TRAINING REPORT

ON
MARKETING OPERATIONS IN HDFC ERGO GENERAL
INSURANCE

SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR

THE AWARD OF THE DEGREE OF
MASTER OF BUSINESS ADMINISTRATION (MBA)

SESSION: 2022-2024

SUBMITTED BY:
NAME: ARJUN CHAUDHARY
ROIl.NO: J211561230013

INTERNATIONAL CENTER FOR DISTANCE EDUCATION AND OPEN

LEARNING (ICDEOL), HIMACHAL PRADESH UNIVERSITY SUMMERHILL,
SHIMLA, H.P.-171005
CERTIFICATE OF INTERNSHIP
Contents

• INTRODUCTION

• LITERATURE REVIEW

• RESEARCH METHODOLOGY

• DATA ANALYSIS AND INTERPRETATION

• FINDINGS

• CONCLUSION

• REFERENCE
 INTRODUCTION

Marketing in the insurance market plays a key role to meet supply and demand, because
insurance products are products that are not seen, not touched, but exist only in the form
of pledges. Selling a promise requires a confidence, a belief that the service provider
will be realized if the loss will occur. In any other economic or economic subject,
whether manufacturer or service does not have such kind of product. Marketing
insurance plays a manifold, on the one hand made product promotion security , then
raise the awareness of citizens about models of protection from risks , increased
reliability to consumers , the cost of paying for the promise given by the insurer if a
loss occurs will accomplished.

WHAT IS GENERAL INSURANCE

General insurance, also known as non-life insurance, is a type of insurance that provides
financial protection against a wide range of risks and uncertainties, excluding those
related to life or health. Unlike life insurance, which offers protection against the risk
of premature death or disability, general insurance covers various assets and liabilities
that individuals and businesses may encounter in their daily lives or operations.

General insurance policies typically cover tangible assets such as property, vehicles,
and possessions, as well as liabilities arising from legal obligations or risks associated
with operating a business. Some common types of general insurance include:

• Property Insurance: Protects against damage or loss to physical properties,

including homes, buildings, and contents, due to events such as fire, theft,
natural disasters, or vandalism.
• Motor Insurance: Provides coverage for vehicles against risks such as accidents,
theft, or damage caused by natural disasters. This includes both comprehensive
insurance, which covers a wide range of risks, and third-party liability
insurance, which covers damages to third-party property or injuries.
• Health Insurance: While generally classified as non-life insurance, health
insurance falls under the umbrella of general insurance. It provides coverage for
medical expenses incurred due to illness, injury, or accidents, including
hospitalization, surgeries, and medications.
• Liability Insurance: Protects individuals and businesses from legal liabilities
arising from negligence or actions that result in bodily injury, property damage,
or financial losses to third parties. Examples include public liability insurance,
professional indemnity insurance, and product liability insurance.
• Travel Insurance: Offers coverage for unforeseen events or emergencies that
may occur while traveling, such as trip cancellations, medical emergencies, lost
luggage, or travel delays.
• Marine Insurance: Provides coverage for goods and cargo transported via sea or
other waterways. Marine insurance protects against risks such as damage to
cargo, vessel sinking, piracy, and other perils associated with maritime
transportation.
• Fire Insurance: Specifically covers damage or loss caused by fire, including
damage to property, equipment, inventory, and other assets. Fire insurance
policies may also include coverage for related perils such as lightning,
explosion, and smoke damage.
• Home Insurance: Offers protection for homeowners against risks to their
property, belongings, and liabilities associated with owning a home. Home
insurance typically includes coverage for the structure of the home, personal
belongings, liability for injuries or damages to others, and additional living
expenses in case of temporary displacement due to covered events.
• Crop Insurance: Designed to protect farmers and agricultural producers against
losses due to adverse weather conditions, natural disasters, pests, or other
factors that affect crop yields. Crop insurance provides financial compensation
to farmers for crop damage or failure, helping them mitigate the financial risks
associated with farming.
• Business Interruption Insurance: Covers financial losses incurred by businesses
due to interruptions or disruptions to their operations caused by covered events
such as fire, natural disasters, or other perils. Business interruption insurance
helps businesses recover lost income, pay ongoing expenses, and maintain
financial stability during periods of downtime.
• Cyber Insurance: Provides coverage for businesses and organizations against
losses and liabilities arising from cyberattacks, data breaches, and other cyber
threats. Cyber insurance policies may include coverage for data breaches,
 network security incidents, ransomware attacks, and costs associated with
regulatory compliance and legal defense.
• Legal Expenses Insurance: Offers coverage for legal costs and expenses
incurred in legal disputes, lawsuits, or legal proceedings. Legal expenses
insurance may cover a range of legal matters, including civil litigation,
employment disputes, property disputes, and consumer rights issues.
• Overall, general insurance plays a crucial role in mitigating financial risks and
providing peace of mind to individuals, families, and businesses by offering
protection against unexpected events that could lead to financial losses or
hardships.

General insurance policies are typically sold by insurance companies, brokers, or

agents, and the terms and premiums vary depending on factors such as the type of
coverage, the insured's risk profile, the value of the insured property or assets, and the
coverage limits and deductibles selected. It's essential for individuals and businesses to
carefully review their insurance needs and choose appropriate coverage options to
protect against potential risks and losses.
 COMPANY PROFILE

HDFC ERGO General Insurance Company Limited is one of the leading general
insurance companies in India. It is a joint venture between Housing Development
Finance Corporation Limited (HDFC), India's premier housing finance institution, and
ERGO International AG, the primary insurance entity of the Munich Re Group, one of
the world's leading reinsurers.

Established in 2002, HDFC ERGO offers a wide range of general insurance products
and services to individuals, families, and businesses across various sectors. The
company operates in multiple segments, including motor insurance, health insurance,
travel insurance, home insurance, commercial insurance, and rural insurance, among
others.

As of January 2022, HDFC ERGO General Insurance Company Limited has a paid-up
capital of INR 1,000 crore.

The company is regulated by the Insurance Regulatory and Development Authority of

India (IRDAI).

HDFC ERGO, a prominent player in the insurance industry, distinguishes itself through
innovative marketing strategies. By leveraging cutting-edge approaches, HDFC ERGO
effectively communicates its commitment to customer-centric solutions, making
insurance accessible and relevant in today’s dynamic market. Through strategic
campaigns and a digital-first approach, HDFC ERGO has successfully crafted a brand
image that resonates with diverse audiences. The company’s marketing endeavors focus
on demystifying insurance complexities, fostering trust, and showcasing the tangible
benefits of their policies. By staying ahead in the ever-evolving marketing landscape,
HDFC ERGO continues to redefine insurance communication for a broader and more
engaged clientele

HDFC ERGO’s marketing prowess extends to personalized customer engagement,

utilizing data-driven insights to tailor offerings to individual needs. Their multi-channel
presence ensures a pervasive reach, integrating traditional media, social platforms, and
strategic partnerships. The emphasis on educational content positions HDFC ERGO as
an industry thought leader, fostering informed decision-making among consumers. As
a result, the company not only markets policies but also cultivates a culture of risk
awareness and financial protection.

In the competitive landscape of insurance, HDFC ERGO stands out by employing

dynamic marketing strategies such as experiential campaigns, gamification, and
influencer collaborations. Their customer testimonials and success stories are
strategically woven into marketing materials, humanizing the brand and building a
sense of reliability. The use of augmented reality and virtual reality in marketing
collateral further underscores their commitment to innovation, making the insurance
experience interactive and easily digestible for potential customers.

GENERAL INSURANCE COMPANIES IN INDIA

• HDFC ERGO General Insurance Company Limited

• ICICI Lombard General Insurance Company Limited
• Bajaj Allianz General Insurance Company Limited
• Reliance General Insurance Company Limited
• Tata AIG General Insurance Company Limited
• New India Assurance Company Limited
• United India Insurance Company Limited
 • National Insurance Company Limited
• Oriental Insurance Company Limited
• SBI General Insurance Company Limited
• IFFCO Tokio General Insurance Company Limited
• Bharti AXA General Insurance Company Limited
• Future Generali India Insurance Company Limited
• Kotak Mahindra General Insurance Company Limited
• Liberty General Insurance Limited

Furthermore, HDFC ERGO employs targeted segmentation strategies, tailoring

messages based on specific demographics and preferences. Social media analytics and
real-time monitoring enable them to adapt swiftly to market trends and consumer
sentiments. Engaging storytelling in their marketing campaigns goes beyond product
features, resonating emotionally with the audience and establishing lasting connections.
The company’s commitment to continuous improvement is reflected in its A/B testing
methodologies, ensuring that every marketing effort is refined for optimal impact and
resonance in the ever-evolving landscape of insurance marketing.
 LITERATURE REVIEW

MARKETING OPERATIONS IN HDFC ERGO GENERAL INSURANCE

• Market share of HDFC ERGO India FY 2015-2022, Published by

Statista Research Department, Nov 20, 2023. In financial year 2022,
the private insurance company HDFC ERGO had a market share of 6.1
percent in the Indian general insurance landscape. This was a slight
decrease from previous year. There was a merger between HDFC
ERGO General Insurance and HDFC ERGO Health Insurance in
November 2020.

• On 31st December, 2023, HDFC ERGO Implemented Pradhan Mantri

Fasal Bima Yojana for farmers

PMFBY scheme insures farmers against any losses in crop yield arising out of
a wide range of external risks such as drought, floods, dry spells, landslides,
cyclones, hurricanes, hailstorms, Inundations, pests, diseases and others. To
determine the loss in the yield, the state government will plan and conduct Crop
 Cutting Experiments (CCEs) on the notified crops in areas notified for the
scheme. In case the yield data, based on CCEs conducted, concludes to be low
then the farmers will be considered to have suffered a shortfall in their yield for
which the claims will be payable to the farmers. The scheme provides insurance
cover for all stages of the crop cycle including pre-sowing, harvesting and post-
harvest risks. All the products under the PMFBY scheme are approved by the
Department of Agriculture, Government of Uttar Pradesh. Farmers from the
districts of Agra, Mathura, Firozabad, Mainpuri, Farrukhabad, Kannauj,
Etawah, Auraiya, Kanpur Nagar and Kanpur Dehat.

• HDFC ERGO General Insurance launched an initiative to promote

insurance through a film #KaroSabkolnsure on Aug 29, 2023. The film
aims to nudge individuals to help ensure the health of domestic staff,
who enrich our lives. Anchored around the idea of love and care, this
film nudges individuals to spread awareness on health insurance among
unsung heroes from vulnerable sections of society like house-helps,
drivers, gardeners, security guards, cooks, etc.; who play an instrumental
role in making our lives convenient and comfortable.

The main idea behind this campaign is to encourage 'sabko' or everyone from across
every section of the country, to stay protected with health insurance. Overall, it was a
huge success.
• On 14 December, 2023, HDFC ERGO General Insurance has launched
a movement to promote road safety and drives the importance of motor
insurance through a heart-warming film. The film aims to bring about a
behavioral change in vehicle owners, both two-wheelers and four-
wheelers, nudging them to recognize the importance of insurance for
financial security. Directed by Karan Singh, the film features the popular
couple RJ Anmol and Amrita Arora in the lead roles. It begins with a
social experiment, where Anmol approaches individuals on the streets
requesting Rs. 10/- to aid an accident victim. Without hesitating for a
moment, the good Samaritans oblige. Upon this, he further requests
them to spare ten minutes to help the victims and leads them to a nearby
auditorium. The true surprise unfolds as Amrita Arora presents the
audience with the kin of a road accident victim. Speaking about this
initiative, Somesh Surana, Head - Digital Business Group & Marketing,
HDFC ERGO General Insurance, said, “As a responsible insurer, we
always strive to make a difference in the lives of consumers at large.
While several initiatives are undertaken to increase responsible behavior
on the road, safety continues to be an area of concern. ”
• HDFC ERGO also launched a campaign with Radio as primary medium
in Tier 2 & 3 markets.
• HDFC ERGO recently launched its latest campaign to spread awareness
around the importance of health insurance across India. In a unique
approach the insurer has curated a radio and outdoor campaign entails a
series of light-hearted but impactful conversations between individuals
driving the message of investing in health insurance to secure one’s
future. With a focus on driving the importance of health insurance and
informing individuals on the availability of health insurance on EMI, the
campaign urges consumers to prioritize securing their future financial
stability by investing in health insurance instead of splurging on other
items.
• One of the common reasons behind not investing in health insurance is
the myth that it’s a one-time expensive cost. To bust this myth, one of
the radio spots showcases a mother-daughter duo, where the daughter
argues on buying an expensive smartwatch over medical insurance
because it's available on EMI. The mother then asks her daughter to buy
HDFC ERGO medical insurance which is available on EMI.
 RESEARCH METHODOLOGY

Research methodology is crucial in marketing insurance to understand market trends,

consumer preferences, and product demand. In the insurance industry, market research
plays a vital role in informing strategic decisions and developing effective marketing
strategies. By conducting both primary and secondary research, insurers can gather
valuable insights about markets, products, and consumers to innovate and succeed in
the competitive landscape.

• Through the use of market research, insurance companies can strike a balance
between general impressions and detailed facts, enabling them to make
informed decisions based on strategic questions tailored to their target market.
This approach allows insurers to stay ahead of industry trends, meet customer
needs effectively, and ultimately drive business success in the dynamic
insurance market landscape.
• Research into the behavioral economics, marketing, and psychology of
insurance products is business-critical for insurers. To sustain profitable growth,
insurers must create innovative products and services while improving customer
connectivity. The typical insurance company loses 10% to 15% of its customer
base every year and the cost of acquiring new customers makes this churn
extremely expensive.3 However, innovation is also expensive and inherently
risky. According to Harvard Business School, 95% of the 30,000 new products
introduced into the general marketplace each year are failures.4 With deep risk
management expertise and large customer bases, insurers are better positioned
to succeed at innovation when compared to other industries.
• The data was collected from primary sources by questionnaire
• Through public opinion and various research
• Primary data is a type of data that is collected by researchers directly from main
sources through interviews, surveys, experiments, etc.
• To achieve this objective some extracts have been from exiting literature
available on various sites of internet.
 PRIMARY RESEARCH ADVANCES INSURANCE INNOVATION

Both types of primary research methods are valuable and can provide insight into the
market with different applications and emphasis:

• Quantitative surveys are questionnaires developed specifically for the topic

being studied and distributed to a large sample of potential respondents based
on specific criteria. Surveys provide a comprehensive view of the market due
to a large sample size but are limited in the ability to understand the “why.”

• Qualitative interviews and focus groups provide context by giving participants

the opportunity to expand on why they have certain beliefs and opinions and
how they feel about the topic of study. In-depth interviews are one-on-one
sessions with participants who are selected for their expertise and knowledge
in a specified area. Focus groups are moderated discussions of opinions about
a specific topic or product. Seven to 10 participants are selected using a
screener questionnaire based on specific criteria. The moderator provides the
structure, asks the questions, and gives overall direction to guide the
discussion.

• The most effective product development processes combine quantitative and

qualitative research methodologies to refine and validate innovative ideas and
prototypes. When you get the results of your research, it is important to have
the infrastructure and resources in place to act on those insights. It is also
important to note that the results of your research may require you to change
your plans because what you previously thought were great ideas were not
validated by the market research.

• Still, it might be difficult to for your company to adopt new ideas and move
forward with your innovation. Administrative systems can slow your
company’s product development process and potentially hinder your initiative.
Distribution issues can also make or break new product or service delivery.
 MARKETING AND ITS ELEMENTS IN HDFC ERGO
INSURANCE INDUSTRY

Marketing can be defined as the process of planning and realization of the concept,
pricing policy, promotion and distribution of ideas, and services for asset swap, which
meet individual and organizational goals.

The combination of supply and demand for these products cannot be believed without
any regulatory mechanism. Main market regulator. The insurance market is one of the
most developed markets and most powerful in the world .It is characteristic of this
market is that increasing the number of insured will not affect the reduction or increase
of premiums. "Marketing can be defined as the process of planning and realization of
the concept, pricing policy, promotion and distribution of ideas, and services for asset
swap, which meet individual and organizational goals“

Marketing strategy operationalizes through segmentation and selection of markets

desired, which means the process of division of the total market of insurers in
homogeneous groups of the insured, who between them are distinguished according to
their needs, so choose segments which surely will provide services. When it comes to
marketing in insurance marketing as discipline then scientific thought and understood
as the conception of the work in the field of insurance. Such an approach requires the
construction of a unique marketing your strategy and integration within comprehensive

insurance. Utilizing marketing concept in the insurance market is the research of the
insurance market are defined as synonymous marketing research. Insurance market
most often explored:

1. Capacity of the market

2. Range of insurance types

3. Market development opportunities

4. Distribution

5. Market prices.

The participants in insurance industry are:

1. The Insured (individuals, families, businesses, society, etc.),

2. Insurance intermediaries (agents, brokers, etc.),

3. The Insurer (the coverage provider),

4. User (compensate, claim).

The specificity of the insurance market is that insurance product created itself on
providing contract, which means selling that product. To say that this is the specific
area of insurance when considering their economic activity and by product (services)
offered by the insurer (insurance company) insurance market. Insurance company -
insurer, in this case sells "safety", to which the insured during his business realizes the
fulfillment of obligations taken on those economic entities to which the insured is
realized. Unlike other manufacturers of goods, in insurance there is no possibility of
establishing inventories of products.

Insurer might produce 10,000 “cheap” policies to market if we assume that this is its
capacity, as it can be a producer of other goods. But the insurer may extend the sale
directly to the required size. In practice insurance market segmentation realized by
geographic, demographic, economic and other aspects, namely by other criteria. Each
of these criteria has its own characteristics, which is why it`s so specifically defined,
and defined so is used in the insurance market segmentation.

All this is accomplished with the aim of practical benefit from market segmentation, in
order to be placed as well on the services provided.

MARKETING ELEMENTS IN THE INSURANCE MARKET

The insurance market is specific because the products that are sold and specific
customers. Marketing in the insurance market is comprised of four core elements:
Products, Price, Distribution and Promotion

Products

Insurance products in the region are homogeneous, any introduction of new product in
market requires the development of a long-term insurance products because they have
a high cost expenditure. Beliefs of consumers for these products are long-term civic
obedience. Convince consumers to purchase these products, it requires reliability,
which is one of the main components in the insurance market. Also insurance product
range quite prosperous. It is assumed that by now are over 90 insurance products in
developing countries a high classification of insurance required by international
standards, and most have a low development party insurance homogeneous products.
This is because the introduction of new products is very high cost.

Price

The most important component in the insurance market is the price of the service or
product offered by the insurer. To manage risk taking must have tools. Insurance
companies provide the means of price policy, or premium, which in itself contains
functional and the premium which serves to cover the costs of directing. On premise
pricing should know that what serves as the basis for calculating the premium. (Net
premium) or functional Premium is part of the premium that would cover losses and
expenses with estimated losses. (Gross premium) includes net premium or functional
as well as directing or operational costs.

The premium is the price quotes for insurance unit. Security Unit can be quite
complicated which subordinates insurance product that is the word, for example in the
provision of fire it can be a building cover 150,000.00 euro, while measuring the
production unit will be the value of production for the sales clerk insurance unit that
done. Vehicle insurance to insurance unit is provided vehicles for a year. In determining
the premise quota should keep in mind that one way to attract customers from the other
side must keep in mind the definition of the premium, because low premium may lead
to the insurance company in bankruptcy. So to set the price of an insurance policy expert
engage various fields using different methods statistical probability accounts, dynamic
analysis, methods that are inaccessible to the customer.

Distribution

Distribution of insurance products is done through direct and indirect channels. Direct
channels in the insurance market are insurers who themselves develop strategic policies
to ensure long-term civic and market development, using various
methods of economic propaganda, economic publicity etc. In order to keep close
relationship between the insured and the insurer, the insurer uses indirect channels for
placing products using many agents, brokers etc.

Promotion

It is a process of communication between providers and consumers in order to create a

positive conviction for products and services offered by the insurance market. The
promotion is a permanent process of communication by insurance providers for existing
and potential customers according to Kotler "Promotion includes all the tools of
marketing system, whose task is to communicate with potential buyers." Besides the
offer more attractive, sales of insurance products often depends from different
communities, whether external or internal. Good communication with the customer
company adds belief because consumer confidence will have much more knowledge of
who will buy services. Companies that have the highest ratings and working tradition
will certainly have greater sales of products, but if this company does not have adequate
communication with customers, will miss the marketing of insurance products.

Selling Product

Maintaining consumer confidence The company`s communication with the customer is

done through various means such as television, radio , daily newspapers , magazines ,
pamphlets , leaflets , publications , website , exhibitions , posters , sponsorships , etc.
Billboard.

Advertising as a form of marketing:

Advertising is an effective way to promote your products and services. When you
advertise potential customers know who you are, where you are and what you can do
for them. A successful advertising fields will spread the word around your products and
services, attract customers and generate sales. If you try to encourage new customers to
buy an existing product or a new service, there are many options from which to choose.

Good advertising should

1. Build your business image;

2. Explain the benefits of your product and out services;

3. Increase the awareness for new products and services before, during and after the
launch;

4. It generates interest in the market that aim, as well as a new audience of potential
customers.

5. Encourage customers to ask about your business, increasing customer demand for
your products.

Advertising is a vital part of any business operation, which in reality represents the tip
of the iceberg in sales process. It can bring no more than a temporary success for an
inferior product, but a very positive result for sale of products. We should be noted ad
buyers or customers why they should buy your products, respectively in case of an
insurance company products (insurance products). Advertising should be done
regularly through various forms electronically, print or media

THE POWER OF DIGITAL MARKETING IN INSURANCE

In today's digital age, leveraging digital marketing strategies has become essential for
insurance companies. Digital marketing provides the opportunity to reach a wider
audience and engage with potential customers directly. Let's explore two key digital
marketing strategies for insurance companies.

SOCIAL MEDIA AS A MARKETING TOOL

Social media platforms such as Facebook, Twitter, and LinkedIn have become powerful
marketing tools for insurance companies. These platforms allow insurance companies
to connect with potential customers, share valuable content, build relationships, and
increase brand visibility. By leveraging social media, insurance companies can reach a
large audience at a relatively low cost.

For example, insurance companies can use Facebook to create targeted advertisements
that appear in users' newsfeeds. These ads can be customized based on users'
demographics, interests, and behaviors, ensuring that they reach the right audience. By
engaging with users through comments, likes, and shares, insurance companies can
foster a sense of community and build trust with potential customers.

• Twitter, on the other hand, offers insurance companies the opportunity to

provide real-time updates, news, and industry insights. By tweeting regularly
and using relevant hashtags, insurance companies can increase their visibility
and attract followers who are interested in insurance-related topics. This not
only helps in building brand awareness but also positions the company as a
thought leader in the industry.
• LinkedIn, being a professional networking platform, allows insurance
companies to connect with potential customers on a more professional level.
Insurance agents can join industry-specific groups, participate in discussions,
and share their expertise through articles and posts. This helps in establishing
credibility and attracting potential customers who are actively seeking insurance
solutions.

SEO AND CONTENT MARKETING FOR INSURANCE

When it comes to SEO, insurance companies can start by conducting keyword research
to identify the most relevant and high-performing keywords in their industry. By
strategically incorporating these keywords into their website content, meta tags, and
URLs, insurance companies can increase their chances of appearing in search engine
results when potential customers are looking for insurance-related information.
Content marketing plays a crucial role in attracting and engaging potential customers.
Insurance companies can create informative blog posts that address common insurance
questions, provide tips for choosing the right insurance coverage, or explain complex
insurance terms in simple language. By consistently publishing valuable content,
insurance companies can position themselves as trusted sources of information and
build a loyal following.
In addition to blog posts, insurance companies can also create videos that explain
different insurance policies, showcase customer testimonials, or provide insights into
the insurance industry. These videos can be shared on social media platforms,
embedded in blog posts, or included in email newsletters to reach a wider audience and
increase engagement. Overall, digital marketing strategies such as social media
marketing, SEO, and content marketing have revolutionized the way insurance
companies connect with potential customers. By leveraging these strategies effectively,
insurance companies can expand their reach, build brand awareness, and ultimately
drive business growth in the digital era.

PREDICTIVE ANALYTICS FOR CUSTOMER ACQUISITION

Predictive analytics uses historical data to predict future outcomes. In insurance
marketing, predictive analytics can help insurance companies identify potential
customers who are more likely to convert and become long-term policyholders. By
analyzing historical patterns and customer data, insurance companies can optimize their
marketing efforts, focus on high-value prospects, and improve their customer
acquisition strategies.
 DATA ANALYSIS AND INTERPRETATION

This survey on Customer Attitudes towards life and health insurance in India forms part
of in-house research. It is based on the feedback received from Marketing Officials who
were queried about their views and opinions, based on their experiences of customers.
Though the sample was limited to 108 respondents and may have some limitations as a
representative sample, it nevertheless brings out certain interesting results that one
could reflect on and derive useful insights
The study was conducted with the following objectives:
• To know what were the main drivers for purchase of Insurance Products
• To know the channel preferences exercised for purchases
• To know what were what the customer expectations from Insurance Marketing
Officials
• To know about Customers’ behavior towards Marketing Officials

Limitations:
A major limitation of the study is that it has sought to examine customer perceptions
and behavior with regard to life and health insurance as seen from the perspective of
marketing officials. Further the sample of 108 may not be large enough to completely
represent the views of the population of marketing officials of the industry. In spite of
these limitations, the study may reveal some new insights and open some possibilities
that life and health insurers may consider in future.

The present study is an attempt to explore the changed expectations and behavior of
customers in the context of the technological changes ushered by Insure tech and the
alterations affected by the outbreak of the pandemic. It has been done through a survey
of the views of the Marketing Officials of Insurance companies, who are the contact
points for reaching to the customers.

Gender wise response

The study covered both male and female respondents. It was observed that 87% of the
respondents [94 numbers] were male while 13% [14 respondents] were female. The
large proportion of male respondents in the sample is in line with the broad profile of
Insurance marketing officials, which is dominated by males.
Question wise- findings:

Awareness about Life and Health Insurances

The respondents were asked to give their opinions on the level of awareness about
health insurance among their customers. The results are shown below:

The answers revealed that overall 78% respondents felt that there was some awareness,
56% felt that it was moderate among educated customers while being low among
uneducated customers and another 22% felt that it was very high among educated
customers while remaining low among uneducated customers. It is obvious from the
findings that the stakeholders of the industry need to build mass awareness about Life
and Health insurance among the people, particularly among those who are less
educated. Such an effort would call for two things: Firstly, it requires that marketing
officials and other industry constituents need to reach out to vast segments of the
people. Secondly, we must note that insurance is an intangible product and the need for
it is also intangible and not obvious. Awareness implies that end consumers of life and
health insurance must be conscious about the need for insurance and about insurance
as a solution. For this, it is necessary to kindle both their attention and interest. For this
to happen, life insurance marketers may need to relate with prospective customers and
build trust and rapport, so that they are receptive and ready to become aware.

Health Insurance as Push or Pull Products

Another question that the marketing officials were asked was whether life and health
insurance products were push or pull sale products. The results are given below:

A substantial 95% opined that they were usually pushed sale products. This result is
not surprising, given that it is common knowledge in the industry and is borne out by
experience. It is interesting to note that 56% of the respondents believed that while
these were generally push products, they could also be pulled sale products under
certain situations – for example, during the financial year end months of February and
March, when they are purchased for tax purposes, or under critical situations like the
current pandemic. Many years ago, Theodore Levitt, the great Marketing Professor of
Harvard Business School had quipped that ‘people don’t want to buy a quarter inch
drill. They want a quarter inch hole’. The result why people buy any product [life and
health insurance are not an exception] is because they are excited and keen to enjoy
its end outcomes. Products are just means to an end. Life and Health insurers need to
work on making the end outcomes of their products more tangible and real. They need
to reflect on how to make the promises they make, more alive and memorable. One
critical insight that may be drawn is the need to integrate life and health insurance
with risk management and the building of human resilience. It may call for doing
much more than just promising a benefit payment at the time of a claim.

Customer Preferences with regard to Marketing Channels

The respondents were also asked how their customers viewed the various marketing
channels that were available today. The results are given below:

The answers reveal that a large majority of 88%, preferred to buy through direct
contact with a sales person and only 12% preferred then online mode of purchase. It
is also interesting to note that 52% felt that educated customers first checked out and
compared the products online but finally preferred to buy through contact with a
sales person. Another 36% opined that customers prefer the agency channel because
they can physically interact with the agents and develop confidence about services
and verify product quality. A point to note here is that Banc assurance has replaced
the agency channel as the main conduit for life insurance purchase for private life
insurers while agency channel continues to be dominant for the Public sector LIC of
India. The results suggest a strong case for using Information and Communication
Technology as a significant enabler by the sales force [intermediaries or direct] for
engaging with customers and driving sales. The winners in the longer run may be
those who can use technology more effectively for this purpose.

Connecting with Customers

The respondents were asked how their customers wanted the marketing officials to
connect with them. The findings are shown below:

While 28% of customers insisted on direct personal contact via phone [5%] or
personal visit [23%], a vast majority of 66% wanted to be connected by marketing
officials not only through above means but all other means of communication as well,
depending on the situation. This clearly reveals the critical role that personal
interaction on an informal basis may play in building trust and rapport with
customers. It also calls into question an argument that may be sometimes raised that
customers want to have only an ‘arms - length’ transaction with their service
providers. This may be true among certain sections of customers in certain markets,
but is much less likely to be true in the Indian context.
About Customer Relationships
Participants in the survey were asked about the frequency and nature of the
relationships that their customer expected from the marketing officials. The findings
are given below:

The results suggest that only 19% felt that customers expected to be connected at the
time of taking the policy, during renewal and during claim. Another 20% also wanted
to be contacted periodically with information on new products and market situations
and a huge 61% further sought, in addition to the above, that company personnel should
be readily available, when contacted, for any help and support. The standard practice
adopted in many companies has been to leave the task of Maintaining a relationship’
with customers to their respective agents. Other constituents of the company
organization are typically engaged in ‘servicing the policy contract’ [from underwriting
to claims]. Most of the communications are inbound and relationships take the form of
transactions that are conducted, based on requests for service or information. The
findings suggest a clear case for building customer intimacy throughout the customer
journey through multiple interventions that call for approaching the customer rather
than waiting to be approached.
Loyalty of Customers
The findings of the previous question derive more significance when we consider the
current question where the respondents were asked their opinions about customer
loyalty.
The findings are given below:

It is significant that a mere 10 % considered that the customer’s loyalty depends on

his/ her relations with a particular sales person. About 45% felt that loyalty depended
on personal relationships that are maintained with them by company personnel [may
be field or office] in addition to availability of an electronic platform where they
could get required information with a click of their own. Another 45% felt that even
this was not enough – customers want instant services and have multiple choices.
They do not hesitate to switch over immediately if they can get better and more
instant services elsewhere. This last observation should be viewed in the light of the
massive levels of lapses and surrenders facing the life insurance industry and the very
low persistency ratios experienced by most companies. They suggest that each
company would need to not only become better but also different from the rest – they
would need to develop a cogent and compelling response to the question “why should
I buy and continue to buy from you?’

Price or Quality of Health Insurance Products

The respondents were asked about what the customers of life insurance were most
sensitive to – price or quality of the products. The findings are given below:

According to the findings, 52% of the respondents stated that their customers were
sensitive to the quality of the products and also riders available with them, while an
almost equal proportion of 48% felt that their customers were sensitive to the price of
the products. One interpretation that may be made of the findings is that a sizeable
number of customers are looking for product quality – it maybe in terms of
functionalities and memorable experiences – that make the life insurer’s value
propositions unique and different from others. They would not mind paying a higher
price for the same. Even where it was felt that customers were sensitive to price, one
needs to consider that perhaps price may be the only differentiating factor among
products are like commodities – look alikes of one another, and there is little to
choose from.

Effects of the Covid Pandemic on Customer Awareness

The officials were asked whether the Covid Pandemic had contributed to creating
greater awareness about life and health insurance among their customers. The findings
are given below:
As could be expected, overall, 88% felt that the pandemic had increased awareness
about insurance. While 59% of the respondents stated that COVID19 pandemic had
increased awareness about both health and Life Insurance amongst their customers,
another 23% felt that this awareness was created for Health Insurance but not for Life
Insurance. One reason may be that the impact of the pandemic is felt to be much more
immediate and direct on health, while death is a more extreme and remote outcome.
One reality that has emerged in the wake of the Pandemic is the fact that Acute
diseases [caused by microorganisms including viruses] have come back to centre
stage as leading causes of mortality and morbidity, after being relegated to the
background in the wake of medical advances. This also provides an opportunity to
position insurance more effectively as a protection product, whose ‘immediate estate’
feature becomes a crucial element in providing succor in the event of premature death
or crippling disease. The threat posed to life and health as a result of the pandemic
and other similar systemic risks is too immediate and potent to be ignored.
 FINDINGS

The present study, though limited in its scope, does have some interesting
implications. It has revealed some insight about the customers’ expectations,
their behavior and drive for purchasing health and life products. It has also
revealed the impact of COVID 19 pandemic in creating awareness about
Health and Life Insurance Products.

• It firstly revealed that the awareness level of even educated people is, at best
moderate, and it is quite low among uneducated segments. This underscores
the need to reach out to wider segments of people and also develop strategies
that would get their attention and kindle their interest, while also educating
them about the need for life and health insurance. Developing awareness is a
continuous process and all stakeholders including Regulators need to take
continuous measures to increase awareness

• The survey clearly brought out the dominance of Personal sales, with the
agency channel as one of its major forms. This is because customers try to
collect product information from various sources but finally verify them and
purchase through marketing officials. Personal touch still plays an important
role for these products selling, but it may be considerably enabled by using
Technology.

• The survey also highlighted the demand by customers for having direct
personal contact by marketing officials, using all available channels of
communication. The stress is on convenience and responsiveness of the
service. Marketing officials need to be trained and equipped as well as possess
the right degree of sensitivity and customer orientation to meet this
expectation
• The study also reveals the critical role of personal connect and customer
intimacy in building customer loyalty and further contains a note of caution
about the consequences of not being ‘a cut above the rest’ in this regard.
• It is also seen that customers prefer to know about product features through
direct personal communication by a marketing official than through reading
brochures and other written materials. This implies a need for developing
strategies to communicate more directly, informally and in a manner that is
easy to understand and engaging.

• Family Protection, Tax saving and Personal Savings are the three combined
factors which drives most of the customers to purchase Life Insurance
Products. For health insurance, it is family protection and tax savings. These
features have been pitched by insurers for decades. How future generations of
customers would respond needs to be seen.

• Outbreak of COVID 19 has played a definite role in creating awareness for

Health Insurance.
 CONCLUSION

Family Protection, Tax saving and Personal Savings are the three combined factors
which drives most of the customers to purchase Life Insurance Products. For health
insurance, it is family protection and tax savings. These features have been pitched by
insurers for decades. How future generations of customers would respond needs to be
seen. Outbreak of COVID 19 has played a definite role in creating awareness for Health
and Life Insurance.
HDFC ERGO, could enhance marketing by emphasizing their unique selling
propositions, such as comprehensive coverage, fast claim settlements, and customer-
centric services. Utilizing customer testimonials, success stories, and case studies on
various channels could help build credibility. Furthermore, optimizing their online
presence and mobile app for a seamless user experience would contribute to customer
satisfaction and retention. HDFC ERGO could also benefit from targeted educational
campaigns, simplifying insurance jargon to make policies more understandable for the
average consumer. Leveraging social media for educational content, interactive
sessions, or live Q&A sessions could enhance their customer engagement and establish
them as a reliable source of insurance knowledge. Additionally, exploring partnerships
with other industries for bundled offerings or exclusive discounts might broaden their
appeal.

HDFC ERGO, could enhance marketing by emphasizing their unique selling

propositions, such as comprehensive coverage, fast claim settlements, and customer-
centric services. Utilizing customer testimonials, success stories, and case studies on
various channels could help build credibility. Furthermore, optimizing their online
presence and mobile app for a seamless user experience would contribute to customer
satisfaction and retention. HDFC ERGO could also benefit from targeted educational
campaigns, simplifying insurance jargon to make policies more understandable for the
average consumer. Leveraging social media for educational content, interactive
sessions, or live Q&A sessions could enhance their customer engagement and establish
them as a reliable source of insurance knowledge. Additionally, exploring partnerships
with other industries for bundled offerings or exclusive discounts might broaden their
appeal.
HDFC ERGO, could enhance marketing by emphasizing their unique selling
propositions, such as comprehensive coverage, fast claim settlements, and customer-
centric services. Utilizing customer testimonials, success stories, and case studies on
various channels could help build credibility. Furthermore, optimizing their online
presence and mobile app for a seamless user experience would contribute to customer
satisfaction and retention. HDFC ERGO could also benefit from targeted educational
campaigns, simplifying insurance jargon to make policies more understandable for the
average consumer. Leveraging social media for educational content, interactive
sessions, or live Q&A sessions could enhance their customer engagement and establish
them as a reliable source of insurance knowledge. Additionally, exploring partnerships
with other industries for bundled offerings or exclusive discounts might broaden their
appeal.

Considering the importance of convenience in the modern market, HDFC ERGO might
explore the development of user-friendly mobile applications with features such as easy
policy management, quick claims processing, and instant customer support. Creating a
seamless and intuitive mobile experience can significantly enhance customer
satisfaction and retention, catering to the preferences of a tech-savvy consumer base.
HDFC ERGO could also leverage data analytics to gain deeper insights into customer
behaviors and preferences. By harnessing data-driven strategies, they can refine their
marketing efforts, tailor products to evolving needs, and predict trends in the insurance
landscape. This proactive approach enables them to stay ahead of the curve, adapting
to changing market dynamics and ensuring continued relevance in a competitive
industry.

In addition, HDFC ERGO may explore collaborations with Insurtech startups to

integrate innovative technologies into their operations. Partnering with tech-driven
companies can lead to the development of cutting-edge solutions, such as blockchain
for secure transactions or AI-powered tools for more accurate risk assessments. This
collaborative approach positions HDFC ERGO at the forefront of technological
advancements, providing customers with modern, efficient, and secure insurance
experiences.
Furthermore, HDFC ERGO employs targeted segmentation strategies, tailoring
messages based on specific demographics and preferences. Social media analytics and
real-time monitoring enable them to adapt swiftly to market trends and consumer
sentiments. Engaging storytelling in their marketing campaigns goes beyond product
features, resonating emotionally with the audience and establishing lasting connections.
The company’s commitment to continuous improvement is reflected in its A/B testing
methodologies, ensuring that every marketing effort is refined for optimal impact and
resonance in the ever-evolving landscape of insurance marketing.

Health Insurance has made much progress over the last few decades in India. As on
March 2020, there were about 333 million life insurance policies in force, which
comes to about 241 policies per 1000 people. Health insurance has also come a long
way, with the percentage of population covered almost doubling in the last one decade
to touch about 35% in 2018-19. A good part of the growth in health insurance has
been through government sponsored Group Insurance schemes.
Both life and health insurance have a long way to go towards effectively meeting the
needs of the vast sections of the Indian people for insurance protection. The huge
protection gap that exists and the vast catch-up potential this implies offers great
opportunities for the life and health Insurance industry, it also faces significant
challenges, in the wake of technological developments and changes in the aspirations
and expectations of customers who have been exposed to possibilities arising in the
digital era.
In the insurance industry itself, the advent of Insurance tech has begun to usher a
change in the way insurance products are sold and serviced. Earlier, the industry
was mainly dependent on the agency channel and agents were the principal, and
in most cases, the sole source of information on insurance. With the advent of
technology and e-platforms, a good segment of educated and technology savvy
customers have now begun to turn to e-platforms to know more about the products
and companies and also to make comparisons between them. In a limited sense,
some insurance policies are also being sold directly on the internet.
The unprecedented outbreak of Covid 19 has brought about a significant disruption in
the lives and livelihoods of a significant section of people in India. One result is that
people have been confined to their homes and have to depend on e-platforms for their
multiple needs. This has accelerated the pace of digitization and the use of
Information and Communications Technology. Insurance companies have been quick
to adapt to this new reality and move to the digital platform with respect to their
marketing and operations as well as other areas of activity. Another significant trend is
observed in the way the pandemic has forced people to be aware about and come to
terms with the vulnerabilities of their lives in the face of mortality and morbidity
risks. This has led them to think more seriously about financial protection and then
need to for insurance. It is obvious that the above factors provide new opportunities
for life and health insurance. To leverage them, it is also necessary to understand the
emerging expectations of the customers and address them effectively.
 REFERENCE

BOOKS:
• The Fundamentals of Insurance: Theories, Principles and Practices -
Hargovind Dayal
• Inside the Insurance Industry by— Kevin Glaser
• Marketing and Management Strategy for Insurance in Rural India- P Charan
•
ARTICLES:
• https://www.pitchonnet.com/tags/hdfc-ergo.html
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• https://brandequity.economictimes.indiatimes.com/news/advertising/hdfc-
ergo-general-insurance-launches-karosabkoinsure-film/103173626
• https://www.mediainfoline.com/brand/hdfc-ergo-implements-pradhan-mantri-
fasal-bima-yojana-for-farmers
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new?&utm_source=google_search&utm_medium=cpc&utm_campaign=AIO_
Search_Brand_Neev-Phrase&utm_adgroup=HDFC-
ERGO&utm_adid=660499018279&utm_term=hdfc%20ergo&utm_network=
g&utm_matchtype=p&utm_device=c&utm_location=9144162&utm_sitelink=
&utm_placement=&ci=aiogsearch&SEM=1&gad_source=1&gclid=CjwKCAi
AloavBhBOEiwAbtAJO8jdq2WVXr048ZLWgWbgXHgtd3Dh8mgedxNl29ei
7lgN9V6y5PRgOBoCuQ4QAvD_BwE
• https://www.brandcredential.com/post/7-effective-insurance-marketing-
strategies-to-increase-your-reach#google_vignette
• https://www.livemint.com/money/personal-finance/hdfc-ergo-general-
insurance-launches-optima-secure-here-are-its-review-features-and-more-
11697439051774.html