Life insurance provides financial protection for loved ones in the event of untimely death. The document discusses Life Insurance Corporation of India (LIC), the largest life insurer in India, and its marketing strategy. LIC utilizes a multi-channel approach including agents, banks, advertising and digital platforms to promote its products. It addresses key customer needs like financial security, debt repayment, and education funding.
Life insurance provides financial protection for loved ones in the event of untimely death. The document discusses Life Insurance Corporation of India (LIC), the largest life insurer in India, and its marketing strategy. LIC utilizes a multi-channel approach including agents, banks, advertising and digital platforms to promote its products. It addresses key customer needs like financial security, debt repayment, and education funding.
Life insurance provides financial protection for loved ones in the event of untimely death. The document discusses Life Insurance Corporation of India (LIC), the largest life insurer in India, and its marketing strategy. LIC utilizes a multi-channel approach including agents, banks, advertising and digital platforms to promote its products. It addresses key customer needs like financial security, debt repayment, and education funding.
Life insurance provides financial protection for loved ones in the event of untimely death. The document discusses Life Insurance Corporation of India (LIC), the largest life insurer in India, and its marketing strategy. LIC utilizes a multi-channel approach including agents, banks, advertising and digital platforms to promote its products. It addresses key customer needs like financial security, debt repayment, and education funding.
Individual Assignment 1 Financial Product- Life Insurance Company- Life Insurance Corporation
Submitted to: Professor Sreeram Sivaramakrishnan
Submitted by:
220601017 Harit Rustagi
1 LIFE INSURANCE-
Life insurance is a financial product that provides a sum of money to a policyholder's beneficiaries in the event of their death. Providing a safety net for one's family and loved ones in the event of an untimely death is essential to financial planning.
Life insurance in India dates back to the early 1800s when the Oriental Life Insurance Company was founded in Kolkata in 1818. The industry has grown significantly in recent years, and several insurance companies offer a wide range of life insurance products to meet Indian consumers' diverse needs.
There are two types of life insurance products in India: term insurance and endowment insurance. In the event of the policyholder's death, term insurance provides a lump sum payment to their beneficiaries. Conversely, endowment insurance includes a savings component that can be used over time to accumulate wealth.
There has been a significant shift towards term insurance in India recently as consumers have become more aware of the importance of adequate life insurance. The government of India has also launched several initiatives to promote insurance coverage, including the Pradhan Mantri Jeevan Jyoti Bima Yojana and the Pradhan Mantri Suraksha Bima Yojana.
MARKETING STRATEGY OF LIFE INSURANCE IN INDIA-
Life insurance in India is marketed using various marketing frameworks. One such popular framework is the 7P's of marketing. Product : Life insurance is a financial instrument that protects the beneficiaries of the insured in the event of their untimely death. It is critical to understand the many types of life insurance policies available and how they match the needs of the consumer. Price: The cost of life insurance policies can vary substantially, and the cost should reflect the level of risk and coverage provided. Setting prices that are competitive and affordable while remaining profitable for the insurance firm is critical. Place: Life insurance policies can be purchased through a variety of channels, such as insurance agents, brokers, and internet platforms. The insurance business should make sure that the distribution channels are easy for clients to use. Promotion: Promoting life insurance entails communicating the product's benefits and value to the target market. This can be accomplished through a variety of marketing platforms, including television, radio, print advertisements, social media, and email marketing. People: Agents and customer service representatives, as well as those involved in the sale and administration of life insurance policies, should be knowledgeable and trained to give great customer service. Process: The procedure of purchasing a life insurance policy should be simple and straightforward for the customer. This comprises the application, underwriting, and claims processing processes. Physical Evidence: The tangible parts of the life insurance product and service, such as policy documentation, billing statements, and other marketing materials, are considered physical evidence. These should be straightforward and professional in design.
LIFE INSURANCE CORPORATION OF INDIA-
2 LIC (Life Insurance Corporation) or often known as Bharatiya Jeevan Beema Nigam is an Indian Government Corporation that was established in 1956. It is an insurance company with 8 zonal offices and 101 divisional offices with its headquarters located in Mumbai. Besides giving life insurance, LIC also offers mutual funds, health insurance, and investment management services. LIC International, LIC Nepal, LIC Lanka, and LIC Housing Finance are all subsidiaries of India’s life insurance firms.
LIC offers a very vast and huge range of diversified products catering to the needs of various sections of people in India and outside of India. It offers individual solutions considering their specific financial requirement and risk profile and helps to solve it.
MARKETING STRATEGY OF LIC-
LIC has a huge network of agents and branches around the country, allowing it to access a large number of consumers. LIC has a physical presence as well as an online portal and mobile app that let clients to purchase and manage their policies online. Multi-channel distribution : LIC's advertising strategies target different client demographics based on their age, income, and life stage. For example, LIC's retirement plan campaigns are aimed at senior individuals, whereas its kid plan campaigns are aimed at young parents. Targeted advertising: In India, LIC is a well-known brand, and it frequently launches branding and awareness initiatives to promote its brand image. These campaigns emphasize the necessity of life insurance and its role in protecting a family's future. Branding and awareness campaigns: To access a larger consumer base, LIC has created strategic relationships with banks, financial institutions, and other businesses. It has, for example, partnered with numerous banks to offer its policies through their branches. Customer service: LIC prioritizes customer service, which has helped them establish a loyal customer base. Its customer support team is available 24 hours a day, seven days a week, and it has a dedicated grievance redressal procedure. Overall, LIC's marketing strategy emphasizes on establishing trust and delivering consumers with personalized services. As a result, it has been able to preserve its position as the market leader in India's life insurance industry.
SWOT ANALYSIS OF LIC-
The strengths and weaknesses of Life Insurance Corporation of India (LIC) are considered internal elements, while opportunities and threats are considered external factors in a SWOT analysis.
1. Strength • In India, it is the most reputable insurance firm. • Customer satisfaction and after-sales service in the long-term plan hold much importance. • Created employment opportunities for more than 1,15,000 people • Has around 2000 branches across India and 10,00,000 agents and worldwide 2. Weakness • There is very little innovation since it is a government-owned organization • Gets affected by bureaucracy and fraud
3 • It becomes difficult to manage the huge workforce in times of economic crises 3. Opportunity • With the use of modern technology, it can provide good service in the urban areas and widen its connection. • Proper government schemes should be implemented. 4. Threats • Economic crisis • New NBFCs are entering the market • Varying Govt policies
TARGET SEGMENTS- Life insurance typically targets individuals or groups who are concerned about providing financial protection for their loved ones in the event of their own unexpected death. Some common target segments for life insurance include:
• Parents • Breadwinners • Business owners • Elderly individuals • High net worth individuals • Individuals with pre-existing health conditions
KEY NEEDS ADDRESSED BY LIFE INSURANCE-
Life insurance offers a variety of benefits and services that address the primary demands of its consumers. Life insurance can help with the following critical needs: Financial Security: Life insurance provides financial security to the policyholder's dependents in the event of his or her untimely death. It helps to replace the policyholder's lost income and guarantees that the family's standard of life is maintained. Debt Repayment: In the event of the policyholder's death, life insurance can be used to settle debts such as mortgages, vehicle loans, and credit card bills. This can alleviate the family's financial strain and keep them from going into debt. Education funding: Life insurance policies can be tailored to give payments towards a child's education. This can ensure that the children's education does not suffer if the policyholder is no longer able to support them. Estate Planning: Life insurance can be used to help avoid estate taxes and ensure that the policyholder's assets are passed down to their heirs in accordance with their preferences.
KEY BENEFITS HIGHLIGHTED IN COMMUNICATION-
Life insurance provides a variety of benefits to individuals and their families, and some of the key benefits that are commonly highlighted in communication by life insurance providers include:
4 • Financial security • Peace of mind • Tax benefits • Estate planning • Flexibility • Long-term savings
COMMUNICATION PLATFORM USED BY LIC-
Life Insurance Corporation of India (LIC) communicates with its clients and stakeholders through a variety of channels. LIC use several popular communication platforms, including: Website: The LIC website is user-friendly and includes information on its products and services, premium payment choices, insurance status, claim settlement process, and so on. Customers can also purchase new policies and renew current ones through the website. Mobile App: The LIC Customer mobile app is accessible for both Android and iOS users. Policy data, premium payment options, loan status, claim status, and other features are available through the app. Customers can also use the app to purchase new insurance coverage. Social Media: LIC is well-represented on social media platforms like Facebook, Twitter, and LinkedIn. These platforms are used by the company to raise brand awareness, communicate with customers, and deliver product and service updates. Call Centre: LIC has a toll-free phone center that is open 24 hours a day, seven days a week. Customers can contact the call center for information about their insurance, premium payment alternatives, claim settlement procedures, and so on. Agents: LIC has a large network of agents who contact consumers and explain the products and services available. Customers can also contact agents with policy-related questions or for assistance. Branches: LIC has a large network of branches throughout India that offer services such as policy issuance, premium payment, policy servicing, and so on. Customers can also visit the branches for policy-related support and questions.
SALES STRATEGY OF LIC-
LIC (Life Insurance Corporation of India) is a state-owned insurance business in India that has long been a dominant player in the Indian insurance market. The following are the essential components of LIC's life insurance sales strategy: Broad product portfolio: LIC provides a diverse range of life insurance policies to meet the demands of various customer segments. Term insurance plans, endowment plans, money-back plans, ULIPs (Unit-Linked Insurance Plans), kid plans, pension plans, and other types are included. Distribution network: Agents, brokers, corporate agents, bancassurance partners, and online outlets are all part of LIC's extensive distribution network. This enables the organization to reach out to customers in both urban and rural locations and provide customised solutions to them. Customer-centric approach: LIC places a high value on customer service and assistance. A dedicated customer support team assists clients with their questions and problems. It also performs client feedback surveys on a regular basis in order to improve its services.
5 Innovation: To keep ahead of the competition, LIC is always innovating and releasing new goods and services. In recent years, the company has implemented a number of digital initiatives, including online premium payments, e-KYC (Know Your Customer) authentication, and policy servicing portals.
FIDUCIARY AND CONSUMER PROTECTION ISSUES-
Fiduciary Issues-
• Disclosure of Information • Suitable Recommendations • Conflict of Interest Consumer Protection Issues-
The companies like LIC and all the other actors operate in a large macro environment that shapes the opportunities and pose threat to the company. Major forces are : • Demographic Since literacy and education increases employment opportunities, higher earning jobs also bring a change in perception about the need for insurance. • Economic Because the real value of money decreases with an increase in the inflation rate, high inflation reduces the insurance business. • Technological More innovative channels like banks, post offices, ATMs should be introduced in areas where there are limited development facilities and are still facing difficulties. • Political According to the IRDA act, 1999: the bill allowed for 26% for equity participation in the insurance sector. • Cultural A strong trade union was made for managers so that the job is done as the work culture in the organization was sloppy.
LIC Advertising Campaign
LIC had always designed campaigns with amusing twists as well as emotional connections. "Smart logon ki clear hai priority, baaki sab baad Mein, Pehle LIC,". The campaign emphasizes the significance of life insurance. It demonstrates the importance of life insurance. It stresses achieving goals such as purchasing a home, starting a business, earning a degree from a foreign college, and planning a vacation.The ad was initially released digitally, but to increase coverage, the brand staged a flash mob at a Mumbai mall. The promotion was well-received in malls by people shopping with their families and friends. The flash mob coincided with Valentine's Day festivities. The dancers held a Love Note that read, “Gift your loved ones Jeevan Bhar ka Saath on this Valentine’s Day.”
