Life Insurance Marketing in India (C) The Changing Product & Pricing Norms
<<Previous
PRODUCT INNOVATIONS Contd..Max New York Life
also introduced new endowment policies – children endowment at the age of
18, 24 and 60. According to company sources, two new riders were added to
these policies – the payor benefit rider and 5-year term renewable and
convertible rider. Payor benefit allows child's coverage to continue even in
the case payor was disabled. The endowment policy for children at age 18
covered children aged between 91 days and 13 years, and policy would mature
when the child is aged 18. The policy for children's endowment at the age of
24, covers children between age of 91 days and 15 years with the policy
maturing at age 24. The policy endowment at the age of 60 covered
individuals aged between 91 days and 50 years and the policy would mature at
the age of 60. Maturity benefits under this policy included sum assured and
terminal bonus.
|
Having realized the untapped potential of the rural markets for
insurance products, AMP Sanmar decided to target semi-urban and small
towns by having product features simple and straightforward. It also
attached riders to its various policies, which did not feature in LIC's
products. AMP Sanmar decided to keep its product strategy as offering
simple life insurance solutions to individuals primarily aiming at
wealth creation and risk protection.
Birla Sun Life also launched products meant for the rural population in
order to capture a larger market share. |
|
It launched the Birla Sun Life Bima Kavach Yojana, a three-year single premium
insurance cover available in denominations of Rs 50, 100 and 200, which offered
100 times the amount of premium paid in the event of death of the insurer.
HDFC Standard Life stated that it would target the mass market comprised of
retail customers in the low and medium income group for its insurance products.
The company also announced that it would concentrate on secondary and tertiary
towns to reach out to a larger percentage of the population. The company's MD,
Deepak Satwalekar, said, “Our studies have shown that there is a high level of
economic activity in these towns and the potential for encouraging savings
exists.” According to company's sources, in the first year of its operations,
company set up branches in 12 cities in the country, which included metros and
mini-metros. HDFC Standard Life also announced that it would design special
products for targeting the rural markets and the socially underprivileged
sections.
HDFC Standard Life also strengthened its relation with over 90
non-government-organizations (NGOs)[4] in order to determine what kinds of products
would best suit the rural population. It had already decided, in association
with various NGOs to provide insurance cover to over 1,000 families in the
economically weaker section of the population of Karnataka, with low interest
housing loans provided as riders to the policies.
More...
LIC REJIGS ITS PORTFOLIO
FUTURE IMPLICATIONS
QUESTIONS FOR DISCUSSION
EXHIBIT I DIFFERENT TYPES OF LIFE INSURANCE POLICIES
EXHIBIT II PRODUCTS FOR INDIVIDUALS OFFERED BY DIFFERENT COMPANIES
EXHIBIT III COMPARING ENDOWMENT POLICIES
EXHIBIT IV COMPARING MONEY BACK POLICIES
EXHIBIT V COMPARING TERM LIFE POLICIES
ADDITIONAL READINGS & REFERENCES
[4] NGOs work independently towards enhancing the living conditions of the
weaker and deprived classes of the society. They are generally funded by
international organizations such as World Bank and United Nations
Organizations bodies.
2010, ICMR (IBS Center for Management Research).All rights reserved. No part of this publication may be
reproduced, stored in a retrieval system, used in a spreadsheet, or transmitted
in any form or by any means - electronic or mechanical, without permission.
To order copies, call +91- 8417- 236667 or write to ICMR,
Survey No. 156/157, Dontanapalli Village, Shankerpalli Mandal,
Ranga Reddy District,
Hyderabad-501504.
Andhra Pradesh, INDIA.
Ph: +91- 8417- 236667,
Fax: +91- 8417- 236668
E-mail: info@icmrindia.org
Website: www.icmrindia.org
|
More Classifications...