Insurance Marketing Mix

MARKETING IN
BANKING & INSURANCE
T.Y. (BANKING & INSURANCE)
MARKETING IN BANKING AND INSURANCE
Marketing in banking & insurance- Om Kotak Mahindra Old Mutual Life insurance
INDEX
SR. NO &. (. *. '. PAR !"#LARS !nsurance marketing Role of marketing !nsurance marketing in !ndian en+ironment Ob-ecti+es of life insurance marketing Marketing mi. for insurance organi/ation ). ,. 2. 3. 4. &5. &&. Product 0lanning and de+elo0ment Promotion mi. Price mi. Place mi. Peo0le Ph1sical e+idence Process PA$% NO. ' ) , , 2 3 4 && &* &) &) &, &3 (& (* (, (4 *&
Om Kotak Mahindra Old Mutual Life !nsurance !ntroduction Products offered Kotak "hild Ad+antage Plan & marketing strategies Kotak Retirement Plan & marketing strategies Media "entre 6iblogra0h1
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. so that the insurance organi/ation sur+i+es and thri+es in the right 0ers0ecti+e. 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 0ro-ects 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 e.0ansion of insurance business in the best interest of the societ1 +is-:-+is the insurance organi/ation. he selection of risks ;0roduct 0lanning<8 0olic1 7riting ;customer ser+ice< rating or actuarial ;0ricing< and agenc1 management ;distribution<- all marketing acti+ities make u0 an integrated marketing strateg1. =e can>t negate that during the 1ester decades8 there ha+e been considerable de+elo0ments in the 0erce0tion of customer ser+icing firms like banking and insurance com0anies. he marketing conce0t in the insurance business focuses o the formulation of marketing mi. or a control o+er the 7hole marketing acti+ities that make u0 an integrated marketing strateg1. !n a +ie7 of the abo+e8 7e obser+e the follo7ing facts regarding the conce0ts of insurance marketing? !t is a managerial 0rocess !t is a conce0tuali/ation of marketing 0rinci0les. !t is a 0rocess of formulating the marketing mi.. !t is an ad+ice to make 0ossible customer orientation. !t is another name of marketing 0rofessionall1. !t is e+en a social 0rocess that 0a+es a+enues for social transformation. !t is to make 0ossible 0roduct attracti+eness. he he insurance marketing focuses on the formulation of an ideal mi. for !nsurance 6usiness organi/ations can successfull1 increase the market share8 ma.imi/e the 0rofitabilit1
!t is to energi/e the 0rocess of @ualit1 u0gradation.
MARKETINGS ROLE HAS CHANGED OVER TIME
Sim0le trade era Production era Sales era Marketing de0artment era Marketing compan era
Aocus -sell sur0lus Aocus- increase su00l1 Aocus- beat com0etition Aocus - coordinate and control !oc"# $%ong term c"#tomer #ati#&action
MARKETING
MICRO 1. SET OF ACTIVITIES. 2. PERFORMED BY ORGANISATION
MACRO 1. SOCIAL PROCESS 2. MATCHES SUPPLY WITH DEMAND
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 $!" in &42' there ha+e been changes in the organi/ational ob-ecti+es. !t 7as in this background that insurance business 7as attem0ted to be e.0anded in rural areas. he 0ur0ose 7as to reach all the 0otential users of the ser+ices. !n this conte.t it is significant to mention that the e.tent of de0endence of insurance business on the ser+ices of agent and rural career agents is of high magnitude. he ser+ice conditions of rural agents and agents in general are to be enriched. !n the !ndian condition the task of moti+ating the rural 0ros0ects is more difficult as ma-orit1 of them are illiterate. Marketing of insurance ser+ices needs a rational a00roach8 7hich means the follo7ing? &. Kno7ing the market. (. Suitable 0ricing decisions. *. Product to be de+elo0ed as 0er needs. '. Besigning of sensiti+e 0romotional strateg1. ). Scientific management of agents. ,. Proficienc1 in management. O'(ECTIVES O! LI!E INSURANCE MARKETING he follo7ing are the ob-ecti+es of Life !nsurance Marketing? &. Mobili/ation of sa+ings in the form of 0ensions.
(. !m0ro+ing customer ser+ices. *. !ncreasing customer base and its s0read. '. Be+elo0ing cor0orate image. ). S0reading Life !nsurance Message. ,. Be+elo0ing guiding 0olicies and their im0lementation for better results. 2. Bistribution of Life !nsurance Policies. 3. Marketing Profit.
MARKETING$ 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-mi.es 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. Ma-orit1 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.
PRODUCT MIX
PLACE MIX
MARKETIN G MIX
PROMOTIO N MIX
PRICE MIX *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 entire drama of successful marketing is acted. !t is like an engine that 0ulls the rest of the marketing 0rogrammes. !t is this conte.t 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 e.0ect more and the1 7ould like e+en something more tomorro7. his focuses on the fact that strategic decisions are influenced b1 the he 0roduct de+elo0ment needs a ne7 +ision8 a ne7 ill no7 the 0ublic sector insurance organi/ation ha+e en+ironmental conditions.
a00roach and a ne7 strateg1.
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
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. Ma.imi/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 e.0ect a reasonable return for their in+estments. !t is @uite natural that the insurance organi/ations 7ant to ma.imi/e 0rofitabilit1. !t is 7ell kno7n that the ke1 ob-ecti+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 conte.t of formulating the 0roduct mi.8 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
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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 (&st centur1. 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 ma-orit1 of customers base of these com0anies is not 1et e.0osed 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. his makes 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 hus it is necessar1 to also can be a00licable here. At the a0e. and regional le+els8 the PROs bear the res0onsibilit1 off 0ro-ecting 0ositi+e image of the organi/ation.
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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 e.istence 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 e.0ansion 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. the target market or 0ros0ects. he formulation of 0ricing strategies becomes significant 7ith the +ie70oint of influencing o be more s0ecific in the !ndian conte.t 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 fi.ation of 0rices. %+en in the insurance business8 it is found to be an im0ortant consideration & a dominating base. 0remium. his makes the cost of insurance a decisi+e factor for charging he im0ortant bases for determining the cost are rate of death8 rate of
interest & the e.0enses 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 rate8 but on the basis of interest rate8 it is estimated that ho7 much interest can be earned b1 in+esting the insurance funds. t10es of e.0enses. he last element is cost 7hich focuses on different hese are certain e.0enses8 7hich are incurred at the time of
ince0tion of the 0olic1. his necessitates determination of the nature of e.0enses. he determination of e.0enses according to occurrence & e@ual distribution of the e.0enses e+er1 1ear for e@uitable distribution of loading are found significant to make 0ossible a sound management of e.0enses. he 0rocess of rate of fi.ation 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 e.0enses & margin for 0rofit. !t is essential that +arious related to both the ha/ards are estimated in a scientific 7a1. scheduling. he 0rice mi. decisions are? Making 0ossible cost of effecti+eness Restructuring of 0remium he actual 0rocess of rating consists of three ste0s. %.g. classification8 discrimination &
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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 ma.imi/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 ma-orit1 of the ser+ices generating organi/ations such a ga0 is found e.istent 7hich has been instrumental in generating aggra+ating the image 0roblem. he 0olic1 makers make 0ro+ision? the senior e.ecuti+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 ma-orit1 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. career agents acting as link lack 0rofessionalism. he agents and the rural he he Aront-line-staff & the branch
managers are found not assigning due 7eightage to the degeneration 0rocess.
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 e.0ectations 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 e.0ectations 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 e.cellence. =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. offices a 0oint of attraction. he moti+es are to offer the 0romised ser+ices to the end users 7ithout an1 distortion and making the branch he branch managers need 0rofessional e.cellence 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 emailing8 inter-net and intra-net ser+ices ha+e been found thro7ing a big im0act on the 0erce0tion of @ualit1 of ser+ices. and use of information technologies. his makes it essential that the insurance he front line staffs as 7ell as the branch organi/ations also think in fa+or of de+elo0ing 0ersonnel in line 7ith the de+elo0ment 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 conte.t8 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 e.0ectations of users and make sincere efforts to fulfill the same. !n this conte.t8 it is also significant that the senior e.ecuti+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 conte.t 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. Aollo7ing are some of the e.am0les 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 ma-or 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 sub-ecti+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 ma-orit1 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 com0le.9 but it has been @uite sim0lified b1 the e.istence 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 ma-orit1 of the necessar1 formalities. he customers are onl1 in+ol+ed in case of formalities like medical e.amination8 inter+ie7s etc. 6ut the organi/ation makes it a 0oint to let the customer e.0ress their concerns through the customer com0laint cells and mailDemail contact.
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. Arom "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. around (.4 million customer accounts. he grou0 ser+ices
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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 rusteeshi0 subsidiaries include Kotak Mahindra Securities Ltd.8 Kotak Mahindra Ser+ices Ltd.8 and Kotak Aore. 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 ;e.cluding riders<. Additionall18 Kotak Life !nsurance has around (,5 grou0 0olicies co+ering )(3&55 li+es 7ith an aggregate sum assured of Rs.&)5 bn. Kotak Mahindra Life !nsurance "om0an1 Ltd. 7ill launch its unit linked insurance 0roduct in the ne.t @uarter tied to debt insurance. !n +ie7 of high +olatilit1 in the e@uit1 market8 ne7 insurance life 0la1ers had 0ut off their unit-linked 0lans. Kotak 7ill commence o0erations 7ith * 0roducts E Single Premium 6ond8 Mone1 6ack Plan and %ndo7ment Plan.
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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< Kotak Safe !n+estment Plan !! Kotak Ale.i Plan Kotak %as1 $ro7th Plan Kotak Premium Return Plan GROU* %m0lo1ee 6enefits Kotak erm $rou0lan Kotak "redit- erm $rou0lan Kotak "om0lete "o+er $rou0lan Kotak $ratuit1 $rou0lan Kotak Su0erannuation $rou0lan
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RURAL Kotak $ramin 6ima Co-ana
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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 childKs future financial needs. !tKs a 0lan that gi+es child the La/aadiL 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. Ma.imum &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 AccountM8 in e.cess 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 is added and risk and e.0ense 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 ha00iness is sho7n on 0arents face the 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 La/aadiL 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 fle.ible 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 LJeene ki a/aadiL. !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 p%an5 Minimum &3 1ears. Ma.imum ,5 1ears. Term? )-*5 1ears. Age to recei,e ann"it 5 Minimum ') 1ears. &. 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 AccountM8 7hiche+er is higher9 and o& t/e per#on Ma.imum ,) 1ears. Inter,a%# Nuarterl18 Annuall1. A+,antage# p%an5 o& t/i# at Falf 1/ic/ Cearl18 premi"m can -e pai+5 re4"ire+ to attain t/e
the balance of the benefit one are eligible for 7ill be used to bu1 an annuit1 of one choice. *. Ann"it Option#5 ma1 bu1 an annuit1 either from Kotak Life !nsurance ;sub-ect to the choice and rates a+ailable at that time<8 or from an1 other insurer. '. Ear% Retirement 'ene&it#5 ma1 o0t to retire earl18 i.e. at an1 age before the normal retirement date ;sub-ect to the 0olic1 being in force for * 1ears or on attaining a minimum age of ') 1rs8 7hiche+er is later<. One can then secure benefits 7ith Accumulation Account8 net of an earl1 retirement charge of )I. !f the earl1 retirement is due to ill health8 then heDshe ma1 retire before attaining the age of '). One can then secure benefits 7ith full Accumulation Account. ). Late Retirement 'ene&it#5 ma1 o0t to retire after the retirement date originall1 selected8 and select a ne7 retirement date ;sub-ect to a ma.imum of ,) 1ears<. No further 0remiums 7ill be 0a1able and the death benefit 7ill be e@ual to the balance in Accumulation Account. ;Fo7e+er8 all riders 7ill cease at the original retirement date<.
6. "an make lum0-sum in-ections into 0olic1 at an1

time before retirement ;such %"mp$#"m in6ection# during a 1ear ma1 not e.ceed ()I of the 6asic Sum Assured<. A Su00lementar1 Accumulation Account 7ill be created for this8 and 7ill be 0aid out in the same manner as other benefits.
7. Ma1 e.ercise the o0tion of 0a1ing 0remiums from

the S"pp%ementar Acc"m"%ation Acco"nt8 created for Llum0-sum in-ectionsL8 if the need arises.
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8. Aor a L=ith "o+erL 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 %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. *"-%icit he 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 onthe-ob.com8 broad caste media and tele+ision channels like "N6"8 !ndia O8 and Star Ne7s
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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 fle.ible 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- Oi0ul Prakashan .E'SITES$ 777.google.com 777.kotaklifeinsurance.com
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Insurance Marketing Mix

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MARKETING IN

BANKING & INSURANCE

T.Y. (BANKING & INSURANCE)

MARKETING IN BANKING AND INSURANCE

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

MARKETINGS ROLE HAS CHANGED OVER TIME

MICRO 1. SET OF ACTIVITIES. 2. PERFORMED BY ORGANISATION

MACRO 1. SOCIAL PROCESS 2. MATCHES SUPPLY WITH DEMAND

INSURANCE MARKETING IN INDIAN ENVIRONMENT

MARKETING$ MIX !OR INSURANCE ORGANI)ATION

PRICE MIX RODUCT LANNING AND DEVELO*MENT

a00roach and a ne7 strateg1.

select suitable 0ersonnel for this.

he1 should be in 0articular taught to deal 7ith

Making the 7a1s for ma.imi/ing 0rofitabilit1.

OM KOTAK MAHINDRA OLD MUTUAL LIFE INSURANCE

RURAL Kotak $ramin 6ima Co-ana

MARKETING STRATEGIES OF FEW INSURANCE POLICIES

"OTA" RETIREMENT INCOME PLAN

6. "an make lum0-sum in-ections into 0olic1 at an1

7. Ma1 e.ercise the o0tion of 0a1ing 0remiums from

8. Aor a L=ith "o+erL 0lan8 one ha+e the facilit1 of

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