The fad is only just beginning to pick up with consumers. Gyanendra Kumar Kashyap wonders how this beginning will pan out...
As customised insurance plans are catching the fancies of Indian life insurance companies, the idea of alluring parents to think about their child’s future seem to be bouncing on everyones’ courts. And why not, sector analysts peg the child plan market in India to be around Rs.350 billion (approximately 20% of the entire life insurance market). In the segment, where product differentiation is tough, what the players have tactically resorted to are clutter breaking advertisements. Agrees Rahul Agarwal, CEO, Optima Risk Management Services, as he says, “There is not much of product differentiation; returns and features are more or less similar; all the difference comes in how well have the companies used the emotional plank as a brand and marketing strategy.” Who would have missed the brilliant ads from Max New York Life, Aegon Religare, Bajaj Allianz, LIC, ICICI Prudential, Aviva, HDFC SL, et al?
Considering the fact that most of the child policies offer similar features, the challenge for them lies in the fact how well and how differently the individual insurers market their product. Undoubtedly, the child insurance policy advertisements on air these days do carry a realistic feel and drive home the message without beating around the bush. Yet, there are brand analysts who feel that branding in the insurance domain (a serious business arena as they put it) has not taken off till now. However, considering the number of advertisements enticing the parents to opt for child insurance plans, the branding aspect of the insurers is certainly taking the centre stage. Consider the latest ad from Bajaj Allianz, “Papa mere future ke bare mein kya socha hai…” or, the one from the stable of Max New York Life, “…Bolo beta Chekoslovakia…” and you will agree how suavely they have used children as their focus to target the parents. Yet the moot question remains as to whether these advertisements have been successful in convincing the parents and have their best bets paid off?
It is estimated that in India over a third of the population comprises of children under the age of 18 and half of the household expenditure goes towards providing for education. It is therefore imperative for them to get a reliable source of funding the particular need. Says Rishi Mathur, Vice President, Product Development & Customer Management, Bharti AXA Life Insurance, “In India, even today, given that children are considered a source of retirement income, parents desiring a secure future for their children are more of an emotional requirement. However, with the cost of ‘quality’ education growing exponentially, parents, especially in mass market segments, are finding it increasingly difficult to fund the best learning for their children and to provide a sound footing for the child’s career post-education.” While these indicate that need for such products actually exist, it is crucial for the insurers that while planning a child benefit product the timing of benefit must coincide with the key milestones in the child’s life.
For more articles, Click on IIPM Article.
Source : IIPM Editorial, 2010.
An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).
For More IIPM Info, Visit below mentioned IIPM articles.
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IIPM - Admission Procedure
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As customised insurance plans are catching the fancies of Indian life insurance companies, the idea of alluring parents to think about their child’s future seem to be bouncing on everyones’ courts. And why not, sector analysts peg the child plan market in India to be around Rs.350 billion (approximately 20% of the entire life insurance market). In the segment, where product differentiation is tough, what the players have tactically resorted to are clutter breaking advertisements. Agrees Rahul Agarwal, CEO, Optima Risk Management Services, as he says, “There is not much of product differentiation; returns and features are more or less similar; all the difference comes in how well have the companies used the emotional plank as a brand and marketing strategy.” Who would have missed the brilliant ads from Max New York Life, Aegon Religare, Bajaj Allianz, LIC, ICICI Prudential, Aviva, HDFC SL, et al?
Considering the fact that most of the child policies offer similar features, the challenge for them lies in the fact how well and how differently the individual insurers market their product. Undoubtedly, the child insurance policy advertisements on air these days do carry a realistic feel and drive home the message without beating around the bush. Yet, there are brand analysts who feel that branding in the insurance domain (a serious business arena as they put it) has not taken off till now. However, considering the number of advertisements enticing the parents to opt for child insurance plans, the branding aspect of the insurers is certainly taking the centre stage. Consider the latest ad from Bajaj Allianz, “Papa mere future ke bare mein kya socha hai…” or, the one from the stable of Max New York Life, “…Bolo beta Chekoslovakia…” and you will agree how suavely they have used children as their focus to target the parents. Yet the moot question remains as to whether these advertisements have been successful in convincing the parents and have their best bets paid off?
It is estimated that in India over a third of the population comprises of children under the age of 18 and half of the household expenditure goes towards providing for education. It is therefore imperative for them to get a reliable source of funding the particular need. Says Rishi Mathur, Vice President, Product Development & Customer Management, Bharti AXA Life Insurance, “In India, even today, given that children are considered a source of retirement income, parents desiring a secure future for their children are more of an emotional requirement. However, with the cost of ‘quality’ education growing exponentially, parents, especially in mass market segments, are finding it increasingly difficult to fund the best learning for their children and to provide a sound footing for the child’s career post-education.” While these indicate that need for such products actually exist, it is crucial for the insurers that while planning a child benefit product the timing of benefit must coincide with the key milestones in the child’s life.
For more articles, Click on IIPM Article.
Source : IIPM Editorial, 2010.
An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).
For More IIPM Info, Visit below mentioned IIPM articles.
TSI exposes b school ranking scamsters Mahesh Peri of Career 360 and Premchand Palety of C fore. - For Complete Sting Operation Video Click Here
Pioneer Exposes the fraud called Mahesh Sharma and Mahesh Peri of Career 360 and Barbel Schwertfeger of mba-channel.com
IIPM: An intriguing story of growth and envy
Prof Arindam Chaudhuri of IIPM on MF HUSAIN
IIPM Related Links
IIPM - Admission Procedure
IIPM, GURGAON
IIPM 3-year full-time Integrated (MBA BBA) Programme
Exclusive In chat with Society Magazine - Prof. Arindam Chaudhuri
