Embed Size (px)
DESCRIPTION
Report on the use of Social Media by Indian Life Insurance Industry.
Citation preview
LIFE INSURANCE IN INDIA
HOW INSURANCE COMPANIES CAN LEVERAGE SOCIAL MEDIA TO GROW ITS
BUSINESS
1 © InRev Systems 2011
AGENDA
B
INDUSTRY OVERVIEW 1. 1
2 © InRev Systems 2011
B
WHY SOCIAL MEDIA 1. 2
B
SOCIAL MEDIA INDEX 1. 3
B
RESEARCH FINDINGS 1. 4
INDUSTRY OVERVIEW (1/2)
Market Overview
• The Indian Life Insurance Market grew by 23.4% in 2009 to reach a value of $56 billion. The compound annual growth rate of the market in the period 2005–09 was 28.6%
• Life insurance is the largest
segment of the life insurance market in India, accounting for 86.4% of the market's total value. The pension/annuity segment accounts for the remaining market
20.5
34.7 41.2
45.4
56
69.6%
18.7%
10.2%
23.4%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
0
10
20
30
40
50
60
2005 2006 2007 2008 2009
% G
row
th
$ B
illio
n
Source: Data Monitor
3 © InRev Systems 2011
86.40%
13.60%
Life insurance
Pension/Annuity
INDUSTRY OVERVIEW (2/2)
4 © InRev Systems 2011
0
1
2
3
4
5Industry Rivalry
Threat of NewEntrants
Supplier PowerBuyer Power
Threat ofSubstitute
Industry Rivalry
The industry is mostly concentrated. Most services offered by the players are more or less the same increasing rivalry. Overall, the attractiveness of the industry due to industry rivalry is MEDUM
Threat of New Entrants
Barrier to entry is not very, however there are few big players like LIC which have a big market share. Opportunity is high because of the large untapped segment becoming more affluent. Overall, the attractiveness of the industry due to threat of new entrants is MEDIUM
Supplier Power
Supplier includes infrastructure and software manufacturers. Once a company choose a supplier it is never easy to switch supplier as fixed cost and involves lot of training cost. Overall, the attractiveness of the industry due to supplier power is LOW to MEDIUM
Buyer Power
Large clients such as corporates have high bargaining power increasing buyer’s power. With internet it has become very easy to compare deals offer by different company Overall, the attractiveness of the industry due to buyer power is LOW to MEDIUM
Threat of Substitute
There are several substitute such as savings and investments but the benefit offer by Insurance is much attractive. Overall, the attractiveness of the industry due to threat of substitute is MEDIUM to HIGH
Overall, the attractiveness of the industry is MEDIUM
WHY SOCIAL MEDIA (1/3)
5 © InRev Systems 2011
• The perceived RISK involved in buying Insurance Product is HIGH. The need recognition for Insurance Products has to be initiated by the company as consumers might not be aware of the existing products
• Customers want to have a clear understanding of
the policy followed by Insurance Companies • Customers may not know what facilities he needs
or he may be uncertain whether he really needs it • Customers will have lots of queries and question
on the available schemes, terms and benefits amongst many other things. To address this problem, Companies should have a good complain and feedback mechanism
Social Media is the easiest way out for the Insurance Companies to meet these requirements
NEED
WHY SOCIAL MEDIA (2/3)
CREATE fan pages to post contact information, recent updates, and most importantly allow “fans” and the Company a means of communication on the main page and through the implementation of discussions on the fan page
6 © InRev Systems 2011
DEVELOP catchy and clever ways to express the most recent company information. Consumers can share recent experiences with the company, as well as recommend potential product ideas and innovations
UPLOAD and share videos and educate your customers with awareness, testimonial and videos showcasing what your Company truly is
CONNECT the staffs of your Company and RECRUIT the best talents in the industry in this most professional social networking site
POWER
WHY SOCIAL MEDIA (3/3)
7 © InRev Systems 2011
Sales
Increase Sales or
Generate Leads directly or indirectly
through Social Media
Reputation Management
Talks on Social Media
are important as it affects
public sentiment towards a brand or company
Customer Service
For a business to be
successful, it is essential
that there is a 2 way
communication between companies &
customers
B2B
It is very important
especially in a B2B
marketing to UNDERSTAND CREATE and
DELIVER VALUE
Social Listening
Tools
TRACK conversations
about your brand online
BUSINESS BENEFIT
SOCIAL MEDIA INDEX (1/4)
8 © InRev Systems 2011
LIC – one of the leading Indian Insurance Company to adopt social media in engaging with its customers
LIC’s Facebook Page LIC engaging with Customers
LIC has over 4721 followers in LinkedIn
SOCIAL MEDIA INDEX (2/4)
9 © InRev Systems 2011
Aviva has a very focused priority to Education Insurance. It’s Education is Insurance Program has been one of the most active social media campaign in the Industry
Aviva’s Education is Insurance Facebook Page
LIC engaging with Customers
Aviva’s Education is Insurance Blog which showcase what it does and updates people about its news and events happening around
SOCIAL MEDIA INDEX (3/4)
Insurance Companies No of Channels Social Grades
AVIVA – EDUCATION IS INSURANCE 5 3.34
LIFE CORPORATION OF INDIA 6 3.16
HDFC STANDARD LIFE INSURANCE 4 2.19
SBI LIFE INSURANCE 4 1.96
BAJAJ ALLIANZ LIFE INSURANCE 2 1.49
ICICI PRUDENTIAL LIFE INSURANCE 2 1.35
BIRLA SUN LIFE INSURANCE 1 0.65
BHARTI AXA LIFE INSURANCE 1 0.49
SOCIAL MEDIA GRADES is calculated based on the interactivity level of the mixed retailers in Facebook, Twitter, LinkedIn, YouTube and Blogs. It shows how active the mixed retailers are in the social media space No of Channels represents the number of social networking sites a mixed retailer’s is present in
10 © InRev Systems 2011
SOCIAL MEDIA INDEX (4/4)
Social Engagement Graph: Interaction Plot of Insurance Companies in the Social Media Space
11 © InRev Systems 2011
0
0.5
1
1.5
2
2.5
3
3.5
0 1 2 3 4 5 6
Inte
ract
ivit
y Le
vel
No of Channels
RESEARCH FINDINGS (1/6)
BRAND AWARENESS: Number of conversations across web
LIC has the highest number of mentions in the social media amongst all the players – LIC: 138084, ICICI Prudential: 680, SBI Life: 1527 and Aviva: 8512 while ICICI has the least
12 © InRev Systems 2011
RESEARCH FINDINGS (2/6)
BRAND HEALTH: SENTIMENTS across web for different Insurance Companies
LIC although having highest mentions should be concerned about it having the least percentage of positive sentiment and the highest negative sentiment messages
13 © InRev Systems 2011
LIC ICICI PRUDENTIAL SBI LIFE AVIVA
Positive Sentiment % 50% 62.1% 64.05% 66.4%
Negative Sentiment % 17.03% 7.2% 9.04% 7.7%
RESEARCH FINDINGS (3/6)
COMPARE the demographics – age group of your brand talkers with competitors
LIC is the only company which people in their mid 40’s are talking about
14 © InRev Systems 2011
RESEARCH FINDINGS (4/6)
COMPARE the demographics – location of your brand talkers with competitors
All Companies are popular in Bangalore and Southern Region of India. LIC has
people talking about it pan India
15 © InRev Systems 2011
RESEARCH FINDINGS (5/6)
COMPARE the source of messages
16 © InRev Systems 2011
All except LIC have strong mentions in Blogs while LIC has the highest mention in Twitter. Aviva also have significant mentions in Twitter
RESEARCH FINDINGS (6/6)
INDUSTRY INTELLIGENCE
Tracking the keyword “Life Insurance” in Simplify360
There are 21071 mention of the keyword “LIFE INSURANCE” in the social media within a period of 2 weeks alone
12.5% of the talks about LIFE INSURANCE is related to negative sentiment about the topic People talking about the topic are mostly in the age groups of 36-45 and 26-35 LIFE INSURANCE is popularly talked about in Mumbai, Guwahati, Delhi, Bangalore and Chennai
17 © InRev Systems 2011
For Details, Visit - http://simplify360.com/ http://simplify360.com/blog/
http://www.facebook.com/simplify360 @simplify360
Or Send a Mail to - [email protected]
Start Using Simplify360 Today
VP - Sales, InRev Systems
18 © InRev Systems 2011
