Mini Project on Insurance

Marketing of Financial Services

Submitted by:
KANISHKA DEY
PGDM B2B3
UID: 2019-0306-0001-0012

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INDEX:
Introduction…………………………………………………………………………………3
Market Size…………………………………………………………………………………..3
Government Initiatives………………………………………………………………...4
Road Ahead…………………………………………………………………………………..4
Recent Developments in BFSI Sector…………………………………………….4
About Bharti AXA………………………………………………………………………….5
History of Bharti AXA……………………………………………………………………5
Highlights of Bharti AXA……………………………………………………………….5
SWOT Analysis……………………………………………………………………………...6
Products of Bharti AXA………………………………………………………………...7
BCG Matrix……………………………………………………………………………………8
Gap Analysis…………………………………………………………………………………9
CSR Activities………………………………………………………………………………11
Market Strategy…………………………………………………………………………..13
Market Mapping………………………………………………………………………….14
Budget………………………………………………………………………………………...15
Marketing Channels…………………………………………………………………….16

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 BUSINESS SUMMERY

BANKING, FINANCIAL SERVICES AND INSURANCE (BFSI)

SECTOR
1. INTRODUCTION:
Insurance Regulatory and Development Authority (IRDA) governs the Indian insurance
sector. It is established in 1999 under the IRDA Act. It is responsible for regulating,
promoting and ensuring orderly growth of the insurance and re-insurance business in India.
There are different types of insurance –
 Life insurance (24 players) – Public (1) and Private (23)
 General insurance (21 players) – Public (4) and Private (17)
 Specialised Insurers (2 players) – Public (2)
 Standalone Health Insurance (6 players) – Private (6)
 Re-insurance (2 players) – Public (1) and Private (1)
 Foreign Reinsurers branches (7 players) – Private (7)
In India the insurance industry consists of 57 insurance companies. Out of these 24
companies are in life insurance business and 33 companies are non-life insurers. Life
Insurance Corporation (LIC) is the sole public sector company among the life insurers.
Apart from that there are six public sector non-life insurers. Also there is only one sole
national re-insurer, namely, General Insurance Corporation of India (GIC). Other
stakeholders in Indian Insurance market include agents (individual and corporate), brokers,
surveyors and third party administrators servicing health insurance claims. Non – life insurer
covers marine, health, fire, motor etc.

2. MARKET SIZE:
Government's policy of insuring the uninsured has gradually pushed insurance penetration in
the country and proliferation of insurance schemes.

In India gross premiums written has reached Rs 5.53 trillion (US$ 94.48 billion) in FY18 out
of which Rs 4.58 trillion (US$ 71.1 billion) is from life insurance and Rs 1.51 trillion (US$
23.38 billion) is from non-life insurance. Overall insurance penetration (premiums as % of
GDP) in India has reached 3.69 % in 2017 from 2.71 % in 2001.

In the FY19 (up to October 2018), premium from new life insurance business increased from
3.66 % year-on-year to Rs 1.09 trillion (US$ 15.46 billion).In FY19 (up to October 2018), a
year-on-year growth rate of 12.40 % has been observed in gross direct premiums of non-life
insurers which reached to Rs 962.05 billion (US$ 13.71 billion).

The insurance industry of India is expected to reach US$280 billion by 2020 due to increasing
awareness, innovative products and more distribution channels.

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3. GOVERNMENT INITIATIVES:
A number of initiatives have been taken by the Government of India to boost the insurance
industry. Some of the initiatives are given below:

 National Health Protection Scheme was launched on September 2018 under

Ayushman Bharat to provide coverage of up to Rs 500,000 (US$ 7,723) to more than
100 million vulnerable families. It is expected that the scheme is expected to increase
health insurance penetration in India from 34% to 50%.
 In 2017-18, under Pradhan Mantri Fasal Bima Yojana (PMFBY) over 47.9 million
famers were benefitted.
 For the insurance companies in India the Insurance Regulatory and Development
Authority of India (IRDAI) has planned to issue redesigned initial public offering
(IPO) guidelines, which are looking to divest equity through the IPO route.

4. ROAD AHEAD:
The future looks promising for the life insurance industry with several changes in regulatory
framework which will lead to further change in the way the industry conducts its business
and engages with its customers.
The overall insurance industry is expected to reach US$ 280 billion by 2020. Life insurance
industry in the country is expected grow by 12-15% annually for the next three to five years.
Demographic factors such as growing middle class, young insurable population and growing
awareness of the need for protection and retirement planning will support the growth of
Indian life insurance.

5. RECENT DEVELOPMENTS IN BFSI SECTOR:

During the last few years there have been a lot of activity in the insurance sector. Few
examples from different categories of deals/developments are as follows:

 Strategic deals: HDFC ERGO General Insurance Co. is planning to acquire Apollo

Munich Health Insurance (Reported valuation: $370 million).

 Financial investors: A consortium of private equity firms- West bridge Capital and
Madison Capital and billionaire investor Rakesh Jhunjhunwala, are discussing to
acquire over 90% stake in Star Health and Allied Insurance. (Estimated deal size: $1
billion)

 Initiatives by non-sector players: Indian e-commerce giant Flipkart has tied up with

Bajaj Allianz General Insurance to provide customised insurance products for mobile
phones sold on Flipkart.

 New product offerings: HDFC ERGO has launched a new product called E@Secure
- a cyber insurance policy to protect the individuals and families from cyber-attacks.

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 BHARTI AXA GENERAL INSURACE LTD.
1. ABOUT THE COMPANY:
 Bharti AXA General Insurance Company Ltd was founded in the year 2008, now
headquartered at Mumbai, Maharashtra, India.
 Bharti Enterprises is one of India's leading business groups with interests in telecom,
agri-business, financial services, retail and manufacturing, with many firsts and
innovations to its credit.The AXA Group is a worldwide leader in insurance and asset
management serving 105 million clients, individuals and business, in 61 countries and
offers insurance, savings and investment products and services.
 Bharti AXA General Insurance Company Limited is a joint venture between Bharti
Enterprises and AXA. The joint venture company has a 51% stake from Bharti
Enterprises and 49% stake of the AXA Group. Bharti AXA General Insurance has
PAN India presence through 104 branches and offer insurance solutions for motor and
two-wheeler, health and critical illness, property and student, individual and family
travel and crop insurance.
 Bharti AXA General Insurance Company Ltd is a general insurance company that
offers various products catering to retail, rural, and commercial clients. Broadly, it
offers insurance for motor and two wheeler insurance, health and critical illness,
property, student and individual and family travel, crop insurance and commercial
lines.

2. HISTORY OF THE COMPANY:

 In November 2007, the company received the license for joint venture from Insurance
Regulatory and Development Authority of India (IRDAI).The company was
incorporated on 13 April 2008 and commenced its national operations in August
2008.

 Bharti AXA General Insurance Company Limited is a joint venture between Bharti
Enterprises and AXA. The joint venture company has a 51% stake from Bharti
Enterprises and 49% stake of the AXA Group.

 Bharti AXA has got the credit of being the first company in the general insurance
industry to receive dual certifications of ISO 9001:2008 and ISO 27001:2005.

3. HIGHLIGHTS OF THE COMPANY:

 Lifelong Renewability
 89% Incurred Claim Ratio and 77.78% Claim Settlement Ratio
 4,500+ Network Hospitals
 21,829 Policies Issued
 4,500+ Network Hospitals

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4. SWOT ANALYSIS OF THE COMPANY:

International expertise of AXA Group

Range of products
STRENGTH Growing business
Rs. 19 crore BEP in 5 years
One of the top 10 insurance companies in India

Less awarness in rural areas

Low national level advertisement
WEAKNESS
Less promotional activities
Low investment

Increasing awareness among people

Market expansion
Uncovered rural areas
OPPORTUNITIES
Health insurance
Rising demand
Only 6% of the market is insured

Tough competition from market leader LIC

THREAT Changing rules and regulations by IRDAI
FDI unit increased by 49%

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5. PRODUCTS OF THE COMPANY:
1. Motor Insurance
 Car Insurance
 Two Wheeler Insurance

2. Health Insurance
 Smart Super Health Insurance Policy
 Smart Health Assure Policy

3. Travel Insurance
 Schengen Travel Insurance
 Worldwide Overseas Travel Insurance (Including USA/ Canada)
 Worldwide Overseas Travel Insurance (Excluding USA/ Canada)
 Asia Travel Insurance

4. Other Products

 Bharti AXA Home Insurance

 Bharti AXA Commercial Lines Insurance
 Bharti AXA Motor Third Party Insurance – Commercials
 Bharti AXA SME Package Insurance
 Bharti AXA Commercial Vehicles Insurance
 Pradhan Mantri Fasal Bima Yojana (PMFBY)

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6. BCG MATRIX OF THE COMPANY:

STARS
QUESTION MARKS
 Bharti AXA Motor Insurance – Car  Smart Super Health Insurance Policy
Insurance

CASH COWS
DOGS

 Bharti AXA Travel Insurance  Bharti AXA SME Package Insurance

 Bharti AXA Home Insurance

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7. GAP OF EXISITING PRODUCT OF BHARTI AXA GENERAL INSURANCE
CO. LTD:

SMART SUPER HEALTH INSURANCE POLICY

Bharti AXA Smart Super Health policy is a product launched by Bharti AXA with added
features and more flexibility to provide customers' relief from rising medical costs and cover
their varied needs. The policy caters the need of a larger audience covering up to five family
members, including the policyholder. The entry age for an individual ranges from 5 years to
65 years whereas the children between 91 days and 5 years can be covered under the policy,
provided the parents are insured. The policy can be chosen for a period of 1 year, 2 years and
3 years. With evolving needs, one can even modify the policy, such as maternity benefit can
be added on later.

The plan comes with the coverage benefit of alternative treatment, air ambulance transport,
and organ donor expenses among many others. There is no capping on the room rent, and the
patient can choose any room for treatment at the hospital. The plan comes in three variants
i.e. Value, Classic and Uber. One can choose an optimum sum assured as per the choice of
the variant.

BENEFITS

 Hospital Cash Allowance: Under this benefit, daily cash is paid per day up to the
specified limit if the insured is hospitalized for any disease/illness/injury for which a
valid claim is admissible under the policy for each continuous and completed period of
24 hours and if the hospitalisation is more than 24 hours. This is paid for a maximum of
30 days including all the members and all claims for the entire policy year. First
completed and continuous period of 24 hours will be considered as a deductible.
 Maternity Benefit: This benefit provides cover for the expenses for the delivery of a
baby and/or expenses related to medically recommended lawful termination of
pregnancy, limited to a maximum of two deliveries or terminations. This benefit is
available under a family floater policy and is available for insured/insured’s spouse
provided both are covered under the same policy. This benefit also covers the newborn
baby’s inpatient treatment expenses within the first 90 days of birth.
 Critical Illness Cover: Under this benefit, a lump sum amount is paid if the insured is
diagnosed with any of the listed critical illnesses under the policy, 60 days after the
inception of the policy, and survived for more than 30 days post such diagnosis. The
amount is paid only once in a lifetime of the insured and after being paid the benefit
stands lapsed.
ELIGIBILITY:
Age at entry of life insured (last birthday) : 18 Years (Min)
: 65 Years (Max)
Age at Maturity : 70 years (Max)

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Sum Assured for Treatment : Rs.10,00,000 (Min)
: Rs.30,00,000 (Max)
* Above limits are subject to underwriting
Premium Payment Term : Same as Policy Term
Policy term : 5 years (Min)
: 20 years (Max)
Premium Payment Frequency : Yearly
*(Premium of any plan is 10 times of sum assured. If the sum assured is Rs. 10,00,000 then
the premium would be approximately Rs. 1,00,000 or more including taxes on a yearly basis).

NEW PRODUCT AFTER GAP ANALYSIS:

“SMART HEALTH ASSURE POLICY”
FEATURES OF THE POLICY:
 Our policy can be purchased by an individual age is between 18 years to 60 years.
 Our policy comprises of a combo of health and life insurance, where an individual can
get the benefits and coverage for both. Such type of policy is not available with any
insurance company.
 In the policy, the premium paying term for the health policy is 10 years but the person
will get the coverage of health insurance for 15 years.
 Beside the maturity value or sum assured, the person will get 3 types of bonuses such
as SRB, Guaranteed Addition and Terminal Bonus.
 The individual buying the policy will get tax benefits.

TARGET GROUP:
 Age: 18-60 years
 Occupation: Working Professionals or Homemaker
 Generation: Mainly young cool, young macho or Gen X
 Social class: Middle class

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8. CORPORATE SOCIAL RESPONSIBILITY (CSR) ACTIVITIES OF THE
COMPANY:

“Shaping a Better Tomorrow”

“Our corporate social responsibility initiatives are driven by our collective vision: To be
viewed as an organization where People Protection is well embedded within the business.”
People protection is not just the basis of our business; it is the purpose of the company’s
existence. As a socially aware and responsible corporate, their CSR philosophy is supported
by five pillars, namely; shareholder, customer, employee, community and environment. 
Shareholders
Company’s commitment towards shareholders is about the responsibility towards the
governance model. To achieve this, the focus is on managing reputation risk through
scientific means and available guidelines, strengthening operational risk management
capability and to identify & mitigate reputation risks using formal assessment tool and
ensuring compliance with the laws of the land pertaining to labor, taxes, financial services
and insurance.
Customers
The commitment towards customers is demonstrated by the efforts towards strengthening
customer relations and innovating the products and services to meet the growing needs of the
customers. To achieve this, Bharti AXA aims at unlocking key customer insights and offering
various products and services to customers and serve as a trusted protection partner.
Employees
Commitment towards the employees is about the responsibility in the workplace. The
initiatives include implementing anti-sexual harassment measures and other initiatives to
safeguard the interest of our employees.
Community
Bharti AXA support the community that they operate in through various initiatives such
as donation of books, stationery, clothes and allied supplies. The company also conduct blood
donation and free eye check-up camps. They also take measures to educate individuals about
the importance of health, wellness and hygiene. They have also undertaken sessions in the
past to spread awareness about road safety initiatives and cease the harmful practice of
drinking and driving.
Environment
Bharti AXA believe that they are responsible towards the physical environment that they
share with everyone else. They work towards ensuring that the generations to come inherit a
health environment through planting small plants or trees, encouraging car-pooling, working
towards progressive reduction of carbon footprint and increasing usage of technology to

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reduce usage of paper at work. On the occasion of our 11th Foundation Day, the company also
undertook a pledge to plant 11,000 saplings across the nation.

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9. MARKET STRATEGY:
The Seven Ps of marketing is a well-established formula to evaluate both business strategy
and marketing mix by analysing seven key customer touch points. Insurance is a unique
business area -,so even general business theory needs to be tailored to our industry’s specific
needs.

Product: “ SMART HEALTH ASSURE” - general insurance Product

Price:
The premium charged against the policies.
Interest charged for defaulting the payment of premium and
credit facility
Commission charged for underwriting and consultancy
activates
Place: Pune, Maharashtra
Promotion: Advertisement, Publicity
People : High level of people interaction, development and strong
relationship with intermediaries in order to satisfy
customers, training of employees.
Process: Should be customer friendly industry. The processing method
should be easy and convenient to the customers.

Physical Distribution: Mainly with the help of telephones and internet

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 10. MARKET MAPPING:

ICICI
High price INSURANCE
LIC
HDFC
MAX SBI LIFE LIFE
KOTAK LIFE INSURANCE
Low quality High quality

SMART
HEALTH
ASSURE

Low price

ADVANTAGE UNDER III QUADRANT:

1. HAVE ENOUGH TIME TO FIND THE GAP AND IT’S
FULLFILLMENT.
2. LOW OR NO COMPETITION UNDER THIS RANGE ON
COMPARISON.
3. GIVE EXPECTED REVENUE (HOPEFULLY).

Once the product able to gain the customer market mapping help us to
change the market segment as per our need.

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11. BUDGET:
DESCRIPTION OF THE POLICY:
Policy Term 15 years
Policy Paying Term 10 years
Waiting Period 5 years
Sum Assured 450000

Health Insurance Total

Premium Life Insurance @10% Health Coverage Premium
1st year 45000 5000 200000 50000
2nd year 45000 5500 220000 50500
3rd year 45000 6050 231000 51050
4th year 45000 6655 242550 51655
5th year 45000 7321 254678 52321
6th year 45000 8053 267411 53053
7th year 45000 8858 280782 53858
8th year 45000 9744 294821 54744
9th year 45000 10718 309562 55718
10th year 45000 11790 325040 56790
11th year 325040
12th year 325040
13th year 325040
14th year 325040
15th year 325040

BONUSES:

Guaranteed Bonus Terminal Bonus Special Revisionary Bonus

5400 45000 46836.36144

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 TOTAL PREMIUM & MATURITY VALUE:
Total Premium for Life Insurance
450000
Maturity Amount 547236.3614

12. MARKETING CHANNELS:

Over the course of 2020, we will ramp up our use of the following channels for educating our
customers, generating leads, and developing brand awareness in the market.

The following channel are as follow.

 www.medindia.net
Purpose of channel: To create product awareness among the customer.
Metrics to measure success: This is one of the highly visited health websites in India with
over 50000 people visiting site every day.
 www.policybazar.com
Purpose of channel: To promote and generate leads for the product in the market
Metrics to measure success: Customer trust the website content and this the most visited
website for insurance purchase; thus, we can have our product listed here.
 The Insurance Times
Purpose of channel: To educate the customer about the product and its benefits sought after
Metrics to measure success: As this is the only authentic information source on insurance in
India and been since last 30 years, thus people trust on this publication and having a column
in this publication will lead to reach millions of customer
 blog.feedspot.com
Purpose of channel: To promote the product through writing blogs about the advantage and
uniqueness
Metrics to measure success: This blogging is visited by millions of customer thus you get a
large market through this social media platform

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  Facebook/ InstagramS
Purpose of channel: To make aware customer aware about the new product under IDBI
federal life insurance
Metrics to measure success: This can be possibly the best social networking site to promote
the product, this site is visited by almost a billion in our country so this is by far the best
place to get new customer
 YouTube
Purpose of channel: To gain mass attention from people across all age level
Metrics to measure success: Since this networking site is also very famous in county, it is
possible to attract more customer by providing interesting yet informative video in this site.
Videos in this site can reach a million view within a day or two, thus conversion of final
customer becomes high.

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