LIFE INSURANCE IN INDIA

HOW INSURANCE COMPANIES CAN LEVERAGE SOCIAL MEDIA TO GROW ITS BUSINESS

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INDUSTRY OVERVIEW WHY SOCIAL MEDIA SOCIAL MEDIA INDEX RESEARCH FINDINGS

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INDUSTRY OVERVIEW (1/2)

60 80.0%
69.6% 70.0% 60.0%

Market Overview
The Indian Life Insurance Market grew by 23.4% in 2009 to reach a value of $56 billion. The compound annual growth rate of the market in the period 200509 was 28.6% Life insurance is the largest segment of the life insurance market in India, accounting for 86.4% of the market's total value. The pension/annuity segment accounts for the remaining market
Source: Data Monitor

50 40

30 20 10 0 2005 2006 2007 2008 20.5 34.7 18.7% 41.2 45.4 23.4%

56

40.0% 30.0% 20.0% 10.0% 0.0%

10.2% 2009

13.60% Life insurance 86.40% Pension/Annuity

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% Growth

$ Billion

50.0%

INDUSTRY OVERVIEW (2/2)

Industry Rivalry The industry is mostly concentrated. Most services offered by the players are more or less the same increasing rivalry. Overall, the attractiveness of the industry due to industry rivalry is MEDUM Barrier to entry is not very, however there are few big players like LIC which have a big market share. Opportunity is high because of the large untapped segment becoming more affluent. Overall, the attractiveness of the industry due to threat of new entrants is MEDIUM
Industry Rivalry 5 4 3 Threat of Substitute 2 1 0 Threat of New Entrants

Threat of New Entrants

Buyer Power

Supplier Power

Overall, the attractiveness of the industry is MEDIUM

Supplier Power Buyer Power Threat of Substitute

Supplier includes infrastructure and software manufacturers. Once a company choose a supplier it is never easy to switch supplier as fixed cost and involves lot of training cost. Overall, the attractiveness of the industry due to supplier power is LOW to MEDIUM Large clients such as corporates have high bargaining power increasing buyers power. With internet it has become very easy to compare deals offer by different company Overall, the attractiveness of the industry due to buyer power is LOW to MEDIUM There are several substitute such as savings and investments but the benefit offer by Insurance is much attractive. Overall, the attractiveness of the industry due to threat of substitute is MEDIUM to HIGH
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WHY SOCIAL MEDIA (1/3)

NEED The perceived RISK involved in buying Insurance Product is HIGH. The need recognition for Insurance Products has to be initiated by the company as consumers might not be aware of the existing products Customers want to have a clear understanding of the policy followed by Insurance Companies Customers may not know what facilities he needs or he may be uncertain whether he really needs it Customers will have lots of queries and question on the available schemes, terms and benefits amongst many other things. To address this problem, Companies should have a good complain and feedback mechanism
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Social Media is the easiest way out for the Insurance Companies to meet these requirements

WHY SOCIAL MEDIA (2/3)

POWER CREATE fan pages to post contact information, recent updates, and most importantly allow fans and the Company a means of communication on the main page and through the implementation of discussions on the fan page

DEVELOP catchy and clever ways to express the most recent company information. Consumers can share recent experiences with the company, as well as recommend potential product ideas and innovations UPLOAD and share videos and educate your customers with awareness, testimonial and videos showcasing what your Company truly is

CONNECT the staffs of your Company and RECRUIT the best talents in the industry in this most professional social networking site
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WHY SOCIAL MEDIA (3/3)

BUSINESS BENEFIT

Sales
Increase Sales or Generate Leads directly or indirectly through Social Media

Reputation
Management Talks on Social Media are important as it affects public sentiment towards a brand or company

Customer Service
For a business to be successful, it is essential that there is a 2 way communicati on between companies & customers
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B2B
It is very important especially in a B2B marketing to UNDERSTAND CREATE and DELIVER VALUE

Social Listening Tools

TRACK conversations about your brand online

SOCIAL MEDIA INDEX (1/4)

LIC one of the leading Indian Insurance Company to adopt social media in engaging with its customers

LIC engaging with Customers

LICs Facebook Page

LIC has over 4721 followers in LinkedIn

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SOCIAL MEDIA INDEX (2/4)

Aviva has a very focused priority to Education Insurance. Its Education is Insurance Program has been one of the most active social media campaign in the Industry

LIC engaging with Customers Avivas Education is Insurance Facebook Page

Avivas Education is Insurance Blog which showcase what it does and updates people about its news and events happening around
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SOCIAL MEDIA INDEX (3/4)

SOCIAL MEDIA GRADES is calculated based on the interactivity level of the mixed retailers in Facebook, Twitter, LinkedIn, YouTube and Blogs. It shows how active the mixed retailers are in the social media space No of Channels represents the number of social networking sites a mixed retailers is present in Insurance Companies
AVIVA EDUCATION IS INSURANCE

No of Channels
5

Social Grades
3.34

LIFE CORPORATION OF INDIA

HDFC STANDARD LIFE INSURANCE SBI LIFE INSURANCE BAJAJ ALLIANZ LIFE INSURANCE

6
4 4 2

3.16
2.19 1.96 1.49

ICICI PRUDENTIAL LIFE INSURANCE

BIRLA SUN LIFE INSURANCE BHARTI AXA LIFE INSURANCE

2
1 1

1.35
0.65 0.49
10

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SOCIAL MEDIA INDEX (4/4)

3.5 3

2.5

Interactivity Level

1.5

0.5

0 0 1 2 3 4 5 6

No of Channels Social Engagement Graph: Interaction Plot of Insurance Companies in the Social Media Space

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RESEARCH FINDINGS (1/6)

BRAND AWARENESS: Number of conversations across web

LIC has the highest number of mentions in the social media amongst all the players LIC: 138084, ICICI Prudential: 680, SBI Life: 1527 and Aviva: 8512 while ICICI has the least

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RESEARCH FINDINGS (2/6)

BRAND HEALTH: SENTIMENTS across web for different Insurance Companies

LIC

ICICI PRUDENTIAL

SBI LIFE

AVIVA

Positive Sentiment % Negative Sentiment %

50% 17.03%

62.1% 7.2%

64.05% 9.04%

66.4% 7.7%

LIC although having highest mentions should be concerned about it having the least percentage of positive sentiment and the highest negative sentiment messages
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RESEARCH FINDINGS (3/6)

COMPARE the demographics age group of your brand talkers with competitors

LIC is the only company which people in their mid 40s are talking about

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RESEARCH FINDINGS (4/6)

COMPARE the demographics location of your brand talkers with competitors

All Companies are popular in Bangalore and Southern Region of India. LIC has people talking about it pan India

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RESEARCH FINDINGS (5/6)

COMPARE the source of messages

All except LIC have strong mentions in Blogs while LIC has the highest mention in Twitter. Aviva also have significant mentions in Twitter
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RESEARCH FINDINGS (6/6)

INDUSTRY INTELLIGENCE
Tracking the keyword Life Insurance in Simplify360 There are 21071 mention of the keyword LIFE INSURANCE in the social media within a period of 2 weeks alone 12.5% of the talks about LIFE INSURANCE is related to negative sentiment about the topic

People talking about the topic are mostly in the age groups of 36-45 and 26-35
LIFE INSURANCE is popularly talked about in Mumbai, Guwahati, Delhi, Bangalore and Chennai
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