Max New York Life - The 3P Strategy

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To strengthen its distribution system further, in 2003, MNYL adopted alternative distribution channels viz. franchisee model, rural business, telemarketing, bancassurance and corporate alliances. It appointed ‘gram sahayaks’ in some rural locales who were trained to identify and sell specialized insurance products.

"We're tapping opinion leaders in the village like schoolteachers, social workers and chemists, and creating products which suit rural needs," commented Sarkar. The company tied up with Shoppers' Stop and reached out to customers who held the chain's "First Citizen" discount card and bought children's clothes more than once a month. Such customers were tapped for child saving schemes as well.

MNYL created product differentiation by giving “Whole Life “policies that offered customers the correct balance between protection and savings. They offered for the first time in India a free-look period i.e., a customer had 15 days period to weigh the various options offered by MNYL which helped him to take an informed decision. This standard was adopted by IRDA as the best practice to be emulated by all players in the Indian insurance market. They were also the first company to sell a policy with riders.

For example, 5-Year Term Renewable and Convertible Policy had two riders attached to it viz. Personal accident benefit and Dread disease benefit, which could be attached at the time of purchase of policy or later, subject to certain conditions. MNYL also offered a specialized rural policy provided term insurance for Rs 10,000 for a sum of Rs 100, which was affordable to that particular segment of society.

MNYL offered cash bonus in May 2003 to its Whole Life policyholders, who joined before February 6, 2002. As a value added service, this bonus could be used in five different ways: accumulated with the company and earn interest, buy paid up additions to raise the death benefit of the base policy, offset against future payable premiums, taken in cash or buy an additional term cover for one year.