Interim Presentation On

“Multi Model Marketing Development Of

Insurance Products”

@
Max New York
Life Insurance
Company Ltd.
To Prof. Sriram Rajann.
By:-
Manoj Agarwal
07bs2167
Multi Model Marketing Development Of
Insurance Products … the meaning !!
This project starts with the studying and understanding about the insurance.

In this project our entire focus is on to study the different insurance products available
in the market.

We will concentrate on studying about the number of players in the market.

We will study about the products from the stores of Max New York Life Insurance
Company Ltd. and its rivals.

We will study about the different distribution channel used in insurance products.

This project will concentrate on the multi model marketing strategies and techniques used
in promoting insurance products.
 Insurance .. the concept
behind !!
Insurance can seem complicated but the basic principles are really quite


straight forward.


• An insurance company works out how likely it is that an accident or

event will happen and what it would cost to put it right.
•
• Based on this, the insurance company sets what is known as a premium.
This is the amount it asks you to pay in order to protect yourself
against the accident or event. The cost of the premium is often
spread so you pay it on a monthly basis.
•
• If whatever it is you have insured yourself against happens, you then
make a claim to your insurance company and it pays out the agreed
amount.
Max New York Life Insurance Company Ltd…
your partner for life!!
• Max New York Life Insurance Company Ltd. is a joint venture between New York
Life, a Fortune 100 company and Max India Limited
•
• Max New York Life is the first life insurance company in India to be awarded
the IS0 9001:2000 certifications.
•
• We were among top five most respected private life insurance companies in
India according to a 2004 and 2006 Business World survey. 
•
• Max New York Life was among the top 25 companies to work with in India,
according to 2003 Business World magazine, "Great Workplaces in India",
Max New York Life was ranked at the 20th position.
 Products … the difference !!

 Life stage needs



Single
Married
Married with children
Planning for retirement


 Life line series




 Competitors … the best
friends !!
Life Insurance Corporation of India
( LIC )

HDFC – Standard

Allianz Bajaj Life Insurance Co .

Birla Sun Life Insurance Company

ICICI Prudential Life Insurance

Aviva Life Insurance India

 Distribution channel …
reaching to customers !!


 What determines choice of distribution

channel …

Where are the Customers?

What are their life stage needs?

Which basic products and riders fulfill the need best?

Which distribution channel provides customer the best buying

experience and value?

Market Pluralism

Needs, values, buying preferences vary by market
segment…


geography
age & income level
Sophistication



and market characteristics change over time
 Product & service continuum …
Commodity/service continuum for retail insurance products
Metals Asset Professional
Brokerage Management advice
Petrol
most products move
Pure Pure
Commodity Service
one way over time

Motor Household Life Life Pensions Health

insurance insurance insurance insurance insurance
(savings) (protection)

Direct Direct mail, Face-to-

telephone internet face sale,
, Click & Mortar
internet
The
Theprimary
primarydistribution
distributionchannel
channeldepends
dependson onthe
theposition
positionof
ofthe
theproduct
product
on
onthis
thiscontinuum
continuum--distribution
distributionis
isaakey
keysuccess
successfactor
factor
Products , Costs , Distribution : A Multi -
Channel Model
Tied Agents, Advisors
More Complex Products

Independent
Increasing Product Complexity

Distributors

High
Cost per Client contact
Bancassurance

Tele marketing
Simple Products

Direct Mail

Low
Distribution Models
Mass Marketing Approach Customised Product Solutions
 The divided market of India
``Upper
Upper Crust
Crust’’ Metros
Metros Urban
Urban Semi
Semi--Urban
Urban Rural
Rural `Mass
`Mass’’
Market Market
Market
Market ••
••
••Relatively ••Unsophisticated
Unsophisticatedcustomers
customers
RelativelySophisticated
SophisticatedCustomers
Customers
•
••Better
Betterinformed
informed
••Relatively
Relativelyless
lessinformed
informed
••Value ••Volumes
Volumes driven,
driven, mass
mass
Valuedriven,
driven,rather
ratherthan
thanvolumes
volumes market
driven
driven market
••Lower ••Small
Smallticket
ticketsize
size
Lowerservicing
servicingcost
costper
percustomer
customer ••Higher
Higherpolicy
policyservicing
servicingcost
costper
per
customer
customer
What
What will
will drive
drive channel
channel selection
selection::
••Superior
Superiorproduct
product&&service
servicedelivery
delivery
What
What will
will drive
drive channel
channel selection
selection::
••Low
Lowcost
costdelivery
deliveryof
ofcommoditized
commoditized
products
products&&services
services
 Marketing mantras !!!


 Identifying the prospect



Must have a need

Can qualify for the coverage
Can afford the coverage and
Can be approached
Telemarketing … unlocking the
potential !!


 Three possible Roles:



Call Centresas leads routers: Reasonable potential in urban market

Call Centre as leads convertor: Too ambitious Limited chances of

success for simple products only

Call Centres as service support to agency and other sales forces: Can
vastly help to maintain and enhance quality of sales process
The Divided Pie
Challenges .. unfolding our true
strength !!
Develop efficient and cost-effective


distribution systems that



are integrated fully with a sound mission/ strategy and the product
offering
reflect an intimate knowledge of your target customers
match their desired product experience
 Sustained success will require:


Continual environmental scanning & responsiveness

Effective management of sales force and systems
Strong commitment to selection, training and professional development
Compensation system that rewards desired behavior

Some Lighter Moments…
Some Lighter Moments…
Some Lighter Moments…