Scope :
2 Scope Life Insurance business
Distribution
Financial motivation
Marketing strategies
Financial Motivations :
3 Financial Motivations Utopian model
Positive incentives
Penalties
Financial MotivationsWhat should Life Insurance companies be rewarding? :
4 Financial MotivationsWhat should Life Insurance companies be rewarding? POSITIVE INCENTIVES
Sales volume
Sales leverage
Sales quality
Share of wallet
Net present value of customers
Persistency
Consistency
Portfolio profile
Loyalty of channel
Social / Rural targets
Financial MotivationsWhat should Life Insurance companies be rewarding? :
5 Financial MotivationsWhat should Life Insurance companies be rewarding? PENALTIES
Compliance
Rebating
Misrepresentation
Complaints
Receivables
Marketing StrategiesHow should Life Insurance companies strategize their marketing initiatives? :
6 Marketing StrategiesHow should Life Insurance companies strategize their marketing initiatives? Challenges
Possible responses
Marketing StrategiesHow should Life Insurance companies strategize their marketing initiatives? :
7 Marketing StrategiesHow should Life Insurance companies strategize their marketing initiatives? CHALLENGES
Heterogeneous market place
Low consumer awareness levels
Profitable market share
Fraud risk
Concentration risk
Cost effective execution
Marketing StrategiesHow should Life Insurance companies strategize their marketing initiatives? :
8 Marketing StrategiesHow should Life Insurance companies strategize their marketing initiatives? POSSIBLE RESPONSES
Focus on homogeneous pools within heterogeneous environment
Responsible terms and conditions with fact based advertising
Balance between commercial and “public responsibility” portfolios
Balance between short term and longer term profitability of products
Differentiated pricing for different DISTRIBUTION channels
Slide 9:
9 Thank you