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This presentation shows how Insurance Companies can leverage the power of Social Media to grow its business
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1
LIFE INSURANCE IN INDIA
HOW INSURANCE COMPANIES CAN LEVERAGE SOCIAL MEDIA TO GROW ITS
BUSINESS
© InRev Systems 2011
© InRev Systems 2011 2
AGENDA
B
INDUSTRY OVERVIEW1. 1
B
WHY SOCIAL MEDIA1. 2
B
SOCIAL MEDIA INDEX1. 3
B
RESEARCH FINDINGS1. 4
© InRev Systems 2011 3
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
2005 2006 2007 2008 20090
10
20
30
40
50
60
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
20.5
34.741.2 45.4
56
69.6%
18.7%
10.2%
23.4%
$ Bi
llion
% G
row
th
Source: Data Monitor
86.40%
13.60%
Life insurancePension/Annuity
© InRev Systems 2011 4
INDUSTRY OVERVIEW (2/2)
Industry Rivalry
Threat of New Entrants
Supplier PowerBuyer Power
Threat of Substitute
0
2
4
IndustryRivalry
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
© InRev Systems 2011 5
WHY SOCIAL MEDIA (1/3)
• 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
© InRev Systems 2011 6
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
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
SalesIncrease 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
B2BIt is very
important especially in
a B2B marketing to
UNDERSTAND CREATE and
DELIVER VALUE
Social Listening
ToolsTRACK
conversations about your
brand online
BUSINESS BENEFIT
© InRev Systems 2011 8
SOCIAL MEDIA INDEX (1/4)LIC – one of the leading Indian Insurance Company to adopt social media in engaging with its customers
LIC’s Facebook PageLIC engaging with Customers
LIC has over 4721 followers in LinkedIn
© InRev Systems 2011 9
SOCIAL MEDIA INDEX (2/4)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
© InRev Systems 2011 10
SOCIAL MEDIA INDEX (3/4)
Insurance Companies No of Channels Social GradesAVIVA – 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 Insurance Companies are in the social media space
No of Channels represents the number of social networking sites an Insurance Company is present in
© InRev Systems 2011 11
SOCIAL MEDIA INDEX (4/4)
Social Engagement Graph: Interaction Plot of Insurance Companies in the Social Media Space
0 1 2 3 4 5 60
0.5
1
1.5
2
2.5
3
3.5
No of Channels
Inte
racti
vity
Lev
el
© InRev Systems 2011 12
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
© InRev Systems 2011 13
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
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%
© InRev Systems 2011 14
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
© InRev Systems 2011 15
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
© InRev Systems 2011 16
RESEARCH FINDINGS (5/6)COMPARE the source of messages
All except LIC have strong mentions in Blogs while LIC has the highest mention in Twitter. Aviva also have significant mentions in Twitter
© InRev Systems 2011 17
RESEARCH FINDINGS (6/6)
INDUSTRY INTELLIGENCETracking 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
© InRev Systems 2011 18
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@simplify360
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david@in-rev.com
Start Using Simplify360 Today
VP - Sales, InRev Systems
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