Marketing challenges of life insurance industry

Group Members

• Neha Dand - 7720

• Swarupa Dhawade - 7724

• Preeti Bangar-7710

• Shruti Borkar - 7715

• Madhuri Bhamre -7712

• Neelam Dalvi - 7719

What is insurance?

• Insurance is an integral part of everyone’s life in present scenario.

• Came to India from UK

• With the establishment of the Oriental Life Insurance Corporation in 1818

BAJAJ ALLIANZ

• Introduction on 12th March 2001.

• Received the Insurance regulatory and Development Authority (IRDA) certificate of Registration (R3) No. 116

• Joint venture between two companies. – Bajaj Auto– Allianz AG.

BAJAJ AUTO

• One of the largest 2 and 3 wheeler manufacturers in the world

• Bajaj auto finances one of the largest companies in India

ALLIANZ AG

• Allianz AG is in the business of General Insurance.

• 3rd largest Assets Under Management (AUM) and largest amongst

insurance companies.

• 11th largest corporation in the world.

• A Global Finance Powerhouse.

Vision

• To be the first choice insurer for customers.

• To be the preferred employer for staff in the insurance industry.

• To be the number one insurer for creating shareholder value.

Mission

• As a responsible, customer focused

market leader.

• Understand the insurance needs of the consumers

• Translate it into affordable products that delivervalue for money.

Achievements

• Bajaj Allianz has received AAA Rating.

• “Business Leader in General Insurance” awarded by NDTV Profit Business Leadership Awards 2008.

Marketing mix of Bajaj Allianz

Ranking of Top 10 Private Insurance Companies

1. Allianz Bajaj Life Insurance Company Limited

2. Birla Sun-Life Insurance Company Limited

3. HDFC Standard Life Insurance Co. Limited

4. ICICI Prudential Life Insurance Co. Limited

5. ING Vysya Life Insurance Company Limited

6. Max New York Life Insurance Co. Limited

7. MetLife Insurance Company Limited

8. Om Kotak Mahindra Life Insurance Co. Ltd.

9. SBI Life Insurance Company Limited

10.TATA AIG Life Insurance Company Limited

Product Mix

Traditional plans

• Endowment plans like super saver, life time care.

• Money back plans.

• Cash gains plans.

Modern plans

Health insurance

• Health Guard

• Personnel Guard

• Hospital Cash

• Star Package

• Silver Health

• Family Care First (Cash less mediclaim)

Travel Insurance

• Travel Companion

• Student Companion

• Travel Asia

• Travel Elite

• Swades yatra

Child Care Plans

• Child care 21

• Child care 24

• Child care 21 plus

• Child care 24 plus

Smart Child Education Plan

Women Insurance Plan

• House Wives

• Working Women

Corporate insurance

• Specialty Lines

• Office Plans

• Manufacturing Unit Plans

• Group plans– Employer Employee– Non Employer Employee

Group insurance Solution

• Bajaj Allianz Group Gratuity Plan

• Bajaj Allianz Superannuation Plan

• Bajaj Allianz Term Plan

Retirement and Pension Solutions

Unit Linked Plans

• Regular Premium Plans

• Single Premium Plans

Micro Insurance Plans

• Alp Nivesh Yogana

• Jana Vikas Yogana

• Saral Surakha Yogana

Other Life insurance Plans

• Family Assurance

• Fortune Plus

• Capital Shield

• Century Plus II

Other Products of Bajaj Allianz

• Asset Insurance

• Motor Insurance

• Under Writing

• Consultancy Services

Key benefit of Bajaj Allianz products

• Additional Security

• Best value for money

• Availability in various terms

• Flexibility in Withdrawals

• Moderate premium rates

Promotion Mix

Promotion• Advertising

• Sales promotion

• Personal selling

• Word of mouth

• Public relations

• Publicity

• Sponsorship

• Direct marketing

Promotional tools of Bajaj Allianz

Recent television Advertisements

Telemarketing

Other promotion tools

• Radio Advertisements

• Promotion in corporate offices

• Internal marketing

• Hoardings and brochures

Other Promotion strategies of Bajaj Allianz

Boxing Campaign Virender Singh becomes the Brand Ambassador

Bajaj Allianz in Pantaloon Femina Miss India Contest 2009-10

Bajaj Allianz sponsors Miss Confident Award in Miss India Contest

Bajaj Allianz in IPL matches

Promotion in movies

Bajaj Allianz in association with IBN7 gives 18 super idol Award to physically

challenged people

Promotional Strategies in Rural areas

Price Mix

• Two types of Pricing in Insurance:

o Policy pricing

o Premium pricing

Policy Pricing

• Premium charged against policy

• Interest charged for defaulting the payment

• Commission charged

• Consultancy services

Bases for Premium Pricing

• Mortality

• Expenses

• Interest

Bajaj Allianz Pricing Strategies

• Customer Oriented

• Competition based

• To increase the market share

Place Mix

Important facets of place Mix

• Initial approach of face to face interaction

• Modern approaches of intermediaries

• Managing the insurance Personnel

• Locating the branch

Strategic Locations of Bajaj Allianz

People Mix

People

• Requirement of talented and experienced personnel

• Performance expectations and returns from the company should be clear

• Empowerment of people

• Build a learning culture

• Respect and value individuals

Process Mix

Process of Bajaj Allianz

• Customer Friendly process

• Easy and convenient installation schemes

• Concentration on improvement of customer service level

• Prestigious awards

• Strong position

Physical evidence

• Material part of service

• No physical attributes

• Focus on making the concept understandable to the consumer.

• Some examples

Internet/Websites

http://managementfunda.com/wp-content/uploads/2010/07/viewer.png

Bajaj Allianz Building In Pune

Other Physical evidence

• Business cards

• Furnishings

• Internal infrastructure

4 I’S of Bajaj Allianz

• Intangible

• Inseparable

• Inconsistency

• Inventory

Marketing challenges

• Provide right information to right person at right time

• Cost saving

• Effective development and quality processes

• Accessibility issues

• Portal approach

• Cover wide range of audience

• Inconsistent users experience

Swot analysis

Strength

• Insurance cover

• Past year performance

• Flexibility

• Withdrawal after 3 year

• Tax benefit

Weakness

• It is purely private company

• Less awareness among people about ULIPs

• No guaranteed return on ULIP

Opportunities

• Insurable population

• Inflow of managerial and financial expertise

• World class expertise in local markets

• Increase in sales of ULIPs

• Insurance liberalization

Threats

• Existing players

• New entrants

• Competitor’s position in eyes of customers

Suggestions • Branding

• Industrial client

• Hire experienced sales managers

• Loyalty rewards

• More publicity

• Focus on young and low aged people

• Organizing information giving seminars

• Minimization of ULIPs minimum premium payment

Other information about Bajaj Allianz

• Current market trends

• Strategies of the company

• Complaints handling and compensation management

Conclusion