Saturday, February 10, 2007

Communication Policy

In India, insurance is generally considered as a tax saving device instead of its other implied long term financial benefits. We are prone to investing in properties and gold followed by bank deposits. Though this attitude is changing at a fast pace, India still remains an under-insured country. The insurance market is estimated to be USD 700 million according to IRDA and growing 20 per cent annually in real terms for the last 5 years. There are about 18 odd players in the market who offers various Life Insurance products.

Now that 31st March is approaching, Insurance companies have started advertising heavily. Once considered a boring category, Insurance companies have understood the importance of brand building. Sadly, below is what their communication boils down too:
The essence is Life, Security, Future and Being in control. Same message, different execution.
Life + Security = Retire from work not life (ICICI)
Life + Control = Control your life (SBI)
Future + Control = Kal par control (Aviva)
Security + Future = Mera Farz (ING)

This is how I see the insurance issue. How do you look at it?


Kapil said...

Insurance is a very simple product. There are a few basic features/advantages and then there are some add-on features which customize the product to suit various profiles. Like a retirement plan, a pension plan, a better future for your child plan and a couple of other around there. And then some products suited for different sections of the society.

All in all Insurance is now become an essential commodity and yet at the same time "just another" investment option. The "insurance educated" individual will invest for a secured future - which is the true essence of the product. However many others are investing for returns (which isn't so happening) and then there are some for fund security so that they can withdraw money at a later stage for future expenses.

However if you dig deep into the communication there is very little innovation one can do - And it all boils down to the execution style. But of course with newer products entering the market you will see a lot more variety in the communications generated by insurance companies.

pooR_Planner said...

Hey Kapil, great insight there. Now that you mentioned, "insurance educated", I get an idea instantly. Why not start 'Insurance Education'? That's a much bigger idea (if you can see the forest beyond the trees) for something which is functional in nature. It's like going to a financial management school. And why not the Insurance Agents be the school teacher? I'm thinking loud. Probably there is something better out there.

Do life insurance provide us with something more than a secured future or life in control? Is there a way to propagate some fundamental values rather than cliche executions?