Insurance Sector

Advertising

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

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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

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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

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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

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

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

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

Case: Old Advt.

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.

India First insurance Advt.

Aise he thoda thoda invest karte raho, Faida

zaroor hoga

Transition from OLD to NEW

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

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

LIC jeevan Tarang Case: New Advt.

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.

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

Interview – Email

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.

Thank You !!

A presentation by-

Astha Prasad

Abhitanjay Chaudhary

Owais Ashraf