Insurance sector advertising

1. 1. Insurance Sector Advertising

2. 2. 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 2
3. 3. 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 4
4. 4. 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 5
5. 5. 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
6. 6. 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
7. 7. 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
8. 8. 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
9. 9. Case: Old Advt.
10.10. 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.
11.11. India First insurance Advt. Aise he thoda thoda invest karte raho, Faida
zaroor hoga Transition from OLD to NEW
12.12. 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
13.13. 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

14.14. LIC jeevan Tarang Case: New Advt.

15.15. IRDA on Insurance Advt. In 2012, IRDA gave regulations and
guidelines on following insurance ad: Print Ads Group Insurance Ads eInsurance 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.
16.16. 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
17.17. Interview Email
18.18. 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.

Advertisement Effectiveness
1. 1. THE INSURANCE INDUSTRY o The private players got entry to this industry in
1999. o LIC is the Market Leader. o A dozen of Private players in the market. o Huge
improvement in service attitude & delivery. o The biggest beneficiary of the competition
is the consumer.
2. 2. Graphical Representation of Market Shares of different private players.
3. 3. COMPANY BACKGROUND
4. 4. Joint Venture between ICICI Bank & Prudential PLC. Amongst the first private
sector insurance companies to begin operations in December 2000 after IRDA
approval. Equity base of Rs. 6.75 billion, with ICICI Bank and Prudential Plc. holding
74% and 26% stake respectively. The company garnered total received premium (new
business + renewal) of Rs. 3,088 crores for the quarter ended June 30, 2008 as compared
to Rs 1,801 crore for the quarter ended June 30, 2007. The company wrote over 6 lakh
policies over this period and its assets stood at over Rs 26,900 crore.

5. 5. VISION- ICICI Prudential Life Insurance Co. The vision of the company clearly
states that it wants to become the dominant Life and Pension player built on trust by
world-class people and services.
6. 6. BOARD OF DIRECTORS
7. 7. PROJECT OVERVIEW Problem: How Indian Customers could trust Private Life
Insurers despite the presence of LIC which is a govt. owned body & therefore, has an
element of Security. Primary Objective: To Understand & Measure the impact of
Advertising in the Life Insurance Market. Secondary Objective: To know the
Promotional Strategies of ICICI Prudential Life Insurance Co. Ltd.
8. 8. Scope: The study presents a clear picture of Media Strategies of the Insurance
Players. The results will help the company to trace the loop holes and then take the
corrective measures to rectify them. Sample Size: 50 Source of Primary Data:
Questionnaires filled by respondents.
9. 9. LITERATURE REVIEW
10. 10. MEDIA EXPOSURE IN RURAL MARKET The estimated annual business from
rural markets in 2008 was Rs. 1,23,000 crore, comprising Rs. 65,000 crore of FMCG, Rs.
5000 crore of durables, Rs. 45,000 crore of agricultural inputs & Rs. 8,000 crore of two
wheelers and 4 wheelers. 29% of the rural people own cars, 27% own colour televisions,
24% own refrigerators & 10% own washing machines.
11. 11. CORPORATE ADVERTISING The advertising idea, which was encapsulated in
symbols of protection from the initial print campaign, culminated in the corporate film
where SINDOOR was used as an endearing and lasting symbol of protection.
12. 12. RESEARCH WORK
13. 13. The Questionnaire Hello Sir/Madam, I, KARAN SACHDEV, here to conduct a
research on the T.V audience with respect to advertisement put up by LIFE INSURANCE
COMPANIES. The purpose of this study is to understand, capture, assesses and evaluate
the effectiveness of the advertisement. We would appreciate if you could spend about 15
Min. and communicate your feelings, expression, comments and impact on you with
respect to the content of the advertisement. Please give your honest opinion and be
understood that this information collected will be purely confidential and not to be
.shared with any other entity in term of commercialization. PERSONAL PROFILE
NAME AGE OCCUPATION E-MAIL ID POSTAL ADDRESS CONTACT NO.
14. 14. Which media you use for information/entertainment? TV Radio Newspaper Internet
How often do you share interesting advertising with your family or friends? Never
Rarely Sometimes Often Very often Have you seen any Life Insurance Product Ad? Yes
No On Which channel you watch mostly? Zee T.V Sony Star News Channel

15. 15. If yes can you recall the content of the Ad? Yes No Based on the features advertised,
in that ad... Rank the following Strongly Somewhat Neither Somewhat Strongly
Agree Agree Disagree Disagree The ad message is understandable The advertisement is
believable The ads message is relevant to me The benefits told in the ad are believable to
me After viewing this ad, Ill consider to buy the product This ad is much better than
other ads for products of the same category
16. 16. Which company ad you find mostly? LIC India HDFC Std. Life Insurance Co. Ltd.
Birla Sun Life Insurance Co. Ltd. ICICI Prudential Life Insurance Co. Ltd. Reliance Life
Insurance Co. Ltd. Do you think this ad has influence you to. Buy the
insurance policy Recommend the Insurance Policy Suggest the insurance Policy Can you
recall if your family members ever tried to influence you to buy/secure a life insurance
Policy from the insurance company of her interest? Yes No Which of the Insurance Policy
would you like to buy? Life Plan Health Plan Child Plan Retirement Plan
17. 17. Other than T.V Where you saw Life insurance ad? Internet Newspaper Holdings
Friends/Family Radio Please rank the following Life Insurance Company as per your
liking HDFC Standard Life Insurance ICICI Prudential Life Insurance Reliance Life
Insurance Tata AIG Insurance Solutions Bajaj Allianz
18. 18. Share of Life Insurance v/s other insurance
19. 19. Growth of Life Insurance Advertising
20. 20. LIMITATIONS The research is confined to a certain parts of Delhi due to time
constraints and does not necessarily shows a pattern applicable to all of Country. Some
respondents were reluctant to divulge personal information which can affect the validity
of all responses. In a rapidly changing industry, analysis on one day or in one segment
can change very quickly. The environmental changes are vital to be considered in order to
assimilate the findings.
21. 21. FINDINGS
22. 22. Majority of the public uses television for entertainment or information gathering,
followed by newspaper and internet. Radio is seems to be out dated in urban areas. But
after revolution in mobile technology and satellite radio it has again started growing.
Majority of the public goes behind brand name. Thats why corporate advertising plays
a vital role in growing stage. It is also found that insurance companies like to give their
ads in News/Business channel. Liking an advertisement does not mean that public
would like to buy that product. If we talk about the private players, publics first choice
is ICICI Prudential followed by HDFC Standard Life and Reliance Life Insurance.
23. 23. RECOMMENDATIONS After the initial promotional campaign the relative
advantage of ICICI PRUDENTIAL Life Insurance Co. Ltd. Over its competitor should be
highlighted. Hoardings at prime areas should be used ICICI Prudential should come

forward for development of rural sector by way of establishing a school, digging wells in
villages. It is one of the ways to gain trust in rural sector. ICICI Prudential can also use
to advertise by using the way of Nukkad Naataks. It is the most creative and cheapest
way of advertising.