BAJAJ FINSERV ATOM:

CEO’s CHALLENGE
• Problem Statement: To target millennials & Gen Z
towards Life insurance with customised products

• Team NPV, IIM Ahmedabad

• Naman Todwal
• Pallabh Bhura
• Pratyush Nolakha
• Vanshika Juneja
 Consumer Insights
Demographics Existing Policy Holders Consumers who do not have insurance
Occupation Gender
Premiums Paid
Govt. If not,why?
<300
Employee Female 46
Student
Home >1200
maker 36 36
900-1200
29
Private Male 23
Shop MNC
Owner 16

Age Distribution Do you have Life Inusrance? 300-600

32-35 20-22
Yes
Company Complicated Expensive I am healthy Lack of Parents have
cover is suf - Process Premiums now, will awareness purchased
600-900 ficient purchase
23-25 later

29-31
No For existing policy holders, what are the pain points
26-28
28 If you wish to purchase, what will help
22
16 No compliated documentation 40
We surveyed a total of 263 people in the age 11
group 20-35 years. Only 77 (29%) of them had a
life insurance policy. Among those who has a Lower Premiums 38

policy, the monthly premiums were mostly in the m

s es al
ls on
iu as tc ta
ti
range of 600-1200. The major pain points that em dis e e n en
Good claim processing responsiveness 35
Pr of g m
these people faced included too many agent calls gh e ya cu
Hi ag an do
er m
uc
h
and complex documentation. Among those who ov To
o Good annuity payout 32
tc o
m
en To
did not hold a policy, reasons ranged from uff
ci
s
expensive premiums to complex documentation. In
Easy to understand process 41
 Understanding the consumers – Gen-Z and millennials
Primary Research – We talked to 15+ people first-hand from both the age groups and arrived at the following conclusions
RAMESH
Age: 23
Occupation: Govt Employee
Do you have an existing life insurance?
 No
What do you look for while searching for a
life insurance product?
Cheap, less premium in early stages, easy-
to-claim
PAYAL
Age: 27
Occupation: Private MNC
Do you have an existing life insurance?
No
What do you look for while searching for a
life insurance product?
Why to pay right now when I'm fit and fine,
will buy one after 15-20 years
JAHANVI CUSTOMER JOURNEY & TOUCHPOINTS
Age: 33
Occupation: Homemaker
Do you have an existing life insurance?
Yes, we have a family life insurance
Are you looking to change the company?
Yes, we don’t see a point. We have never
claimed it, we'll take it later when we turn
old
SIDDHARTH
Age: 38
Occupation: Shop owner
Do you have an existing life insurance?
No
Why have you not bought any life
insurance?
I have health and auto insurance, life
insurance at this age is useless  Source: Link
 Understanding the consumers – Gen-Z and millennials (contd.)

Let's have a look at the possible innovations that can make us the new market leader!
ROLE OF TECHNOLOGY IN INNOVATING NEW PRODUCTS CUSTOMER SEGMENTATION

 Improve
 Dynamic  Advanced  Underwrite process
 Rich data  Deeper Risk
Product data risk and efficiency –
collection Management
Offerings analytics predict loss Robotics &
Automation

IMPLEMENTATION TIMELINE

 Product Ideation and  Distributing and  Incorporating Feedback

Market Analysis channel marketing back into the process
 Carrying out surveys and FGDs to  Using a targeted approach for
understand needs of given customer acquisition
customer segments

 Annual experience studies on

mortality, persistency and
expenses
 Product design,
understanding of  Reviewing and
guidelines, training of monitoring results
agents
Product Offerings: Innovations in product lines
"PAY AS YOU LIVE"
Charge differentially from different customers

• Most people are sceptical about insurers as they feel that The ‘Dynamic Pricing’ Model
they are paying far more than they should,
Customer
• 67% of consumers said they have never applied for any
Need Composite score = 0.5 * Traditional score + 0.2 * past medical
claim since the time they have subscribed for life insurance.
history + 0.15 * data from external sources

Business Calculate premiums dynamically based on consumer health

Idea behaviours patterns, lifestyle and medical history
Product Offerings: Innovations in product lines
Capital Market Products
Why can't we map our premiums to stock markets?

Customer Many millennials and GenZ have started developing The  interest in equity market investments, especially in popular indices has
Need increased drastically post the COVID outbreak opening up new opportunities in the insurance industry

Business • Periodic premium will be mapped to equity traded funds (ETFs) or mutual funds based on capital market scenario.
Idea • This will provide an opportunity to the customers to enter in a market hedged insurance product

How is it different from Unit Linked Incentive Plans (ULIP) Value Propositions

• Investing in diverse and creating high risk and return
portfolio can provide more incentives for target
customers.
• Lucrative for young policy holders as it will pay them
higher annuities than usual and for the company as
well.
• Diverse investing options including creating
portfolio of indices, bonds, futures, options, Mutual
Funds, ETFs
• Integrated offering positioned as a investment
management product
• Simplified app design and with easy to understand
investment strategy
Product Offerings: Innovations in product lines (contd.)
Let's have a look at the possible innovations that can make us the new market leader !!!!

“InsureFit”
Wearables as an Insurance

Launch wearables to make it easy to plan an active role

 in shaping consumer health.
It will help the company to track the daily activities of the
 customers, give recommendations and at the same time use
 this information to predict the lifestyle metrics which in turn can be used to calculate the
dynamic premium of the policy

Surcharging factors Discounting factors

Following daily exercise and Minimum 4 hours of weekly

running schedule exercise and yoga

Smoking and drinking Adhering to scheduled medical

regularly / beyond the limits and body check-ups

Depression inducing activities Screen time on laptop and

mobiles, especially after COVID
Product Offerings: Innovations in product lines (contd.)
Let's have a look at the possible innovations that can make us the new market leader !!!!

“Flexi-plan” Offerings
Let's bundle it up !!!!

V 1.3
 Auto + Life + Health
Insurance
 Auto
V 1.2  Health + Life Insurance
Insurance

 Health  Life  Auto

V 1.1 Insurance Insurance Insurance

Auxillary Product Offerings

Non-monetary benefits as annuities

• Vacations in a dream location

• Residential apartment
• Personal vehicles 
• Long term bonds
Business Strategy: How to launch the product for millennials and GenZ ?
CRM Strategy The customer acquisition process

Loyalty Personalizatio
Repurchase Rate

Programs n
Define Customer Go to market
Define your
Baseline Need and
audience
Objectives Identification Outreach

Customer
After Sales
Acquisition

Level of customization Defining baseline Objectives Defining baseline audience Continuous customer need identification

•
Proposed solution
Trends have shifted the Life
insurance industry from the 3rd
to 4th quadrant. 
• This has resulted in a high
demand in the level
of customization
• Customer acquisition with  Develop granular view of risk categories
targeted outreach is the way  Offsetting attrition rate  Young individuals who have through external datasets
 Growing customer base just started working   Collect medical, lifestyle data from
forward. 
 Hitting sales or lead goals  Newly married couples wearables
 Expanding geographically  Middle aged professional  Health and environment data like pollution
with kids levels for continuous underwriting
 The Go-to-market strategy: Omnichannel Customer Journeys in action

Digitisation Customer centricity and Personalization Simplicity

 Equipping agents with advance analytics of its

 Online self-service, digital docs
customers
 Online processing of claims
 Directing the leads and customers to the channel it likes  Easy understanding of policy features
 Automating underwriting processes
to use  Simplified and responsive app and website
 Digital hybrid solutions like robo-advisors
 Premium flexibility for its customers   Preparing product descriptions using local
 Training agents in web-chats and video
 Better customer engagement processes by preventing language
conferencing
interactive voice response(IVR) loops  Using video -based content for simplified
 Trigger insurance purchase journey at trigger points explanations
of lifecycle(marriage, child etc)
Pricing Strategy: How to price the product for millennials and GenZ ?
Particulars Current Term Policy
Premium per year for 1 crore
payout  
% of Premium allocated to
"At Risk" Provision 
% of Premium allocated
to Investment
Upselling Opportunity
Payout % per year
Miscellaneous Remarks
InsureFit
₹5000 ₹4000
20% 10%
80% 90%
0 ₹2500
2.5% 1%
Considering that the policy is
targeted towards the healthy
and fit young population
which considers the premium
as an expense rather than an
investment, the add ons and
NA
upselling shall help attract
prospective buyers. It also
reduces the risk profile of the
company since the chances of
death amongst predominantly
fit people is considerably low.
Capital Market
Pay as you live FlexiPlan
Products
₹3500 ₹15500
5% 20%
95% 80%
0 0
0.5% 2.5% Depends on the benefits
chosen
Similar to InsureFit, the
proposition of paying This plan does not alter the
less shall attract younger risk profile of the policyholder
but allows the company to
customers who will view charge a higher premium as
this as a subscription
model of Life Insurance fees for management of riskier
investments made on the
and hence the payout behalf of the policyholder. This
rate and at-risk provision
plan also guarantees the
will be significantly policyholder a higher level of
lower than that of a
typical life insurance return than that of a typical
policy. 
policy
Thank You!