Industry Analysis and
New Media Strategy
Sahil Chopra (01)
Richa Bhardwaj (26)
1 MBA - PR
Insurance Industry Overview
India is the fifth largest general insurance market in Asia with annual premiums of
$6.3 billion in FY09
21 companies operating in India:
13 private sector companies – multiline (JV with foreign insurer)
4 public sector companies – multiline
2 private sector companies – health
2 public sector specialty companies
Intense competition and strong growth between FY01 and FY08
Premium grew at 19.5% per annum
Penetration levels (premium as a % of GDP) increased from 0.4% to 0.7%
(world average being 3.1% in 2007)
Annual premium in April 2008-March 09 was $6.3 billion (excl health and
Market continues to be dominated by public sector, though share has declined since
Large middle class population, increased awareness and income levels have fuelled
Currently maximum foreign partner investment is 26% - soon expected to increase
Home insurance segment is set to achieve a 100% growth as financial institutions
have made home insurance obligatory for housing loan approvals. It is poised to
become the second largest business for non-life insurers after motor insurance by
Insurance Laws Amendment Bill, 2008 was introduced in the Rajya Sabha. The Bill
has been referred to the standing committee on finance for its report, which is
expected shortly. The key amendments proposed in the Bill are as follows:
Increasing the FDI limits in insurance from 26% to 49%
Introducing “Health insurance business” as a separate category of insurance. Minimum
paid up capital of INR 500 million (USD 10 million approx) has been prescribed for
standalone health insurance companies.
Newer products are being introduced for agricultural insurance and extensive efforts
being made by the insurance companies to reach out to the rural markets. This is
expected to shift the skewed nature of insurance, slowly but steadily, towards a more
With the entry of several low-cost airlines, along with fleet expansion by existing
ones and increasing corporate aircraft ownership, the Indian aviation insurance
market is all set to boom in a big way in coming years.
- The variety of products is increasing
- Deregulation and detarrification of industry -Insurance companies often slow to
respond to changing needs.
- Health, micro insurance facing a boom
-There is an increasing trend of financial
- Customer satisfaction mandatory
weakness among the companies.
- Prospects expect more services from their
-Rural area pentration is low
-Awareness about the subject is still low
-Premium rates are increasing and so are
-Ability to cross sell financial services barely -The increasing cost and need for insurance might
being tapped. hit a point where a backlash will occur.
-Improved technology available- paperless -Government regulations on issues like health care,
transactions available. and terrorism can change direction of insurance.
-Newer distribution channels being identified -Increasing expenses and lower profit margins will
hit smaller insurance companies hard.
-Innovative covers on offer- HIV, terrorism etc
-Investment policies facing a downturn linked to
-The client's increasing need for an "insurance
consultant" can open new ways to service the
client and generate income.
General Insurance - Major Private Players
1. ICICI Lombard General Insurance (11%)
2. Bajaj Allianz General Insurance Company Limited Royal (9%)
3. Reliance General Insurance Company Limited. (6%)
4. IFFCO-Tokio General Insurance Co. Ltd (5%)
5. TATA AIG General Insurance Company Ltd. (3%)
6. Sundaram Alliance Insurance Company Limited (3%)
7. Cholamandalam General Insurance Company Ltd. (2%)
8. HDFC-Chubb General Insurance Co. Ltd. (1%)
9. Future Generali India Insurance Company Limited (1%)
10. Apollo DKV Insurance Company Limited (0%)
11. Universal Sompo General Insurance Company Ltd. (0%)
12. Bharti Axa General Insurance Company Ltd. (0%)
13. Raheja QBE General Insurance Co. Ltd (0%)
IFFCO-Tokio Campaign - Phase I
When Iffco-Tokio came into existence, its tagline was: The Life You Deserve
Two campaigns were launched in this initial phase:
• Ad agency: Dentsu
• PR Agency: Genesis BM
Campaign I: Whichever way life takes you
o Insight: Consumers value trustworthiness the most for an insurance
o Positioning: Trustworthy, Honest, Reliable
o Media: TVCs and print ads
Campaign II: Hassle-free claims
o Insight: Speedy claim settlement is extremely critical for satisfied
o Positioning: Quick, easy claim settlement
o Media: TVCs and print ads
IFFCO-Tokio Campaign - Phase II
In 2008, Iffco-Tokio makeover with a new logo and tagline: Muskurate Raho
Two campaigns were launched in this initial phase:
• Ad agency: Publicis
• PR Agency: Genesis BM
o Campaign: Albert Pinto kyon muskura raha hain
o Rationale:‘Muskurate Raho’ is the need for Indian Masses in the present day life
which is full of risks and tension.
o Brand Ambassador: Paresh Rawal
o Positioning: Friendly, hassle free, trusty
o Media: TVCs, print ads and brand activation (outdoor)
o Add links
Defying the rules: ITGI
Study and analyse the insurance industry in India
Identify the industry conventions in marketing, distribution, consumer,
communication, corporate, etc.
Defying the existing rules of the game for the industry by disrupting
Distribution Convention: The distribution and communication
channels being exploited by the insurance companies in the rural
markets are agents, formal banks, regional rural banks, post offices,
NGOs, Self Help Groups etc.
Idea: Rural knowledge centers and Internet zones are becoming
increasingly popular in rural areas. These act as information resource
centers to the rural people. These can be used effectively by ITGI to
educate the people about insurance in general as well as its products
(in their regional language). Internet’s reach in rural areas is quite
Consumer Convention: Poor people live for the present and do not plan
for the future. Given this fatalistic attitude, it is quite tough to explain the
concept of insurance to the poor. The poor view the premium on
insurance policies more as a cost than a risk-cover.
Idea I: In order to improve rural sales, ITGI must look at winning the trust
and partnering effectively with the local NGOs of the region who are
genuinely trying to uplift the situation of the poor. It is through these
NGOs that ITGI can educate the poor about the importance of insurance
and in due course increase its sales.
Idea II: ITGI must look at involving the local NGOs to develop customised
insurance products which would be of value to the people of the village.
Retail Products: Urban
Distribution & Marketing Convention: The Indian general insurance
industry has historically been dominated by the agency channel, through
which 75% of total premium income is sourced. But in recent periods
other channels – for example, bancassurance (ICICI Lombard - ICICI
Bank), brokers, corporate tie ups, motor company tie-ups are gaining
As of December 31 2007, 267 brokers were registered with IRDA,
including 228 direct brokers, 33 composite brokers and 6 reinsurance
brokers. In a deregulated environment, the broking community will have
plenty of opportunity to become an integral part of the insurance and risk
Idea: This is an opportune moment for ITGI to initiate the process of
building a strong relationship with independent brokers, corporates and
automobile companies through rapport building events and activation
Corporate convention: All the insurance companies are severely
hampered in claims servicing by their process-oriented approach and
limited operational flexibility. They have been unable to expedite claim
settlements leading to high customer dissatisfaction. Hassle free claim
settlement is one of the key enticers for customers.
Idea: IFFCO-Tokio with its campaign tagged- Hassle Free Claims, did try to
differentiate itself from its competitors on this very factor. But the
campaign turned out to be largely unsuccessful due to the lack of
efficiency of the company in settling its claims out. Thus, ITGI should
ideally put in all efforts to ensure that an extremely speedy & effiicent
claim settlement process is put in place. This is bound to improve the level
of satisfaction and loyalty amongst ITGI’s policy-holders.
• Study and analyse the present use of web by IFFCO-TOKIO (and its
competitors) to develop critical insights
• Propose key online marketing and communication strategies to the company
Critical evaluation of each aspect of the web- its potential for the
Competitor analysis - what are they up to in the online space
Online Insurance Sales and Marketing: Celent
Celent, a US-based global research and advisory firm: online insurance sales will double
by 2011 (worldwide) and web will play a major role in most personal insurance
purchases across auto, life, and health.
Insight: Marketing & communication initiatives will now become more specific and one-
to-one marketing will see a rise.
Key findings include:
• Web has become an increasingly important communication channel between sellers
and buyers of personal insurance.
• At present, most consumers’ purchasing process is “Web Influenced”
• Search engines like Google and Yahoo! are critical channels for insurers that cannot
afford massive consumer marketing campaigns to drive shoppers directly to their
sites, and more insurers are embracing search engine optimization to help capture
• Pure online sales are growing, but will still account for less than 15% of sales, even in
• While 100% online sales are unlikely to exceed 30% in any area, the Web will be a
major influencer for nearly all sales within five years.
New Media: Key Insights
Primary survey conducted by IAMAI and IMRB International across 30 cities and 90,000
1. Out of the total internet users in urban India (50 million), 37 per cent of them stay in top 8
metros and 30 per cent in towns with populations below 5 lakh.
2. 37 per cent of the total internet population in urban India belongs to SEC A and 32 per cent
belongs to SEC B categories.
3. Among the active internet users in 30 cities (17.9 million), 30 per cent are young men below
35 years who are not school or college students, and 27 per cent are college-going students.
4. 12 per cent are school-going kids while 11 per cent of the active internet users in 30 cities
(17.9 million) are working women; only 6 per cent are non-working women.
5. 37 per cent of the 17.9 million active internet users surf the net at cyber cafes, 26 per cent surf
at home while 27 per cent surf at office
6. 91 per cent of the surveyed consumers use internet primarily for e-mail, 76 per cent prefer to
use it for general search, while 49 per cent consumers are looking for educational content.
Useful Insights for ITGI
• The reach of internet is not just limited to just the 8 metros, as is often perceived.
Thus, it gives ITGI a chance to connect with people from smaller cities and towns
(tier I & tier II) as well through the web.
• SEC B forms as important a part of ITGI’s TG as SEC A and the internet has a balanced
mix of both.
• Amongst the internet users, people below 35 years of age form a major chunk
(around 57 per cent). Younger people are more open to new concepts, services and
products. Thus, there is an opportunity to make them perceive insurance cover as
essential – the smart thing to do.
• 76 per cent of the people surveyed prefer to use the internet for general search, while
49 per cent are looking for educational content. This provides excellent reason for
ITGI to invest in Search Engine Optimization, setting up of blog and keeping its
ANALYSIS: ONLINE MODEL V/S AGENT MODEL
Distribution made easier Information overload
Digital policy accessible to customer No scope for negotiation/bargain
Online customer service 24X7 Lack of privacy/trust
Paperless Transactions Security concerns e.g. spam
Ease of use, convenience No. of users (potential buyers online)
Lower costs User expects freebies
ICICI Lombard leads the way in e-transactions. It allows visitors to buy, change, extend or
renew their policies online through its website (travel, health, motor and home) in an
extremely simple procedure.
Bajaj Allianz General only allows users to buy motor policies online. Also, it allows them to
renew their existing policies as well.
Reliance General allows its visitors to buy policies online but not renew their old policies. It
offers only travel, motor and health insurance policies, not home.
Tata AIG only allows existing customers to renew their existing policies online.
IFFCO-Tokio allows visitors to buy (motor, travel, health) as well as renew their policies
online. But, both the times we tried to check the process of buying the policy out, the server
seemed to be unavailable or down.
ICICI Lombard, TATA AIG and Reliance General, Bajaj Allianz General and IFFCO-Tokio
have all tied up with policybazaar to sell their insurance products.
COMMENTS AND SUGGESTIONS
ITGI’s online policy selling process is quite fast and customer-friendly. There are few
clicks, new pages or new windows opening in the process so as to make it faster.
ITGI can look at offering/selling its other products like home insurance etc also through its
ICICI Lombard and Reliance General have agents’ login facility on their website for the
agents to buy policies for clients, renew them, check their status etc. ITGI can look at
exploiting that aspect too. Why limit the service to just end consumers?
ITGI can look at tying up with other websites such as www.insurancemall.in to sell its
Avenues: Online Advertising
• Categorised into two types: search and display
• While the current ratio of search to display roughly stands at 30:70, share of search is
expected to increase significantly this year
• The internet allows real-time monitoring, mapping and adjustment of campaigns
• It also allows fine tuning of the campaign based on response and feedback to reach the desired
ICICI Lombard uses the specialised services of AdGuru, the ad-network unit of the
Bengaluru based Internet search firm Guruji.com.
IFFCO-Tokio has initiated digital advertising of its products (Motor, Health, Travel) on
traffic websites like Rediff, Yahoo, in.com, IBN live, cricbuzz etc. The same was done during
Elections and IPL. To ensure consistency in the initiative, ads and sponsored links are
featured continuously on Carewale.com, Yahoo.com and Google search.
• The most controllable source of providing information and relaying messaging on the
• Most trusted when supported by third-party credibility
• Must leave a positive impression on the visitor's mind (appropriate content and design)
COMMENTS AND SUGGESTIONS (Post Competitors’ Website Analysis)
IFFCO-Tokio’s website is quite nicely developed with an excellent interface which is
extremely uncluttered, very interactive and user friendly. However, it can still look at adding
the following segments to
Downloads- brochures, forms (claim, application, renewal etc)
RSS feeds: Subscribe to company news through mails, newsletters etc
Avenues: Search Engine Optimisation
Bajaj Allianz has hired Communicate2, a search marketing agency based in Mumbai
which has recently become a certified Google Analytics Authorized Consultant (GAAC).
COMMENTS AND SUGGESTIONS
Hire an agency to help with SEO and search listings for even according to the trends
search advertising is the way forward for web advertising.
A similar sort of benefit can be derived by using web tools like Stumble Upon, Reddit
and Digg bookmarks. These can be used expertly for specific interesting pages of the
ITGI website and related blogs on insurance in order to drive net user traffic to them.
Thus, promoting the company, its products and initiatives.
Avenues: Social Media - SWOT
- Direct contact with audience -Results may be lower as against other media
- Scope for interaction -Sometimes impersonal due to outsourced
- Measurable results thanks to web analytics execution
- High reach within the TG -Rapid, ever-changing environment
- Cost-effective -Sometimes messaging becomes inconsistent
-Scope for continious change and improvement - Less time to correct glaring errors, if any
- Helps build strong, long-term relationships
-Possibility of excessive brand exposure
-Presence where the TG lies -Espionage: competitors are more likely to know
-The TG helps with word of mouth what you are doing
-Place to identify and connect with new talent -Close competition in the medium may lead to need
-Innovative covers on offer- HIV, terrorism etc for very high level of promotion
-Reach out to people that other media cannot help -Judgemental consumers
Avenues: Social Networking Sites
The best and most credible form of publicity for a brand is word of mouth publicity and these
social networking sites provide us with a platform to promote just that.
Tools to be utilized:
Starting up of separate, dedicated and highly active and interactive communities for ITGI
Developing an ITGI profile on Twitter to keep the followers updated.
Developing fan pages for ITGI and its innovative products, schemes and policies.
Developing applications to like How much do you know about insurance quiz, Do you need insurance
quiz, Which insurance policy best suits you quiz etc to promote brand loyalty and gain customer
feedback on the products.
Using these social networking sites to leverage and promote the initiatives undertaken by ITGI and
even gauge feedback on its new advertising and promotional campaigns.
Using these communities to promote the new product offerings- policies and services.
Regular tracking to gauge customer feedback and negating the negative opinions and feedback of the
customers on the brand.
Tools that can be utilized:
ITGI can put expert talk videos on Youtube about the current industry scenario,
innovations in the industry etc. (This can be used for management profiling as well-
as the top management people from ITGI can be a part of these discussion videos)
ITGI can also look at putting up videos to educate the consumers who have still not
touched insurance products to educate them about the need and benefits of these
products and services.
TVCs- Posting TVCs on youtube can help get feedback from people on a real time basis. It can help
ITGI understand if its TVC is connecting well with the audiences or not. Some companies have
even gone a step ahead and used youtube as the testing ground for their TVC. Even before buying
spots on television to post their commercials, they have put them up on youtube for feedback
Avenues: Social Gaming Sites
Advertisers have realised that consumers may overlook brands in display and
search ads. However, it’s hard to do so when they are actively involved in playing a
game that has the brand as its central theme or character.
Bajaj Allianz tied up with Contest2win to create a game for it.
Zapak has developed advergames for LIC and ICICI Lombard.
IFFCO-Tokio can look at a gaming tie-up as well to promote its product through
forums, gaming sites as well as its own website.
Avenues: Other Suggestions
DIRECT WEB MARKETING
DIRECT MAILERS, REGULAR EMAILERS, NEWSLETTERS should be developed
CREATE AN EXCLUSIVE ITGI GROUP (a premium group for its loyal customers) and
look at offering them special services through the web and offline. This activity can
be leveraged across media, the web being an important part.
New game by Bajaj Allianz makes you count your
ICICI prudential, health insurance and the moral dilemma
ICICI prudential launches job portal for senior citizens
ICICI prudential life launches aboutulips.com
For details refer to the appendix in the attached MS Word document