Insurance Marketing mix

8/12/2019 Insurance Marketing mix

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MARKETING INMARKETING IN


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BANKING & INSURANCEBANKING & INSURANCE

T.Y. (BANKING & INSURANCE)

MARKETING IN BANKING AND INSURANCE

Marketing in banking & insurance- Om Kotak Mahindra Old Mutual Life insurance 2


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INDEX

SR. NO PAR!"#LARS PA$% NO.

. !nsurance marketing '

(. Role of marketing )

*. !nsurance marketing in !ndian en+ironment ,

'. Obecti+es of life insurance marketing ,

).

Marketing mi for insurance organi/ation

Product 0lanning and de+elo0ment

Promotion mi

Price mi

Place mi

Peo0le

Ph1sical e+idence

Process

2

3

4

*

)

)

,

,.Om Kotak Mahindra Old Mutual Life !nsurance

!ntroduction

3

2. Products offered (

3. Kotak "hild Ad+antage Plan & marketing strategies (*

4. Kotak Retirement Plan & marketing strategies (,

5. Media "entre (4

. 6iblogra0h1 *



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INSURANCE MARKETING

he term insurance marketing refers to the marketing of insurance ser+ices 7ith the

aim to create customer and generate 0rofit through customer satisfaction. he

insurance marketing focuses on the formulation of an ideal mi for !nsurance 6usiness

so that the insurance organi/ation sur+i+es and thri+es in the right 0ers0ecti+e. he

organi/ations can successfull1 increase the market share8 maimi/e the 0rofitabilit1

and kee0 on the 0rocess of de+elo0ment 7ith the hel0 of marketing.

!n !ndian 0ers0ecti+e 7here rural orientation needs a 0rime attention8 the insurance

marketing ma1 0ro+e to be a deice for combating regional imbalance b1 maintaining

the sectoral balance as an in+estment institution9 the rural de+elo0ment oriented

0roects make 7a1s for the transformation of rural societ1. !t is right to mention that the

marketing conce0t in both bank and insurance business is a matter of recent origin.

he marketing conce0t in the insurance business is concerned 7ith the e0ansion of

insurance business in the best interest of the societ1 +is-:-+is the insurance

organi/ation. he selection of risks ;0roduct 0lanning


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!t is to energi/e the 0rocess of @ualit1 u0gradation.

MARKETINGS ROLE HAS CHANGED OVER TIME

Sim0le trade eraocus -sell sur0lus

Production eraocus- increase su00l1

Sales eraocus- beat com0etition

Marketing de0artment eraocus - coordinate and control

Marketing compan era!oc"# $%ong term c"#tomer #ati#&action

MARKETING


MICRO MACRO

1. SET OF ACTIVITIES.

2. PERFORMED BY

ORGANISATION

1. SOCIAL PROCESS

2. MATCHES SUPPLY

WITH DEMAND


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INSURANCE MARKETING IN INDIAN ENVIRONMENT

he nature and beha+ior of business is go+erned b1 en+ironmental changes. !n a

de+elo0ing econom1 7here financial institutions are acce0ted to shoulder multi-faceted

social burdens in addition to the task of mobili/ing and channelising resources8 it is

necessar1 that 0rofessionalism should be de+elo0ed. Bue to mounting 0roblems of

regional back7ardness and regional imbalances like making of marketing decisions

and com0licated in insurance business.

Risk and uncertainties mo+e u07ard due to increased so0histication. After the

nationali/ation of L!" in 4), and $!" in 42' there ha+e been changes in the

organi/ational obecti+es. !t 7as in this background that insurance business 7as

attem0ted to be e0anded in rural areas. he 0ur0ose 7as to reach all the 0otential

users of the ser+ices. !n this contet it is significant to mention that the etent of

de0endence of insurance business on the ser+ices of agent and rural career agents is

of high magnitude. he ser+ice conditions of rural agents and agents in general are to

be enriched. !n the !ndian condition the task of moti+ating the rural 0ros0ects is more

difficult as maorit1 of them are illiterate.

Marketing of insurance ser+ices needs a rational a00roach8 7hich means the follo7ing?

. Kno7ing the market.

(. Suitable 0ricing decisions.

*. Product to be de+elo0ed as 0er needs.

'. Besigning of sensiti+e 0romotional strateg1.

). Scientific management of agents.

,. Proficienc1 in management.

O'(ECTIVES O! LI!E INSURANCE MARKETING

he follo7ing are the obecti+es of Life !nsurance Marketing?

. Mobili/ation of sa+ings in the form of 0ensions.



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(. !m0ro+ing customer ser+ices.

*. !ncreasing customer base and its s0read.

'. Be+elo0ing cor0orate image.

). S0reading Life !nsurance Message.

,. Be+elo0ing guiding 0olicies and their im0lementation for better results.

2. Bistribution of Life !nsurance Policies.

3. Marketing Profit.

MARKETING$ MIX !OR INSURANCE ORGANI)ATION

he !nsurance business deals in selling ser+ices and therefore due 7eight age in the

formulation of marketing mi for the !nsurance business is needed. he marketing mi

includes sub-mies of marketing such as the 0eo0le8 the 0rocess and the 0h1sical

attraction. he 0ublic sector insurance organi/ations ha+e not been formulating and

inno+ating the marketing mi to cater to the changing needs and re@uirements and

increasing le+el of satisfaction of the users. Maorit1 of the 0olic1holders and

dissatisfied 7ith the ser+ice-0rofile and the1 often com0lain regarding the detonating

@ualit1 of ser+ices. Bue to this the foreign insurance com0anies and 0ri+ate insurance

0la1ers are snatching a7a1 the business of the 0ublic sector insurance organi/ation.



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*RODUCT *LANNING AND DEVELO*MENT

he 0ur0ose of insurance business is to generate 0rofits besides sub ser+ing the social

interests. he 0resent business en+ironment is +olatile and e+en the insurance

business is likel1 to be more com0etiti+e. Product is like a stage on 7hich the entiredrama of successful marketing is acted. !t is like an engine that 0ulls the rest of the

marketing 0rogrammes. !t is this contet that the 0roduct management in an insurance

organi/ation needs an intensi+e care. Cesterda18 the 0olic1 holders had limited ho0es

and as0irations but toda1 the1 e0ect more and the1 7ould like e+en something more

tomorro7. his focuses on the fact that strategic decisions are influenced b1 the

en+ironmental conditions. he 0roduct de+elo0ment needs a ne7 +ision8 a ne7

a00roach and a ne7 strateg1. ill no7 the 0ublic sector insurance organi/ation ha+e

not made 0ossible an o0timum utili/ation of their marketing resources es0eciall1 in

rural areas 7here tremendous o00ortunities are a+ailable. hus the1 should assign due

7eightage to the de+elo0ment ser+icesD schemes 7hich cater to changing needs and

re@uirements of the rural segment. !n the de+elo0ment of 0roduct8 the co-o0erati+e

in+estments need due 0riorit1. "hannelising the co-o0rate in+estment influences the

Marketing in banking & insurance- Om Kotak Mahindra Old Mutual Life insurance

MARKETIN

G MIX

PRODUCT

MIX

PROMOTIO

N MIX

PLACE

MIX

PRICE

MIX


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rate of 0rofitabilit1 of insurance com0anies and also contributes considerabl1 to the

socio E economic transformation 0rocess.

hus the 0roduct 0lanning and de+elo0ment should

$i+e due 7eightage to the sociall1 and economicall1 back7ard classes.

Maimi/e the mobili/ation of sa+ing b1 offering lucrati+e schemes.

Assign due 7eightage to interest of in+estors.

Maintain econom1 in business b1 0romoting cost effecti+eness.

Act as a trustee of 0olic1 holders.

Kee0 in mind the emerging trends in business en+ironment.

!m0ro+e the @ualit1 of customersDuser ser+ices.

*ROMOTION MIX

he formulation of 0roduct mi for the insurance business makes it significant to take a

look at the ser+ices and schemes of insurance organi/ations. he 0roduct 0ortfolio is

kno7n and the 0rocess of formulating a 0ackage should be kno7n. !t is natural that the

users e0ect a reasonable return for their in+estments. !t is @uite natural that the

insurance organi/ations 7ant to maimi/e 0rofitabilit1. !t is 7ell kno7n that the ke1

obecti+es of the insurance business are mobili/ation of sa+ings and channelisation of

in+estments. his makes it essential that the insurance business is made lucrati+e so

that the usersD 0otential users get incenti+es to bu1 a 0olic1 or to in+est in the insurance

organi/ations. he insurance organi/ations also need to 0romote the under7riting

acti+ities8 7hich 7ould acti+ate the 0rocess of arresting the regional imbalance. !n the

contet of formulating the 0roduct mi8 it is essential that the insurance organi/ations

0romote inno+ation an din the 0roduct 0ortfolio include e+en those ser+ices and

schemes 7hich are likel1 to get a 0ositi+e res0onse in the future. he 0olicies to be

launched should not onl1 generate enough 0remium but it is also im0ortant that the

Marketing in banking & insurance- Om Kotak Mahindra Old Mutual Life insurance 1!


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0olicies co+er 0ersons 7orking in the informal sector8 ser+ing as 0orters8 7orking as

manual laborers8 or engaged in farm sector. he formulation of 0roduct strateg1 should

assign due 7eightage to the rural segment emerging as a big 0rofitable segment

es0eciall1 in the (stcentur1. he 0olicies and schemes should ha+e rural orientation

so that back7ard and neglected regions of the countr1 get 0riorit1 attention and the

regional imbalance is minimi/ed. he formulation of 0ackage is also found im0ortant.

Besigning a 0ackage on the basis of the needs and re@uirements of the concerned

segment 7ould make the 0roduct mi ore com0etiti+e.

=ith Ad+ent of 0ri+ate 0la1ers in the insurance field8 it has no7 become im0erati+e for

all the insurance com0anies to resort to ram0ant 0romotion. Promotion mi for this

sector is as follo7s

A+,erti#ing

Ad+ertising can be done through the telecast media8 broad cast media and 0rint media.

!nsurance com0anies ha+e been making o0timal use of all the three kinds. #se if =orld

=ide =eb8 as a media is almost negligible and 7ill not be +er1 fre@uent in the near

future considering the fact that the maorit1 of customers base of these com0anies is

not 1et e0osed to the internet. he telecast media has been the most effecti+e of all !

case of insurance sector. Most of the com0anies ha+e their se0arate ad+ertising

section to take care of this as0ect. An im0ortant consideration 7hile making the

decision as to the selection of the media is budgetar1 constraint. Since the insurance

com0anies 7ork on large scale8 usuall1 this constraint does not stand as an obstacle.

*"-%icit

!t is a de+ice to 0romote business 7ithout making an1 0a1ment and therefore it could

be also called un0aid form of 0ersuasi+e communication bearing a high rate of

sensiti+it1. Be+elo0ing ra00ort 7ith media is an im0ortant as0ect of 0ublicit1. hismakes it essential that the PR officers 7orking in the insurance organi/ation maintain

contacts 7ith the media 0ersonnel8 organi/e 0ress conference8 and offer small gifts and

memento to them. hese da1s L$B marketing is gaining 0o0ularit1 the 7orld o+er. !t

also can be a00licable here. At the a0e and regional le+els8 the PROs bear the

res0onsibilit1 off 0roecting 0ositi+e image of the organi/ation. hus it is necessar1 to



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select suitable 0ersonnel for this. he1 should be in 0articular taught to deal 7ith

0eo0le8 sim0le things like talking8 greeting etc.

Sa%e# *romotion

!ncenti+es to the end users for taking 0olic1 0la1 an im0ortant role in 0romoting

insurance business. Since the insurance business is also related to achie+ing of a

0articular target8 it is 0ertinent that the 0olic1makers assign due 7ieghtage to the same.

he offering of small gifts during a 0articular 0eriod8 the rebate discount8 bonus can

increase the business organi/ations b1 lea0s and bounds. 6esides these there can be

gift for insurance agents also.

*er#ona% Se%%ing

Personal selling in the case of insurance organi/ations is a @uite im0ortant considering

the eistence of insurance agents s0read at all le+els. Selection of these agents8 their

training is res0onsibilit1 of the organi/ation. here is a difference in the urban and the

rural market. Rural customers ma1 be uneducatedD uninformed etc com0ared to the

urban customers. Fence the organi/ations 7ill ha+e to make selections of the rural and

urban agents accordingl1.

.or+ o& mo"t/ promotion

he 7ord of mouth communication result into 7ider 0ublicit18 7hich substantiall1

sensiti/es the 0rocess of influencing the im0ulse of usersD 0ros0ects of the insurance

ser+ices. he satisfied grou0 of customers o0inion leaders the social informants 8the

0o0ular 0ersonalities act as a 7ord of communication .he ad+ertisement slogans ma1

be incenti+es the 0ublicit1 measures ma1 be ineffecti+e but the 0ositi+e feeling of

friends and relations communicated cannot be ineffecti+eGthis make it clear that the

most im0ortant thing of an1 business is the @ualit1 of ser+ices.

Te%emarketing

=ith the de+elo0ment of satellite communication facilities and 7ith the e0ansion of the

tele+ision net7ork8 7e find telemarketing gaining 0o0ularit1 the 7orld o+er. he

organi/ation in general need to 0romote telemarketing. the foreign insurance com0an1



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ha+e been assigning due to 7ieghtage to this end in !ndia this is beginning to gain

im0ortance 7ith the ad+ent of com0etition in the sectorGthe telecommunicate is

su00osed to be 7ell a7are of the tele0honic code so that the task of satisf1ing the

customer 7ith their @ueries 7ill not consume much of time.

.or%+ .i+e .e-

!n banking as 7ell as !nsurance8 more and more im0ortance is being gi+en to online

contract facilities 7hereb1 com0laintsDcomments could be sent through an email. %mail

is fastest 7ritten mode of communication and since it has been recogni/ed legall18 its

use to clear doubts has been in full s7ing.

*RICE MIX

!n the insurance business8 the 0ricing decision are concerned 7ith the 0remium

charged against the 0olicies interest charged for defaulting the 0a1ment of 0remiums &

credit facilities8 commission charged for under7riting & consultanc1 ser+ices. he

formulation of 0ricing strategies becomes significant 7ith the +ie70oint of influencing

the target market or 0ros0ects. o be more s0ecific in the !ndian contet 7here the

dis0osable income in the hands of 0ros0ects is found lo78 the increasing inflationar1

0ressure has been instrumental in contracting the discretionar1 income8 the increasing

consumerism has been making an assault on the sa+ing 0otentials of masses8 it is

0ertinent that the insurance organi/ations in general & 0ublic sector insurance

organi/ations in 0articular ado0t such a strateg1 for 0ricing that makes is a moti+ational

tool & 0a+es the 7a1s for increasing the insurance business. Of course8 a moti+ational

0ricing strateg1 is re@uired to be gi+en due 7eightage. his necessitates a ne7 +ision

for setting 0remium structure & 0a1ing the bonus & charging the interest.

he strateg1 ma1 ha+e a ne7 +ision in the sense that the insurance organi/ations

0refer to make a mi of high & lo7 0ricing strateg1. he moti+e is to make the 0remium

structure commerciall1 +iable so that the insurance organi/ations succeed in ha+ing a

sound 0roduct 0ortfolio besides fuelling de+elo0ment orientation. he 0ricing decisions



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make it essential that the insurers kee0 in their minds the nature of 0olic1 +is-:-+is the

segment to 7hich the 0ros0ects belong.

!n the tangible 0roducts8 cost of 0roduction is taken as the basis for fiation of 0rices.

%+en in the insurance business8 it is found to be an im0ortant consideration & a

dominating base. his makes the cost of insurance a decisi+e factor for charging

0remium. he im0ortant bases for determining the cost are rate of death8 rate of

interest & the e0enses incurred on the insurance business. he mortalit1 table hel0s

the determination of the death rate. !t is to 0redict future mortalit1. he best method of

construction of mortalit1 table is to select a large number of 0ersons at attained age8

7hich is meant age close to the birth rate. he second im0ortant element is the rate of

interest. On the basis of mortalit1 rate8 it is estimated that 7hen & ho7 much amount is

to be recei+ed as 0remium & 7ould be 0aid as claims but on the basis of interest rate8but on the basis of interest rate8 it is estimated that ho7 much interest can be earned

b1 in+esting the insurance funds. he last element is cost 7hich focuses on different

t10es of e0enses. hese are certain e0enses8 7hich are incurred at the time of

ince0tion of the 0olic1. his necessitates determination of the nature of e0enses. he

determination of e0enses according to occurrence & e@ual distribution of the

e0enses e+er1 1ear for e@uitable distribution of loading are found significant to make

0ossible a sound management of e0enses.

he 0rocess of rate of fiation in the insurance organi/ation is not so scientific &

identifies the cases of moral ha/ard. !t is easier to identif1 the 0h1sical ha/ard but the

task of identif1ing the moral ha/ard is found difficult. he 0remium charged is to be

made rational to cater to the 0a1ment of claims on a 0riorit1 basis including the

catastro0hic losses8 management e0enses & margin for 0rofit. !t is essential that

+arious related to both the ha/ards are estimated in a scientific 7a1. he actual

0rocess of rating consists of three ste0s. %.g. classification8 discrimination &

scheduling.

he 0rice mi decisions are?

Making 0ossible cost of effecti+eness

Restructuring of 0remium



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Bue 0riorit1 to 0rofit generation !n+estments.

Rationali/ing of o0timi/ing the social costs

Pa+ing a+enues for channelising the 0roducti+e in+estments

Assigning the 7eightage to the 0olices meant for the sociall1 and economicall1

back7ard classes.

Making the 7a1s for maimi/ing 0rofitabilit1.

*LACE MIX

Another com0onent of the marketing mi is related to the 0lace decision in 7hich our

focus 7ould be on the t7o im0ortant facets managing the insurance 0ersonnel and

locating a branch. he management of agents and insurance 0ersonnel is found

significant 7ith the +ie7 0oint of maintaining the norms for offering the ser+ices. his is

also to 0rocess the ser+ices to the end user in such a 7a1 that a ga0 bet7een the

ser+ices-0romised and ser+ices offered is bridged o+er. !n maorit1 of the ser+ices

generating organi/ations such a ga0 is found eistent 7hich has been instrumental in

generating aggra+ating the image 0roblem. he 0olic1 makers make 0ro+ision? the

senior eecuti+es s0ecif1 of making a+ailable the 0romised ser+ices to the end users.

he 0ublic sector8 insurance organi/ation has failed in both the areas. he agent>s rural

career agents8 front-line-staff and e+en a maorit1 of the branch managers become a

0art1 ga0.

he transformation of 0otential 0olic1holders into actual 0olic1holders is a difficult task

that de0ends u0on the 0rofessional e+idence of 0ersonal. he agents and the ruralcareer agents acting as link lack 0rofessionalism. he ront-line-staff & the branch

managers are found not assigning due 7eightage to the degeneration 0rocess. he

insurance 0ersonnel if not managed 0ro0erl1 7ould make all of efforts incenti+e. %+en if

the 0olic1 makers make 0ro+isions for @ualit1 u0gradation8 the 0romised ser+ices

hardl1 reached to the end users. his makes it significant that the insurance



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organi/ations in general and 0ublic sector organi/ation in 0articular kee0 in their mind

the changing e0ectations of customers and the 0ros0ects. he beha+ioral 0rofile of

insurance 0ersonnel is studied in a right fashion and the changes re@uired due to the

changing 0erce0tion of e0ectations are incor0orated. !t is essential that the1 ha+e

rural orientation and are 7ell a7are of the lifest1les of the 0ros0ects or users. he1 are

re@uired to be gi+en ade@uate incenti+es sho7 there ecellence. =hile recruiting

agents8 the branch manager needs to 0refer local 0ersons and b1 conducting refresher

courses to brush u0 their facilities so that the1 kno7 the art of influencing the usersD

0ros0ects. !n addition to the agents8 the front-line-staff also need an intensi+e training

0rogramme. his makes it essential that ongoing training 0rogramme is organi/ed b1

the branch managers 7hich focus on the beha+ioral management.

Another im0ortant dimension of the 0lace mi is related to the location of insurance

branches. =hile locating branches branch managers need to consider a number of

factors8 such as smooth accessibilit18 a+ailabilit1 of infrastructural facilities and the

management of branch offices and 0remises. !n addition to it is also significant that the

branch manager assign due 7eightage to the safet1 0ro+isions. he management of

offices makes it significant that the branch managers are 0articular to the office

furnishing8 ci+ic amenities & facilities8 0arking facilities and interior decoration.

hus the 0lace management of insurance branch offices needs a ne7 +ision8 distinct

a00roach and an inno+ati+e strateg1. his is essential to make 7ork 0lace conduci+e8

attracti+e8 and 0ro-acti+e to the generation of efficienc1. he moti+es are to offer the

0romised ser+ices to the end users 7ithout an1 distortion and making the branch

offices a 0oint of attraction. he branch managers need 0rofessional ecellence to

make 0lace decision 0roducti+e.

THE *EO*LE

Peo0le are most im0ortant com0onent of marketing mi for the insurance industr1.

So0histicated in the 0rocess of technological ad+ances makes the 7a1 for the

de+elo0ment of 0ersonnel in such a 7a1 that an organi/ation succeeds in making

0ossible a 0roducti+e utili/ation of technologies used or likel1 to be used. Professional

@ualification re@uirements change as technolog1 de+elo0s and e+ol+es. he use of



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com0uters micro-com0uters8 fa machines8 so0histicated tele0honic ser+ices8 and e-

mailing8 inter-net and intra-net ser+ices ha+e been found thro7ing a big im0act on the

0erce0tion of @ualit1 of ser+ices. his makes it essential that the insurance

organi/ations also think in fa+or of de+elo0ing 0ersonnel in line 7ith the de+elo0ment

and use of information technologies. he front line staffs as 7ell as the branch

managers are re@uired to be gi+en the training facilit1 so that the1 are in 0osition to

make 0ossible and effecti+e use of the technologies. he insurance organi/ation bear

the res0onsibilit1 of the de+elo0ing the credentials of their em0lo1ees. !n this contet8 it

is also significant that the1 think about the beha+ior 0rofile of insurance 0ersonnel. !t is

0ertinent that the em0lo1ees are 7ell a7are of the beha+ioral management the1 kno7

and understand the changing le+el f e0ectations of users and make sincere efforts to

fulfill the same. !n this contet8 it is also significant that the senior eecuti+e 7hile the

recruiting8 training and de+elo0ing the insurance 0ersonnel make it sure that

em0lo1ees ser+ing the organi/ations ha+e a high beha+ioral 0rofile in 7hich em0ath1

has been gi+en due 0lace. he 0s1chological attributes becomes significant 7ith the

+ie7 0oint of influencing the 0ros0ect a retaining the users8 it is in this contet that the

insurance com0anies need a rational 0lan for the de+elo0ment of insurance 0ersonnel.

*H0SICAL EVIDENCE

Ph1sical e+idence includes facilit1 design8 e@ui0ment signage8 em0lo1ee dress8

tangibles8 re0orts and statements.

Signage

Signage 0ersonifies the insurance com0an1. !t gi+es a identit1 b1 7hich users

recogni/e the com0an1. A signage de0icts the com0an1>s 0hiloso0h1 and 0olic1.

ollo7ing are some of the eam0les

Tangi-%e#

!nsurance com0anies gi+e their customers and agents +arious tangible items like 0en8

letter 0ad8 calendars. Such things tr1 to reduce the intangibilit1 characteristics of this

industr1.

Statement#



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he statements are 0unch line 7hich briefl1 de0icts the +ision and attitude of a

insurance com0an1 to7ards its usersD0otentials. !t also indicates their business moti+e.

*ROCESS

!%o1 o& acti,itie#

Since maor acti+ities are conducted through the agents8 the agents are gi+en training

and refreshers courses etc. here are branches of insurance organi/ations 7ere this

agents go for 0rocessing of 0ro0osalsD claims etc.

Stan+ar+i2ation

he 0ro0osalD claim forms an other formalities are standardi/ed. !n case of each branch

5f an organi/ation. Standardi/ation here im0lies 0rocedural standardi/ations. 6ut the

0roceedings ma1 differ from case to case in case of claim.

C"#tomi2ation

As stated earlier8 each case has its o7n 0eculiarities. Fence amount of 0remium8

0roceedings of a claim etc. are @uite subecti+e

N"m-er o& Step#

"lients of a insurance com0an1 differ from an indi+idual 0olic1-holder to a large

conglomerate. Number of ste0s in case of each grou0 7ill definitel1 differ. Fo7e+er8 in

case of indi+idual customer8 the agents handle the 0roceedings. hus the actual

customer is not in+ol+ed in 0roceedings for a maorit1 of ste0s. !n case if the cor0orate8

usuall1 se0arate officer to take care of each case. Standardi/ation reduces man1 ste0s

as 7ell as the time taken.

Simp%icit

#se of national languageD regional language8 customer friendl1 forms and instructions

manuals. Segregations of +arious de0artments into counters8 etc. Fas made entire

0rocess @uite sim0le.

Comp%e3it



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!nsurance 7orks on Hs0read of risk> 0rinci0le the com0an1 ha+e to use others mone1

and hence the1 are +er1 careful 7hile 0rocessing the claims but also 7hile acce0ting

the 0ro0osals in the first 0lace. 6ecause of some stringent norms8 the 0rocess of

obtaining and furnishing documents 0roofs etc. 6ecomes com0le9 but it has been

@uite sim0lified b1 the eistence of the agents.

C"#tomer in,o%,ement#

"ustomer in+ol+ement in case of insurance organi/ation is @uite limited. he insurance

agents act as 0ros for the com0an18 the1 0erform maorit1 of the necessar1 formalities.

he customers are onl1 in+ol+ed in case of formalities like medical eamination8

inter+ie7s etc. 6ut the organi/ation makes it a 0oint to let the customer e0ress their

concerns through the customer com0laint cells and mailDemail contact.



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OM KOTAK MAHINDRA OLD MUTUAL LIFE INSURANCE

Kotak Mahindra Old Mutual Life !nsurance is a oint +enture of the Kotak Mahindra

6ank Limited ;KM6L< and old Mutual Plc. he Kotak Mahindra Old Mutual Life

!nsurance 7as established in (55 and it is considered as one of the fastest gro7ing

insurance com0anies in !ndia. Old Mutual has a histor1 of more than )5 1ears as a

South African based mutual societ1 0rior to its 0ublic listing in 444.he Old Mutual

$rou0 offers a di+erse range of financial ser+ices in three 0rinci0al geogra0hies. his

section is an o+er+ie7 of our business o0erations in South Africa8 the #nited States

and the #nited Kingdom & Rest of =orld.

THE KOTAK MAHINDRA GROUP

Kotak Mahindra is one of !ndia>s leading financial conglomerates8 offering com0lete

financial solutions that encom0ass e+er1 s0here of life. rom "ommercial banking8 to

stock broking8 to mutual funds8 to Life insurance8 to in+estment banking8 the grou0

caters to the financial needs of indi+iduals and cor0orate.

he $rou0 has a net 7orth of o+er Rs.**35 crores8 em0lo1s around (*55 0eo0le in its+arious businesses and has a distribution net7ork of branches8 franchises8

re0resentati+e offices and satellite offices across *(5 cities and to7ns in !ndia and

offices in Ne7 Cork8 London8 Bubai8 Mauritius and Singa0ore. he grou0 ser+ices

around (.4 million customer accounts.

Marketing in banking & insurance- Om Kotak Mahindra Old Mutual Life insurance 2!


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he Kotak Mahindra grou0 has man1 subsidiaries like Kotak Mahindra "a0ital "o. Ltd.8

Kotak Securities Ltd.8 Kotak Mahindra old mutual Life !nsurance Ltd.8 and Kotak

Mahindra rustee "o. Ltd.8 and Kotak Mahindra !n+estments Ltd. he international

subsidiaries include Kotak Mahindra Securities Ltd.8 Kotak Mahindra rusteeshi0

Ser+ices Ltd.8 and Kotak ore 6rokerage Ltd.

*ER!ORMANCE

he oint +enture bet7een Kotak Mahindra Life !nsurance and KM6L started off 7ith an

initial net 7orth of Rs.)5 crore. !n the oint +enture8 KM6L currentl1 o7ns a (,I stake

7ith an o0tion to increase this to '4I 7hen a00licable local legislation 0ermits. Kotak

Mahindra old mutual has sho7n robust 0rocess 7ith gross 0remiums for the nine

months ended Becember *8 (55, of Rs.)5'2 Mn8 a 4,I increase on (55).

he "om0an1 has a 7ide net7ork of 24 branches in ) cities. Kotak Life !nsurance

has co+ered nearl1 **4255 indi+idual 0olicies on books re0resenting a basic sum

assured of Rs.(5, bn ;ecluding riders


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PRODUCTS OFFERED

INDIVIDUAL

Kotak Smart Ad+antage

Kotak %ternal Life Plans

Kotak Platinum Ad+antage Plan

Kotak Feadstart "hild Plans

Kotak Sukhi Jee+an Plan

Kotak Pri+ileged Assurance Plan

Kotak erm Plan

Kotak Preferred erm Plan

Kotak Mone1 6ack Plan

Kotak "hild Ad+antage Plan

Kotak %ndo7ment Plan

Kotak "a0ital Multi0lier Plan

Kotak Retirement !ncome Plan

Kotak Retirement !ncome Plan

;#nit-linked


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RURAL

Kotak $ramin 6ima Coana

http://www.kotaklifeinsurance.com/omkm3/products/gramin.htmhttp://www.kotaklifeinsurance.com/omkm3/products/gramin.htm


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MARKETING STRATEGIES OF FEW

INSURANCE POLICIES

"OTA" CHILD ADVANTAGE PLAN

Every child has a dream. We help realise it.

he Kotak "hild Ad+antage Plan is an in+estment 0lan

designed to meet one>s childs future financial needs. !ts a

0lan that gi+es child the a/aadi to reali/e his dreams. he

0lan is a 0artici0ating 0lan 7ith a )-da1 free look 0eriod.

Age o& t/e c/i%+ re4"ire+ to attain t/e p%an5

Minimum 5 1ears.

Maimum 2 1ears.

Term? 5- *5 1ears.

Ma3im"m #"m a##"re+ a%%o1e+5()8558555



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A+,antage# o& t/i# p%an5

. On Maturit18 one 7ould recei+e the sum assured

0lus the bonus addition. 6onus addition is the

amount in the Accumulation Account8 in ecess of

the sum assured.

(. he balance a+ailable in the Accumulation Account

is in+ested in +arious financial instruments ;as 0er

!RBA regulations< so one>s mone1 7orks hard to

earn more for child.

*. he Automatic "o+er Maintenance facilit1 ensures

the 0olic1 remains in force e+en if one misses

0remium 0a1ments. his facilit1 is a+ailable after

the first three 1ears of the erm.

'. One can take a loan against this 0lan8 after the

0olic1 has been in force for at least three 1ears.

). One has the o0tion of 0a1ing 0remiums @uarterl18

half 1earl1 or 1earl1.

Accumulation Account is 0ersonal account in

7hich the 0remiums that one 0a1 are

de0osited8 the return declared e+er1 1ear isadded and risk and e0ense charges are

deducted.

,. One has the benefit of a ) da1 free look 0eriod.

*ROMOTION MIX

A+,erti#ement#

his 0roduct has been ad+ertised through telecast media

broadcast media and 0rint media. Since this 0roduct is for

children u0 to 2 1ears of age the focus of ad+ertisement

is on tele+ision 7hich is more a00ealing. Kotak has

recogni/ed the need for this 0lan and therefore has

ado0ted suitable marketing strateg1 7hich in+ol+es



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ad+ertisements in 0o0ular kids channel like 0ogo8

hungama8 star 0lus etc.

*"-%icit

he PROs of Kotak Mahindra life insurance has 0ublici/ed

this 0roduct taking into consideration the eligibilit1 and

features and has thereb1 come 7ith an a00ealing strateg1

em0hasi/ing not onl1 on children 7ho are main benefit

holders of this 0roduct but also the famil1 7ho 7ill actuall1

0a1 the 0remium for this 0roduct. the PROS of Kotak life

ha+e de+elo0ed a good ra00ort 7ith hungama to 0ublish

it can be seen from the banner of this 0lan that the

ha00iness is sho7n on 0arents face as soon as the1

secure their child>s future 7hich is the 0rime moti+e of this

0lan. his 0lan gi+es 1our child the a/aadi to reali/e his

dreams e+en before he is an adult.

Sa%e# promotion

he 0romotion acti+ities are carried out b1 the agents8

de+elo0ment officers and branch officers. Kotak life has

0romoted this 0lan b1 gi+ing calenders dairies bags 7hich

the1 thought should be gi+en as a token of gift along 7ith

the 0lan. Kotak life also conducts8 seminars @ui/8 other

contest8 games in +arious malls and 0la1 schools. All such

acti+ities ha+e increased the +olume of saled and has also

created a medium of a7areness for the children.

*er#ona% #e%%ing

As 7e kno7 that customer is the king kotak gi+es at most

im0ortance to 0ersonal selling of this 0roduct.moreo+er

kotak life conducts s0ecial training session for ita agents

7ho 7ill finall1 a00roach the end customers so that the1

can demonstrate effecti+el1 7hich 7ill enable the endusers

i.e childrens to bu1 the 0roduct.



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*RICE MIX

he dis0osable income in the hands of the 0ros0ects is

found lo7 or almost nil so Kotak has ado0ted his strateg1

that is beneficial to the end user and also 0a+es the 7a1s

for increasing the insurance business.

he 0rice mi decisions basicall1 de0end u0on the

0remium that the1 are going to charge from the endusers.

As in this case the 0remium charged 7ill be lo7 in the

initial stages and 7ill increase 7ith the increasing age of

the child. 6ut in case if the child is 0h1sicall1 disabled the

0remium charged 7ill be high. he customers can e+en

a+ail for loan facilit1 if the1 o0t for higher 0remium

0lan.Kotak life gi+es more im0ortance to 0ricing strateg1

because the1 feel that it is the onl1 means for attracting the

customers in true sense.

*LACE MIX

Kotak life has ado0ted the 0lace strateg1 in such a 7a1

that a ga0 bet7een the ser+ices 0romised and ser+ices

offered is bridged o+er. Kotak agents8brokers8branch

office8 retail finance ser+ice distributors alliances 7ith

banks etc. 0la1 an im0ortant role in deli+ering their

ser+ices to 0olic1 holders at the right time and at right

0lace. his 0roduct is 0romoted in 0laces like school8

colleges and other child /one areas. his 0roduct is highl1

fleible as it is 0resent for children in urban 7ell as rural

areas and thereb1 it facilitates mobilit1.

"OTA" RETIREMENT INCOME PLAN



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he Kotak Retirement !ncome Plan is a sa+ings 0lan

designed to meet 0ost-retirement needs. !t is a 0lan that

gi+es Jeene ki a/aadi. !t gi+es the choice to remain

inde0endent e+en after retirement. he Kotak Retirement

!ncome Plan is a 0artici0ating 0lan. he 0lan comes in t7o

forms? ;i< =ith "o+er ;ii< =ithout "o+er.

Age o& t/e per#onre4"ire+ to attain t/e

p%an5

Minimum 3 1ears.

Maimum ,5 1ears.

Term? )-*5 1ears.

Age to recei,e ann"it5

Minimum ') 1ears.

Maimum ,) 1ears.Inter,a%# at 1/ic/

premi"m can -e pai+5

uarterl18 Falf Cearl18

Annuall1.

A+,antage# o& t/i#

p%an5

. can choose to retire at an1 age bet7een ') 1rs and,) 1rs.

(. On Retirement5 ma1 take a lum0 sum in cash of

u0 to a third of one 6asic Sum Assured or

Accumulation Account8 7hiche+er is higher9 and



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8. or a =ith "o+er 0lan8 one ha+e the facilit1 of

A"tomatic Co,er Maintenance8 7hich ensures

that the co+er remains in force e+en 7hen one8

misses the 0remium 0a1ments. his facilit1 is

a+ailable after the first three 1ears of the term.

4. One has the facilit1 of a 78$+a &ree %ook perio+.

*ROMOTION MIX

A+,erti#ement

his 0lan is mostl1 ad+ertised in ne7s0a0ers8 7ebsites like

naukri.com8 ontheob.com8 broad caste media and

tele+ision channels like "N6"8 !ndia 8 and Star Ne7s

%tc.

oda1 there is so much of com0etition in the life insurance

com0anies that their ad+ertisements should attract the

target customers as 7ell as 0ros0ects. his 0lan is offered

b1 almost all the insurance com0anies so there is need to

make difference 7hich is successfull1 done b1 Kotak Life.

*"-%icithe marketing de0artment of Kotak Life has done a lot of

sur+e1 among the 0eo0le of age grou0 3-,5. he1 ha+e

0re0ared @uestionnaires to get a +ie7 about this 0lan.

he1 mostl1 used office 0remises for 0utting 0am0hlets of

this 0lan as 7ell as banners on buses and in all branches

of kotak Mahindra 6ank.

Sa%e# *romotion!ncenti+es to the end users for taking the 0olic1 0la1 an

im0ortant role in 0romoting the insurance business and so

Kotak Life has 0romoted this 0lan b1 0ro+iding accidental

Life 0olic1 of Rs 55555 for the first 5 subscribers of this

0olic1 .it also gi+es free gifts to customers and u0date the



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records of the customers birthda1s and anni+ersaries for

sending com0limentar1 gifts to them for maintaining long

time relationshi0 7ith them

Te%emarketing

!nstead of 0ersonal selling kotak life finds more con+enient

to sell their 0roducts through elemarketing. his function

is carried out b1 the branch offices as 7ell as 7a1 of call

centers 7ith 7hom the1 ha+e entered into contract 7ith.

Since the 0remium to be 0aid in this 0olic1 is Rs 555

annuall1 this is affordable e+en b1 the 0eo0le 7ho come in

the lo7 bracket.

*RICE MIX

Price is a critical com0onent of marketing mi. he 0lan>s

0rice mi is comfortable for the future needs of the

em0lo1ee. !t allo7s one to 0a1 the 0remium on @uarterl18

half 1earl1 and on annual basis. Moreo+er the earl1 and

late retirement benefits add to the lo7 and con+enient

0rice mi ad+antage of the 0roduct. Peo0le 7ith all t10es of

income densit1 can be accommodated in this 0lan.

*LACE MIX

he location of the branches are @uite fleible 7ith around

35 branches all o+er !ndia in its res0ecti+e metro0olitan

cities. here is an intensi+e training 0rogramme gi+en to all

the em0lo1ees of the Kotak grou0 to ensure smooth

customer relationshi0 and better @ualit1 management. he

branch managers are 0articular 7ith office furnishing8 ci+ic

amenities and facilities8 0arking8 interiors etc. to bring in

0ro0er moti+ation to7ards 7ork and the organi/ation.

Recruitments of staff are done kee0ing in mind the

location8 a+ailabilit1 and accessibilit1.



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MEDIA CENTRE



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BIBLIOGRAPHY

'OOKS$

Marketing in 6anking & !nsurance

Author- Romeo S. Mascarenhas

Publication- i0ul Prakashan

.E'SITES$

777.google.com

777.kotaklifeinsurance.com

http://www.google.com/http://www.kotaklifeinsurance.com/http://www.google.com/http://www.kotaklifeinsurance.com/


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