Q] The big move that everyone is talking about is zero GST on insurance, so how are you tweaking your product pricing and marketing message around it?
First of all, we laud the Government of India for taking this sector and its requirements seriously. As responsible insurers, we are all passing on the full benefits to the customer in terms of pricing benefits, so this can lead to better penetration and finally pave the way for ‘Insurance for All’, which is one of the objectives of Viksit Bharat. There are certain current challenges, such as the lack of input tax credit, and discussions are underway to make commissions GST-inclusive. We are also optimising our channel and product mix to absorb the impact while ensuring the customer benefits the most. This will take some time, but we are all focused on making sure the customer benefits the most and this leads to better penetration, which is the objective with which the government exempted the sector from GST.
Q] What’s Kotak Life’s biggest growth focus for FY26?
For FY26, we look at growth from a holistic pattern. First and foremost, we are committed to expanding our footprint in terms of distribution. We closed last quarter with 333 branches; our goal is to reach at least 400 by the end of CY26. We continue to invest in products because we believe offerings must be meaningful and relevant for the consumer. We launched category-first products like Tulip and Gen2Gen Income, which have performed extremely well. We will continue innovating on products and pushing our digital and AI agenda so that user experience, both for customers and distributors, improves remarkably. That is reflected in our NPS (Net Promoter Scores); we are among the top three players now. Putting the customer at the center of what we do and building an ecosystem of products, solutions, and experience, along with physical expansion, remains key. This sector will continue to be dominated by the phygital model, so our investments in technology, branches, and people will continue.
Q] With 100% FDI and composite licensing norms coming in, how is Kotak Life preparing to compete with new entrants?
We welcome more competition. 100% FDI, if it’s going to result in many more global players coming into the country, that’s a welcome move because customers will benefit finally. But, it’s not going to be an easy path. There are already a number of companies here. The industry today, it’s pulling more towards the top 8-10 players, increasing their market share, which also means that in this industry, distribution is the key. Coming in, new players need to have the ability to sustain and invest in this market for close to a decade or more before they start seeing results. So, we need deep-pocketed investors to come in, global brands which can come in and try and redefine the category. So, to that extent, it’s not going to be an easy ride for people coming in, especially in the life insurance industry. However, we are quite happy with more players coming in. That only intensifies the competition, and makes everybody run a little bit faster. But hopefully, all of us will be running in the right direction and building value for our stakeholders and customers.
Q] How are you rebranding life insurance for younger consumers, especially the Gen Z?
First of all, through our products. We have Kotak Gen2Gen Protect and Kotak Gen2Gen Income—designed to appeal to younger customers. We’re also building protection into the savings segment. With capital markets performing well, we launched Tulip—a Term with ULIP plan—so customers excited about equities can also get embedded insurance protection. We’re introducing lower-ticket products too, like a `2,500 bite-size plan offering `10 lakh cover. So, aligning our products with what customers want is our key approach.
However, it’s a challenge. We’re not an instant gratification industry. Today’s consumers are used to quick rewards—order in five minutes, get it at your doorstep, or trade F&O and see instant results. Insurance is about protection and long-term savings—preserving and building over time. It’s like saying, walk every day and eat healthy for lifelong fitness, versus taking a pill for instant relief. That’s why appealing to younger audiences demands more effort and relevance.
Q] What is the marketing mix of the brand? Which channel takes the lion’s share?
As part of the Kotak umbrella, with Kotak Mahindra Bank as our promoter and a 100% shareholder, we enjoy a strong brand value. At our end, we look at the audience in a very targeted way, making sure we build relevance and awareness to our specific customer cohorts.
We are more focused on the digital medium. Given the kind of spends we can afford we believe it is a far more efficient medium. We also look at unconventional platforms. We are the official life insurer for RCB, whose passionate fanbase has helped us connect with younger audiences. RCB fans are far more digital than any other IPL franchisee. We have been associated with them for the last two years and that has given us a flip in terms of understanding the right audience. We are also associated with Kaun Banega Crorepati (KBC) this year as one of the proud sponsors of the Audience Poll Lifeline. KBC is currently sponsored by Kotak Life. We explore alternate platforms like this that provide access to a large and relevant audience in a more efficient way. While our focus remains largely on digital, we also engage with Print, primarily through PR rather than traditional advertising, resulting in a balanced mix of various media channels.
Q] What is the most important marketing metric for you right now: reach or engagement?
It’s both reach and engagement. However, what matters the most to us is our customers’ Net Promoter Score (NPS). Building awareness and engagement are both crucial. Social media enables us to achieve both, whereas Print primarily helps with awareness. On platforms like LinkedIn and Facebook, we’re able to engage more effectively with our customers. That’s why digital serves as a platform that helps us build both, awareness and engagement simultaneously.
Q] Are you exploring influencer marketing in insurance?
Yes, we are already engaged in influencer partnerships. We take a thematic approach, collaborating with influencers at different times, such as during new product launches or periods when people are focused on tax savings toward the end of the year. We maintain a healthy mix of influencers to help build awareness and understanding of our products.
Q] How do you balance bancassurance, agency, and direct digital channels?
We are among the most balanced companies in the industry. Although we are fully promoted by Kotak Mahindra Bank, we see around 45-48% (remaining below 50%) contribution by our bancassurance business. The remaining share comes primarily from our agency channel, along with a few alternate channels and some direct business. Direct-to-consumer (D2C) is still a relatively small component across the industry, mainly because our products are more advisory-led, making it challenging for customers to purchase traditional plans without professional guidance. That remains an ongoing area of improvement for all of us. Overall, our business is driven largely by agency and bancassurance, supported by select direct channels. We don’t foresee a dramatic shift in this mix in the near future, as digital will take time to evolve into a larger channel.
