Tackling The ‘Tax Monster’
It is that time of the year when insurance companies suddenly become the point of focus for every tax-payer, with more and more people loosening their purse strings for any type of tax saving investments. Subrat Mohanty, the Marketing Head of one such company, Bajaj Allianz Life Insurance, tells us how one can tackle this ‘Tax Monster’ which is incidentally also the name of their ad campaign. “We decided to bring back the ‘Tax Monster’ campaign launched in 2015 in a new avatar. The ‘Tax Monster Returns’ campaign is aimed at reiterating the message of buying life insurance, especially at the end of March, for those who didn’t do so despite repeated warnings,” says Mohanty. Talking about the marketing mix of the campaign, Mohanty says, “Tax Monster Returns is largely visible on the digital platform starting from the company’s website to social media pages. About 60% of the ad spends were in the digital space including YouTube. Towards the second phase, we started radio ads in popular FM channels and select cities including metros, and lastly, on-ground activities.” While the basic message for both campaigns has been about saving tax, and ensuring protection for one’s family, this year the company has tried to add a Bollywood flavour to the ad. Elaborating on that Mohanty says, “On social media posts and video, we introduced the ‘Tax Monster’ in the garb of Bajirao Peshwa, taking a hint from the film Bajirao Mastani. Infographics on insurance and tax-saving were put up and so were pre-budget banner advertisements. It has resulted in increasing the number of views on social media by almost 300% to 18 lakh (as on March 4, 2016), as against 5.85 lakh last year.” The company which is a joint venture between Allianz SE, one of the world’s leading insurers, and Bajaj Finserv Limited, has a product portfolio that includes ULIPs, child plans, group and health insurance. Talking about their latest offerings, Mohanty says, “We have recently launched two products Bima Dhan Suraksha Yojana and Super Life Assure. The first one is targeted at the small income groups, and the second provides additional benefits with a lump-sum life cover. Another market-linked product with guaranteed returns— Bajaj Allianz Life: Principal Gain has just been launched.” Bajaj Allianz Life Insurance began its operations in 2001 and today has a pan-India presence with more than 700 branches. Bajaj Allianz Life Insurance has been constantly expanding its customer base. “What distinguishes us from competition is that we have one of the best claim settlement ratios --- 96.66% as on March 31, 2015. Apart from this, the large base in the Tier-II and Tier-III locations and leadership position in micro insurance or financial inclusion segment are the two major aspects of our company,” says Mohanty. The Banking, Financial Services and Insurance (BFSI) sector has witnessed a major shift from the traditional transaction process to an over-the-app experience. A large number of people are using applications on their smartphones or tablets for banking services and to keep track of their insurance policies. Bajaj Allianz Life Insurance has therefore introduced INSTAB not just to save time on the transactions but also to make it more transparent. Elaborating on the changing methods employed by the company to keep pace with the customer’s needs, Mohanty adds, “We have also launched an app called Life Assist which provides all kinds of policy related information, NAV for marketlinked product or for getting e-statements or certificates for claiming income tax exemption. Notwithstanding the fact that a lot of people are embracing the use of technology for banking transactions, the majority of them still believe in buying life insurance from a consultant or an advisor. Just a handful of people have started buying insurance online.” By NEETA NAIR
As of December 31, 2015 Bajaj Allianz Life’s marketshare stood at 2% overall and 6.6% among private players in the industry. But what is their strategy to increase penetration, especially in the rural areas in an industry dominated by LIC? Mohanty responds, “A good share of our business comes from rural areas due to our substantial exposure in the micro insurance or financial inclusion segment. Currently, we have more than seven crore lives covered through micro insurance plans with small premiums in rural areas. With new micro insurance partners coming on board, we only aim to increase our base there.”
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