Insurance sector advertising

1. 1. Insurance Sector Advertising

2. 2. Definition Insurance Risk-transfer mechanism that ensures full or partial financial compensation for the loss or damage caused by event(s) beyond the control of the insured party. Under an insurance contract, a party (the insurer) indemnifies the other party (the insured) against a specified amount of loss, occurring from specified eventualities within a specified period, provided a fee called premium is paid. • http://www.businessdictionary.com/definition/insurance.html 2

3. 3. Definition Insurance Advertising Any advertisement intended to encourage persons or company to buy insurance. It can be accomplished by directly marketing insurance products (for example over the Television), by encouraging potential customers to become more willing to receive sales calls (through direct mailers) or any number of other method. • http://financial-dictionary.thefreedictionary.com/Insurance+Advertising 4

4. 4. Definition Insurance Advertising Insurance advertising is the means of communicating insurance product or service by underwriting company to the users of that product or service. These advertisements are paid. • Source: The Economic Times 5

5. 5. History of Insurance in India Year Event • 1818 -- Oriental Life Insurance Co. was established in Calcutta. • 1870 -- The first insurance company, Bombay Mutual Life Insurance Society, was formed. • 1907 -- The Indian Mercantile Insurance Limited was formed. • 1912 -- Life Insurance Companies Act and the Pension Fund Act of 1912 • 1938 -- The Insurance Act of 1938 was passed; there was state supervision to control frauds. • 1956 -- The Central Government took over 245 Indian and foreign life insurers as well as provident societies and nationalized these entities. • 1965 -- The LIC Act of 1956 was passed. • 1972 -- The General Insurance Business (Nationalization) Act was passed. • 1991 -- Beginning of economic liberalization • 1993 -- The Malhotra Committee was set up to complement the reforms initiated in financial sector. • 2000 -- IRDA was incorporated as the statutory body to regulate and register private sector insurance companies. • 2005 -- Detariffication of marine hull • 2006 -- Relaxation of foreign equity norms, thus facilitating the entry of new players • 2007 -- Detariffication of all non-life insurance products except the auto third-party liability segment

6. 6. Over the past two decades, insurance advertisements have seen a gradual but drastic change in their approach ranging from: ‘DEATH, and insurance being a means to cope up.’ ………to…….. ‘Goals and admissions, and insurance being a means to achieve them.’ (Like Tax Saving) Insurance advertisement THEN and NOW

7. 7. Top insurers in India Today Market share of major Life insurance companies (in terms of total life insurance premium collected) LIC is the market leader, with 72.7 per cent share in FY13, followed by ICICI Prudential, with 4.7 per cent share. Source: http://www.ibef.org/industry/insurance-sector-india.aspx

8. 8. AWARENESS CAMPAIGNS BY TOP INSURANCE COMPANIES - Today 1. Stimulating the need for insurance. 2. Backup for Family 3. Safety and assurance 4. Under insurance 5. Savings for old age 6. Financial Independence 7. Insurance as a Long Term Savings 8. Trust & Transparency 9. Long term planning

9. 9. Case: Old Advt. 10.10. Mrs sharma ne pati ke moot k bad b sare kaam sahi se kar die Saari

tayari to in ne pahle he kar de the Jeven beema Kara ke Agar jevan bema na karaya hota To pata nahe aaj kya haal hota Mai to kehti hu sub ko jevan bema kara lena chahie LIC Jevan BEEMA Case: Old Advt.

11.11. India First insurance Advt. Aise he thoda thoda invest karte raho, Faida zaroor hoga Transition from OLD to NEW

12.12. Ye KILB Kya hota hai Kya pata bhayee Hum batate hai KILB matlab Kam insurance lane ke beemari To ab kya kare Mai batata hu Call karo or apna sahi insurance amount jani Kam insurance na ka barabar hai

13.13. Tun jhadoo lagana bhooli to nahe Tum jaisa khana banaoge mai kha lunga Retire ho gaya hu. Paise bach jaige Car bhi Suna, bate se har mahene thode paise maang late hai Bilkul nahe zindagi me sir 1 baar manga hai, tumhare baap se tumhara haath Bhudape me ye din dhikane k lie? Nahe, tumhe singapore dikhane k lie

14.14. LIC jeevan Tarang Case: New Advt. 15.15. IRDA on Insurance Advt. • In 2012, IRDA gave regulations and

guidelines on following insurance ad: • Print Ads • Group Insurance Ads • e-Insurance policy Ads • Electronic Ads • Telemarketer Script • Special strictness on Ads through Brokers and Reinsurers. • All Terms and Conditions to be Mentioned and Dictated in an understandable tempo.

16.16. Mr. Rajan Prasad CEO - Hype Communication Contact: rajan@hypecomn.com Mobile: +91-98.104.11644 Head Office: L-II, 28-A, Basement, Kalka Ji, New delhi - 110 019. Tel/Fax/email, Tel: +91-11-6461 1785; Professional Interview

17.17. Interview – Email 18.18. Interview – Keypoints • Insurance advertising is changing because mood

of nation is changing. • People are now learning all diverse benefits of having an insurance policy. • Companies are now trying to portrait insurance product as a general necessity, not a prices possession. • Modes to buy insurance has increased, which is also a part of insurance ad now.

Advertisement Effectiveness

1. 1. THE INSURANCE INDUSTRY o The private players got entry to this industry in 1999. o LIC is the Market Leader. o A dozen of Private players in the market. o Huge improvement in service attitude & delivery. o The biggest beneficiary of the competition is the consumer.

2. 2. Graphical Representation of Market Shares of different private players. 3. 3. COMPANY BACKGROUND 4. 4. Joint Venture between ICICI Bank & Prudential PLC. Amongst the first private

sector insurance companies to begin operations in December 2000 after IRDA approval. Equity base of Rs. 6.75 billion, with ICICI Bank and Prudential Plc. holding 74% and 26% stake respectively. The company garnered total received premium (new business + renewal) of Rs. 3,088 crores for the quarter ended June 30, 2008 as compared to Rs 1,801 crore for the quarter ended June 30, 2007. The company wrote over 6 lakh policies over this period and its assets stood at over Rs 26,900 crore.

5. 5. VISION- ICICI Prudential Life Insurance Co. “The vision of the company clearly states that it wants to become the dominant Life and Pension player built on trust by world-class people and services.”

6. 6. BOARD OF DIRECTORS 7. 7. PROJECT OVERVIEW • Problem: How Indian Customers could trust Private Life

Insurers despite the presence of LIC which is a govt. owned body & therefore, has an element of Security. • Primary Objective: To Understand & Measure the impact of Advertising in the Life Insurance Market. • Secondary Objective: To know the Promotional Strategies of ICICI Prudential Life Insurance Co. Ltd.

8. 8. • Scope: The study presents a clear picture of Media Strategies of the Insurance Players. The results will help the company to trace the loop holes and then take the corrective measures to rectify them. • Sample Size: 50 • Source of Primary Data: Questionnaires filled by respondents.

9. 9. LITERATURE REVIEW 10. 10. MEDIA EXPOSURE IN RURAL MARKET The estimated annual business from

rural markets in 2008 was Rs. 1,23,000 crore, comprising Rs. 65,000 crore of FMCG, Rs. 5000 crore of durables, Rs. 45,000 crore of agricultural inputs & Rs. 8,000 crore of two wheelers and 4 wheelers. 29% of the rural people own cars, 27% own colour televisions, 24% own refrigerators & 10% own washing machines.

11. 11. CORPORATE ADVERTISING The advertising idea, which was encapsulated in symbols of protection from the initial print campaign, culminated in the corporate film where SINDOOR was used as an endearing and lasting symbol of protection.

12. 12. RESEARCH WORK 13. 13. The Questionnaire Hello Sir/Madam, I, KARAN SACHDEV, here to conduct a

research on the T.V audience with respect to advertisement put up by LIFE INSURANCE COMPANIES. The purpose of this study is to understand, capture, assesses and evaluate the effectiveness of the advertisement. We would appreciate if you could spend about 15 Min. and communicate your feelings, expression, comments and impact on you with respect to the content of the advertisement. Please give your honest opinion and be understood that this information collected will be purely confidential and not to be .shared with any other entity in term of commercialization. PERSONAL PROFILE NAME AGE OCCUPATION E-MAIL ID POSTAL ADDRESS CONTACT NO.

14. 14. Which media you use for information/entertainment? TV Radio Newspaper Internet How often do you share interesting advertising with your family or friends? Never Rarely Sometimes Often Very often Have you seen any Life Insurance Product Ad? Yes No On Which channel you watch mostly? Zee T.V Sony Star News Channel

15. 15. If yes can you recall the content of the Ad? Yes No Based on the features advertised, in that ad…... Rank the following Strongly Somewhat Neither Somewhat Strongly Agree Agree Disagree Disagree The ad message is understandable The advertisement is believable The ad’s message is relevant to me The benefits told in the ad are believable to me After viewing this ad, I’ll consider to buy the product This ad is much better than other ads for products of the same category

16. 16. Which company ad you find mostly? LIC India HDFC Std. Life Insurance Co. Ltd. Birla Sun Life Insurance Co. Ltd. ICICI Prudential Life Insurance Co. Ltd. Reliance Life Insurance Co. Ltd. Do you think this ad has influence you to………………. Buy the insurance policy Recommend the Insurance Policy Suggest the insurance Policy Can you recall if your family members ever tried to influence you to buy/secure a life insurance Policy from the insurance company of her interest? Yes No Which of the Insurance Policy would you like to buy? Life Plan Health Plan Child Plan Retirement Plan

17. 17. Other than T.V Where you saw Life insurance ad? Internet Newspaper Holdings Friends/Family Radio Please rank the following Life Insurance Company as per your liking HDFC Standard Life Insurance ICICI Prudential Life Insurance Reliance Life Insurance Tata AIG Insurance Solutions Bajaj Allianz

18. 18. Share of Life Insurance v/s other insurance 19. 19. Growth of Life Insurance Advertising 20. 20. LIMITATIONS • The research is confined to a certain parts of Delhi due to time

constraints and does not necessarily shows a pattern applicable to all of Country. • Some respondents were reluctant to divulge personal information which can affect the validity of all responses. • In a rapidly changing industry, analysis on one day or in one segment can change very quickly. The environmental changes are vital to be considered in order to assimilate the findings.

21. 21. FINDINGS 22. 22. Majority of the public uses television for entertainment or information gathering,

followed by newspaper and internet. Radio is seems to be out dated in urban areas. But

after revolution in mobile technology and satellite radio it has again started growing. Majority of the public goes behind brand name. That’s why corporate advertising plays a vital role in growing stage. It is also found that insurance companies like to give their ads in News/Business channel. Liking an advertisement does not mean that public would like to buy that product. If we talk about the private players, public’s first choice is ICICI Prudential followed by HDFC Standard Life and Reliance Life Insurance.

23. 23. RECOMMENDATIONS • After the initial promotional campaign the relative advantage of ICICI PRUDENTIAL Life Insurance Co. Ltd. Over its competitor should be highlighted. • Hoardings at prime areas should be used • ICICI Prudential should come forward for development of rural sector by way of establishing a school, digging wells in villages. It is one of the ways to gain trust in rural sector. • ICICI Prudential can also use to advertise by using the way of “Nukkad Naataks”. It is the most creative and cheapest way of advertising.