"e follo/in& /ays. 15 Pri.ar0 Researc3 ? Surve0 25 Secondar0 researc3 8 Boo+s9 .agaAines9 IRDA :ourna-s9 Ne,s1a1ers9 Internet5

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O6:ectives 6e3ind t3e 1ro:ect: ? 1@ +o &et an insi&"t of "o/ a$(ertisin& *oost insurance sector. 2@ +o 'a!e an co'7arati(e analysis of I%I%I 7ru$ential & HD3% Stan$ar$ life insurance 3@ A sur(ey "as *een $one to i$entify t"at "as o(er a$(ertise'ent ero$e$ *ran$ calle$5 <HD3% stan$ar$ life insurance.D

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Introduction
S.i-e 1-ease9 t3is is an insurance ad
D9SPI+9 &ro/in& a$ s7en$s5 t"e insurance sector "as lar&ely stuc! to i'a&es of "a77y fa'ilies5 carefree cou7les an$ cute *a*ies. But at least t/o 7layers in life insurance A +ataAAI; an$ AllianBABa4a4 A "a(e *uc!e$ t"e tren$ an$ are ta!in& a /itty5 al'ost co'ical5 route to tout t"eir 7ro$ucts. +ataAAI;Fs 7rint ca'7ai&n for )ir(ana5 its 7ensions 7olicy5 "as *ri&"tly coloure$ illustrations an$ con(eys t"e t"ou&"t t"at /"ile ot"er t"in&s in life cannot *e &uarantee$ A li!e *eco'in& %90 A t"e 7olicy &uarantees a 1# 7er cent a$$ition on t"e su' assure$. +"e 7olicy /as launc"e$ in Ganuary across 12 cities5 an$ t"e first 7"ase of t"e a$ ca'7ai&n5 /it" 72 cc 7rint a$s an$ out$oor in !ey cities5 /ill run till Gune. Since t"is co''unication /as ai'e$ at /or!in& 7eo7le in t"e a&e &rou7 of 3#A4# years5 it /as necessary to s7ea! in a tone an$ lan&ua&e t"ey /oul$ e'7at"ise /it" t"e co''unication "a$ to *e 'o$ern5 youn&5 a77roac"a*le5 an$ yet con(ey t"e serious 7ro$uct offerin&. +ataAAI; /as a'on& t"e first to launc" a 7ro$uct /it" a $istinct >SP A a &uarantee$ 1# 7er cent *onus5 1# years fro' t"e co''ence'ent of t"e 7olicy. +"e *ran$ na'e e'anate$ fro' t"is >SP5 "e a$$e$. It is a 7ro$uct t"at allo/s t"e consu'er to *e in co'7lete 7eace of 'in$ a*out "is retire'ent A "ence5 t"e na'e )ir(ana. +"e c"allen&e for us /as to e:7lo$e t"is >SP5 an$ create a $istinct 7ersonality for t"e 7ro$uct. 8ast year5 t"e insurance sector s7ent a little un$er Rs 2## crore on a$(ertisin&5 accountin& for a*out a fourt" of financial ser(ices a$(ertisin&5 accor$in& to +A /it" 8ife Insurance %or7oration to77in& t"e list of a$(ertisers. e$ia Researc". 8ife insurance 7ro$ucts accounte$ for a*out EE 7er cent of o(erall insurance a$ s7en$5

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AllianBABa4a4 "as 7lu'7e$ for a 'ore inAyourAface a77roac"5 al*eit /it" a "u'orous tone A se(en 7rint a$s 7resent (arious 7ro$ucts fro' t"e 7ortfolio an$ use $ifferent Hlife trut"sH to $ri(e "o'e t"eir *enefits. +"e 7ro'ise A IAllianB Ba4a4 "el7s you lau&" t"rou&" life *y re'o(in& your /orriesF A is reinforce$ *y t"e assurance t"at t"e 7ro$ucts I&i(e you 'ore lau&" lines t"an /orry linesF5 an$ t"e ta&line A IHas!e 4eeyo yaarF ?lau&" an$ li(e@. %ontract A$(ertisin& create$ t"e ca'7ai&n. A$(ertisin& in t"e insurance sector is not at a (ery $e(elo7e$ sta&e A itFs al/ays *een (ery e'otional or 'us"y

1#

Part I
Insurance sector

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Insurance sector
By any yar$stic!5 In$ia5 /it" a*out 2## 'illion 'i$$le class "ouse"ol$s5 7resents a "u&e unta77e$ 7otential for 7layers in t"e insurance in$ustry. Saturation of 'ar!ets in 'any $e(elo7e$ econo'ies "as 'a$e t"e In$ian 'ar!et e(en 'ore attracti(e for &lo*al insurance 'a4ors. 6it" t"e 7er ca7ita inco'e in In$ia e:7ecte$ to &ro/ at o(er 6J for t"e ne:t 1# years an$ /it" i'7ro(e'ent in a/areness le(els5 t"e $e'an$ for insurance is e:7ecte$ to &ro/ at an attracti(e rate in In$ia. An in$e7en$ent consultin& co'7any5 +"e Rs.1##3 *illion *y 2##E ?a co'7oun$e$ annual &ro/t" of 16.2J@3. Insurance *usiness "as a 7ositi(e correlation /it" econo'ic $e(elo7'ent in an econo'y. As an econo'y $e(elo7s o(er t"e years5 insurance sector starts 'a!in& inroa$s into t"e interiors of t"e syste'. ost of t"e ti'es5 insurance *e&ins /it" t"e life insurance an$ &ra$ually s7rea$s to t"e fiel$ of &eneral insurance. 9(ery for/ar$Aloo!in& 7erson /oul$ in(aria*ly "a(e "isK"er life insurance $one. 9(en in a country li!e In$ia5 it is "ar$ to *elie(e t"at any a$ult 7erson li(in& in to/ns /oul$ not "a(e life insurance $one an$ t"e conce7t is 7ic!in& u7 e(en in t"e rural areas. In ot"er /or$s5 t"e life insurance 'ar!et in In$ia is as lar&e as its 7o7ulation. onitor ;rou7 "as esti'ate$ t"at t"e life insurance 'ar!et /ill &ro/ fro' Rs.21E *illion in 199E to

+"ere is no $ou*t t"at t"e li*eraliBe$ life insurance in$ustry is *oo'in&C an$ li*eraliBation of t"e life insurance 'ar!et "as so far 7ro(e$ to *e a &reat success. )e/ 8ife *usiness is &ro/in& at 32 7er cent5 an$ in(este$ fun$s "a(e &ro/n $ra'atically *y a*out Rs. 9#5### crore in 2##3A#4 to touc" a*out Rs. 352#5### crore. In$ia /it" a*out 2## 'illion 'i$$le class "ouse"ol$ s"o/s a "u&e unta77e$ 7otential for 7layers in t"e insurance in$ustry. 6it" suc" a lar&e In$ian 7o7ulation an$ t"e unta77e$ 'ar!et area of t"is 7o7ulation Insurance "a77ens to *e a (ery *i& o77ortunity in In$ia. +o$ay it stan$s as a *usiness &ro/in& at t"e rate of 12A2# 7er cent annually. +o&et"er 12

/it" *an!in& ser(ices5 it a$$s a*out 7 7er cent to t"e countries ;DP .In s7ite of all t"is &ro/t" t"e statistics of t"e 7enetration of t"e insurance in t"e country is (ery 7oor. )early E#J of In$ian 7o7ulations are /it"out 8ife insurance co(er an$ t"e Healt" insurance. +"is is an in$icator t"at &ro/t" 7otential for t"e insurance sector is i''ense in In$ia. I"E INSURERS
Pu6-ic Sector
8ife Insurance %or7oration of In$ia

Private Sector
AllianB Ba4a4 8ife Insurance %o'7any 8i'ite$ Birla SunA8ife Insurance %o'7any 8i'ite$ HD3% Stan$ar$ 8ife Insurance %o. 8i'ite$ I%I%I Pru$ential 8ife Insurance %o. 8i'ite$ I); Lysya 8ife Insurance %o'7any 8i'ite$ a: )e/ ,or! 8ife Insurance %o. 8i'ite$ et8ife Insurance %o'7any 8i'ite$ 0' .ota! a"in$ra 8ife Insurance %o. 8t$. SBI 8ife Insurance %o'7any 8i'ite$ +A+A AI; 8ife Insurance %o'7any 8i'ite$ A P San'ar Assurance %o'7any 8i'ite$ Da*ur %;> 8ife Insurance %o. P(t. 8i'ite$

*ENERA INSURERS
Pu6-ic Sector
)ational Insurance %o'7any 8i'ite$ )e/ In$ia Assurance %o'7any 8i'ite$ 0riental Insurance %o'7any 8i'ite$ >nite$ In$ia Insurance %o'7any 8i'ite$

Private Sector
Ba4a4 AllianB ;eneral Insurance %o. 8i'ite$ I%I%I 8o'*ar$ ;eneral Insurance %o. 8t$. I33%0A+o!io ;eneral Insurance %o. 8t$. Reliance ;eneral Insurance %o. 8i'ite$ Royal Sun$ara' Alliance Insurance %o. 8t$. +A+A AI; ;eneral Insurance %o. 8i'ite$ %"ola'an$ala' ;eneral Insurance %o. 8t$. 9:7ort %re$it ;uarantee %or7oration HD3% %"u** ;eneral Insurance %o. 8t$.

+"e insurance in$ustry is Muite $i(erse in ter's of 7ortfolio of 7ro$ucts 7ro(i$e$ *y $ifferent co'7anies. +"e 7ro$ucts can *e *roa$ly classifie$ into t/o 7ro$uct lines1 1. Pro7erty an$ casualty ?P&%@ 2. 8ife insurance.

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8ife insurance 7ro$uct line can *e furt"er su*A$i(i$e$ into life insurance5 "ealt" insurance an$ annuity 7ro$ucts. ;ro/in& consoli$ation an$ c"an&e in t"e re&ulatory fra'e/or! "as le$ 'any insurers to A$$ ne/ 7ro$ucts to t"eir 7ortfolio. +"is 7resents its o/n uniMue c"allen&e to t"e insurer In le(era&in& its &reatest asset A $ata.

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Brie2 !istor0
+"e ori&in of insurance is (ery ol$ .+"e ti'e /"en /e /ere not e(en *ornC 'an "as sou&"t so'e sort of 7rotection fro' t"e un7re$icta*le cala'ities of t"e nature. +"e *asic ur&e in 'an to secure "i'self a&ainst any for' of ris! an$ uncertainty le$ to t"e ori&in of Insurance. +"e insurance ca'e to In$ia fro' >.C /it" t"e esta*lis"'ent of t"e 0riental 8ife insurance %or7oration in 1E1E.+"e In$ian life insurance co'7any act 1912 /as t"e first statutory *o$y t"at starte$ to re&ulate t"e life insurance *usiness in In$ia. By 1926 a*out 124 In$ian5 16 forei&n an$ 72 7ro(i$ent fir's /ere *een esta*lis"e$ in In$ia. +"en t"e central &o(ern'ent too! o(er t"ese co'7anies an$ as a result t"e 8I% /as for'e$. Since t"en 8I% "as /or!e$ to/ar$s s7rea$in& life insurance an$ *uil$in& a /i$e net/or! across t"e len&t" an$ t"e *reat" of t"e country. After t"e li*eraliBation t"e entrance of forei&n 7layers "as a$$e$ to t"e co'7etition in t"e 'ar!et.

+"e ;eneral insurance *usiness in In$ia5 on t"e ot"er "an$5 can trace its roots to t"e +riton Insurance %o'7any 8t$.5 t"e first &eneral insurance co'7any esta*lis"e$ in t"e year 1E2# in %alcutta *y t"e Britis". In 1927 ;eneral Insurance %ouncil5 a /in& of t"e Insurance Association of In$ia5 fra'es a co$e of con$uct for ensurin& fair con$uct an$ soun$ *usiness 7ractices. In 1972 +"e ;eneral Insurance Business ?)ationaliBation@ Act5 1972 nationaliBe$ t"e &eneral insurance *usiness in In$ia /it" effect fro' 1st Ganuary 1973. It /as after t"is t"at 1#7 insurers a'al&a'ate$ an$ &rou7e$ into four co'7anies (iB. t"e )ational Insurance %o'7any 8t$.5 t"e )e/ In$ia Assurance %o'7any 8t$.5 t"e 0riental Insurance %o'7any 8t$. an$ t"e >nite$ In$ia Insurance %o'7any 8t$. ;I% incor7orate$ as a co'7any.

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Insurance Sector Re2or.s
In 19935 ). al"otra %o''ittee5 "ea$e$ *y for'er 3inance Secretary an$ RBI ;o(ernor R. al"otra5 /as for'e$ to e(aluate t"e In$ian insurance in$ustry an$ reco''en$ its future $irection. +"e al"otra co''ittee /as set u7 /it" t"e o*4ecti(e of co'7le'entin& t"e refor's

initiate$ in t"e financial sector. +"e refor's /ere ai'e$ at Dcreating a .ore e22icient and co.1etitive 2inancia- s0ste. suita6-e 2or t3e re<uire.ents o2 t3e econo.0 +ee1ing in .ind t3e structura- c3anges current-0 under,a0 and recognising t3at insurance is an i.1ortant 1art o2 t3e overa-- 2inancia- s0ste. ,3ere it ,as necessar0 to address t3e need 2or si.i-ar re2or.sC/ In 19945 t"e co''ittee su*'itte$ t"e re7ort an$ so'e of t"e !ey reco''en$ations Inclu$e$1

15 Structure
;o(ern'ent sta!e in t"e insurance %o'7anies to *e *rou&"t $o/n to 2#J ;o(ern'ent s"oul$ ta!e o(er t"e "ol$in&s of ;I% an$ its su*si$iaries so t"at t"ese su*si$iaries can act as in$e7en$ent cor7orations All t"e insurance co'7anies s"oul$ *e &i(en &reater free$o' to o7erate

25 Co.1etition
Pri(ate %o'7anies /it" a 'ini'u' 7ai$ u7 ca7ital of Rs.1*n s"oul$ *e allo/e$ to enter t"e in$ustry )o %o'7any s"oul$ $eal in *ot" 8ife an$ ;eneral Insurance t"rou&" a sin&le 9ntity 3orei&n co'7anies 'ay *e allo/e$ to enter t"e in$ustry in colla*oration /it" t"e $o'estic co'7anies Postal 8ife Insurance s"oul$ *e allo/e$ to o7erate in t"e rural 'ar!et 0nly one State 8e(el 8ife Insurance %o'7any s"oul$ *e allo/e$ to o7erate in 9ac" state

16

35 Regu-ator0 Bod0
+"e Insurance Act s"oul$ *e c"an&e$ An Insurance Re&ulatory *o$y s"oul$ *e set u7 %ontroller of Insurance ?%urrently a 7art fro' t"e 3inance 'a$e in$e7en$ent inistry@ s"oul$ *e

#5 Invest.ents
an$atory In(est'ents of 8I% 8ife 3un$ in &o(ern'ent securities to *e re$uce$ fro' 72J to 2#J ;I% an$ its su*si$iaries are not to "ol$ 'ore t"an 2J in any co'7any ?+"ere current "ol$in&s to *e *rou&"t $o/n to t"is le(el o(er a 7erio$ of ti'e@

E5 Custo.er Service
8I% s"oul$ 7ay interest on $elays in 7ay'ents *eyon$ 3# $ays Insurance co'7anies 'ust *e encoura&e$ to set u7 unit lin!e$ 7ension 7lans %o'7uterisation of o7erations an$ u7$atin& of tec"nolo&y to *e carrie$ out in t"e insurance in$ustry +"e co''ittee e'7"asise$ t"at in or$er to i'7ro(e t"e custo'er ser(ices an$ increase t"e co(era&e of t"e insurance in$ustry s"oul$ *e o7ene$ u7 to co'7etition. But at t"e sa'e ti'e5 t"e co''ittee felt t"e nee$ to e:ercise caution as any failure on t"e 7art of ne/ 7layers coul$ ruin t"e 7u*lic confi$ence in t"e in$ustry. Hence5 it /as $eci$e$ to allo/ co'7etition in a li'ite$ /ay *y sti7ulatin& t"e 'ini'u' ca7ital reMuire'ent of Rs.1## crores. +"e co''ittee felt t"e nee$ to 7ro(i$e &reater autono'y to insurance co'7anies in or$er to i'7ro(e t"eir 7erfor'ance an$ ena*le t"e' to act as in$e7en$ent co'7anies /it" econo'ic 'oti(es. 3or t"is 7ur7ose5 it "a$ 7ro7ose$ settin& u7 an in$e7en$ent re&ulatory *o$y.

17

T3e Insurance Regu-ator0 and Deve-o1.ent Aut3orit0
Refor's in t"e Insurance sector /ere initiate$ /it" t"e 7assa&e of t"e IRDA Bill in Parlia'ent in Dece'*er 1999. +"e IRDA since its incor7oration as a statutory *o$y in A7ril 2### "as fasti$iously stuc! to its sc"e$ule of fra'in& re&ulations an$ re&isterin& t"e 7ri(ate sector insurance co'7anies. +"e ot"er $ecisions ta!en si'ultaneously to 7ro(i$e t"e su77ortin& syste's to t"e insurance sector an$ in 7articular t"e life insurance co'7anies /as t"e launc" of t"e IRDA-s online ser(ice for issue an$ rene/al of licenses to a&ents. +"e a77ro(al of institutions for i'7artin& trainin& to a&ents "as also ensure$ t"at t"e insurance co'7anies /oul$ "a(e a traine$ /or!force of insurance a&ents in 7lace to sell t"eir 7ro$ucts5 /"ic" are e:7ecte$ to *e intro$uce$ *y early ne:t year. Since *ein& set u7 as an in$e7en$ent statutory *o$y t"e IRDA "as 7ut in a fra'e/or! of &lo*ally co'7ati*le re&ulations. In t"e 7ri(ate sector 12 life insurance an$ 6 &eneral insurance co'7anies "a(e *een re&istere$.

1E

P-a0ers F )ar+et s3ares
Refor's /ere initiate$ /it" t"e 7assa&e of Insurance Re&ulatory an$ De(elo7'ent Aut"ority ?IRDA@ Bill in 1999. IRDA /as set u7 as an in$e7en$ent re&ulatory aut"ority5 /"ic" "as 7ut in 7lace re&ulations in line /it" &lo*al nor's. So far in t"e 7ri(ate sector5 12 life insurance co'7anies an$ 9 &eneral insurance co'7anies "a(e *een re&istere$.

Insurance Penetration in di22erent countries

+"e intro$uction of 7ri(ate 7layers in t"e in$ustry "as a$$e$ to t"e colors in t"e $ull in$ustry. +"e initiati(es ta!en *y t"e 7ri(ate 7layers are (ery co'7etiti(e an$ "a(e &i(en i''ense co'7etition to t"e on ti'e 'ono7oly of t"e 'ar!et 8I%. Since t"e a$(ent of t"e 7ri(ate 7layers in t"e 'ar!et t"e in$ustry "as seen ne/ an$ inno(ati(e ste7s ta!en *y t"e 7layers in t"is sector. +"e ne/ 7layers "a(e i'7ro(e$ t"e ser(ice Muality of t"e insurance. As a result 8I% $o/n t"e years "a(e seen t"e $eclinin& 7"ase in its carrer. +"e 'ar!et s"are /as $istri*ute$ a'on& t"e 7ri(ate 7layers. +"ou&" 8I% still "ol$s t"e 72J of t"e insurance sector *ut t"e u7co'in& natures of t"ese 7ri(ate 7layers are enou&" to &i(e 'ore co'7etition to 8I% in t"e near future. 8I% 'ar!et s"are "as $ecrease$ fro' 92J ?2##2A#3@ to E1 J? 2##2A#6@. +"e follo/in& co'7any "as t"e rest of t"e 'ar!et s"are of t"e insurance in$ustry.

19

Insurance industr0 in "0 2GGH?GI

2#

Part 2 Advertising 6oosting insurance sector

21

Introduction
Advertising in insurance +"e insurance sector s7ent aroun$ Rs 1.E *illion on a$(ertisin& . +"e In$ian a$ fraternity is sli&"tly $isa77ointe$ as e(eryone "a$ consi$ere$ t"e sector to *e t"e ne:t sunrise in$ustry /"ic" /oul$ e:7an$ t"e $eclinin& a$ 7ie. 07ti'ists 'a$e &rossly inflate$ clai's a*out t"e a$ s7en$ of 7ri(ate insurance co'7anies. But5 conser(atis' "as *een t"e na'e of t"e &a'e for all t"e e:istin& an$ ne/ 7layers /"o launc"e$ t"eir ser(ices A 8I%5 I%I%I Pru$ential 8ife5 Birla Sun 8ife5 Ba4a4 AllianB5 I); Lysya5 SBI 8ife5 HD3% Stan$ar$ 8ife5 +ata AI; a'on&st ot"ers. Insurance5 /"ic" /as "eral$e$ as t"e Fsun riseF sector $i$nFt really li(e u7to e:7ectations. Peo7le /ere tal!in& of s7en$s in t"e re&ion of Rs 2 *illion. A$ s7en$s of insurance co'7anies "a(e *een curtaile$ $ue to t"e fact t"at all t"e 7ri(ate insurers "a(e *een (ery ri&i$ in ter's of a$"erin& to t"e Ir$a ?Insurance Re&ulatory an$ De(elo7'ent Aut"ority@ &ui$elines in ter's of creati(es an$ forei&n e:c"an&e nor's. In t"e case of se(eral satellite c"annels5 anot"er issue is relate$ to t"e fact t"at 7ay'ents "a(e to *e 'a$e in $ollars. Ho/e(er5 t"e fact of t"e 'atter is t"at t"e *i&&est $o'estic 7layer 8I% ?8ife Insurance %or7oration of In$ia@ u77e$ its a$ s7en$ to tac!le co'7etition an$ succee$e$ in for&in& /ay a"ea$. 8I% "as a$(ertise$ in satellite c"annels as /ell as terrestrial c"annels. 8I% "as to reac" out to nonAresi$ent In$ia 7olicy "ol$ers as /ell as its ot"er cor7orate custo'ers /"o are *ase$ a*roa$. Ho/e(er5 t"e !ey is to /or! /it"in t"e 7ara'eters clearly $efine$ *y t"e Ir$a I%I%I Pru$ential 8ife Insurance /"ic" "as sol$ 3##5### 7olicies an$ crosse$ t"e Rs 2 *illion 7re'iu' 'ar! "as a$(ertise$ on se(eral c"annels fro' t"e Star +L *ouMuet5 Nee )et/or! an$ Sony. +"ey "a(e s7ent a*out Rs 2# 'illion on +L a$(ertisin& last year. +"ere are no Ir$a restrictions on insurance co'7anies a$(ertisin& on satellite c"annels.

22

6"at is interestin& is t"e fact t"at insurance co'7anies "a(e realise$ t"at +L can &i(e t"e' tre'en$ous 'ilea&e. 6it" t"e &eo&ra7"ical e:7ansion5 +L *eca'e a (ia*le 'e$iu' an$ t"e cor7orate ca'7ai&n for I%I%I Pru 8ife /as run on +L5 *ecause t"e 'e$iu' len$s itself /ell to an e'otional ty7e of fil's t"at stri!e a c"or$ /it" t"e au$ience. Pro$uct a$(ertisin&5 /"ic" nee$s to i'7art infor'ation5 /as lar&ely $one t"rou&" 7rint an$ out$oor c"annels5 as t"ese are a77ro7riate for rational ty7e of 'essa&es. +"e a$(ertisin& i$ea /"ic" /as enca7sulate$ in sy'*ols of 7rotection fro' t"e initial 7rint ca'7ai&n5 cul'inate$ in t"e cor7orate fil' /"ere sindhoor /as use$ as an en$earin& an$ lastin& sy'*ol of 7rotection. I%I%I Pru$ential 8ife Insurance states t"at t"e ca'7ai&n contri*ute$ e:tensi(ely to raisin& *ran$ a/areness of t"e co'7any an$ /as s"ortAliste$ as one of t"e 12 'ost effecti(e ca'7ai&ns for t"e year 2##1 in t"e 933I9 a/ar$s. Accor$in& to an 0R; AR; stu$y5 t"e I%I%I Pru$ential *ran$ na'e an$ a$(ertisin& "a$ t"e "i&"est recall a'on&st all 7ri(ate 7layers5 an$ /as only 'ar&inally *e"in$ 8I%. I%I%I Pru$ential 8ife Insurance first *e&an o7erations5 t"e tas! /as to 7resent t"e (isitin& car$ of t"e co'7any to t"e 7u*lic at lar&e an$ *uil$ cre$i*ility an$ stature an$ to &i(e t"e consu'er t"e confi$ence t"at F"ere /as a co'7any t"at coul$ *e truste$ to in(est fun$s /it". +"is reMuire$ a cor7orate ca'7ai&n5 /"ic" starte$ /it" a$(ertisin& to esta*lis" t"e *ran$5 *uil$ a/areness an$ &i(e t"e *ran$ a lar&er t"an life i'a&e. 8o/e ?8intas@ "as *een t"e creati(e a$(ertisin& a&ency for I%I%I Pru$ential 8ife since t"e *e&innin& an$ "a(e stuc! to t"e strate&y. It loo!s as if t"e a$ s7en$ /ill $efinitely rise *ut not 7"eno'enally. ost of t"e ne/

7layers "a(e finis"e$ t"e intro$uction 7"aseC an$ are no/ 'a!in& a *i$ to eat into t"e s"are of 8I% as /ell as e:7an$ t"e 'ar!et /it" ne/ 7ro$ucts. 9:7erts say t"at t"e s7en$

23

/ill increase /"en 7ension 7ro$ucts5 &rou7 insurance 7ro$ucts an$ "ealt" insurance 7ro$ucts are launc"e$. Also5 t"e nonAlife 7layers "a(enFt really 'a$e a *i& "ue an$ cry as yet. 8I% reacte$ *rilliantly an$ 7ut its act to&et"er Muic!ly. +"e 'ar!et actually e:7an$e$ an$ t"e increase$ HnoiseH create$ *y t"e 7ri(ate 7layers *enefite$ 8I%. 0ne 'ust re'e'*er t"at a$ s7en$s $ecrease in t"e case of a 'ar!et e:7ansion scenario an$ increase /"en one "as to &ra* t"e s"are of ot"er co'7etitors. Interestin& *attle see's to *e on t"e car$s *ut it is $ifficult to say /"et"er t"e a$ in$ustry *enefit in ter's of increase$ s7en$s.

24

Insurance ads changing norms
Once upon a time, Indians were put off by insurance advertising, as gloomy visuals reminded them of the impending demise or accident of their loved ones. Those who did, insured themselves as a ‘savings’ mechanism, which would either help them in their old age or provide for the family in case of their untimely demise. The insurance agents were the perceived Yamdoots and life insurance policies, gloomy prophecies.

Cut to

!!" and the insurance scenario in the country is anything

but gloomy. #ar$ed by the entry of private players’ post% !!!, India’s insurance industry has moved into e&citing and thrilling times. 'rom being a state%owned white elephant, the insurance sector in the country now accounts for (!%()* of India’s total financial sector, where over a do+en ,ife Insurance and -on%,ife Insurance Companies are fighting it out to woo the consumer. The opening up of the sector has lured many a foreign players into the mar$et li$e .un ,ife /Canada0, Old #utual /.. 1frica0, 2rudential /340, -ew Yor$ ,ife /3.10 and others. The carrot of course, is the huge potential that the sector holds5 6efore (77(, life insurance penetration in India was less than (*8 during the 7!s it was between (% *, while in penetration had crossed !!9%!: /the last available figures0, insurance .:*. 1pply that to a country of over a billion people and you

realise why global players are eyeing India.

This untapped potential is pushing insurance ma;ors thin$ of innovative ways to rope in more customers. This wooing is eminently visible in the evolving advertising and branding strategies of insurance ma;ors. <one are the dull days of drab ads, when promising a secure life for the policy holders’ family after his=her demise was a successful formula for insurance companies. -ow, li$e other financial services, the focus is shifting to guaranteed returns on insurance policies. 1nd companies are discovering innovative and original plans for publishing their slew of insurance products and are going the whole mar$eting hog /complete with designated brand managers0 to overhaul the image of the sector.

22

The Advertising Buzz
>alleluiah? so, the ‘savings’ compulsion of yesteryears has made a dramatic metamorphosis into a sound ‘investment’ decision today@ 1nd what better way to cash in on the newfound identity than via advertisements and image building e&ercises. 4A .ridhar, -ational Creative Birector of ,eo 6urnett, and creator of the latest >B'C .tandard ,ife Insurance ad ‘.ar utha $e ;iyo’ says, “Earlier insurance, advertising was curbed because we could not communicate any negative aspects like death and accidents. But o late, there has been a change in perception. !hile a "# year old guy may still get sentimental be ore taking a policy, the $%&something younger generation is absolutely com ortable with insurance.'

2rivate players li$e ICICI 2rudential ,ife, >B'C .tandard ,ife, 1llian+ 6a;a; and #a& -ew Yor$ ,ife have radically changed the business eCuation in the life Insurance segment, whereas I''CO%TO4IO, Tata%1I< and ICICI ,ombard have set a new trend for general insurance in the country. These private players no longer eCuate ‘insurance’ with ‘wealth that you get when you die’. If >B'C .tandard ,ife’s advertising message teaches the consumer to live a life with pride and dignity, ICICI 2rudential ,ife opens doors to a slew of need%based Insurance options. .pea$ing about the basic though process behind their service, .an;ay Tripathy, >ead #ar$eting, >B'C .tandard ,ife says, “!e have success ully di erentiated our brand on the bene it o through putting their )best service* oot inancial independence and sel &respect.' (urther, insurance companies brand their service, not only orward, but also by educating the customers* about the )investment* bene its o their policies.

-ot to be left behind and realising the need to be different in offering more need%based services, even <eneral Insurance players have ;umped into the fray. -ew genres of <eneral Insurance companies are helping millions live their life with ease without getting worried about petty stuff li$e theft, accident, fire and travel ha+ards.

A !ake up +all, +"e frenBie$ e:cite'ent "as e(en cau&"t on /it" stateAo/ne$ *e"e'ot"s li!e 8I%. In lac! of co'7etition5 8I% /ent on to *eco'e t"e lar&est life insurance co'7any of In$ia ri$in& on $ull5 (isually unattracti(e a$(ertisin& an$ *orin& 'essa&es. +"e sa'e 8I% to$ay ?in t"e face of co'7etition@ re7orte$ly s7en$s 'illions on conte'7orary an$ catc"y

26

a$(ertisin&. At last count5 8I% to77e$ 8ife Insurance a$(ertisin& on tele(ision a'on& all ot"er 7layers in t"e country /it" a /"oo7in& 27J a$ s"are in 2##4. 9(en 8I%-s co''unication "as 'ature$ /it" ti'e. Recall 8I%-s Nin&a$i !e saat" *"i Nin$a&i !e *aa$ *"i ?/it" you in life an$ e(en after@ ca'7ai&nO 0r t"e one /"ere a $otin& fat"er says of "is little &irl5 <I fulfill all "er nee$s so t"at s"e can stan$ on "er feet5D /"ile fillin& out a c"ec! for "is 8I% 7ension 7re'iu' an$ $rea's of en4oyin& "is ol$ a&eO It-s no 'ore a*out $eat" an$ $estruction5 *ut a*out life an$ li(in& "a77ilyP +"e 7u*lic sector insurance &iant is no 'ore ta!in& its nu'ero uno 7osition as &rante$. It "as ta!en for/ar$ its *ran$in& e:ercise *y s7onsorin& t"e Nee %ine A/ar$s recently in auritius. o(in& furt"er5 e(en State Ban! of In$ia-s ?SBI@ ca'7ai&n for its insurance ar' Q SBI 8ife Q is not"in& s"ort of *rilliant an$ "as e(en &one on to 7oc!et t"e sil(er for t"e 2##6 A**y A/ar$s. +"e co''ercial $e7icts t/o el$erly sisters in a train &oin& to 'eet t"eir youn&er *rot"er. As it "a77ens5 t"e *rot"er also turns out to *e a senior citiBen an$ t"ey tra(el all t"e /ay to /is" "i' Ha77y Birt"$ay. 3or t"e (ie/er5 t"e i'7act an$ si'7licity of t"e co''ercial is a/eso'e5 /"ile 7oi&nantly $e7ictin& as7irational /"oleso'e li(in& at an ol$ a&e. Accor$in& to Piyus" Pan$ey5 %"air'an of 0& In$ia5 /"o concei(e$ t"e SBI co''ercial5 DOur ta+e is t3at t3is -i2e insurance s3ou-d 6e a-- a6out t3e ,onder2u- -i2e t3at 0ou -ead no .atter 3o, o-d 0ou gro,5 It4s not :ust a6out res1onsi6i-ities9 it is e<ua--0 a6out creating a 3ea-t30 -i2e and environ.ent5/ As insurance 'o(es out of stereoty7es an$ 7osition itself as a co'7etiti(e Rin(est'ent o7tions-5 t"e ener&y is s7icin& u7 t"e a$(ertisin& co''unication 'ar!et in t"e cate&ory. )o 'atter /"o /ins t"e insurance race5 t"e aa' 4unta "as /elco'e$ t"e ne/Aloo! insurance 7olicy /it" o7en ar's an$ a s/in& t"eir &ait.

27

C3anging Advertising F Pro.otion Nor.s
“Instead of pushing policies down the throat we educate the customer and offer guidance on how much insurance the individual needs, an approach that is slowly paying off.” + 2 !ri(ate insurance ad(isor, in 8001)) "ORCED TO SE 'E J

In Guly 2##25 In$ia-s state o/ne$ insurer5 8ife Insurance %or7oration of In$ia ?8I%@ announce$ a&&ressi(e 'ar!etin& 7lans /it" a *u$&et of aroun$ Rs 1 *illion. +"e ai' of t"is unusual $ecision /as to /oo custo'ers across t"e country t"rou&" a 'ulti'e$ia ca'7ai&n inclu$in& a$(ertise'ents on t"e ra$io an$ t"e 7ress 'e$ia5 t"e out$oor 'e$ia an$ t"e tele(ision. Ho/e(er5 t"is $i$ not co'e as a 'a4or sur7rise to in$ustry o*ser(ers /"o sai$ t"at 8I% $i$ not "a(e too 'any o7tions. 6it" t"e insurance *ill *ein& 7asse$ in 2###5 t"e In$ian insurance sector sa/ a "ost of 7ri(ate 7layers enter t"e 'ar!et /it" 'ultinationals as t"eir 7artners. +"ese ne/ 7layers resorte$ to a&&ressi(e 'ar!etin& an$ a$(ertise'ent strate&ies Q so'et"in& t"e 'ar!et "a$ ne(er seen earlier. +"is su$$en s7urt of a$(ertise'ents an$ a/areness 7ro&ra's /as (isi*le on all t"e 'e$ia c"annels. Print5 electronic an$ out$oor a$(ertise'ents of t"e ne/ 7ri(ate insurers floo$e$ coul$ *e seen e(ery/"ere. +"is 7ro'7te$ 'any co'7arisons of suc" *e"a(ior of insurance co'7anies /it" t"e a$(ertisin& frenBy of t"e $otco's in In$ia not too lon& a&o Q /it" si'ilar fullA7a&e a$(ertise'ents5 "u&e "oar$in&s an$ costly electronic 'e$ia a$(ertise'ents. Accor$in& to a sur(ey con$ucte$ *y a lea$in& 'ar!etin& researc" fir'5 0R; ar&5

*ran$ a/areness of 7ri(ate insurers in In$ia /as increasin& in t"e early 21st century. +"e $ifference in t"e le(el of a/areness of t"ese ne/ 7layers as co'7are$ to t"e "it"erto

2E

'ono7oly of 8I% /as $ecreasin& fast *ecause of t"e a&&ressi(e a$(ertisin& 'easures a$o7te$ *y 7ri(ate insurers. BAC&*ROUND NOTE +"e life insurance in$ustry in In$ia $ates *ac! to 1E1E5 /"en a Britis" fir' 0riental 8ife Insurance %o'7any o7ene$ its office in .ol!ata5 follo/e$ *y Bo'*ay 8ife Assurance %o'7any in 1E23. Durin& t"e Britis" rule in In$ia5 R+"e In$ian 8ife Assurance %o'7anies Act- /as enacte$ in 19125 /"ic" /as follo/e$ *y t"e In$ian Insurance %o'7anies Act5 192E ena*lin& &o(ern'ent to collect t"e $ata re&ar$in& life an$ nonAlife *usiness con$ucte$ *y *ot" In$ian an$ forei&n insurance co'7anies. +"e 192E act /as a'en$e$ an$ a ne/ act5 RInsurance Act- /as for'e$ in 193E. By t"e 'i$A192#s5 124 In$ian insurers5 16 forei&n insurers an$ 72 7ro(i$ent societies /ere o7eratin& in t"e country. +"e life insurance *usiness /as concentrate$ in ur*an areas an$ /as confine$ to t"e "i&"er strata of t"e society. In 19265 'ana&e'ent of t"ese co'7anies /as ta!en o(er *y t"e ;o(ern'ent of In$ia. 8I% /as for'e$ in Se7te'*er 1926 t"rou&" t"e R8I% Act 1926- /it" a ca7ital of Rs 2# 'illion. 0ne of t"e 'ain o*4ecti(es of for'in& 8I% /as to s7rea$ t"e insurance co(er an$ 'a!e it a(aila*le to t"e lo/er se&'ents of t"e society. In 19725 &o(ern'ent for'e$ ;eneral Insurance %or7oration ?;I%@ /"en it too! o(er 'ana&e'ent control of 1#6 7ri(ate &eneral insurance co'7anies. 0(er t"e years5 8I% e:7an$e$ its net/or! all o(er t"e country e'er&in& as one of t"e lar&est cor7orations in In$ia. Insurance in$ustry-s &ro/t" in t"e In$ia /as 'ini'al in 196#s an$ 197#s $ue to factors li!e lo/ sa(in&s5 lo/ in(est'ent5 ina$eMuate infrastructure5 an$ illiteracy. Ho/e(er5 c"an&es in t"e econo'y in 19E#s5 suc" as &ro/t" in t"e rate of in$ustrialiBation5 infrastructure5 t"e ca7ital 'ar!ets5 sa(in&s rate an$ ca7ital for'ation resulte$ in a tre'en$ous &ro/t" in t"e life insurance in$ustry5 /"ic" in ot"er /or$s 'eant &ro/t" of 8I%. 0(er t"e years5 8I% launc"e$ se(eral sc"e'es ai'e$ at e:7an$in& its reac" in t"e rural areas. any &rou7 insurance an$ social security sc"e'es /ere starte$ *y t"e co'7any to en"ance its reac" o(er t"e rural. 8I% "a$ se(en Bonal offices5 1## $i(isional

29

offices5

25#4E

*ranc"

offices

an$

ar'y

of

a&ents

totalin&

652E5#31.

)ee$ for refor'in& t"e in$ustry /as felt in t"e earlyA199#s for 7ro(i$in& *etter co(era&e to t"e In$ians an$ to increase flo/ of lon&Ater' financial resources to finance t"e &ro/t" of infrastructure. In 19935 t"e In$ian &o(ern'ent constitute$ t"e R al"otra %o''itteeto su&&est refor's in t"e in$ustry. +"e co''ittee su*'itte$ its re7ort in 19945 /it" reco''en$ations for o7enin& t"e insurance sector to 7ri(ate 7layers5 i'7ro(in& ser(ice stan$ar$s an$ e:ten$in& insurance co(era&e to lar&er sections of t"e 7o7ulation. +"e co''ittee-s su&&estions face$ stiff o77osition fro' (arious la*or unions an$ 7olitical 7arties in t"e country. +"ey o7ine$ t"at entry of 7ri(ate 7layers /oul$ lea$ to 4o* cuts *y t"e nationaliBe$ 7layers in or$er to co'7ete /it" t"e'. +"ere /ere a "ost of ot"er ar&u'ents a&ainst t"ese refor's. +"e &o(ern'ent sou&"t to a$$ress t"e' *y restrictin& forei&n sta!e in insurance co'7anies to only 26J5 /"ic" /as /ell *elo/ 21J nee$e$ for t"e 'ana&in& t"e co'7any in t"e Insurance Bill. +"ou&" one of 8I%-s *asic o*4ecti(es /as to R7ro(i$e insurance co(er to all In$ians5insurance 7enetration in In$ia /as consi$ere$ to *e (ery lo/. Accor$in& to re7orts5 only 62 'illion 7eo7le /ere co(ere$ *y insurance. R ) G"a5 8I%-s for'er 9:ecuti(e Director co''ente$ in "is *oo!5 RInsurance in In$ia5- <Insurance co(era&e "as *een e:ten$e$ only to a*out 22J of t"e insura*le 7o7ulation in 4# years5D in$icatin& t"e "u&e unco(ere$ 'ar!et 7otential in t"e country. It /as re7orte$ t"at 7er ca7ita insurance 7re'iu' in $e(elo7e$ countries /as 'uc" "i&"er as co'7are$ to In$ia. In 19995 7er ca7ita insurance 7re'iu' in In$ia /as only SE /"ile it /as S45E## in Ga7an5 S1### in Re7u*lic of .orea5 SEE7 in Sin&a7ore5 SE23 in Hon& .on& an$ S144 in alaysia. In t"e /orl$ 'ar!et5 in ter's of &ross insurance 7re'iu' also5 In$ia-s s"are /as only #.3J5 t"ou&" 7o7ulation /ise it ran!e$ secon$ in t"e /orl$. +"e corres7on$in& fi&ures in 1999 for Ga7an /as 31J5 9uro7ean >nion 22J5 Sout" Africa 2.3J an$ %ana$a Q 1.7J. 3urt"er5 in 2##15 /"ile t"e ratio of insurance

3#

7re'iu' to t"e ;ross Do'estic Pro$uct ?;DP@ /as 9J for >. an$ Ga7an5 an$ 2J for >S5 it /as only 1.9J in In$ia. Attracte$ *y t"e "u&e unta77e$ 7otential5 'any 7ri(ate 7layers entere$ t"e 'ar!et after t"e Insurance *ill /as 7asse$ in late 2###. A 'a4ority of t"ese /ere colla*orations *et/een an In$ian co'7any an$ a lea$in& )% insuranceKfinancial ser(ices co'7any

Private 1-a0ers in t3e Indian insurance .ar+et
CO)PAN% Birla Sun 8ife 0' .ota! HD3%AStan$ar$ 8ife Royal Sun$ara' I%I%IAPru$ential a: )e/ ,or! 8ife +ataAAI; I); Lysya A(i(a et8ife In$ia Ba4a4 AllianB A P San'ar SBI 8ife Insurance INDIAN PARTNER A$itya Birla ;rou7 .ota! 3inance HD3% "OREI*N INSURER Sun 8ife5 %ana$a utual5 Sout" 8ife 8ife 8ife 8ife an$ )onA 8ife 8ife 8ife 8ife an$ )onA 8ife 8ife 8ife 8ife 8ife & )onA8ife 8ife 8ife AREA

a"in$ra 0l$

Africa Stan$ar$ 8ife5 >.

Sun$ara' 3inance Royal Sun5 >. I%I%I a: In$ia +ata ;rou7 Lysya Ban! Da*ur Ga''u .as"'ir Ban! Ba4a4 Auto San'ar ;rou7 SBI Pru$ential5 >. )e/ ,or! 8ife5 >SA AI;5 >SA I); Insurance5

)et"erlan$s %;> 8ife5 >. & et8ife5 >SA AllianB A P5 Australia %ar$iff5 3rance

Accor$in& to in$ustry o*ser(ers5 one of t"e 'ain reasons for t"e lo/ insurance 7enetration in In$ia /as t"e ineffecti(e $istri*ution an$ 'ar!etin& strate&ies a$o7te$ *y 8I%. +"e co'7any re7orte$ly ne(er "a$ any strate&ic 'ar!etin& &a'e7lan5 an$ $ue to its

31

'ono7olistic nature t"e nee$ for serious 'ar!etin& efforts /as ne(er felt. +"e a$(ertisin& initiati(es /ere li'ite$ to so'e 7rint an$ electronic 'e$ia a$(ertise'ents5 t"at ty7ically tal!e$ a*out 8I%-s 7ro$ucts *ein& &reat ta: sa(in& tool for salarie$ in$i(i$uals /"o ca'e un$er t"e inco'eAta: *rac!et. Des7ite all t"is5 8I% /as synony'ous /it" insurance in In$ia an$ it "a$ esta*lis"e$ an en(ia*le *ran$ i'a&e for itself5 es7ecially in t"e rural areas an$ s'all to/ns. Ho/e(er5 /it" t"e entry of ne/ 7layers5 t"e insurance 'ar!et c"an&e$ al'ost o(erni&"t. Analysts co''ente$ t"at t"e 7ri(ate insurers see'e$ all set to 'a!e t"e in$ustry 'ar!etin&A$ri(en5 /"erein tec"nical an$ ser(ice e:cellence /oul$ *e t"e !ey factors of success. +"e 7ri(ate co'7anies5 in a *i$ to 'a!e t"eir 7resence felt an$ t"eir *ran$ notice$5 initiate$ a series of a&&ressi(e 'ar!etin& an$ 7ro'otion initiati(es5 so'et"in& t"at *uyers of insurance /ere not accusto'e$ to. Suc" frenBy 7ro'7te$ IRDA to fra'e an a$(ertise'ent co$e for co'7anies. AD$ERTISIN* INITIATI$ES O" T!E NE' P A%ERS +"e ne/ insurance co'7anies use$ all c"annels of a$(ertisin& fro' ne/s7a7ers an$ t"e tele(ision to insurance a&ents an$ $irect 'ailers. A fierce *attle see'e$ to "a(e *e&un a'on& In$ian insurance co'7anies to 'a!e one-s o/n *ran$ /in o(er t"e ot"er. A 'a4ority of In$ian custo'ers *ein& (ery conser(ati(e an$ a(erse to ris!5 trust /as an e:tre'ely i'7ortant factor in t"e insurance *usiness. Since 8I% /as a &o(ern'ent o/ne$ *o$y5 t"ere /as an ele'ent of security e'*e$$e$ in its ser(ices an$ 7ro$ucts. +"is 7ro(e$ to *e t"e *i&&est "ur$le for t"e ne/ insurance co'7anies as In$ian custo'ers /ere re7orte$ly rat"er s!e7tical a*out t"e'. Hence5 t"e ne/ co'7anies focuse$ t"eir ca'7ai&ns 7ri'arily on *uil$in& an i'a&e of trust/ort"iness an$ relia*ility for t"e'sel(es. Secon$ly5 t"eir a$(ertise'ents focuse$ on insurance as an in(est'ent o7tion an$ not a 'ere ta: sa(in& tool Q anot"er first for t"e In$ian 'ar!et. ost of t"ese a$(ertise'ents carrie$ 'essa&es li!e t"e fa'ily-s "a77iness5 "u'an *on$in&5 etc.5 /it" un$erlyin& e'7"asis on t"e security t"at insurance coul$ 7ro(i$e. Also5 instea$ of 7ro4ectin& t"e i$ea5 t"at an insurance 7olicy actually starts /or!in& only after t"e $eat" of t"e insure$5 t"e ne/ ca'7ai&ns 7ro4ecte$ t"at insurance 7rotects 7eo7le t"rou&"out t"eir li(es.

32

In one of its +L co''ercials5 I%I%I Pru$ential s"o/e$ a series of scenes $e7ictin& t"e c"il$"oo$5 'arria&e an$ ol$ a&e of an in$i(i$ual. +"e 7ur7ose of usin& t"ese (isuals /as to translate t"e co'7any-s 'essa&e RI /ill 7rotect- into realAlife inci$ents. In or$er to 7ro4ect its co''it'ent to/ar$s consu'ers to R7rotect at e(ery sta&e of life5- t"e co'7any *rou&"t in t"e conce7t of sin$oor5 /"ic" sy'*oliBes 7rotection. Sin$oor /as s"o/n t"rou&"out t"e co''ercial as a 'ar! of aus7iciousness an$ 7rotection5 an$ at t"e en$5 it *eca'e t"e re$ line *elo/ t"e I%I%I Pru$ential lo&o a: )e/ ,or! also resorte$ to $e7ictin& 7ositi(e e'otions suc" as trust an$ 7rotection in its 7rint a$(ertise'ents. +"e co'7any release$ t/o 7rint a$(ertise'ents. 6"ile one of t"e' carrie$ an i'a&e of t"e re(ere$ $eity ;o$$ess Dur&a5 t"e ot"er 7ro4ecte$ t"ree teena&ers stan$in& to&et"er5 /it" t"eir faces 7ainte$ &reen5 /"ite an$ saffron Q li!e t"e In$ian national fla&. Re7orte$ly5 /"ic" create$ t"e a$(ertise'ents for a: )e/ ,or! /ante$ to con(ey t"e 'essa&e t"at a: )e/ ,or! Q sai$5 <6e "a$ to *rea! t"e clutter5 a: )e/ ,or! 8ife also carrie$ out an Rinsurance is your 7artner for your life.- Su"el Set" of 9Muus A$(ertisin& t"e a$ a&ency5 as insurance as a cate&ory "as lar&ely co''unicate$ $oo' an$ fear. +"erefore5 t"e ca'7ai&n lent itself *etter to an e'otional route.D e:tensi(e out$oor 'e$ia ca'7ai&n across t"e country5 focusin& on RIn$iaAs7ecifici'a&es suc" as tra$itional /restlers an$ (illa&e 7eo7le. In a$$ition to suc" +L co''ercials5 t"e 7ri(ate insurance co'7anies /ere tryin& to 'a!e t"eir 7resence felt *y or&aniBin& *loo$ $onation ca'7s5 contests an$ s7onsorin& (arious e(ents. I); Lysya tie$ u7 /it" lea$in& >SA*ase$ %olu'*ia Picture-s In$ian ar' to carry out 7ro'otional acti(ities usin& t"e *loc!*uster 9n&lis" 'o(ie RS7i$er'an.- In t"e 'etros5 I); Lysya $istri*ute$ free 'o(ie tic!ets to its custo'ers. A si'ilar e:ercise /as carrie$ out for anot"er 9n&lis" 'o(ie R itr- ?3rien$@. Re7orte$ly5 %olu'*ia Pictures an$ I); Lysya "a$ 7lanne$ to 4oin "an$s on a lon&Ater' *asis. +"e latter also or&aniBe$ t"e ;reen in u'*ai Dri(e an$ se(eral *loo$ $onation ca'7s in association /it" t"e Re$ %ross5 *esi$es s7onsorin& t"e action re7lay of t"e In$iaA6est In$ies cric!et 'atc" series ay 2##2 an$ also in )o(e'*er 2##2.

33

0' .ota! an$ Birla Sun 8ife too! to s7onsorin& e(ents in a 'a4or /ay5 to attract 7ros7ecti(e custo'ers. In 2##15 Birla Sun 8ife s7onsore$ a 7lay to /"ic" a fe/ %iti*an! cre$it car$ custo'ers /ere in(ite$. A co'7any official sai$5 <S7onsorin& 7lays an$ e(ents li!e t"ese &i(e us &oo$ 'ilea&e. +"ey 'ay not $irectly &i(e us lea$s to sales5 *ut certainly &i(e us *etter (isi*ility.D Accor$in& to co'7any sources5 Birla Sun life /as consi$erin& t"e s7onsors"i7 of 7re'ier s"o/s an$ offerin& tic!ets to cor7orate a&ents li!e %iti*an! an$ e'7loyees of Deutsc"e Ban!5 /"o "el7e$ in t"e sale of 7olicies. A senior co'7any official sai$5 <It is all a*out *uil$in& relations"i7s /it" our cor7orate a&ents.D 0' .ota! initially "i&"li&"te$ in its a$(ertise'ents t"e cre$i*ility an$ trust/ort"iness of in$i(i$ual 7artners ?0l$ utual & .ota! a"in$ra@ t"rou&" its &eneric ca'7ai&ns. +"e +L co''ercials feature$ 'en an$ /o'en R'eetin&- t"e'sel(es in t"e future Q "a77y5 "ealt"y an$ secure5 t"an!s to insurance. In early 2##25 co'7any also launc"e$ 7ro$uct Q s7ecific ca'7ai&ns. 0' .ota! /as also consi$erin& su*A*ran$in& of 7ro$ucts. AllianB Ba4a4 /ent a ste7 a"ea$. A7art fro' *rin&in& out +L co''ercials an$ 7uttin& u7 "oar$in& an$ *ill*oar$s5 it entere$ into a t/oA'ont" lon& contract /it" S"o77ers Sto7. Accor$in& to t"e contract5 e(ery S"o77ers Sto7 outlet "a$ an AllianB Ba4a4 !ios! t"at 7ro(i$e$ infor'ation a*out 7olicies in or$er to attract custo'ers. Accor$in& to co'7any sources5 its 7lans /ere to try any !in$ of acti(ity t"at /oul$ &enerate a/areness a*out co'7any an$ its 7olicies an$ Rlea$s- ?interest *y a 7ros7ecti(e custo'er@ an$ con(ertin& t"e sa'e into its custo'ers. AllianB Ba4a4-s entire co''unication 7ac!a&e inclu$e$ 7rint a$(ertise'ents5 out$oor 'e$ia ca'7ai&ns an$ $irect 'ar!etin& 'et"o$s. All its 7rint a$(ertise'ents carrie$ a (isual of "u'an "an$s5 /"ic" sy'*oliBe$ 7artners"i7 an$ care to stress on t"e conce7t of care. Si'ilarly5 +ata AI; entere$ into an a&ree'ent /it" 6estsi$e to set u7 infor'ation !ios!s in all its outlets in or$er to attract 7eo7le-s attention. Also5 +ata AI; /as one of t"e first insurance co'7anies to a$o7t t"e cele*rity en$orse'ent strate&y. +ata AI; c"ose t"e Hin$i 'o(ie star5 )aseeru$$in S"a" ?S"a"@5 as its *ran$ a'*assa$or for en$orsin& its

34

7ersonal acci$ental $eat" insurance 7olicy. Accor$in& to co'7any sources5 S"a" /as selecte$ *ecause "e "a$ t"e i'a&e of *ein& an intelli&ent an$ relia*le in$i(i$ual. Anot"er 7ri(ate insurer A P San'ar5 ro7e$ in for'er Australian cric!et ca7tain5 Ste(e 6au&" for en$orsin& its life insurance 7olicies. et8ife ca'e u7 /it" si'7le5 luci$ a$(ertise'ents t"at coul$ *e easily un$erstoo$ *y all. 0ne of its a$(ertise'ents rea$5 R6"y $oes anyone nee$ insuranceO 6ell5 /"y $oes a car nee$ a s7are tyreO- Accor$in& to analysts5 t"is a$(ertise'ent successfully 7ro4ecte$ t"e i'7ortance of insurance for an in$i(i$ual. et8ife-s a$(ertise'ents carrie$ cartoons fro' t"e 7o7ular RPeanuts- series an$ carrie$ e'otional 'essa&es. In a$$ition to all t"e a*o(e5 7ri(ate 7layers in t"e insurance sector c"arte$ out (arious inno(ati(e 'ar!etin& 7lans to esta*lis" t"eir 7ro$ucts. 3or instance5 I%I%I Pru$ential launc"e$ t"e R+ru8ife %lu*- for its "i&"A(alue 7olicy"ol$ers as 7art of its 'ar!etin& strate&y. +"rou&" +ru8ife %lu*5 t"e co'7any offere$ a /i$e ran&e of "ealt"Arelate$ 7ro$ucts5 "ealt" an$ fitness eMui7'ent an$ 'e'*ers"i7 in &y's5 "ealt" resorts an$ clinics in In$ia. Policy"ol$ers /it" a su' assure$ of Rs #.2 'illion or 'ore /ere inclu$e$ into t"is clu*. Accor$in& to co'7any sources5 t"e 7ur7ose of t"is /"ole e:ercise /as to encoura&e a "ealt"y life of its custo'ers. Durin& t"e lateA2##15 /"en SBI 8ife /as concentratin& on *uil$in& its *ran$ it /as offerin& 7ac!a&e$ 7ro$ucts to its custo'ers. S urali$"aran5 %"ief of ar!etin& & Sales5 SBI 8ife5 sai$5 <6e are slo/ly an$ stea$ily *uil$in& our *ran$. Lery soon /e /ill *e launc"in& 7rint a$(ertise'ents in re&ional lan&ua&es too. As for launc"in& a clu* for t"e 7re'iu' se&'ent5 it-s certainly a 7ossi*ility /"ic" /e are no/ e(aluatin&.D Accor$in& to urali$"aran5 SBI 8ife /as also e:7lorin& t"e 7ossi*ility of a$(ertisin& on t"e Internet in its *i$ to reac" out to its tar&et au$ience. Anot"er interestin& $e(elo7'ent /as re&ar$in& t"e 7unc" lines use$ *y 7ri(ate insurance 7layers t"at in(aria*ly trie$ to associate 7ositi(e e'otions /it" insurance 7ro$ucts. 6"ile I); Lysya sai$ RA$$in& life to insurance5- I%I%I Pru$ential sai$5 R6e %o(er you. At e(ery ste7 in life.- Si'ilarly5 HD3% Stan$ar$ a$(ertise'ents 7ro4ecte$ a "a77y 'an

32

assertin&5 R)o/ I can continue en4oyin& a co'forta*le lifestyle e(en after I retire.- A P San'ar co''ercials carrie$ t"e line R+"e 4oy of li(in& life to t"e fullest5 /it" a 123Ayear ol$ e:7ert ta!in& care of your insurance nee$s.- 0' .ota! "i&"li&"te$ its ca'7ai&ns /it" RGeene !i aBaa$i- ?3ree$o' to li(e@- an$ AllianB Ba4a4 state$ RAllianB Ba4a45 8ife insure$ *y care.6it" 7ri(ate 7layers 7ayin& 'uc" attention to a$(ertisin& an$ 7ro'otional acti(ities5 8I%5 too5 /as force$ to 'a!e efforts to increase its (isi*ility an$ en"ance its *ran$ i'a&e. +"e co'7any co''ence$ intense5 syste'atic an$ /ellAfocuse$ 7u*lic relations an$ 7u*licity acti(ities *ot" at t"e cor7orate an$ o7erational le(els. 8I% ca'e out /it" a cor7orate a$(ertise'ent on +L /it" t"e 7unc" line5 RNin$a&i +u'"ari Ros"an Ra"e? ay your life *e &lorious@. In a$$ition5 8I% esta*lis"e$ a *roa$A*ase$ fra'e for e:ternal co''unication ai'e$ at *uil$in& a stron&er *ran$ i'a&e. Se(eral s7orts e(ents /ere coA s7onsore$ *y t"e co'7any an$ s7ecial 7u*licity acti(ities /it" a social 7ur7ose /ere un$erta!en +ra$itionally5 8I% use$ to tar&et eit"er 'i$$leAa&e$ 7eo7le or el$erly ones. But 7ri(ate insurers tar&ete$ in$i(i$uals in all a&e &rou7s5 in t"eir a$(ertise'ent ca'7ai&ns. Analysts 7ointe$ out t"at 8I% /as also *iase$ a&ainst /o'enC 'ost of its 7olicies /ere $esi&ne$ /it" 'en in 'in$5 /"ereas 7ri(ate insurers- 7ro$ucts co(ere$ /o'en-s nee$s5 too. +"us5 8I% /as force$ to 'o$ify its a$(ertise'ent ca'7ai&ns an$ co''unication in or$er to a77eal to all &rou7s. It 'a$e its a$(ertise'ents carry uni(ersally a77lica*le 'essa&es5 focusin& 7articularly on t"e youn& e:ecuti(e or t"e /or!in& /o'an5 in or$er to ta7 t"e 'ar!et co'7rise$ of 7eo7le in t"e a&e &rou7 of 1EA32 years.

I)P ICATIONS O" T!E >NE'?A*E4 )AR&ETIN* INTIATI$ES Accor$in& to re7orts5 in t"e first Muarter of t"e year 2##25 insurance co'7anies s7ent 7#J of /"at /as s7ent in t"e /"ole of 2##15 on a$(ertisin& an$ 7u*licity. Across t"e

36

/orl$5 insurance5 as a cate&ory /as one of t"e lar&est s7en$ers on a$(ertisin&. In In$ia too su*stantial e:7en$iture /as *ein& incurre$ $ue to a$(ertisin& Ho/e(er5 $urin& t"e first year of t"e entry of ne/ 7layers5 /"ile 8I% re7orte$ a &ro/t" of o(er 22#J5 7ri(ate insurers 'ana&e$ to &arner only a*out #.2J 'ar!et s"are5 in s7ite of s7en$in& "efty a'ounts on a$(ertisin& an$ 7ro'otion. Accor$in& to re7orts5 8I%-s *usiness increase$ 'ainly *ecause of t"e increase$ 7u*lic a/areness a*out insurance5 /"ic" /as *rou&"t a*out *y t"e "ea(y a$(ertise'ent ca'7ai&ns of 7ri(ate 7layers. It /as re7orte$ t"at custo'ers resorte$ to 8I% after t"e a/areness a*out insurance increase$ as a result of t"e 'ar!etin& efforts of t"e ne/ 7layers5 *ecause t"ey /ere attracte$ *y t"e Rsecurity factor- attac"e$ /it" t"e stateAo/ne$ insurer. Accor$in& to a sa'7le sur(ey con$ucte$ *y 0R;A ar& on t"e 7o7ular life insurance *ran$s in 2##15 a/areness of 8I% 7olicies /as a 7"eno'enal 1##J5 /"ile t"e 7ri(ate insurers la&&e$ far *e"in$ ?Refer to +a*le III@. +"e sur(ey /as con$ucte$ to collect infor'ation a*out t"e a/areness of t"e life insurance *ran$s an$ /"et"er res7on$ents /ere rea$y to *uy t"e 7olicies of suc" co'7anies or not ?t"is teste$ t"e success of t"e co''unication strate&ies of t"e co'7anies concerne$@. POPU AR I"E INSURANCE BRANDS IN 2GGH CO)PAN% 8I% I%I%I Pru$ential HD3% Stan$ar$ SBI 8ife Birla Sun 8ife 0 .ota! a"in$ra +ata AI; AllianB Ba4a4 a: )e/ ,or! 8ife I); Lysya 8ife Da*ur %;> A'ARENESS E$E S =in K@ 1## 7# 22 22 23 2# 17 12 6 4 4

37

Source: www.insuremagic.com So'e analysts 7ointe$ out t"at suc" $e(elo7'ent /as 'erely an in$icator of t"e $ifficulties forei&n fir's coul$ face in In$ia. ost of 8I%-s sales ca'e fro' t"e s'all an$ rural sectors5 /"ic" actually constitute t"e lar&est unta77e$ insurance 'ar!et in In$ia. Ho/e(er5 t"e 7ri(ate insurers faile$ to ta7 t"e rural 'ar!ets $ue to t"eir li'ite$ reac". +"ey focuse$ t"eir 'ar!etin& efforts only in li'ite$ 'etro7olitan areas. 6it" 8I%-s *ran$ *ein& (ery fir'ly etc"e$ in t"e 'in$s of t"e In$ians5 7ri(ate insurers $efinitely see'e$ to "a(e a tou&" *attle a"ea$. Ho/e(er5 it is true t"at t"e 'ar!et s"are of 7ri(ate 7layers "as increase$ fro' #.2J in 2##1 to 7J in 0cto*er 2##25 /"ic" "as re$uce$ 8I%-s 'ar!et s"are to 93J. As 'ar!etin& an$ tec"nical su7eriority /ere e:7ecte$ to *e t"e $ecisi(e factors for success in t"e In$ian insurance sector in t"e future5 t"e ne/ 7layers stoo$ a &oo$ c"ance. 6it" 7ro$uctAs7ecific a$(ertise'ent *e&innin& to catc" u7 in 'i$A2##25 7ri(ate insurers /"o 7lanne$ to launc" inno(ati(e 7ro$ucts /ere "o7in& for t"e *est.

AD$ERTIS)ENT CODE B% IRDA
Ever0 Insurer or Inter.ediar0 or Insurance Agent S3a-- 8 A "a(e a co'7liance officer5 /"ose na'e an$ official 7osition in t"e or&aniBation s"all *e co''unicate$ to t"e Aut"ority5 an$ "e s"all *e res7onsi*le to o(ersee t"e a$(ertisin& 7ro&ra'C A esta*lis" an$ 'aintain a syste' of control o(er t"e content5 for'5 an$ 'et"o$ of

3E

$isse'ination of all a$(ertise'ents concernin& its 7olicies. A 'aintain an a$(ertisin& re&ister at its cor7orate office /"ic" 'ust inclu$e1 A a s7eci'en of e(ery a$(ertise'ent $isse'inate$5 or issue$ or a recor$ of any *roa$cast or telecast5 etc.C A a notation attac"e$ to eac" a$(ertise'ent in$icatin& t"e 'anner5 e:tent of $istri*ution an$ for' nu'*er of any 7olicy a$(ertise$. T 'aintain a s7eci'en of all a$(ertise'ents for a 'ini'u' 7erio$ of t"ree years. T file a co7y of eac" a$(ertise'ent /it" t"e Aut"ority as soon as it is first issue$5 to&et"er /it" infor'ation1 an i$entifyin& nu'*er for t"e a$(ertise'entC T t"e for' nu'*er?s@ of t"e 7olicy?ies@ a$(ertise$ an$ /"en t"e 7ro$uctKs /ere a77ro(e$ *y t"e Aut"orityC T a $escri7tion of t"e a$(ertise'ent an$ "o/ it is use$. T t"e 'et"o$ or 'e$ia use$ for $isse'ination of t"e a$(ertise'ent. T file a certificate of co'7liance /it" t"eir annual state'ent statin& t"at5 to t"e *est of its !no/le$&e5 a$(ertise'ents $isse'inate$ *y t"e insurer or *y its inter'e$iaries $urin& t"e 7rece$in& year "a(e co'7lie$ /it" t"e 7ro(isions of t"ese re&ulations an$ t"e a$(ertise'ent co$e as state$ in re&ulation 12. T +"e a$(ertise'ent re&ister s"all *e su*4ect to ins7ection an$ re(ie/ *y t"e Aut"ority for content5 conte:t5 7ro'inence an$ 7osition of reMuire$ $isclosures5 o'issions of reMuire$ infor'ation5 etc. C3anges In Advertise.ent ? T Any c"an&e in an a$(ertise'ent /oul$ *e consi$ere$ a ne/ a$(ertise'ent. T All t"e 7ro(isions of re&ulation 3 s"all a77ly to an a$(ertise'ent referre$ to in su* re&ulation ?i@. T +"e Aut"ority s"all *e infor'e$ at t"e ti'e of filin& t"e a$(ertise'ent t"e e:tent of

39

c"an&e t"e ori&inal a$(ertise'ent T Insurance co'7any a$(ertise'ents A T 9(ery insurance co'7any s"all *e reMuire$ to 7ro'inently $isclose in t"e a$(ertise'ent an$ t"at 7art of t"e a$(ertise'ent t"at is reMuire$ to *e returne$ to t"e co'7any or insurance inter'e$iary or insurance a&ent *y a 7ros7ect or an insure$ t"e full 7articulars of t"e insurance co'7any5 an$ not 'erely any tra$e na'e or 'ono&ra' or lo&o. T 6"ere *enefits are 'ore t"an *riefly $escri*e$5 t"e for' nu'*er of t"e 7olicy an$ t"e ty7e of co(era&e s"all *e $isclose$ fully.

4#

Part 3 ICICI Prudentia- F !D"C Standard -i2e insurance

)ar+et

41

3or o(er 2# years5 life insurance in In$ia /as $efine$ an$ $ri(en *y only one co'7any Q t"e 8ife Insurance %or7oration of In$ia ?8I%@. 6it" t"e Insurance Re&ulatory an$ De(elo7'ent Aut"ority ?IRDA@ Bill 1999 7a(in& t"e /ay for entry of 7ri(ate co'7anies into *ot" life an$ &eneral sectors t"ere /as *oun$ to *e ne/Afoun$ e:cite'ent Q an$ ne/ success stories. +o$ay5 4ust t"ree years since t"eir entry5 t"eir cu'ulati(e s"are "as crosse$ 13J ?Source1 IRDA@5 far e:cee$in& e:7ectations. %learly insurance is on a &ro/t" 7at". +"e 7ercenta&e of 7re'iu' inco'e to ;DP /"ic" /as 4ust 2.3J in 2###K#1 rose to 3.3J in 2##2K#3C an$ life insurance "as e'er&e$ as t"e $o'inant contri*utor to t"is &ro/t". +"e in$ustry 7resente$ a "u&e o77ortunity. 8ife insurance 7enetration5 for instance5 /as at an a*ys'al 22J of t"e insura*le 7o7ulation. Ho/e(er5 7ri(ate 7layers "a(e "a$ to rise to 'any c"allen&es. +"ey /ere face$ /it" attitu$inal *arriers to/ar$s t"e cate&ory an$ t"e 7erce7tion t"at insurance /as only a ta:Asa(in& tool. Insurance 7er se "a$ lost it *asic rationale1 7rotection. It /asn-t sur7risin& t"en t"at its 7otential lay froBen an$ une:7loite$. +"e c"allen&e for 7ri(ate insurance 7layers /as to c"an&e t"e esta*lis"e$ cate&ory $ri(er an$ &et custo'ers to e(aluate life insurance as an in(est'entAcu'A7rotection tool.

Ac3ieve.ents
Be&innin& o7erations in Dece'*er 2###5 I%I%I Pru$ential-s success "as *een 'eteoric5 *eco'in& t"e nu'*er one 7ri(ate life insurer /it"in 'ont"s of launc". +o$ay5 it "as one of t"e lar&est $istri*ution net/or!s a'on&st 7ri(ate life insurers in In$ia5 /it" *ranc"es in 24 cities. +"e total nu'*er of 7olicies issue$ stan$s at 'ore t"an 7E#5### /it" a total su' assure$ in e:cess of Rs. 16# *illion. I%I%I Pru$ential close$ t"e financial year en$e$ arc" 315 2##4 /it" a total recei(e$ 7re'iu'

inco'e of Rs. 9.9 *illion5 u7 132J fro' last years total 7re'iu' inco'e of Rs. 4.2# *illion. )e/ *usiness 7re'iu' inco'e s"o/s a 1#6J &ro/t" at Rs. 7.2 *illion5 $ri(en 'ainly *y t"e

42

co'7any-s ran&e of uniMue unitAlin!e$ 7olicies an$ 7ension 7lans. +"e co'7any-s retail 'ar!et s"are a'on&st 7ri(ate co'7anies stoo$ at 36J5 'a!in& it a clear lea$er in t"e se&'ent. +o a$$ to its ac"ie(e'ents5 in t"e year 2##3K#4 it /as a$4u$&e$ conferre$ t"e R0utloo! ost +ruste$ Pri(ate 8ife Insurer

?9cono'ic +i'es R ost +ruste$ Bran$ Sur(ey- *y A%)ielsen 0R;A AR;@. It /as also oney Q Best 8ife Insurer- a/ar$ for t"e secon$ year runnin&. +"e co'7any is also 7rou$ to "a(e /on Sil(er at 933I9S 2##3 for its RRetire fro' /or!5 not lifeca'7ai&n. )ota*ly5 I%I%I Pru$ential /as also s"ortAliste$ to t"e final roun$ for its RSin$oorca'7ai&n in 933I9S 2##2. I%I%I Pru$ential-s success is roote$ in its 7"iloso7"y to al/ays offer t"e custo'er a c"oice. +"is "as *een t"e $ri(in& force *e"in$ its 'ultiAc"annel $istri*ution strate&y5 /"ic" inclu$es a$(isors5 *an!s5 $irect 'ar!etin& an$ cor7orate a&ents. In fact5 I%I%I Pru$ential /as t"e first life insurer to in(est in 'ulti7le c"annels an$ offer t"e custo'er c"oice an$ accessC t"us re$ucin& $e7en$ency on any one c"annel. I%I%I Pru$ential also 'a$e &reat stri$es in t"e retire'ent solutions an$ 7ensions 'ar!et. +"e co'7anyFs 7enetration of t"e retire'ent 'ar!et /as $ri(en *y t"e focusse$ a77roac" to/ar$s creatin& a/areness t"rou&" a sustaine$ ca'7ai&n1 RRetire fro' /or!5 not life-. 6it"in si: 'ont"s5 t"e ca'7ai&n re/ar$e$ I%I%I Pru$ential /it" an increase$ s"are of 23J of t"e total 7ensions 'ar!et an$ 7EJ a'on&st 7ri(ate 7layers.

!istor0
I%I%I Pru$ential 8ife Insurance %o'7any 8i'ite$ is a 74126 4oint (enture *et/een I%I%I Ban! an$ Pru$ential 7lc5 >.. +"e co'7any *rin&s to&et"er t"e local 'ar!et e:7ertise an$ financial stren&t" of I%I%I Ban! an$ Pru$ential-s international life insurance e:7erience. +"e co'7any /as &rante$ a %ertificate of Re&istration *y t"e IRDA on )o(e'*er 245 2### an$ ei&"teen $ays later5 issue$ its first 7olicy on Dece'*er 12. 3ro' its early $ays5 I%I%I Pru$ential see'e$ to "a(e t"e /"ere/it"al for a lar&eAscale *usiness. By arc" 315 2##25 a little o(er a year since its launc"5 t"e co'7any "a$ issue$ 1##5### 7olices

43

translatin& into a 7re'iu' inco'e of a77ro:i'ately Rs. 152## 'illion on a su' assure$ of o(er Rs. 23 *illion. 6"en t"e co'7any *e&an its o7erations5 t"e nee$ /as to *uil$ a *ran$ t"at /as relata*le to5 sy'*olise$ trust an$ /as easily reco&nise$ an$ un$erstoo$. It launc"e$ a cor7orate ca'7ai&n usin& t"e t"e'e of RSin$oor- to e7ito'ise 7rotection5 trust5 to&et"erness an$ all t"at is In$ianC en$earin& itself to t"e 'asses. +"e success of t"e ca'7ai&n5 Rt"e callin& car$ of t"e co'7any-5 sa/ t"e *ran$ a/areness scores al'ost at 7ar /it" its 4# year ol$ co'7etitor. +"e t"e'e of 7rotection /as also e:ten$e$ to su*seMuent 7ro$uct an$ cate&ory s7ecific ca'7ai&ns Q fro' c"il$ 7lans to retire'ent solutions Q /"ic" "i&"li&"t "o/ t"e co'7any /ill *e /it" its custo'ers at e(ery ste7 of life. 3ro' $ay one5 t"e co'7any "as unflinc"in&ly focusse$ on *ein& a 'assA'ar!et 7layer5 $e(elo7in& 7ro$ucts5 creatin& a $istri*ution net/or! an$ $e7loyin& resources t"at /oul$ furt"er its &oal. A7art fro' ra'7in& u7 an$ t"orou&"ly trainin& its a$(isors5 t"e co'7any "as t/el(e RBancassurance- 7artners Q t"e lar&est in t"e country. It s/iftly re(ise$ an$ a$$e$ to its initial ran&e of 7ro$ucts5 7ioneerin& 'ar!etAlin!e$ 7ro$ucts an$ 7ension 7lans5 to offer custo'ers t"e 'ost fle:i*le life insurance 7olicies in t"e country. In 3e*ruary 2##45 I%I%I Pru$ential increase$ its ca7ital *ase *y Rs. 2## 'illion5 its nint" ca7ital "i!e5 *rin&in& t"e total 7ai$Au7 eMuity ca7ital to Rs. 6572# 'illion. 6it" t"e aut"orise$ ca7ital of t"e co'7any stan$in& at Rs. 12 *illion5 I%I%I Pru$ential continues to "a(e t"e "i&"est ca7ital *ase a'on&st all life insurers in t"e country. +"e c"allen&e I%I%I Pru$ential no/ faces is to retain its to7Anotc" 7osition an$ continue to $eli(er t"e finest life insurance an$ 7ension solutions to its e(erA&ro/in& custo'er *ase.

Product
I%I%I Pru$ential-s ulti'ate 7ro'ise is financial security. A stron& *ran$ certainly *oosts sales5 *ut /it"out custo'erAfrien$ly5 inno(ati(e 7ro$ucts5 e(en t"e *est *ran$ /oul$ not last lon&. I%I%I Pru$ential-s 7ro$uct ran&e "as *een $e(elo7e$ on t"e un$erstan$in& t"at $ifferent 7eo7le "a(e t"eir o/n sets of nee$s at (arious sta&es of t"eir li(es. It "as t"us *uilt a fle:i*le 7ortfolio of 7ro$ucts t"at can *e custo'ise$ to cater to (aryin& nee$s of 7eo7le

44

at eac" life sta&e5 an$ t"us ensure 7rotection in e(ery ste7 of life. +"e co'7any-s 7"iloso7"y "as *een to "el7 custo'ers un$erstan$ t"eir financial nee$s an$ /or! closely /it" t"e' to custo'ise a 7ro$uct t"at /oul$ 'eet t"is nee$. A$(isors can offer a co'7lete ran&e of 7ro$ucts A Sa(in&s 7lans5 %"il$ 7lans5 ar!etAlin!e$ 7lans5 Protection 7lans5 Retire'ent 7lans5 In(est'ent 7lans an$ &rou7 7lans Q an$ tailor a fle:i*le solution to 'eet t"e custo'ers- c"an&in& nee$s at e(ery sta&e of life. In fact5 I%I%I Pru$ential /as t"e first to unA*un$le 7ro$uct *enefits5 7ioneerin& t"e conce7t of Rri$ers- an$ soon after intro$uce co'7re"ensi(e 'ar!etAlin!e$ an$ retire'ent 7lans.

Recent Deve-o1.ents
In !ee7in& /it" its *elief t"at a "a77y custo'er is t"e *est en$orse'ent5 I%I%I Pru$ential "as e'*race$ t"e RSi: Si&'a- a77roac" to Muality5 an e:ercise t"at *e&ins an$ en$s /it" t"e custo'er Q fro' ca7turin& "is (oice to 'easurin& an$ res7on$in& to "is e:7eriences. +"is initiati(e is currently "el7in& t"e co'7any i'7ro(e 7rocesses5 turnaroun$ ti'es an$ custo'er satisfaction le(els. Anot"er no(el intro$uction is t"e I%I%I Pru$ential 8ifestyle Re/ar$s %lu*5 In$iaFs first re/ar$s 7ro&ra''e for 8ife A$(isorsC it allo/s I%I%I Pru$ential A$(isors to re$ee' 7oints for ite's ran&in& fro' !itc"en/are to &ol$5 /"ite &oo$s5 an$ e(en international "oli$ays.

Pro.otion
I%I%I Pru$ential is a case stu$y in "o/ a$(ertisin& an$ 'ar!etin& can 7lay a (ital role in reAs"a7in& an in$ustry. It "as $e'onstrate$ "o/ an in$ustry /"ere t"e custo'er /as not"in& 'ore t"an a 7olicy nu'*er "as c"an&e$ to one /"ere Rcusto'er 7reference- rules t"e roost. Bran$A*uil$in& in a co'7le: cate&ory li!e life insurance is an u7"ill an$ 'ultiAfacete$ tas!. At t"e ti'e of launc"in& o7erations5 t"e co''unications tas! /as to *uil$ cre$i*ility5 so as to &i(e t"e custo'er t"e confi$ence t"at it /as Ra co'7any t"at coul$ *e 42

truste$ to in(est fun$s /it"-. +"e ai' /as to encoura&e 7eo7le to (ie/ insurance not as a co'7ulsory ta: sa(in& instru'ent5 *ut as a 'eans to lea$ a /orryAfree5 secure life an$ in t"e 7rocess5 create t"e $ifferentiator for *ran$ I%I%I Pru$ential. +"e *ran$ 7ro7osition for all t"e ca'7ai&ns /as reflecte$ in t"e line1 RSura!s"a1 Nin$a&i !e "ar !a$a' 7ar-. +"e ca'7ai&n feature$ a si&nificant co'7etiti(e a$(anta&e5 t"e soun$ financial *ac!in& an$ cre$entials of I%I%I an$ Pru$ential5 an$ s"o/case$ 7ro$ucts fro' $ifferent se&'ents. +"e a$(ertisin& i$ea /as enca7sulate$ in t"e sy'*ol of 7rotection U t"e RSin$oor-. +"is ca'7ai&n contri*ute$ e:tensi(ely to raisin& *ran$ a/areness an$ creatin& a $istincti(e i$entity for t"e co'7any. At t"e sa'e ti'e t"e t"e'e of 7rotection /as carrie$ for/ar$ /it" I%I%I Pru$ential-s RSafe Pu4a- contest /"ere Pu4a Pan$als conteste$ to *e t"e RSafest- Pu4a Pan$al. +"is *eautifully tie$ in t"e conce7t of 7rotection /it" t"e 7o7ular local e(ent of Dur&a Pu4a. +"e refres"in&ly $ifferent RRetire fro' /or!5 not life- ca'7ai&n succee$e$ in *rin&in& retire'ent 7lannin& into t"e consi$eration set of a youn&er tar&et au$ience5 an$ /on a Sil(er 9ffie for its efforts. +"e 'e$ia ca'7ai&n /as co'7le'ente$ *y se'inars to s7rea$ a/areness a*out t"e nee$ for retire'ent 7lannin&. Lery recently5 t"e co'7any launc"e$ a ne/ cor7orate ca'7ai&n Q an e:tension of t"e RSin$oor- co''unication Q /"ic" ai's at reassurin& custo'ers t"at t"e co'7any is co''itte$ to stayin& /it" t"e' t"rou&" all t"e u7s an$ $o/ns in life5 usin& 'arria&e an$ t"e se(en (o/s or RSaat P"eras- as a 'eta7"or for co''it'ent. +"e ca'7ai&n ai's at stren&t"enin& t"e *ran$ *y 'e'ora*ly *rin&in& out t"e Rco''it'ent for life- ele'ent. As 7art of I%I%I Pru$ential-s continuous efforts to reac" out to custo'ers in ne/ an$ inno(ati(e /ays5 t"e co'7any recently tie$ u7 /it" t"e 3or*es Si: Si&'a rate$ Da**a/alla or&anisation in u'*ai for a $irect 'ar!etin& e:ercise.

In a uniMue effort to create a/areness a*out a ta:Asa(in& 7ro$uct5 t"e co'7any attac"e$ a creati(e of a *itten a77le to u'*ai-s u*iMuitous lunc"*o:es. It /or!e$ /on$erfully

46

/it"

u'*ai-s officeA&oers an$ one t"at translate$ into su*stantial *usiness for t"e

co'7any.

Brand $a-ues
ar!et researc" re(eals t"at t"e (alues 7eo7le associate /it" I%I%I Pru$ential are5 in$ee$5 t"ose t"at t"e co'7any "o7es to 7ro4ect1 lifelon& 7rotection an$ (alue for 'oney. +"e core (alue is 7rotectin& your lo(e$ ones5 t"rou&"out life-s u7s an$ $o/ns. It is a 7o/erful 7ro7ositionC one5 /"ic" I%I%I Pru$ential5 is ta!in& into t"e 'ar!et7lace.

T3ings 0ou didnLt +no, a6out ICICI Prudentia1. +"e lo&o is t"e co'*ination of I%I%I Ban!-s IA'an an$ Pru$ential-s la$y 7ru$ence. +"e IA'an si&nifies t"e $yna'ic in$i(i$ual /it" $ri(e an$ con(iction5 /"ile Pru$ence e7ito'ises /ise con$uct. 2. 9(ery t"ree 'inutes I%I%I Pru$ential 7rotects one 'ore In$ian life.

47

3. I%I%I Pru$ential is t"e only In$ian life insurance co'7any to "a(e an eMuity *ase of 'ore t"an Rs. 2 *illion. 4. I%I%I Pru$ential is t"e only life insurance co'7any to i'7le'ent a Si: Si&'a Muality 7ro&ra''e. 2. 0f t"e co'7any-s 25### 7lus e'7loyees5 less t"an 2J "a(e 7rior e:7erience in t"e life insurance in$ustry. 6. +"e a(era&e a&e of its e'7loyees is 29 years.

T3e )a+ing o2 India4s No: 1 Private i2e Insurer

Bran$ 1

I%I%I Pru$ential

4E

A&ency1

8o/e

T3e )a+ing o2 India4s No: 1 Private i2e Insurer
I%I%I Pru$ential is a case stu$y in t"e role of 'ar!etin& in res"a7in& an in$ustry. It "i&"li&"ts "o/ an in$ustry /"ere <sellD an$ <7us"D /ere oft use$ /or$s an$ consu'er /as not"in& 'ore t"an a file no.5 "as c"an&e$ to one /"ere <consu'er 7referenceD an$ <consu'er 7ullD rules t"e roost. Here-s a loo! at "o/ I%I%I Pru c"an&e$ t"e rules of t"e &a'e an$ e'er&e$ a lea$er in t"e 7rocess.

Bac+ground
6"en t"e insurance sector /as li*eraliBe$ in 2###5 t"e 7ri(ate 7layers "a$ to conten$ /it" a fe/ issues. Ratio of 7re'iu' to ;DP /as lo/1 1.3J of ;DP /as in(este$ in insurance. Insurance 7enetration /as at an a*ys'al 22J of t"e insura*le 7o7ulation. Besi$es t"e a*o(e t"e 7ri(ate 7layers /ere face$ /it"1 Attitu$inal Barriers5 Perce7tion of insurance as a ta: sa(in& tool an$ lac! of a consu'er centric a77roac" in ser(ice an$ 7ro$uct offerin&s.

T3e )ar+eting C3a--enge 2acing ICICI Prudentia+"e c"allen&e t"erefore /as to c"an&e esta*lis"e$ cate&ory $ri(ers ?$eat" 7ay'ent & ta: sa(in&@ an$ to &et t"e consu'er to e(aluate insurance on a 'ore e'otional 7latfor' ?7rotection@ rat"er t"an a 'ere rational $ecision ?ta: sa(in&s@.

T3e Ca.1aign O6:ectives
1. Re7osition t"e cate&ory in t"e consu'erFs 'in$. Influence t"e consu'er to (ie/ it as a 7rotection instru'ent an$ not a ta: sa(in& 7ro$uct alone. 2. In t"e 7rocess5 create $ifferentiation for t"e I%I%I Pru *ran$ as a 7ro(i$er of social security an$ fa'ily 7rotection. 3. Ac"ie(e lea$ers"i7 status in saliency5 i'a&e & 7ro$uct 7ara'eters.

49

4. Buil$ cre$i*ility an$ trust.

T3e Target Audience
Re7resentin& an i$eal 'i: of 'e$iu' to "i&" net /ort" in$i(i$uals1 +"e consu'ers 'ost $is7ose$ to/ar$s *uyin& life insurance. a*o(e. i$$leAa&e$ 7rofessionals5 7ri'arily 'ale5 salarie$ an$ self e'7loye$5 a&e &rou71 2E A 42 years5 "ouse"ol$ inco'e1 Rs.2#5 ### an$

Creative Strateg0
+"e essence of t"e creati(e strate&y1 +o &et t"e consu'er to re loo! at Insurance as a 'eans to lea$ a /orry free life an$ not as a necessary e(il. +o t"is effect t"e core *ran$ insi&"t "i&"li&"te$ /as HAs "ea$ of t"e fa'ily itFs 'y res7onsi*ility to ta!e care of 'y lo(e$ ones an$ 7rotect t"e' fro' t"e uncertainties of lifeH5 su''e$ u7 in t"e a$(ertisin& i$ea1 R6e co(er you at e(ery ste7 in life ?Sura!s"aV Nin$a&i !e "ar !a$a' 7ar5 as inter7rete$ in Hin$i @. I%I%I Pru /as 7ositione$ as an ena*ler of 7rotection rele(ant to t"e nee$s of t"e life sta&e t"at you are in. At t"e core of t"e co''unications strate&y /as a77ro7riatin& t"e &eneric cate&ory *enefit ?7rotection@ t"rou&" its &reatest 'eta7"or Q Sin$oor.

T3e Creative e;ecution:
T$C Buil$in& i'a&e an$ creatin& a $ifferential in t"e 'ost creati(e an$ co'7ellin& 'anner. +"e creati(e e:ecution "ei&"tene$ t"e e'otional connect /it" t"e I%I%I Pru *ran$ A

2#

In$ianC satisfaction of !no/in& t"at one-s lo(e$ ones are 7rotecte$. Sy'*olic re7resentation of t"e 7rotector of t"e fa'ily t"rou&" situations s"o/casin& (arious life sta&es an$ creatin& en$earin& i'a&ery of 7rotection an$ fa'ilial *on$in&.

Press
;a(e t"e consu'er a rational an$ tan&i*le reason to *uy insurance first an$ secon$ly fro' I%I%I Pru$ential. +"e 7ro$uct s7ecific a$(ertisin& focusse$ on c"an&in& t"e 7re(alent 7erce7tion a*out insurance an$ *rea!in& a fe/ 'yt"s1 nonA affor$a*ility5 insurance not *ein& &oo$ in(est'ent o7tion an$ t"e 'yt" t"at insurance /as &oo$ only for ta: sa(in&.

Ot3er Co..unications
0t"er 7ro&ra's inclu$e$ $irect 'ail5 PR of co''unications ca'7ai&n in 7ress & +L5 /e*site 'ar!etin&C an$ $ata*ase &eneration t"rou&" Banc assurance c"annels.

)edia Strateg0
In a 'ar!et li!ely to *e cluttere$5 /e use$ 'ulti7le touc" 7oints to reac" t"e consu'er. +"e role for eac" 'e$iu' /as en(isa&e$. +"e +L 'e$iu' /as use$ to en"ance t"e e'otional lin! /it" t"e *ran$. Strate&ic use of 12 sec. e$its facilitate$ "i&" freMuency le(els. In 7rint5 cost 7er res7onse rat"er t"an cost 7er t"ousan$ as res7onses /ere 'easure$ in for' of callAins. Ra$io 3 5 %ine'a5 Internet /ere use$ to create a 'e$ia 'ulti7lier effect.

T3e resu-ts o2 co..unication e22orts
Bein& no1 1 in a/areness an$ saliency. A/areness1 I%I%I Pru s"o/e$ a si&nificant 4u'7 in a/areness *et/een 3e* an$ Se7t 2##1. I'a&e1 Hi&"est score a'on& all Insurance 7layers inclu$in& 8I%5 on i'a&e 7ara'eters li!e safety5 'o$ernity5 ser(ice5 &oo$ returns etc. Intention to in(est1 )e:t only to 8I% as 7er researc" ?All Source1 Researc" *y 0R;

21

ar&@. )o. of calls an$ e'ails1 +"ere /ere 7#5### calls at t"e call center an$ 62E2 e'ails in t"e year 2##1.

Su. u1
In 4ust o(er a year I%I%I Pru "as e'er&e$ as In$ia-s no.1 1 Pri(ate 8ife Insurance %o'7any /it" al'ost 2#J 'ar!et s"are of t"e 7ri(ate 7layers. Has sol$ "i&"est no. 0f 7olicies *ot" in (olu'e an$ (alue. 2##2. a4or ilestone A 0(er 1##### 7olicies on ar 315

HD3% Stan$ar$ 8ife Insurance %o'7any 8i'ite$ HD3% an$ Stan$ar$ 8ife /as t"e first 4oint (enture to enter t"e life insurance 'ar!et5 in Ganuary 1992. In 0cto*er 199E5 t"e 4oint (enture a&ree'ent /as rene/e$ an$ Stan$ar$ 8ife 7urc"ase$ 2 7ercent of 22

Infrastructure De(elo7'ent 3inance %o'7any 8i'ite$ ?ID3%@. +"e co'7any as suc"5 /as incor7orate$ on Au&ust 145 2### un$er t"e na'e of HD3% Stan$ar$ 8ife Insurance %o'7any 8i'ite$. HD3% are t"e 'ain s"are"ol$ers in HD3% Stan$ar$ 8ife5 /it" E1.4 7ercent5 /"ile Stan$ar$ 8ife o/ns 1E.6 7ercent. HD3% an$ Stan$ar$ 8ife "a(e a lon& an$ close relations"i7 *uilt u7on s"are$ (alues an$ trust. Recor$in& a <uarter?on?<uarter gro,t3 o2 1HI 1ercent for A7rilAGune 2##25 HD3% Stan$ar$ 8ife sa/ its ne/ *usiness 1re.iu. inco.e increase fro' Rs.23.11 crores to Rs. 142.#2 crores. +"e &ro/t" ac"ie(e$ *y t"e co'7any /as /ay a6ove t3e 1rivate sector industr0 average o2 I3 1ercent for t"e first Muarter. In ter's of e22ective 1re.iu. inco.e =EPI@5 /"ic" &i(es a 1#J (alue to a Sin&le Pre'iu' 7olicy an$ is an internationally acce7te$ in$icator of an insurance co'7anyFs 7erfor'ance5 HD3% Stan$ar$ 8ife-s 7re'iu' inco'e &re/ 2#MK fro' Rs. 3E.77 crores to Rs. 134.91 crores. Lote$ t"e 'ost res7ecte$ a'on&st t"e 7ri(ate life insurance co'7anies5 HD3% Stan$ar$ 8ife-s gro,t3 in ter.s o2 annua-ised 1re.iu.s ,as 211 1ercent Q fro' Rs. 23 crores in A7rAGun 2##4 to Rs. 162.#E crores in A7rAGun 2##2. A co.1-ete 1roduct 1ort2o-io o22ering *y HD3% Stan$ar$ 8ife on t"e grou1 6usiness front also le$ to a ro*ust &ro/t" of 7re'iu' fro' Rs. 1.1E crores to Rs. E.91 crores in effecti(e 7re'iu' inco'e ter's an$ fro' Rs. 2.6E crores to Rs. 16.94 crores in ter's of first year 7re'iu's Q a E32 1ercent &ro/t". 3or t"e in$i(i$ual *usiness5 vo-u.e5 'easure$ *y t"e nu'*er of 7olicies sol$5 /itnesse$ a N1 1ercent <uarter?on?<uarter gro,t3 fro' 265722 in 2##4 to 215#66 in 2##2. Average e22ective 1re.iu. on t"e ot"er "an$ 'ore t"an dou6-ed 2ro. Rs5 129GGG to Rs5 2E9GGG5

Advertise.ents
C3i-drenLs P-ans Te-evision Advertise.ent

23

A 'an is tal!in& to "is &uests /"ile "is /ife ser(es t"e' tea

+"e $oor o7ens & "is Dau&"ter enters. S"e is loo!in& a little $isa77ointe$. 0n seein& "er5 t"e 3at"er says1 <Kya hua bhai? eha?D

Dau&"ter1 <!S "i scholarship mili, par aadhi.D 3at"er &ets e:cite$1 <#rrey, that$s good%%%D Dau&"ter1 <&ar baa"i "i fees'D

+"e &uest offers a su&&estion1 <(of)ooh%, *aa"i apne !S waale uncle bhar denge' "yon?D

ot"er re4ects t"e i$ea1 <Kisi "a favour "yun lena?D

3at"er a&rees /it"

ot"er1 <*i"ul thee" "aha tumneD

24

Dau&"ter1 <&ar'. paise "aha se''.?D

3at"er ?&esturin& to "er as a little &irl@1 <+aise "oi hai ,o' saalon se aap"e liye paison "a inta-am "ar raha hai' ,ab se aap itni si' nah' itni si thiD Dau&"ter &ets irritate$1 <&apa%%D

3at"er ?Prou$ly@1 <.aan' &apa%%%D Gin&le1 < a sar ,u"ha hai "abhi aur... na ,u"hayenge "abhi.D

L01 <./01 Standard 2ife Insurance "e 1hildren$s &lans, /ouble Insurance *enefit "e saathD

3at"er tells ot"er1 </e"ho "itni badi ho gayi hai ehaD )e"a o(er"ears "er 3at"er & says1 < ahi &apa, mai to itni si hi hoonD

L01 HD3% Stan$ar$ 8ife Insurance. Sar >t"a .e Giyo

22

%lient 1 HD3% Stan$ar$ 8ife Bran$ 1 HD3% Stan$ar$ 8ife Insurance 0ut$oor A&ency 1 Portlan$ In$ia +itle 1 Secure your "o'e fore(erP HD3% Stan$ar$ 8ife5 a 7ri(ate 7layer in 7ersonal life nsurance5 recently ran a ca'7ai&n to 7ro'ote its Ho'e 8oan Insurance Policy. Portlan$ In$ia ca'e u7 /it" a 3A$i'ensional (ersion of a neat loo!in& "ouse co'7lete /it" tiles5 $oors an$ /in$o/s t"at is (isi*le in t"e su*ur*an (icinities to $ri(e "o'e t"e i$ea of R"o'e-. +"e $is7lay starte$ fro' Guly 7 an$ /as statione$ at (arious 7oints aroun$ t"e city $urin& 7ea! traffic "ours5 an$ it roa'e$ aroun$ t"e su*ur*s $urin& t"e $ay. +"e financial ser(ices 7ro$uct fro' HD3% Stan$ar$ 8ife 7ro'ises t"e in"eritin& fa'ily t"e security of t"eir "o'e fore(er5 /it"out t"e *ur$en of t"e "o'e loan. +"e cut outs of a c"eerful loo!in& cou7le an$ t"eir c"il$ stoo$ outsi$e t"eir Rsecure- "o'e.

26

+"e "o'e "as t/o front si$es to cater to t"e 'ulti7le traffic flo/5 an$ li&"ts fro' *elo/ t"e roof an$ t"e flo/er7ots /ere s7ecially 7lace$ to &i(e t"e "ouse a realistic loo!. +"e front 7ortion of t"e "ouse /"ere t"e $oor /as 7lace$ /it" t"e na'e7late /as 4uttin& out5 in$icatin& a 7assa&e/ay li!e in any real "ouse.

Part #
27

Surve0 to +no, t3at 3as e;cessive advertise.ent di-uted 6rand ca--ed9 D!D"C standard -i2e insurance/

2E

"indings o2 surve0
T3e <uestion ,as as+ed to !D"C STD -i2e insurers to reco--ect an0 advertise.ent seen 60 t3e.5

T3e res1onse ,as as 2o--o,s:

80 70 60 50 40 30 20 10 0

Child on stage train scenario UK visa

+"e 'ost 7o7ular a$(ertise'ent /as t"at of train scenario /"ic" /as re'e'*ere$ *y 74 custo'ers. +"e secon$ 7o7ular a$(ertise'ent /as re&ar$in& t"e c"il$ on sta&e It /as recollecte$ *y 19 custo'ers +"e t"ir$ & t"e last a$(ertise'ent t"at /as re'e'*ere$ *y only 2 custo'ers /as of >. (isa

29

T3e <uestion as+ed ,as t3roug3 ,3ic3 .edia 3ad custo.ers 3ad seen t3e advertise.ents5

T3e res1onse ,as as 2o--o,s:

70 60 50 40 30 20 10 0
TELE !"!#$ $E%"&'&E( )#'(*!$+"

ost of t"e custo'ers "a$ seen t"e a$(ertise'ents t"rou&" +ele(ision .+"e nu'*er of custo'ers /"o "a$ seen t"e a$(ertise'ent on 3elevision was 45. +"e nu'*er of custo'ers /"o "a$ seen t"e a$(ertise'ent in ewspapers was67. +"e nu'*er of custo'ers /"o "a$ seen t"e a$(ertise'ent on the .oardings was 88.

6#

'3en casua--0 as+ed ,3et3er t3e e;cessive 1ro.otion F advertising ,as di-uting t3e 6rand va-ue9 t3is is ,3at t3e custo.ers re1-ied: %ES NO # NH

ost of t"e custo'ers *elie(e$ t"at in to$ay-s co'7etiti(e /orl$ its essential t"at t"e custo'ers are re'in$e$ a*out t"e e:istin& *ran$ & its ser(ices ti'e an$ a&ain.

+"is Muestion /as t"e one t"at "a$ to *e 7ut for t"e testing of hypothesis. +"e con(entional a77roac" to "y7ot"esis testin& is to set u7 t/o "y7ot"esis instea$ of one in

61

suc" a /ay t"at if one "y7ot"esis is true5 t"e ot"er is false. Alternati(ely5 if one "y7ot"esis is false or re4ecte$5 t"en t"e ot"er is true or acce7te$ .+"ese t/o "y7ot"esis are 1  )ull "y7ot"esis5 &  Alternate "y7ot"esis. In t"is 7ro4ect5 I "a(e ta!en t"e )ull "y7ot"esis to *e t"e ans/er R)o- as t"e null "y7ot"esis is al/ays consi$ere$ to *e ne&ati(e as t"e ter' <nullD 'eans not"in& or in(ali$ .As 7er t"e sur(ey “null hypothesis” is accepted.

Reco''en$ations
So'e of t"e reco''en$ations su&&esti*le are as follo/s.

62

15

A good 1otentia- -ies ,it3 t3e 6an+ to increase it4s c-iente-e 5T3e .anage.ent o2 t3e co.1an0 s3ou-d tr0 to 1ro.ote tie?u1 and advertise a-- o2 its sc3e.es5 As .ost o2 t3e advertise.ents re.e.6ered 60 its custo.ers are t3roug3 te-evision 9 It s3ou-d advertise .ore t3roug3 t3is .ediu.5

25 'ord O2 .out3 is a-,a0s a good 1u6-icit0 .edia 2or success o2 an0 1roduct or services5 T3e custo.ers do not agree t3at t3e 6rand and services o2 !D"C standard -i2e insurance are getting di-uted due to e;cessive 1ro.otion9 t3e0 instead ,ou-d -i+e i2 it continues its 1ro.otion F advertising to .a+e its 1resence 2e-t in toda04s co.1etitive and cro,ded ,or-d5

Conc-usion
+"e core function of t"e a$(ertisin& in an insurance co'7any is to &enerate a/areness a*out t"e insurance 7ro$ucts a'on& t"e tar&et 'ar!et. But in t"e In$ian scenario5 /"ere t"e insurance 7enetration is too lo/ as co'7are$ to t"e ot"er nations5 t"e a$(ertisin& force nee$s to 7erfor' t"e 7roAacti(e role in $e(elo7in& an insurance culture. It is t"rou&" t"e efficiency of t"e sales force of an insurance co'7any t"at t"e $esira*ility an$ t"e success of a 7ro$uct are $eter'ine$. In In$ian insurance 'ar!et5 t"e function is5 *asically 7erfor'e$ *y t"e a&ents. +"e 7ersons $esirin& to function as insurance a&ents "a(e to o*tain license to act as suc" fro' t"e IRDA or an officer aut"orise$ *y t"e Aut"ority in t"is *e"alf. +"e a&ents a77roac" t"e 7ros7ecti(e *uyers an$ a77rise t"e' of t"e *asic features of t"e 7ro$ucts. In or$er to $is7ense /it" t"e functions5 t"e a&ents nee$ to 7ossess a$eMuate !no/le$&e of t"e insurance in$ustry5 7ro$ucts an$ t"e 'o$alities attac"e$ t"ere/it". %o'7etition /ill surely cause t"e 'ar!et to &ro/ *eyon$ current rates5 create a *i&&er H7ie5H an$ offer a$$itional consu'er c"oices t"rou&" t"e intro$uction of ne/ 7ro$ucts5 ser(ices5 an$ 7rice o7tions. ,et5 at t"e sa'e ti'e5 7u*lic an$ 7ri(ate sector co'7anies /ill *e /or!in& to&et"er to ensure "ealt"y &ro/t" an$ $e(elo7'ent of t"e sector. %"allen&es suc" as $e(elo7in& a co''on in$ustry co$e of con$uct5 contri*utin& to a

63

co''on catastro7"e reser(e fun$5 an$ c"al!in& out a&ree'ents *et/een insurers to settle clai's to t"e *enefit of t"e consu'er /ill reMuire concerte$ effort fro' *ot" sectors.

64

BIB O*RAP!%
1. A"lu/alia Har4eet5 IRDA to re'in$ insurance co'7anies o(er a$ nor's5 3inancial 9:7ress5 3e*ruary 25 2##1. 2. Srini(asan 8alit"a5 Puttin& a 7re'iu' on 'ar!etin& $ifferentiation5 3inancial 9:7ress5 )o(e'*er 215 2##1. 3. S"as"i$ar A4ita5 6"en a$s &et e'otional5 %atalyst Q Business 8ine5 Ganuary 175 2##2. 4. a&aBine u!ta5 a: )e/ ,or! 8ife1 3ocusin& on Internal Bran$ABuil$in&5 3inancial 9:7ress5 A7ril 45 2##2.

ana&e'ent A$(ertisin&

a&aBine ania

I%3AI Pu*lication I S Pu*lication I S Pu*lication

22n$ Guly P& 24 Au&ust issue 4t" Au&ust Issue 26t" Au&ust Issue 1#t" Se7te'*er Issue

;lo*al 9$ucator

HR

Re(ie/

I S Pu*lication

Au&ust Issue

)e/sPa7ers
9+ 9+ 4t"5 11t"5 1Et"5 24t"5 31st Au&ust 7t"5 14t" Se7te'*er

Internet
9:c"an&efor'e$ia.co' A&ecyfaMs.co' a&in$ia.co' In$iatele(ision.co' In$iainfoline.co'K*Asc"oolK*iB.as7

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