Advertising Project Final

1ADVERTISING IN INSURANCE

CONCEPT OF ADVERTISEMENT

Advertising is a form of communication intended to persuade its viewers,

readers or listeners to take some action. It usually includes the name of a product

or service and how that product or service could benefit the consumer, to persuade

potential customers to purchase or to consume that particular brand. Modern

advertising developed with the rise of mass production in the late 19th and early

20th centuries.

Commercial advertisers often seek to generate increased consumption of

their products or services through branding, which involves the repetition of an

image or product name in an effort to associate related qualities with the brand in

the minds of consumers. Different types of media can be used to deliver these

messages, including traditional media such as newspapers, magazines, television,

radio, outdoor or direct mail. Advertising may be placed by an advertising agency

on behalf of a company or other organization.

Organizations that spend money on advertising promoting items other than a

consumer product or service include political parties, interest groups, religious

organizations and governmental agencies. Nonprofit organizations may rely on

free modes of persuasion, such as a public service announcement.

Advertising is the promotion of a company’s products and services carried out

primarily to drive sales of the products and services but also to build a brand

identity and communicate changes or new product /services to the customers.

Advertising has become an essential element of the corporate world and hence the

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companies allot a considerable amount of revenues as their advertising budget.

There are several reasons for advertising some of which are as follows:

Increasing the sales of the product/service

Creating and maintaining a brand identity or brand image.

Communicating a change in the existing product line.

Introduction of a new product or service.

Increasing the buzz-value of the brand or the company.


Different

types of advertising

Audio-Visual Media Advertising: In this advertising technique, the advertisers

use the very popular audio and visual media to promote a product. It is the most

widely used media that can effectively influence the masses. Television and radio

have always been used to achieve a mass appeal.

Bandwagon: This advertising appeal aims to persuade people to do a certain thing


because the masses are doing it. It is a human tendency to do as the masses do.

Bandwagon technique of advertising captures exactly this psychology of human

beings to induce them to use a certain product or service.

Black and White Fallacy: In this advertising appeal, only two choices are

presented before the audiences, thus compelling them to buy the product being

advertised.

Card Stacking: This advertising appeal involves the display of a comparative

study between two competing products. The facts in favor of the product to be

advertised are selected. They are put forth in comparison with those of a competing

product to make the product appear better than its competitors.

Classified Advertising: This type of advertising makes use of newspapers and

periodicals to make public appeals about the products or services to be advertised.

Corporate Advertising: Corporate advertising is an advertising appeal wherein

corporate logos and company message are publicized on a large scale. Hot air

balloons are commonly used in advertising a product. Some companies propose to

place their logos on booster rockets and space stations to achieve a wide publicity

of the company.

Covert Advertising: This is the practice of achieving an indirect publicity of the

product by advertising it through movies and TV shows. TV actors and characters

in movies are often shown using certain products. Covert advertising is an indirect


way of advertising a product by featuring it in films and television shows.

Demonizing the Enemy: In this advertising appeal, the advertisers make the

people with an opposing point of view appear unacceptable. The people bearing

certain ideas are made to appear among the disliked individuals of society. This

form of advertising involves the idea of encouraging an idea by discouraging the

ideas contrary to it. It is like proving a theorem by disproving its inverse!

Direct Order: When the advertisers appeal the masses by showing them the steps

to take, in order to opt for a particular product or service, they are said to be using

direct order. This advertising appeal often communicates the steps to choose a

certain product or service and presents them to the audiences in a simplistic

manner.

Disinformation: This technique involves a purposeful dissemination of false

information. In the context of military, this technique is used to mislead the enemy.

It commonly includes forging of documents and the spread of rumors.

Email Advertising: This is a relatively new advertising appeal that makes use of

emails to advertise products. Advertisements are sent through emails, thus bringing

out communication with a wide range of audiences.

Emotional Words: This advertising appeal makes use of positive words to

generate positive feelings in the minds of the people about a certain product. The

advertisers often use the words like 'luxury', 'comfort' and 'satisfaction' to create

positive vibes among the masses to attract them towards the product being

advertised.


Euphoria: The use of positive events characterizes this advertising appeal.

Declaration of a great discount or sale on a holiday and making luxury items

available at affordable prices are often used to aim mass appeal.

Flag-waving: The advertising appeal that makes use of the patriotic flavor to

publicize a product is known as flag-waving. In case of flag-waving, the

advertisers try to justify certain actions on the grounds of patriotism. The masses

are persuaded to choose a particular product because doing so will be an exhibit of

patriotism.

Glittering Generalities: In this form of advertising, advertisers make use of

logical fallacies. They use appealing words without giving any concrete idea about

what is being advertised.

Half Truth: In this advertising appeal, the advertisers use deceptive statements to

publicize their product. They often use double-meaning words or statements to

convey their message to the masses.

Interactive Advertising: This advertising appeal makes use of the interactive

media to reach out to the target audiences. Advertisers often hold exhibitions or

trade-shows and offer rewards in the forms of discounts and free gifts to increase

the sale of their product. Distribution of free samples of a newly launched product

and publicity of a product through interactive means are some examples of

interactive advertising. Have you participated in contests intended to promote

products? Have you come across websites offering free products to users? The free

stuffs are popularly known as freebies.


Internet Advertising: It is a relatively recent form of advertising appeal. Internet

has become one of the most influential media of the modern times. Websites attract

thousands of user’s everyday and expose them to the advertisements on the

websites.

Labeling: With an intent to increase or diminish the perceived quality of a

product, the advertisers use labeling or categorization. Categorizing a product

under a group of associated entities makes it appealing or unappealing to the

masses.

Name-calling: This advertising appeal makes use of direct or indirect attack on the

products in competition with the product being advertised. Direct name-calling

involves making a direct attack on the opponent while indirect name-calling makes

use of sarcasm to demean the products of the competitors.

Outdoor Advertising: Outdoor advertising is a popular advertising appeal that

uses different tools to attract the customers outdoors. Billboards, kiosks and

tradeshows are some of the commonly used means of outdoor advertising. Fairs,

exhibitions and billboards that draw in the passersby are often used in outdoor

advertising.

Performance-based Advertising: In performance-based advertising appeal, the

advertisers pay only for the results. The advertising agency assumes the entire risk

and hence ensures that the advertisement is pitched well.


Plain Folks: This advertising appeal aims at attracting the masses by using

common people to advertise a product. Bombastic words may not always appeal

the common folks. They can rather be attracted by communicating with them in

their language. The use of homey words, as they are called, and purposeful errors

while speaking to give a natural feel to the speech, is characteristic to this

advertising appeal.

Print Media Advertising: The print media is one of the most effective means of

advertising. Many advertising appeals make use of the print media to reach out to

the masses. Media like newspapers, brochures, manuals and magazines are used

for publicizing the products.

Public Service Advertising: This advertising technique is used to convey socially

relevant messages to the masses. Social messages on issues like poverty,

inequality, AIDS awareness and environmental issues such as global warming,

pollution and deforestation are conveyed by the means of appeals to the public

through public service advertising.

Quotes Out of Context: This advertising appeal makes use of popular quotes. The

advertisers using this advertising appeal alter the widely known quotes to change

their meaning. This technique is used in political documentaries.


Relationship Marketing: This form of advertising focuses on the retention of

customers and customer satisfaction. Advertisers appeal to the target audiences

with information that suits their requirements and interests.

Repetition: This advertising appeal uses the technique of repeating the product

name several times during an advertisement. Jingles are often used in this

advertising technique to linger the product name in the minds of the masses.

Scientific Evidence: This technique attempts to appeal the masses to use the

advertised product, by providing the audiences with survey results. The advertisers

often use statistical evidences and market surveys to publicize their product.

Shockvertising: This advertising appeal makes use of shocking images or scenes

to advertise a product. The name is derived as a combination of the two words,

'shocking' and 'advertising'.

Slogans: Slogans, as we all know, are striking phrases used to convey important

information of the product to be advertised in an interesting manner. There are lot

many famous advertising slogans that we are familiar with.

Snob Appeal: Snob appeal is an exact reverse of the bandwagon technique. In this

advertising appeal, people are induced to buy a certain product so that they can

stand out of the crowd. It is often indicated that buying the product will make them

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look different from the rest. It is often indicated that the product is not affordable

for the common masses by attaching a 'sense of exclusivity' to such products.

Stereotyping: This advertising appeal is also known as name-calling or labeling

and attempts to categorize the advertised object under the class of the entities,

which the masses fear.

Subliminal Advertising: This advertising appeal makes use of subliminal

messages, which are intended to be subconsciously perceived. Subliminal signals

go undetected by the human eye. However, they are perceived at a subconscious

level. Subliminal appeal often makes use of hidden messages and optical illusions.

Surrogate Advertising: In cases where advertising of a particular product is made

illegal, the product companies come up with other products with the same brand

name. Advertising the legal products with the same brand name reminds the

audiences of their legally banned products as well.

Testimonial: People tend to relate to their favorite figures in the glamour industry.

People attracted to their idols often tend to adopt what their idols do. They want to

emulate the people they relate to. Testimonial makes use of this human tendency

by using the words of an expert to recommend their products. Celebrities are used

as ambassadors for products in order to promote the sale.

Transfer: This advertising appeal is implemented in two ways. In a positive

transfer, a product is made to associate with a respected individual of society.

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However, in case of a negative transfer, the advertisers state an analogy between a

product and a disliked figure in society.

Unstated Assumption: When the idea behind the product or service being

advertised is repeatedly implied, it is known as an unstated assumption. In case of

using this advertising appeal, the advertisers do not state the concepts explicitly.

They rather imply their ideas in various ways.

Viral Advertising: It can take the form of word-of-mouth publicity or of Internet

advertising. The aim of the advertiser is to market the product on a very large

scale. This advertising appeal intends to achieve a speedy publicity of a product

similar to the spreading of a pathological or a computer virus!

Word-of-Mouth Advertising: It can turn out being a very effective advertising

appeal. It can achieve phenomenal success to an extent where a brand is equated to

a common noun. Vaseline can be sited as one of the excellent examples of word-

of-mouth publicity, where the company name, 'Vaseline' became synonymous with

the product name, 'petroleum jelly'.

This was an overview of the different advertising appeals that advertisers around

the world use to market their products and services. You might want to know about

the different types of advertising. Many of the popularly used products and

services of today have gained popularity thanks to the advertising techniques that

were implemented for their publicity. Advertising appeals used by a company are

important determinants of its success.

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TYPES OF ADVERTISMENTS


ADVERTISING

DIRECTADVERTISING

AGENTS CONCELLING

INDIRECTADVERTISING

PRESS

NEWS –PAPER

MAGAZINES

BROADCASTING

RADIO

TELEVISION

TELEMARKETING

INTERNET – MAIL.

OUTDOOR

POSTERS

BANNERS

TRAVELINGADVERTISI

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PAMPLETS


INTRODUCTION TO INSURANCE

Concept of Insurance

In a layman's words, insurance means, ‘a guard against pecuniary loss

arising on the happening of an unforeseen event’. In developing economies, the

insurance sector still holds a lot of potential which can be tapped. Majority of the

people in the developing countries remains unaware of the functions and benefits

of insurance and it is for this reason that the insurance sector is still to

grow. Tangible or intangible – an individual can insure anything! Be it a house,

car, factory, or the voice of a singer, leg of a footballer, and the hand of an

author.....etc. It is possible to insure all these as they have the possibility of

becoming non functional by any disaster or an accident.

Meaning of Insurance

Insurance provides financial protection against a loss arising out of

happening of an uncertain event. A person can avail this protection by paying

premium to an insurance company. A pool is created through contributions made

by persons seeking to protect themselves from common risk. Premium is collected

by insurance companies which also act as trustee to the pool. Any loss to the

insured in case of happening of an uncertain event is paid out of this pool.

Insurance works on the basic principle of risk-sharing. A great advantage of

insurance is that it spreads the risk of a few people over a large group of people

exposed to risk of similar type.


Definition

Insurance is a contract between two parties whereby one party agrees to

undertake the risk of another in exchange for consideration known as premium and

promises to pay a fixed sum of money to the other party on happening of an

uncertain event (death) or after the expiry of a certain period in case of life

insurance or to indemnify the other party on happening of an uncertain event in

case of general insurance. The party bearing the risk is known as the 'insurer' or

'assurer' and the party whose risk is covered is known as the 'insured' or 'assured'.


History of insurance sector

The insurance sector in India has completed all the facets of competition –from

being an open competitive market to being nationalized and then getting back to

the form of a liberalized market once again. The history of the insurance sector in

India reveals that it has witnessed complete dynamism for the past two centuries

approximately. With the establishment of the Oriental Life Insurance Company in

Kolkata, the business of Indian life insurance started in the year 1818.

Important milestones in the Indian life insurance business

1912: The Indian Life Assurance Companies Act came into force for

regulating the life insurance business.

1928: The Indian Insurance Companies Act was enacted for enabling the

government to collect statistical information on both life and non-life

insurance businesses.

1938: The earlier legislation consolidated the Insurance Act with the aim of

safeguarding the interests of the insuring public.

1956: 245 Indian and foreign insurers and provident societies were taken

over by the central government and they got nationalized. LIC was formed

by an Act of Parliament, viz. LIC Act, 1956. It started off with a capital of

Rs. 5 crore and that too from the Government of India.

The history of general insurance business in India can be traced back to Triton

Insurance Company Ltd. (the first general insurance company) which was formed

in the year 1850 in Kolkata by the British.


Important milestones in the Indian general insurance business

1907: The Indian Mercantile Insurance Ltd. was set up which was the first

company of its type to transact all general insurance business.

1957: General Insurance Council, an arm of the Insurance Association of

India, framed a code of conduct for guaranteeing fair conduct and sound

business patterns.

1968: The Insurance Act improved for regulating investments and set

minimal solvency levels and the Tariff Advisory Committee was set up.

1972: The General Insurance Business (Nationalization) Act, 1972

nationalized the general insurance business in India. It was with effect from

1st January 1973.

107 insurers integrated and grouped into four companies viz. the National

Insurance Company Ltd., the New India Assurance Company Ltd., the Oriental

Insurance Company Ltd. and the United India Insurance Company Ltd. GIC was

incorporated as a company.

Insurance companies in India

IRDA has till now provided registration to 12 private life insurance

companies and 9 general insurance companies. If the existing public sector

insurance companies are considered then there are presently 13 insurance

companies in the life side and 13 companies functioning in general insurance

business. General Insurance Corporation has been sanctioned as the "Indian

reinsurer" for underwriting only reinsurance business.


Basic functions of Insurance

1. Primary Functions

2. Secondary Functions

Primary functions of insurance

Providing protection – The elementary purpose of insurance is to allow

security against future risk, accidents and uncertainty. Insurance cannot

arrest the risk from taking place, but can for sure allow for the losses arising

with the risk. Insurance is in reality a protective cover against economic loss,

by apportioning the risk with others.

Basic functions of insurance

Primary functions Secondary functions


Collective risk bearing – Insurance is an instrument to share the financial

loss. It is a medium through which few losses are divided among larger

number of people. All the insured add the premiums towards a fund and out

of which the persons facing a specific risk is paid.

Evaluating risk – Insurance fixes the likely volume of risk by assessing diverse

factors that give rise to risk. Risk is the basis for ascertaining the premium

rate as well.

Provide Certainty – Insurance is a device, which assists in changing

uncertainty to certainty.

Secondary functions of insurance

Preventing losses – Insurance warns individuals and businessmen to

embrace appropriate device to prevent unfortunate aftermaths of risk by

observing safety instructions; installation of automatic sparkler or alarm

systems, etc.

Covering larger risks with small capital – Insurance assuages the

businessmen from security investments. This is done by paying small

amount of premium against larger risks and dubiety.

Helps in the development of larger industries – Insurance provides an

opportunity to develop to those larger industries which have more risks in

their setting up.


INSURANCE INDUSTRY: CLASSIFICATION

Fire Insurance Marine Insurance Mediclaim Motor Vehicle

SOME PLAYERS IN THE INDUSTRY:

Life Insurance General Insurance

Life Insurance Corporation of India. General Insurance Corporation of India.

1. Oriental Insurance Company Ltd.2. New India Assurance Company Ltd.3. National Insurance Company Ltd.4. United India Insurance Company Ltd.

New EntrantsICICI Prudential Life Insurance Ltd. Bajaj Alliaz General Insurance Company Ltd.

Tata AIG Life Insurance Corporation Ltd. Reliance General Insurance Company Ltd.

ING Vysya Life Insurance Corporation Ltd. Tata AIG General Insurance Company Ltd.

Om Kotak Mahindra Life Insurance Corporation Ltd.

Royal Sundaram Alliance Insurance Company Ltd.

INSURANCE

LIFE INSURANCE GENERAL INSURANCE


Life Insurance

Life Insurance is a contract between the insured and the insurer (insurance company), wherein the insured pays a certain amount as premium to the insurer at regular intervals, and in return, the insurer promises to pay a specified sum upon the occurrence of insured's death. Insurance against risk of loss to one's life is covered under Life Insurance. Life insurance is also known as long term insurance or life assurance. It includes Whole Life Assurance, Endowment Assurance, Assurances for Children, Term Assurance, and Money Back Policy etc. To buy or get information on life insurance products offered by us, please click on the link above.

General Insurance

Insurance against risk of loss to assets like car, house, accident etc. is covered under General or Non-life Insurance. General insurance includes fire insurance, marine insurance, motor insurance, theft insurance, health insurance, personal accident insurance etc. Insurance against risk of loss to assets like car, house, accident etc. is covered under General or Non-life Insurance. General insurance includes fire insurance, marine insurance, motor insurance, theft insurance, health insurance, personal accident insurance etc. To buy or get information on life insurance products offered by us, please click on the link above.


INSURANCE SERVICE: ITS USERS

The formulation of creative marketing decisions is not possible unless the

different categories of users using the services of insurance industry are known.

The general users assign due weight age to their own interest whereas the industrial

users assign an overriding priority to the interests of their organizations. The

emerging changes in the socio-economic conditions and governmental regulations

influence the interests of both the category of users. It is against this background

that an in-depth study of users is found significant to the insurance industry.

An individual or an institution, a person or a group of people availing the

services is termed to be the actual users of the insurance industry. On the other

hand both the categories of prospects having the potentials, bearing the willingness

but not using the service right now are termed as “potential users/prospects”. The

services are made available by the Life Insurance Corporation of India and the

General Insurance Corporation and other private insurance companies are used by

both categories of users.

The need and requirement can’t remain static. The business environmental

conditions influence the process of change. The professionals engaged in servicing

the insurance organizations bear the responsibility of understanding the changing

level of expectations of the different categories.

USERS OF INSURANCE SERIVCE

INDIVIDUAL INSTITUTIONAL


FORMATION OF PRODUCT IN INSURANCE

INSURANCE POLICY: THE TOTAL PRODUCT CONCEPT


Theodore Levitt propounded the Total Product Concept (TPC), which implied that

a product had three levels of features and the consumption was in totality.

LEVEL 1:

Core Product:

In the Insurance Industry the core product is the policy that provides protection to

the consumers against the risks. This is the main reason for which the Insurance

Company is in existence. It provides protection by way of various riders viz.

Accidental Death Benefit, Double Sum Assured, Critical Illness benefits, Waiver

of Premiums, etc.

On the basis of the risks perceived, the insurer develops a product to cover the

stipulated risks. While designing an insurance product, an insurer decides its cost

to be charged from the insured in the form of premium, reduction thereof in certain

cases like not lodging any claim during the previous covered period(s), suggesting

the implementation of risk-mitigating measures, etc. The features of a product

should be flexible enough to provide for the determination of premiums, rebates,

additional premiums, etc. depending upon the risk benchmarks as determined.


LEVEL 2:

Formal Product:

When the customers’ expectation grows synchronized with increased competition

the marketer offers some tangibility to the existing core product to differentiate

itself from the competitors.

1. Brand:

In order to distinguish itself from the competitors, the Insurance Company gives a

brand name to its policy. This brand name gives an identity to the product (policy)

offered by the insurance company.

Thus ICICI Prudential Life Insurance has brands viz ICICI Pru Smart Kid, ICICI

Pru Save ‘n’ Protect, ICICI Pru LifeLink, etc.

2. Attributes:

Just giving a brand name to the policy may not be enough for the insurance

company to distinguish its offerings. The product offering must also have attributes

that will attract the consumers to take the policy. The attributes must suit and

satisfy the needs wants and desires of the various types of consumers that the

company is targeting at.

Thus ICICI’s investment plans suit the consumers who want to secure their family

through insurance or invest money for growth. And its retirement plans suit the

ones who want to enjoy their fruits of labor after retirement or want to go for a

dream vacation.


3. Instruction Manual:

To make the service consumption easier for the consumers, the instruction manual

with the policy becomes very important. The instruction manual gives an overview

to the consumers as to how to go on with the filling of the application form. It also

gives information about the various formalities that have to be adhered to at the

time of submission of the application form.

LEVEL 3:

Augmented product:

With further expectation of the consumer – again synchronized with intense

competition – marketers offer more and more intangible features.

1. Post-sales service:

The insurance company must not consider it as the end of the service providing

the consumer has taken once the policy. The functions of an insurance company

include the provision of the Post-sales services to the consumer. Among the

services rendered by the insurance company is the service of processing and

release of claims. The insurance company needs to verify the accuracy of the

facts presented in relation to the insurance claim and the documents produced

in support thereof.

2. Delivery points:

The delivery points can be the branches that the insurance company has at the

discretion of the of the consumers’ location. The delivery points can also be


mobilized with the presence of the insurance agents. The agents can cover a

wide area and get in contact with the consumers to provide the service to him.

3. Customer education and training:

The customer education and training is very important for the insurance

company. The agents play a vital role in this context. The customer can be

educated on various benefits that can be accrued in his future life by taking a

policy. This is where the agents’ communication skills come into the picture.

The insurance company has to play an active role in enabling the agents to

impart the best customer education through appropriate training given to the

agents.

4. Customer complaint management:

Customer complaints management with regards to delay in discharge of claims

must be effectively handled by the insurance company to have competitive edge

over its competitors. The complaint management will help the company to get

the consumers closer to the organization as the consumers feel that their

grievances are taken care of.

Thus LIC has an online feedback system where the consumers of the policy can

register their grievances.

5. Payment options:

The insurance company can offer payment options to the consumers with

regards to payment of premium – the mode of payment and the period within

which the premium amount has to be paid.


MARKETING

INTRODUCTION OF MARKETING

Marketing is an important social economic activity. It is an essential activity for the satisfaction of wants and for raising social welfare. Marketing links producers and consumers together for mutual benefits. It facilitates transfer of ownership of goods and services form producers to customers.

DEFINITION OF MARKETING

According to Philip Kotler, “marketing is an activity directed at satisfying needs and wants through exchange process.”

EVOLUTION OF THE MARKETING CONCEPT

The Role of marketing in the banking and insurance industry continues to change.

For many years the primary focus of bank marketing was public relations. Then the focus shifted to advertising and sales promotion. That was followed by focus on the development of a sales culture. Although all the elements of the marketing concept – customer satisfaction, profit integrated framework, and social responsibility – will remain important, customer satisfaction must receive the greatest emphasis in the years ahead.

The chief concerns of most bank executives still focus on legal and regulatory issues, according to most surveys. Community banks are particularly concerned with eliminating barriers that give unfair advantages to financial services competitors, such as credit unions. However, another concern pertains to technology: keeping nonblank competitors out of the payment system.


MARKETING MIXES IN THE INSURANCE INDUSTRY

PRODUCT MIX The formulation of product mix for the insurance business makes it significant to take a look at the services and schemes of insurance organizations. The product portfolio is known and the process of formulating a package should be known. It is natural that the users expect a reasonable return for their investments. It is quite natural that the insurance organizations want to maximize profitability. Both of these dimensions are found interrelated.

It is well known that the key objectives of insurance business are mobilization of savings and channelization of investments. This makes it essential that insurance business is made lucrative so that the users /potential users get incentives to buy a policy or to invest in the insurance organizations. The insurance organizations also need to promote the underwriting activities, which would activate the process of arresting the regional imbalance. In the context of formulating the product mix, it is essential that the insurance organizations promote innovation and in the product portfolio include even those services and schemes which are likely to get a positive response in the future.

The corporate objectives indicate that the insurance organizations are required to be careful, especially while launching a new policy. The policies should not only generate enough premium but it is also important that the policies cover persons working in the informal sector, serving as porter, working as manual laborers, or engaged in farm sector. It is the need of the hour that the insurance organizations make their service internationally competitive. This makes a strong advocacy in favor of innovative product mix strategy for the public sector insurance organizations. Thus the formulation of product mix should be in face of innovative product strategy. Strategies of foreign and private insurance companies should be taken into consideration while initiating the innovative process.


The formulation of product strategy should assign due weight age to the rural segment emerging as a big profitable segment especially in the 21st century. The policies and schemes should have rural orientation so that backward and neglected regions of the country get priority attention and the regional imbalance is minimized.

In this context, it is also pertinent that the insurance organization make possible welfare orientation and include in the product portfolio even those policies and schemes which become instrumental in safeguarding the interest of the weaker sections of the society.

The formulation of package is also found important. Designing a package on the basis of the needs and requirements of the concerned segment would make the product mix more competitive.

The partially tapped or totally untapped profitable segments of the future should be identified and tapping the potentials optimally is also important.

A sound product portfolio is the need of the hour and therefore the regulatory barriers or constraints in activating the innovation process should be minimized.

Product Planning & DevelopmentThe purpose of insurance business is to generate profits besides sub serving the social interests. The present business is likely to be more competitive.

Product is like a stage on which the entire drama of successful marketing is acted. It is like an engine that pulls the rest of the marketing programmers. It is in this context that the product management in an insurance organization needs an intensive care.

Yesterday, the policyholders had limited hopes and aspirations but today they expect more and they would even like something more tomorrow. This focuses on the fact that strategic decisions are influenced by the environmental conditions.


The product development needs a new vision, a new approach and a new strategy. Till now the public sector insurance organizations have made possible an optimum utilization of their marketing resources especially in rural areas where tremendous opportunities are available. Thus they should assign due weight age to the development services /schemes which cater to changing needs and requirements of the rural segment.

In the development of product, the corporate investments need due priority.

Channelizing the corporate investments influences the rate of profitability of insurance companies and also contributes considerably to the socio-economic transformation process.

Thus the product planning and development should:

Give due weight age to the socially and economically backward classes Maximize the mobilization of savings by offering lucrative schemes. Assign due weight age to interests of investors. Maintain economy in business by promoting cost effectiveness. Act as a trustee of policyholders. Keep in mind the emerging trends in business environment. Improve the quality of customer / user services.


PROMOTION MIX

With the advent of private players in the insurance, companies resort to rampant promotion. Promotion mix for this sector is as follows:

AdvertisementAdvertisement can be done through the telecast media, broadcast media and print media. Insurance companies have been making optimal use of all the three kinds. Use of World Wide Web, as media is almost negligible and will not be very frequent in the near future considering the fact that the majority of customer base of these companies is not yet exposed to the Internet. The telecast media has been the most effective of all in case of the insurance sector. Most of the companies have their separate advertising section to take care of this aspect. An important consideration while making the decision as to the selection of the media is budgetary constraint. Since the insurance companies work on a large scale, usually this constraint does not stand as an obstacle.

Publicity

It is a device to promote business without making any payment and therefore it could be also called as unpaid form of persuasive communication bearing a high rate of sensitivity. Developing rapport with the media is an important aspect of publicity. This makes it essential that the PR officers working in the insurance organizations maintain contacts with the media personnel, organize press conference, and offer small gifts and memento to them. These days LGD marketing is gaining popularity the world over. It also can be applicable here. At the apex and regional levels, the PRO’s bear the responsibility of projecting positive image of the organization. Thus it is necessary to select suitable personnel for this. They should be in particular taught to deal with people, simple things like talking, greeting etc.


Sales PromotionIncentives to the end users for taking the policy play an important role in promoting the insurance business. Since the insurance business is also related to achieving of a particular target, it is pertinent that the policymakers assign due weight age to the same. The offering of small gifts during a particular period, the rebate, discount, bonus can increase business of organization by leaps and bounds. Besides, there can be gifts for the insurance agents also.

Personal SellingPersonal selling in case of the insurance organizations is quite important considering the existence of the insurance agents spread at all levels. Selection of these agents, their training is responsibility of the organization. There is difference in urban and rural market. Rural customers might be uneducated / uninformed etc. compared to the urban customer. Hence the organizations will have to make selections of the rural and urban agents accordingly.

Word of Mouth Promoting

The word – of- mouth communications result into wider publicity, which substantially sensitize the process of influencing the impulse of users/prospects of the insurance services. The satisfied group of customers, opinion leaders, the social reformists, the popular personalities act as word of mouth communicators. The advertisement slogans may be insensitive, the publicity measures may be ineffective but the positive feelings of friends and relations communicated cannot be ineffective. This makes it clear that the most important thing in the promotion of any business is the quality of services.


TelemarketingWith the development of satellite communication facilities and with the expansion of the television network, we find telemarketing gaining popularity the world over. The insurance organizations in general need to promote telemarketing. The foreign insurance companies have been assigning due weight age to this and in India this is beginning to gain importance with the advent of competition in this sector. The telemarketer is supposed to be well aware of the telephonic code so that the task of satisfying the customers/their queries will not consume much of time.

World Wide WebIn banking as well as insurance, more and more importance is being given to online contact facilities whereby complaints/comments could be sent through an email. Email is fastest written mode of communication and since it has been recognized legally, its use to clear doubts has been in full swing.

PRICE MIX

In the insurance business, the pricing decisions are concerned with the premium charged against the policies interest charged for defaulting the payment of premiums & credit facilities, commission charged for underwriting & consultancy services. The formulation of pricing strategies becomes significant with the viewpoint of influencing the target market or prospects. To be more specific in the Indian context where the disposable income in the hands of prospects is found low, the increasing inflationary pressure has been instrumental in contracting the discretionary income, the increasing consumerism has been making an assault on the saving potentials of masses, it is pertinent that the insurance organizations in general & public sector insurance organizations in particular adopt such a strategy for pricing that makes it a motivational tool & paves the ways for increasing the insurance business. Of course, a motivational pricing strategy is required to be given due weight age. This necessitates a new vision for setting premium structure & paying the bonus & charging the interest.


The strategy may have a new vision in the sense that the insurance organizations prefer to make a mix of high & low pricing strategy. The motive is to make the premium structure commercially viable so that the insurance organizations succeed in having a sound product portfolio besides fuelling development orientation. The pricing decisions make it essential that the insurers keep in their minds the nature of policy vis-à-vis the segment to which the prospects belong.

In the tangible products, cost of production is taken as the basis for fixation of prices. Even in the insurance business, it is found to be an important consideration & a dominating base. This makes the cost of insurance a decisive factor for charging premium. The important bases for determining the cost are rate of death, rate of interest & the expenses incurred on the insurance business. The mortality table helps the determination of death rate. It is to predict future mortality. The best method of construction of mortality table is to select a large number of persons at attained age, which is meant age close to the birth rate. The second important element is the rate of interest. On the basis of mortality rate, it is estimated that when & how much amount is to be received as premium & would be paid as claims but on the basis of interest rate, it is estimated that how much interest can be earned by investing the insurance funds. The last element is cost which focuses on different types of expenses. There are certain expenses, which incurred at the time of inception of the policy. This necessitates determination of the nature of expenses. The determination of expenses according to occurrence & equal distribution of the expenses every year for equitable distribution of loading are found significant to make possible a sound management of expenses.

The process of rate of fixation in the insurance organizations is not so scientific & identifies the cases of moral hazard. It is easier to identify the physical hazard but the task of identifying the moral hazard is found difficult. The premium charged is to be made rational to cater to the payment of claims on a priority basis including the catastrophic losses, management expenses & margin of profit. It is essential that various related to both the hazards are estimated in a scientific way. The actual process of rating consists of three steps, e.g. classification, discrimination & scheduling.


The price mix decisions are:

Making possible cost of effectiveness

Restructuring of premium

Due priority to profit generating investments.

Rationalizing or optimizing the social costs

Paving avenues for channelizing the productive investments

Assigning dude weight age to the policies meant for the socially &

economically backward classes

Making the ways for maximizing profit

PLACE MIX

The first component of the marketing mix is related to the place decisions in

which our focus would be on the two important facets – managing the insurance

personnel and locating a branch. The management of agents and insurance

personnel is found significant with the viewpoint of maintaining the norms for

offering the services. This is also to process the services to the end user in such

a way that a gap between the services- promised and services – offered is

bridged over. In a majority of the service generating organizations, such a gap is

found existent which has been instrumental in aggravating the image problem.

The policy makers make provisions; the senior executives specify the standards

and quality and the branch managers with the cooperation of the front-line staff

and others bear the responsibility of making available the promised services to

the end users. The public sector insurance organizations have failed in both the

areas. The agents, rural career agents, the front-line staff and even a majority of

the branch managers have become a party gap.


The transformation of potential policyholders to the actual policyholders is a

difficult task that depends upon the professional excellence of the personnel. The

agents and the rural career agents acting as a link lack professionalism. The front-

line staff and the branch managers are found not assigning due weight age to the

degeneration process. The insurance personnel if not managed properly would

make all efforts insensitive. Even if the policy makers make provision for the

quality up gradation, the promised services hardly reach to the end users. This

makes it significant that the insurance organizations in general and the public

sector insurance organizations in particular keep their minds in changing the

expectations of customers and the prospects. The behavioral profile of insurance

personnel is studied in a right fashion and the changes required due to the changing

perception of expectation are incorporated. It is essential that they have rural

orientation and are well aware of the lifestyles of the prospects or users. They are

required to be given adequate incentives to show their excellence. While recruiting

agents, the branch managers need to prefer local persons and by conducting

refresher courses to brush up their faculties to know the art of influencing the

users/prospects. In addition to the agents, the front-line staff also needs an

intensive training programmed. This makes it essential that the branch managers

organize an ongoing training programmed, which focuses on behavioral

management.

Another important dimension to the Place Mix is related to the location of the

insurance branches. While locating branches, the branch manager needs to

consider a number of factors, such as smooth accessibility, availability of

infrastructural facilities and the management of branch offices and premises. In


addition it is also significant that the branch managers assign due weight age to the

safety provisions. The management of offices makes it significant that the branch

managers are particular to the office furnishing, civic amenities and facilities,

parking facilities and interior office decoration.

Thus the place management of insurance branch offices needs a new vision,

distinct approach and an innovative style. This is essential to make the work place

conducive, attractive and proactive to the generation of efficiency. The motives are

to offer the promised services to the end users without any distortion and making

the branch offices a point of attraction. The branch managers need professional

excellence to make place decisions productive.

PEOPLE MIX

People are most important component of marketing mix for the insurance industry.

Sophistication in the process of technological advances makes the ways for the

personnel in such a way that an organization succeeds in making possible a

productive utilization of technologies used or likely to be used. Professional

qualification requirements change as technological develops & evolves. The use of

computers microcomputers, fax machines, sophisticated telephonic service, e-

mailing, intra-net service have been found throwing a big impact on the perception

of quality of service. This makes it essential that the insurance organizations also

think in favor of developing personnel in line with the development and use of

information technologies.


The front-line-staff as well as the branch managers are required to be given the

training facilities so that they in position to make possible an effective use of the

technologies. The insurance organizations bear the responsibility of developing the

credentials of their employees. In this context, it is also significant that they think

about the behavioral profile of insurance personnel. It is pertinent that the

employees are well aware of the behavioral management. They know &

understand the changing level of expectations of users & make sincere efforts to

fulfill the same. In this context, it is also significant that the senior executive while

recruiting, training & developing the insurance personnel make it sure that

employees serving the organization have a high behavioral profile in which

empathy has been given due place. The psychological attributes become significant

with the viewpoint of influencing the prospects or retaining the users. It is in this

context that the insurance companies need a rational plan for the development of

insurance personnel.

PHYSICAL EVIDENCE

Physical evidence includes facility design, equipment, signage, employee dress,

tangibles, reports & statements.

Signage:

Signage personifies the insurance company. It gives an identity by which users

recognize the company. A signage depicts the company’s philosophy & policy.


Following are the some of the examples

Tangibles:

Insurance companies give their customers & agents various tangible items like

pens, letter pad, calendars etc. such things try to reduce the intangibility

characteristics of this industry.

Statements:

The statements are the punch lines, which deeply depicts the vision & attitude

of an insurance company towards its users/potentials. It also indicates their

business motive.


PROCESS

Flow of activities: Since major activities are conducted through the agents, the

agents are given training and refresher courses etc. There are branches of

insurance organizations where these agents go for processing of

proposals/claims etc.

Standardization: The proposal/claim forms and other formalities are

standardized in case of each branch of an organization. Standardization here

implies procedural standardization. But the processing may differ from case to

case in case of claims.

Customization: As stated earlier, each case has its own peculiarities. Hence

amount of premium, proceedings of a claim etc. are quite subjective.

Number of steps: Clients of an insurance company differ from an insurance

policy – holder to a larger conglometeer. Number of steps in case of each group

will definitely differ. However in case of individual customer, the agents

handling the proceedings. Thus the actual customer, the agent handles the

proceedings. Thus the actual customer is not involved in proceedings for a

majority of steps. In case of the corporate, usually separate officer are appointed

to take care of each case. Standardization reduces many steps as well as the

time taken.


Simplicity: Use the national language/regional language, customer friendly

forms and instruction manuals, segregation of various department into counter

etc has made entire process quite simple.

Complexity: Insurance works on ‘spread of risk’ principle. The companies have

to use others’ money and hence they arte very careful not only while processing

the claims but also while accepting the proposals in the first place. Because of

some stringent norms, the process of obtaining and furnishing documents,

proofs etc becomes complex; but it has been quite simplified by the existence of

the agents.

Customer Involvement: Customers involvement in case of insurance

organization is quite limited. The insurance agent acts as PROs for the

company, they perform majority of the necessary formalities. The customers are

only involved in case of formalities like medical examinations, interviews etc.

but the organizations make it a point to let the customers express their concerns

through the customer’s complaint cell and mail/email contacts.

DIRECT MARKETING IN THE INSURANCE SECTOR


Today, the changing needs of consumers have led insurance companies to use

direct marketing strategies instead of relying solely on field agents. Direct

marketing offers advantages to both insurance companies and consumers.

Definition

Direct marketing in insurance is the use of television, radio, print, website

and social media advertising to attract customers. Typically, customers are

encouraged to contact the company directly to obtain quotes and start

policies.

Direct Mailings

Insurance companies frequently use mailings as part of a direct marketing

campaign. Prospective customers receive postcards or letters encouraging

them to contact the company.

Marketing Efficiency

Direct marketing gives an insurance company greater control over the

message that is conveyed to potential customers. It also allows the company

to save money on advertising through economy of scale.

Convenience

Customers can enjoy the convenience of working with an insurance

company over the phone or via the Internet. In many cases, customers can

obtain quotes and coverage without leaving their homes or offices.

http://www.ehow.com/facts_5796285_direct-marketing-insurance-sector_.html



Savings

Because insurance companies save money through direct advertising, they

can pass those savings on to customers in the form of lower premiums.

INSURANCE ADVERTISEMENT

Introduction



Insurance Advertising is done by companies that provide the facility of

insurance. They do so in order to attract attention of the customers and utilize

them. This helps them to increase their profit percent and take their company to

greater heights. They launch several attractive schemes to do so.

Insurance Advertising encourages brokers and sellers to earn for them by

selling more and more insurance products of their company. They try to convince

the customer and fulfill their demands and provide services according to their need.

Satisfaction of the customer is the utmost policy in this field of Insurance

Advertising. They use various methods to attract attention which may include

media, banner display, visual interaction, etc. Product advertising describes the

benefits from the product that it will give after it is being taken into consideration.

The other Insurance Advertising used is Institutional Advertising. It describes the

financial strength and stability of the company. Companies advertising may be

national, local or corporative; it entirely depends on the target of market and size.

Advertising and marketing are very competitive when it comes to personal

general Insurance Industry. The better you make strategy, the better you are as a

competitor. It entirely depends on the current scenario of the market as how the

likings and disliking of the common people are going in the world. Companies

have to keep themselves updated all the time for Insurance Advertising purpose.

An effective advertisement in any area of business often holds a special

allure for those who are approaching the task of advertising in their own fields.

While it's certainly common knowledge that there are a number of elements that go

towards creating a great advertisement, the initial look, as well as the less overt

visual elements, can seem to contain the secret of the advertisement's success. As


visual creatures, humans are typically preoccupied with the aesthetics of a given

object, and creating an attractive advertisement is a cricual component of

conveying a desired message in a positive and effective light. For insurance

companies, advertising can pose a great challenge with new considerations to be

made, and those working on advertising projects are likely to wonder just how

their advertising should look. But though there are some guidelines that can be

followed for obtaining a successful result, relying too much on industry

perceptions of how things should look can cause trouble. In insurance companies

advertising, as with advertising in any field, there are certain elements and

templates that can easily be identified for their formulaic and pattern-laden

qualities.

Sometimes, insurance companies might choose to work with such

templates and styles out of a need to simplify the advertisement creation process,

whether to save on resources or out of a simple lack of willingness to devote more

energy to the task. Though using such tools can create an advertisement that many

would say looks somehow correct or fitting, it will not necessarily convey any

special message or leave a positive or lengthy impression on those who are

exposed to the advertisement, a failing that can render a campaign practically

worthless. Rather than adapt the advertising styles and strategies deployed by other

insurance companies, it can be a great idea to work with basic, common-sense

guidelines for advertising, upon which individual ideas and efforts can be built.

Insurance companies advertising should follow the simple rules of advertising in

any line of business, focusing on targeting and effectively communicating with

certain demographics, and placing advertisements in quality, high-traffic areas that

can convey deep meaning to audiences.


Once methods for meeting these goals have been established, insurance

companies advertising is simply a matter of expressing the vision and personality

of the company itself. Whether this expression is created by a dedicated

professional or is performed in-house is up to those producing the advertising, and

both methods have their own individual merits. Keeping work in-house is likely to

be less expensive than contracting the work to an outside talent or agency, though

the quality of designs in any medium as created by a seasoned professional may

prove to be well worth the expense. In either case, creating an accurate

representation of the flair of an insurance company, instead of attempting to make

it align with the image of its competitors, is a powerful idea with consistently

positive results. The answer to the question of how insurance companies

advertising should look can't truly be answered with a single collective image,

though some professionals may suggest that a magic formula or other special,

proprietary tool is the secret to insurance advertising success. Relying on the

principles of good advertising for all businesses while bringing insurance to the

fore through portraying a company's personality is a dependable method for

making any insurance company stand out with a great image and a lasting ability to

persuade and impress.

The objectives of “INSURANCE ADVERTISEMENT” are:

1. Informing / telling / educating potential customer.


2. Informing existing customers about new products / services.

3. Follow up with existing / potential customers for schemes introduced.

4. Approaching a new segment of customer to attract them to promote new

scheme.


APPROACHING TOWARDS ADVERTISEMENTS FOR INSURANCE

To the uninitiated, advertising can seem like a vastly complex field in which

deeply mysterious components are arranged in various juxtapositions, hopefully

resulting in a positive increase in impressions and eventual sales. While it's

certainly true that the field often incorporates esoteric elements, advertising is far

from being incomprehensible, and spending a bit of time with the subject is likely

to yield a better feel for the exact operation of this important part of modern

business. Insurance, as with any other professional field, relies heavily upon

advertising, and there are several distinct methodologies and ideas that have been

developed and refined to help advertising for insurance become more effective.

One of the most important aspects of modern insurance advertising is the

ability to target advertisements to those prospects who are mostly likely to be in

need of a certain type of insurance, and who are also most likely to buy a policy.

While in the past, advertising has largely had to rely on reaching audiences

as large as possible in order to make a meaningful impact, today's advertising tools

allow for precision targeting that can render even the smallest of campaigns

successful.

The key to working with quality targeting methods is to make sure that the

intended audience is well understood. This means that agents and companies

should understand precisely who their ideal client is, and should then gather as

much pertinent information about that client as possible. Being able to cater to the

specific needs, concerns, lifestyle choices, and other criteria possessed by a client

will result in a sense that an advertisement has been uniquely hand-created for a


single person, making that person feel cared for, respected, and ultimately eager to

purchase.

Of course, knowing to whom you wish to advertise can only be part of the

promotional process, as there still needs to be a message to transmit. At this stage,

it may be beneficial to hire an advertising agent, designer, or other industry

professional to help fashion the kind of image and idea that is desired. While such

professionals can be of great help, they are not necessarily required; a growing

number of agents and brokers are using their own skills to put together simple

advertisements that are both attractive and effective. To tackle the content of

advertising for insurance alone, it may be of benefit to sit down with a brainstorm

or other organizational tool to arrange thoughts and ideas about the sort of

impression that should be made. Testing the results in a small batch run or putting

the advertisement or set of advertisements before a judging panel of colleagues

may be advisable before full publishing and distribution are completed.

After advertisements have been created and tested, with any necessary

revisions and refinements applied, they can be printed or otherwise mass-produced.

Though it is, in theory, possible to complete this step by hand, the vast majority of

insurance advertisers chose to work with a professional printing shop or other well-

equipped service.

Advertising for insurance can then be distributed in whichever way is most

appropriate for the message; a consideration which is crucial in the creation of a

good campaign.

When these elements are combined with patience and skill, quality

advertising for insurance is a snap. Though preparing a first campaign can be


challenging, following these simple steps and incorporating personal, creative

ideas can result in effective advertising that makes great impressions, and will only

improve over time.

WAY OF INSURANCE ADVERTISEMENT

To the uninitiated, advertising can seem like a vastly complex field in which

deeply mysterious components are arranged in various juxtapositions, hopefully

resulting in a positive increase in impressions and eventual sales. While it's

certainly true that the field often incorporates esoteric elements, advertising is far

from being incomprehensible, and spending a bit of time with the subject is likely

to yield a better feel for the exact operation of this important part of modern

business. Insurance, as with any other professional field, relies heavily upon

advertising, and there are several distinct methodologies and ideas that have been

developed and refined to help advertising for insurance become more effective.

One of the most important aspects of modern insurance advertising is the

ability to target advertisements to those prospects who are mostly likely to be in

need of a certain type of insurance, and who are also most likely to buy a policy.

While in the past, advertising has largely had to rely on reaching audiences as large

as possible in order to make a meaningful impact, today's advertising tools allow

for precision targeting that can render even the smallest of campaigns successful.

The key to working with quality targeting methods is to make sure that the

intended audience is well understood. This means that agents and companies

should understand precisely who their ideal client is, and should then gather as

much pertinent information about that client as possible. Being able to cater to the

specific needs, concerns, lifestyle choices, and other criteria possessed by a client

will result in a sense that an advertisement has been uniquely hand-created for a


single person, making that person feel cared for, respected, and ultimately eager to

purchase.

Of course, knowing to whom you wish to advertise can only be part of the

promotional process, as there still needs to be a message to transmit. At this stage,

it may be beneficial to hire an advertising agent, designer, or other industry

professional to help fashion the kind of image and idea that is desired. While such

professionals can be of great help, they are not necessarily required; a growing

number of agents and brokers are using their own skills to put together simple

advertisements that are both attractive and effective. To tackle the content of

advertising for insurance alone, it may be of benefit to sit down with a brainstorm

or other organizational tool to arrange thoughts and ideas about the sort of

impression that should be made. Testing the results in a small batch run or putting

the advertisement or set of advertisements before a judging panel of colleagues

may be advisable before full publishing and distribution are completed.

After advertisements have been created and tested, with any necessary

revisions and refinements applied, they can be printed or otherwise mass-produced.

Though it is, in theory, possible to complete this step by hand, the vast majority of

insurance advertisers chose to work with a professional printing shop or other well-

equipped service. Advertising for insurance can then be distributed in whichever

way is most appropriate for the message; a consideration which is crucial in the

creation of a good campaign. When these elements are combined with patience and

skill, quality advertising for insurance is a snap. Though preparing a first campaign

can be challenging, following these simple steps and incorporating personal,

creative ideas can result in effective advertising that makes great impressions, and

will only improve over time.


* Finalizing the budget:

This is related to the formulation of the budget for advertisement. The

insurance company’s professionals, senior executives and even the policy planners

are found to be involved in the process. The business of a insurance determines the

scale of the advertisement budget. In addition, the intensity of competition also

plays a decisive role since in the majority of cases; we find an increase in the

budget due to a change in the competitor’s strategy.

* Selecting a suitable vehicle:

There are a number of devices to advertise, such as broad cast media,

telecast media and print media. In the face of the budgetary provisions, it is

necessary to select a suitable vehicle. For promoting the insurance companies, the

print media is found to be economic as well as effective.

* Making possible creative:

The advertising professionals bear the responsibility of making the appeals,

slogans and messages more creative. Here, creative means making the

advertisement programs distinct to the competitive organizations, which are active

in influencing the impulse of the customers and successful in informing and

sensing the customers. This requires an in-depth knowledge of the receiving

capacity of the target market for which the advertisements are designed.

* Testing the effectiveness:

It bears an analogous significance that advertisements are effective in

influencing the impulse of customers by energizing persuasion. For making the


process effective, it is essential to test the effectiveness before launching of the

commercial advertisements.

* Instrumentality of branch:

At micro level, a branch manager bears the responsibility of advertising locally

so that the messages reach the target audience.

* Characters and themes:

At apex level it is also important that while advertising the senior executives

watch the process minutely and select events, characters having a regional

orientation. The popular characters and sensational moments are likely to be

impact generating. The theme for appeals and messages also needs due attention.

Of course, they have a legitimate right of advertising but it is not meant that like

the goods manufacturing organizations, the service generating organizations also

start making invasion on culture. It is necessary to regulate a bias to gender,

profession, region or so.

Insurance Agents

Insurance agents have become another important tool for advertising

insurance product. These agents have knowledge about the respective insurance

company details and its products in which they are working as agent. They provide

all the details about the insurance product to the potential customers and also

persuade the customers to buy the insurance policies. They also provide brief

details about the insurance policies. This advertisment are very famous in LIC ltd.


Councelling advertisment

These are the non famous advertisment used by insurance companies. The

insurance companies take advantage of making customers in any seminar,

presentation etc. they too provide pamplets,brouchers etc to the potential

customers. Special seminar is conducted by a high qualified personnel like the

manager of the company for attracting the customers and too, pusuading them.

Television Advertising

Insurance advertising, which is worth over Rs 300 crore now, is set to enter

a new phase from August this year and Consumers may no longer be lured by

attractive ads and tall promises.

Almost all insurance companies are working on last-minute changes in the

fine print of their existing ads, both on their corporate brands as well as product-

specific advertisements. This follows the insurance regulator's strong directive to

insurers to come up with clear and fair communication without misleading

consumers on various 'latent intricacies' of insurance communication.


ICICI Retirement Solutions Insurance - TV Commercial HD-Q

Director: Rajiv Menon Producer: Rajiv Menon Productions Agency: Lintas

Mumbai Client: ICICI Prudential Camera: Rajiv Menon Music: Singer Sreenivas

The genre of insurance ads have changed over time in the way marketers

have tried to position life insurance as a category, shift ing from corporate brand

recall to introducing solutions. Today life insurance is not associated with death

and despair as much as it is with hope and security, which is getting reflected in

insurance advertising.

http://www.youtube.com/watch?v=0mgMaNkZg1Y

http://www.youtube.com/watch?v=0mgMaNkZg1Y


State bank of India

"We will be evaluating all our advertisements and ensure that, by September

1, 2007, which is the prescribed grace period, we will be fully compliant with our

ad promotion. This will require us to review all our advertisements. We are going

through all the implications that the new guidelines will put through to not only our

Ulip but also to other products," Rahul Sinha, Marketing head, Kotak Mahindra

Old Mutual said.

"The changes in the trends in advertising is significant as ads are not going

to fight on the rupee spend and the recall but on differentiation of offer and

demonstrating the same at the point of sales," he added.


HDFC Pension plans, HDFC standard life insurance

"Our 'Sar Uthake Jiyo' campaign has made a huge difference for HDFC

Standard Life. While it has increased our overall brand awareness, our stress on the

need of children and pension plans has helped us grow in these segments and

increase our business. Till date HDFC Standard Life has been compliant with all

guidelines set by the Irda and ASCI in our advertising. We are going through the

Irda guidelines and may need to make some minor inclusions," Sanjay Tripathy,

Marketing head, HDFC Standard Life, said.

Apprising intermediaries on the new Irda guidelines will be crucial. "We

always apprise and keep our intermediaries up-todate on the code of conduct

through extensive training and communication," pointed out Joydeep Roy, Chief

distribution officer, Tata AIG Life Insurance Company.

Advantages of television advertising include:


o Ability to reach a greater, more diverse audience

o Targeted markets can be easily reached by proper ad placement

o Greater possibility for creativity-ability to incorporate sound, sight, color

and motion to engage consumers

o Gives product near-instant validity and prestige

Because of these valuable benefits, television is one of the most expensive ways to

advertise. A spot during primetime hours (8:00 PM until 11:00 PM) can cost 10 to

30 times more than a radio spot during drive time!

Disadvantages of television advertising include:

o Cost of hiring an ad agency to plan and shoot the commercial

o Cost of running the ad multiple times

o Consumers have grown to expect interesting, high-quality commercials;

anything less could actually hurt your business

o Competition for viewer's attention amid other elements in his or her

environment

But despite these drawbacks, if you have the budget to incorporate TV advertising

in to your marketing practices, most experts agree that it's worth doing.

Due to the complex nature of television advertising, you will probably want to

consult with or hire an agency or representative to help you. Your representative

will guide the creative direction of the ad, pinpoint the programs between which to


run your ad(s), and help you determine whether to run the ad on broadcast

television or cable television.

When it comes to advertising on television, it's important to shop around and find

the best fit for your business—and your budget.

Radio advertisements

The insurance company does advertise on radio. They inform the radio

instructor to repeat the name of the insurance company in each break or to repeat

the new insurance policy of the insurance policy. This way the attrat the viewer's

attention on radio.

Example: radio mirchi, radio city, red FM, fever 104, meow, etc.

Telemarketing

The telemarketing is very important tool for advertising about any respective

products of any insurance company. Now days the tele employees of insurance

company give a call to the potential customer and try to provide each information

about their products and also, try to convince them for buying the products. The

tele employees are given a task as per day, months, etc to sell the insurance

products through telecalling. Telephone sales, or telemarketing, is an effective

system for introducing a company to a prospect and setting up appointments.

Newspaper Advertising

When it comes to print ads, newspaper advertising is one of the best ways to

advertise your agency and products. Because nearly all households receive a

newspaper through a personal subscription or newsstand, newspaper advertising is


a great way for your agency gain consumer recognition. Famous slogans or punch

lines of any life insurance or general insurance products are advertised in the

newspaper advertisement. They are the secondly common adopted types of

advertisement of insurance product. Newspapers are one of the traditional

mediums used by businesses, both big and small alike, to advertise their

businesses.

Advantages of newspaper advertising include:

o Ability to reach different demographics by placing advertisements in

different sections of the newspaper

o People expect to see ads in the paper—some even look for them

o Large variety of ad sizes to correspond with various budgets

Disadvantages:

o Newspapers are generally read once and thrown out

o Smaller ads can look nonexistent on large pages

o Ads have to compete for the reader's attention with all other ads on the

page

o Print quality may distort graphics and photos in an unfavorable manner

Max New York Life Insurance - Karo Zyaada ka Iraada

http://www.youtube.com/watch?v=4haEYOZ9dTE


Keeping both the advantages and disadvantages of newspaper advertising in

mind will help you make better decisions about the ad(s) you wish to list in the

paper. As with television advertising, you may wish to consult an ad agency or

copywriter to help you design your ad. The newspaper's ad sales department will

probably try to convince you that the paper can do the layout for you or set your ad

in a pre-formatted template. Be advised that these "prepackaged" ads are not

typically catching to the eye—which won't help bring in new clients. Paying an

outside agency to help you with the ad is likely to be worth the money. Newspaper

space is typically sold by the column and inch, which is commonly referred to as

the "inch rate". The inch rate may well differ from paper to paper, so be sure to

shop around. Keeping the inch rate in mind, you can then decide which ad size

you'd like by looking at the existing ads in your local paper. Simply measure the

length and width of the ad—if an ad is two columns across and six inches down, it

would be a 12-inch ad. You can then multiply the size of the ad by the inch rate to

get an idea of how much the ad will cost you.

Internet


Online advertising is a form of promotion that uses the Internet and World

Wide Web for the expressed purpose of delivering marketing messages to attract

customers. Now a day’s insurance products are also sold on internet. They

advertise the insurance products on the web pages of any. The web provider

manages to inform about the insurance policies of any company within a short

period of time. This are commonly used advertisements for insurance. This are the

other type of indirect insurance advertisement. Direct mail is a type of advertising

medium in which messages are sent to target customers through the mail.

Newcomers to the field of direct mail often use the terms "direct mail," "direct

marketing," and "mail order" interchangeably.

Outdoor Advertising

While outdoor advertising used to be contained to large signs and billboards,

businesses have expanded outdoor advertising to include benches, electronic signs

and public transit systems—gaining popularity as an affordable advertising

medium. Unlike television and newspaper advertisements, outdoor advertising is

not voluntary to the consumer.

Outdoor advertising include:

o The public can't throw out or turn off outdoor advertising, resulting in a

true "captured audience"

o Frequency is easily achieved by consumers driving or walking by the ad(s)

on a regular basis

o Proven to boost the effectiveness of other types of advertising, such as

print ads

http://en.wikipedia.org/wiki/Marketing

http://en.wikipedia.org/wiki/World_Wide_Web

http://en.wikipedia.org/wiki/World_Wide_Web

http://en.wikipedia.org/wiki/Internet

http://en.wikipedia.org/wiki/Promotion_(marketing)

http://en.wikipedia.org/wiki/Online_advertising


Truly effective outdoor advertising makes use of bold colors, simple backgrounds

and to-the-point text, which can present quite a challenge.

Disadvantages of outdoor advertising include:

o On average, outdoor advertisements only catch two to three seconds of the

consumer's time

o Messages have to be both concise and interesting to resonate with the

consumer in those fleeting seconds

o Outdoor advertisements are typically purchased in three-month chunks,

which may not be beneficial for short term advertising needs

As with television and print ads, you'll most likely want to consult with or hire an

outside advertising agency to help you build a campaign that best suits your agency

and the products you sell.

Magazine advertisements

This is the advertisements is done through magazines. The insurance

company sponsored the magazine to release in the society and in return they

advertise the policies of their company. This is the other types of indirect

advertisements done by the insurance companies. The magazines may be release

by any colleges, society, schools, apartments, etc. Magazines are a more focused,

albeit more expensive, alternative to newspaper advertising. This medium allows

you to reach highly targeted audiences.

Celebrity Advertising


Although the audience is getting smarter and smarter and the modern day

consumer getting immune to the exaggerated claims made in a majority of

advertisements, there exist a section of advertisers that still bank upon celebrities

and their popularity for advertising their products. Using celebrities for advertising

involves signing up celebrities for advertising campaigns, which consist of all sorts

of advertising including, television ads or even print advertisements.

LIFE INSURANCE ADVERTISING


Advertising plays a very important role in modern business. Due to

excessive specialization, mass production and competition, advertising has become

an indispensable activity in business. It is growing as a backbone of modern

national and international marketing. When life insurance is being talked of, it is

one of the hottest picks in the insurance industry. Keeping this in view, insurance

companies try to pull crowd towards life insurance, and go for different

advertisement techniques to attract people.

Life insurance companies are employing every new mean to advertise

themselves. The most obvious but expensive forms of advertising being employed

by them is the television. A huge number of people are glued to the television, so

insurance companies target this medium on a prime basis. They build distinct

advertisements that arrest the attraction of the viewers, thus putting a mark on them

about the importance of life insurance and what they have to offer. TV

advertisements are very effective since target audience both see and listen to what

is being told at the same time.

Advertising about life insurance in local newspapers is also a very effective

way to advertise and market the agency, since the companies try to build brand

name recognition for themselves. The online version of the Wall Street Journal has

over 4.5 million visitors, having a catchy insurance advertisement there will

definitely pull a big crowd. Life insurance companies also understand that local

audience and a family type atmosphere is a great way for advertising insurance

business. So, these firms play their advertisements in movie halls when people are

out with their family to watch a film, typically coming up when viewers are sitting

in their seats waiting for the movie to start.


Life insurance companies are also finding different innovative ways of

advertising their brand. They are distributing newsletters so as to reach target

customers in person. These firms are also advertising life insurance through their

business stationary and supplies. They distribute stuffs like pens, paperweights,

calenders etc with their names embarked on the stuffs. Online advertisements on

popular web portals is also being employed by these firms. Along with publicizing

their brand names, the life insurance companies also keep reminding people about

the importance of getting life insurance.


HEALTH INSURANCE ADVERTISING

Advertising is the means through which products of a company can be

marketed. To give knowledge of a product, advertising is the only means. Health

insurance advertisement is a best way to propagate the idea of Insurance among

general public. The main aim of an insurance company is to advertise health

insurance effectively by all possible means. Now-a-days, most advanced methods

are being used to advertise for health insurance.

Advertising for health insurance in television, newspaper and radio is very

effective. Although it costs a bit for a health insurance tv ad, it is the most

powerful tool for a large scale or wide spread campaign. Advertising health

insurance must be carefully dealt with, because of the sensitive issues involved in

spite of it being a business. An ad for health insurance must appeal to the audience

in a positive manner.

An advertisement for health insurance should be promising for the viewers.

Otherwise it would be a mere failure. If the health insurance advertising company

or companies are successful in convincing the audience about their past success

record and able to introduce different flexible policies for the well being of

different range of customers, success is inevitable. The policy holders must be

acquainted with the risks involved, if any.

Surprisingly, we may sometimes find a health insurance ad on a web page

we surf. This kind of advertising by the ad agencies is all right until it doesn`t pose

any integrity questions. Because, health insurance is a sensitive matter. Health

insurance advertisement campaigns not only help the masses for giving them a


secured life but also to build a nation with greater life expectancy ultimately

leading to a much brighter future of a country for its all-round development.

Health insurance is a field which has been experiencing alarming growth

rates in recent years nationwide, and which continues to be one of the most

lucrative areas in which insurance agents and brokers can work. With the universal

need for health care, having a pitch to express to health insurance prospects isn't

especially difficult, but agents and brokers working in this field will likely readily

acknowledge the fierce competition that exists as a result of the volume of health

insurance policies and packages being shopped for and sold. While selling health

insurance through traditional advertising strategies that incorporate emotional

triggers and excellent placement are still important considerations within these

fields, it is often the case that outperforming competition is a major factor in

successful health insurance campaigns.

Of course, rising over competition can be a tall order, especially when it

comes to the insurance world. The high degree of variability in size, scope, and

potential reach of agents and over-arching agencies means that not all hopeful

health insurance salespeople will be able to devote the resources necessary to out-

perform others. One of the most important considerations when approaching health

insurance advertising is the honest assessment of potential reach; that is, how large

and varied an audience a campaign will address. One this figure has been

produced, agents and groups can work towards identifying other health insurance

advertising sources that present realistic competition.

Tackling competition has become something of a catch-phrase in modern

business, and its essential meaning may be lost in the frequency with which it is

used. While some agents may enjoy the idea of seeing a competitor completely


destroyed, truly out-classing another has more to do with the strength of individual

performance than with the direct effects on others. It's a good idea to become

familiar with the health insurance advertisements of others, and to get a feel for

their style and message; these elements can be used to consider the mindsets and

existing messages being shown o the audience you wish to reach. But beyond this

point, many of the best health insurance advertising practices are based simply on

doing well in an objective sense.

Apollo Munich Health Insurance Company Theme - Let's Uncomplicate Apollo

Munich Health Insurance Co Ltd. (Apollo Munich), the pure health insurance

company , Apollo Munich launches its new marketing campaign ...

http://www.youtube.com/watch?v=n7oRHXHqks8


After making proper

assessments as to the current state of local health insurance advertisements as

gleaned from realistic competitors, insurance agents can obtain additional

information about their audience and consider specific niches in order to target

their messages more directly. Having specific attributes and ideas in mind when

producing an advertisement will help pieces "speak' to potential buyers, making

them feel more important and relevant -and more agreeable to purchasing a policy

or package, too. Once these elements have been assembled, advertising is simply a

matter of aesthetic or verbal design, which can be accomplished with the help of a

dedicated professional or with one's own skills.

Health insurance advertising may seem like a daunting field at first glance,

and indeed, with the sheer amount of people selling, shopping for, and buying

health insurance both on and offline, individual efforts can feel lost in a sea of

similar attempts. But through taking the time to make honest assessments about

competition and audience, and applying this information to advertising campaigns,

health insurance agents can achieve successful advertising campaigns capable of

vastly improving sales ratios, career, development, and professional satisfaction.


As with most things in the insurance world, this takes diligence, patience, and a bit

of personal cunning -attributes that insurance agents and brokers are likely to

already possess in abundance.

ROLE OF SLOGANS IN INSURANCE ADVERTISING

MAKING GENERAL INSURANCE ADVERTISING

SLOGANS

They're sung in the shower. They're hummed in the middle of traffic jams.

They weave in and out of consciousness, influencing buying decisions long after

they've been introduced. They're valuable gems that can be crafted to meet any and

every specification, but not all business slogans succeed. Some quickly become

associated with negative elements and may require immediate re-branding efforts

for damage control, while others may simply flop and never stick in the mind of a

single audience member. The creation of a quality slogan with the potential to

promote a brand on a consistent basis is one of the most important pursuits a

business can have, but it is by no means a simple or luck-based process. In the

insurance world, where impressions comprise a remarkable portion of the success

or failure of a firm, having excellent insurance advertising slogans is imperative.

But how are such slogans made?


Some slogans might be described as silly, while others take on a more

serious tone. There are insurance slogans that incorporate literary devices such as

alliteration and others that seem far removed from any nuances of refined

language. There are slogans for insurance companies that span the full spectrum of

directions and ideas in insurance sales, and all have varying degrees of success.

Though the mass of existing slogans may be a little messy, their collective message

is clear: there is no magic formula for creating perfect insurance advertising

slogans. While this may be a bit of a disappointment to some insurance agents and

companies, it also allows for an important creative process that can help an agency

improve its image internally, leading to better advertising results overall. A

primary part of creating insurance advertising slogans is identifying one or two

elements about a firm or its offerings that should be highlighted. It can be tempting

to produce an exhaustive list of a firm's qualities and goals, but such lists are best

left to mission statements and other pieces of literature that have the space and the

interest for length. When it comes to creating a powerful slogan, brevity is

essential. Condensing the chosen element or elements into a short phrase is

sometimes a difficult step, but playing around with words can lead to an acceptable

solution in most cases. After a basic phrase has been created, the slogan should be

re-considered, tested, and refined several times until it is just right. Using the

slogan that is first produced without revisions may seem like a good idea,

especially for those agents who are pressed for time, but the importance of the

slogan warrants a great deal of careful consideration, and returning to a slogan in

intervals after it has been created will reveal any problems or bad choices that were

initially hidden.Creating excellent insurance advertising slogans without the

assistance of a professional agency or consultant is certainly possible, though a

number of agents and brokerages prefer to place their trust in the experience and

knowledge of someone well-qualified for the job. It is important, however, to note


that even when using a professional service, slogans may turn out to be less

successful than anticipated, and may need to be revised or entirely re-invented in

the future. Ultimately, a determined attitude and a bit of fun encouraged along the

way can lead to the perfect slogan whether it's created with the help of an outside

agency or is an entirely in-house affair.

EXAMPLE:-

- Max New York Life Insurance - Karo Zyaada ka Iraada

- HDFC Pension plans, HDFC standard life insurance - 'Sar Uthake Jiyo'

http://www.youtube.com/watch?v=4haEYOZ9dTE


DIFFERENT APPROACHES IN INSURANCE

ADVERTISEMENT

An effective advertisement in any area of business often holds a special

allure for those who are approaching the task of advertising in their own fields.

While it's certainly common knowledge that there are a number of elements that go

towards creating a great advertisement, the initial look, as well as the less overt

visual elements, can seem to contain the secret of the advertisement's success. As

visual creatures, humans are typically preoccupied with the aesthetics of a given

object, and creating an attractive advertisement is a cricual component of

conveying a desired message in a positive and effective light.

For insurance companies, advertising can pose a great challenge with new

considerations to be made, and those working on advertising projects are likely to

wonder just how their advertising should look. But though there are some

guidelines that can be followed for obtaining a successful result, relying too much

on industry perceptions of how things should look can cause trouble.

In insurance companies advertising, as with advertising in any field, there

are certain elements and templates that can easily be identified for their formulaic

and pattern-laden qualities. Sometimes, insurance companies might choose to work

with such templates and styles out of a need to simplify the advertisement creation

process, whether to save on resources or out of a simple lack of willingness to

devote more energy to the task.

Though using such tools can create an advertisement that many would say

looks somehow correct or fitting, it will not necessarily convey any special


message or leave a positive or lengthy impression on those who are exposed to the

advertisement, a failing that can render a campaign practically worthless.

Rather than adapt the advertising styles and strategies deployed by other

insurance companies, it can be a great idea to work with basic, common-sense

guidelines for advertising, upon which individual ideas and efforts can be built.

Insurance companies advertising should follow the simple rules of advertising in

any line of business, focusing on targeting and effectively communicating with

certain demographics, and placing advertisements in quality, high-traffic areas that

can convey deep meaning to audiences.

Once methods for meeting these goals have been established, insurance

companies advertising is simply a matter of expressing the vision and personality

of the company itself.

Whether this expression is created by a dedicated professional or is

performed in-house is up to those producing the advertising, and both methods

have their own individual merits. Keeping work in-house is likely to be less

expensive than contracting the work to an outside talent or agency, though the

quality of designs in any medium as created by a seasoned professional may prove

to be well worth the expense. In either case, creating an accurate representation of

the flair of an insurance company, instead of attempting to make it align with the

image of its competitors, is a powerful idea with consistently positive results. The

answer to the question of how insurance companies advertising should look can't

truly be answered with a single collective image, though some professionals may

suggest that a magic formula or other special, proprietary tool is the secret to

insurance advertising success. Relying on the principles of good advertising for all

businesses while bringing insurance to the fore through portraying a company's


personality is a dependable method for making any insurance company stand out

with a great image and a lasting ability to persuade and impress.

MAJOR MISTAKES DONE BY INSURANCE COMPANY IN

ADVERTISING

Envisioning a new advertising product, it's unlikely that a professional in

any field will take the time to consider what precisely they might do wrong, and

how badly the campaign might turn out to be as a result. Though it can be of great

benefit to make such considerations, it's far from an appealing task for most

people. In the world of insurance, however, the consideration of risk, and of what

might go wrong, are elements that help define and legitimize the industry as a

whole, and insurance agents and companies are likely to have such considerations

in mind throughout various tasks and stages of work -even when it comes to

advertising. Staying aware of the risks of any individual choice can go a long way

towards avoiding any unpleasant surprises, but it can also be beneficial to

investigate and understand common mistakes that are made in insurance company

advertising, so that repeat performances can be avoided without the hassle of

learning the lesson first-hand.

There are some major mistakes in insurance company advertising that are

fairly straightforward and which might be avoided in the first place by ensuring

that at least a minimal understanding of modern advertising is reached before a

campaign is started. Knowing what kind of people make up an intended audience,

and catering a message to them in a precise and individualized way, is an important

process that is all too often ignored, leading to wasted expenses and the possibility

of creating negative impressions. Targeting auto insurance advertising to groups

that are too young to drive or who have likely retired from the activity, or to those


concerned about the environment and dedicated to public transport, for instance,

can have disastrous results.

Choose the wrong place or time to release an advertisement is another fairly

common mistake made in the world of insurance company advertising. Plastering a

poster anywhere and paying for an air spot on any and all radio stations can have

poor results, and such efforts tend to miss the quality prospects that could actually

become lucrative sales opportunities. Other mistakes frequently made by insurance

companies when working with advertising are less apparent to the inexperienced,

though they can be just as crucial to the success of a campaign.

Incorporating trendy images, slogans, or other elements into an insurance

advertisement may seem like a fun and convenient way to make an advertisement

fresh, or to create appeal to a young or hip audience, but using this technique can

often lead to difficulty in disassociating from the time-dependent aspect of the

advertisement at a later point, making an insurance company seem out-dated or

behind the times. In a similar vein, adopting the techniques and styles of other

insurance companies or competitors is a mistake that new and even seasoned

advertisers sometimes make, hoping to show audiences that they are just as

valuable as other companies. This method, however, often leads to the impression

of homogeneity, making it difficult for shoppers to distinguish between firms, so

that a simple association, rather than a distinction, is made. Avoiding common

mistakes in insurance company advertising is easy when basic advertising

guidelines are followed and care is taken to consider how different variables may

have an effect on a campaign.


For insurance companies, such considerations may be second nature, though

knowing how major blunders are made will bolster the potential to get everything

right on the first attempt.


GUIDELINES ON INSURANCE ADVERTISEMENT

GUIDELINES ON ADVERTISEMENT, PROMOTION & PULICITY OF

INSURANCE COMPANIES, AND INSURANCE INTERMEDIARIES

The success of sales communication depends on public confidence and the

faith they repose in the insurance companies, when they receive a communication

from them promoting their products. As such the insurers are expected to adopt

honest and fair practices in the market-place and avoid practices that tend to impair

the confidence of the public. As it is very difficult for the public to understand and

evaluate the latent intricacies involved in the various insurance products, it is of

paramount importance that the publicity material is relevant, fair and transparent

enabling informed decision making about whether or not to buy a specific

insurance product. The verbal communication that the prospects receive from their

advisors can be supplemented by the written material that is made available to

them. These guidelines issued with the above background are intended to protect

the interests of the insuring public, enhance their level of confidence on the nature

of sales material used and ultimately encourage fair business practices. They are

to be considered as the minimum standards to be adhered to, in addition to

compliance with the IRDA (Insurance Advertisements and Disclosure)

Regulations, 2000 (hereinafter referred to as ‘Advertisement Regulations’) and the

code of conduct prescribed by the Advertisement Standards Council of India

(ASCI) and any other regulations as applicable. These guidelines reinforce the

extant regulations on all promotional communications with


policyholders/prospective policyholders or targeted market segment with the

objective of soliciting insurance business or otherwise.

2. Categories of Advertisements:

For the purpose of these guidelines an advertisement may be classified into two

types:

Institutional Advertisements

Insurance Advertisements

“Institutional advertisement”:

This is the advertisement of any nature which is not, either directly or

indirectly, intended to solicit the insurance business, but only promotes the brand

image of the insurance companies and/or its intermediaries and may contain the

registered name, address, toll-free number, logo or trademark thereof.

Advertisements issued in any mode including those that highlight sponsorships fall

under this category. Any inclusion of product names or information about the

products, performance of the companies or their funds, or the information about

the product launches constitute insurance advertisements as defined.

“Insurance advertisement”:

Any advertisement issued with the specific purpose of soliciting insurance

business, and / or to influence the choice, opinion or behavior of the prospective

policyholders will fall under this category. Advertisement, for this purpose, means


Insurance Advertisement as defined in ‘advertisement regulations’ and is classified

as under:

“Invitation to Inquire”:

This is an advertisement which highlights the basic features of

insurance/insurance products issued through recognized marketing media in any

mode to create a desire to inquire further about them.

“Invitation to Contract”:

This is an advertisement containing the detailed information regarding the

insurance/insurance products mainly to induce the public to purchase, increase,

modify, reinstate or retain a policy.

3. Guidelines on Advertisements:

These Guidelines are to be complied with by:

♦All the insurers (life insurers, non-life insurers and health insurers)

♦The insurance intermediaries


Coverage:

These guidelines apply to advertisements, issued through all recognised

marketing media, in any mode including printed material, radio, television, e-

mails, hosting on the Internet and any other audio/visual electronic media.

General Requirements:

Dos’: All insurance advertisements should ensure that:

Communications are clear, fair and not misleading whatever be the mode of

communication. They should use material and design (including paper size,

colour, font type and font size, tone and volume) to present the information

legibly and in an accessible manner.

Sales material and advertisements are comprehensible in the light of the

complexity of the product being sold.

Brand names of the product as proposed in the File and Use application are

adhered to.

When issued in vernacular languages, the mandatory disclosures are also in

the same vernacular language.

Don’ts

The design, content or format shall not disguise, obscure or diminish the

significance of any statement, warning or other matter which an

advertisement should contain as required by these guidelines.

Use or denigrate names, logos, brand names, distinguishing marks, symbols

etc., which may be similar to those already used by others in the market that

may lead to confusion in the market place.


Specific Requirements for an “Invitation to Contract”:

Dos’: Advertisements should ensure that:

Any expression of opinion of the insurer is a fair and honest representation.

Any statement of fact, promise or projection discloses all the relevant

assumptions; and indicates in a clear and prominent way significant

limitations / criteria on which any special offers are available.

Where attention is drawn to insurers past financial performance it should

indicate that the past performance is not an indication of future performance.

The contents should necessarily include:

a. The nature of the insurance contract (i.e., whether traditional/unit linked) and the

type of the product (i.e., its uniqueness or otherwise, whether annuity, pension,

health or whole life, home owners’, shop keepers policies and any combination

thereof, etc.,).

b. The risks involved; the limitations and exclusions of the contract;

c. Illustrations which indicate the exact costs and charges; reasonable projections

of benefits; and full disclosures of the basis and sources of information (e.g.,

disclose date of NAV);

d. The commitment of the insurer and the policy holder under the contract (e.g. the

minimum amount to be invested; minimum and/or maximum sum assured; lock-in

period; the reasonable safety norms to be adopted in case of non-life insurance

products etc.,)


Where illustrations are provided, they should adhere to the guidelines

issued, if any, by the Authority or the Council.

Don’ts: The advertisements should not:

1Highlight the potential benefits of an insurance contract without giving a

fair indication of the risks.

2Draw attention to favorable tax treatment without stating that they are

subject to changes in the tax laws.

Highlight the positive financial condition of the parent (or promoting

partner) company without mentioning the financial condition of the insurer

and/or indicate that the assets of parent company can be banked upon when

desired.

Disclose benefits partially without disclosing the corresponding limitations/

conditions/ implications.

Indicate that acceptance of risk and/or settlement of claims are liberal and

generous without an intent to do so.

Use ambiguous words or phrases which are likely to exaggerate the

underlying benefits of the policies or plans and/or capable of limiting the

actual exclusions or the limitations of the underlying benefits of the plan.

Denigrate or Damage the reputation of the competitor or the industry.

Mandatory disclosure in ‘invitation to inquire’:


Every advertisement in the nature of ‘invitation to inquire’ should disclose

the following statement “For more details on risk factors , terms and conditions

please read sales brochure carefully before concluding a sale”.

Advertising through the Internet and other electronic media:

Provisions applicable to published advertisements apply equally to

advertising through electronic media i.e., advertisements through a telephonic

interactive mode or on the internet.

Internet:

In case of communications on/through internet an insurer should ensure that

the recipients/viewers have the opportunity to view the full text of the

relevant key features; terms and conditions; any other applicable risk

information required by these guidelines and they shall not be hidden away

in the body of the text. It shall be easily obtained, before any application

form is offered. In case of e-mail communications there should be a

provision to unsubscribe from the mailing list.

Text, graphics, hyperlinks and sound should be entirely consistent with all

the requirements specified in these guidelines.

Insurers should take an undertaking from the prospective policyholders

that they have read the entire text, features, disclosures, terms and

conditions, etc., while applying for insurance on-line.


Mandatory provision of a helpline or help number to further provide all

information that a policyholder would reasonably expect.

Insurers should provide hard copy of the necessary information on

request.

Telephonic Interactive Mode:

Promotional activities through Cold-calls shall be preferably by a licensed

intermediary. In case it is done by other than licensed intermediary,

responsibility of compliance with advertisement regulations and the

guidelines vests with the insurer/intermediary that has outsourced this

activity.

The telephone caller shall take necessary steps to ensure that they do not

intrude into the privacy of the receiver. They should disclose their identity

and proceed to converse only after permission.

A reference on the access to full information about the available products

and the importance of financial need analysis along with the contact phone

numbers which can provide such information shall be placed before closing

the call.

Every insurer shall facilitate an access to ‘do not call registry’ with the

contact numbers of the persons who wish not to be contacted, which should

be referred to, before every call.

Joint Sale Advertisements (JS):


Any insurance advertisement brought out jointly by an insurer either with its

corporate agent or with a micro-insurance agent would fall under this category.

These could relate to promotional activities where the logo/trademark/trade names

of the participating parties are displayed jointly.

Joint sale advertisements in the nature of insurance advertisements can be

released only after obtaining prior approval from the Authority. Every

application for approval shall carry a certificate from the Appointed Actuary

that it presents the same features of the product as cleared under File and

Use.

The contents of these guidelines will apply in mutatis mutandis to all the JS

advertisements, as applicable. These guidelines supersede the circular

IRDA/ADVT/2004 dated 6th December 2004 regarding “Products Co-

branded with Corporate Agents/Brokers”.

4. Branding with Third parties:

(Third parties for this purpose shall mean any individual/association/entity

other than insurance intermediary)

Can be used on any advertisement of insurance company/ intermediary only

when it does not urge the prospect or a policyholder to purchase, renew,

increase, retain or modify a policy of insurance.


An exemption is however, given to insurance schemes sponsored/subsidized

by Central/State government (s) in which case branding is permissible in any

category of advertisements.

The onus vests with the insurer as to the compliance requirements of

‘advertisement regulations’ and the guidelines issued from time to time, in

such cases.

5. Rating/Ranking/Awards:

Any claim of rating/award should be based only on those declared by

entities which are independent of the insurance company and its

affiliates. Insurance company and its affiliates should not however, procure

services from such independent entities so as to get a rating/award.

Source of such rating/award is to be disclosed conspicuously and legibly in

such advertisements.

No claim of ranking by an insurance company, as regards its position in the

insurance market, based on any criteria (like premium income or number of

policies or branches or claims settlements etc.,) is permissible in any of the

advertisements.

6. Mandatory disclosure as specified by ‘advertisement regulations’ and

applicable guidelines as may be specified from time to time should be clear,

conspicuous and legible and should find at least 10% of the total space

utilized for the advertisement in print/visual mode with a minimum print

equivalent to font ‘Times New Roman’ In case of audio mode, these

disclosures should be spelt for at least 10% of the total time slot of the

advertisement.


7. All the advertisements should carry a unique identifiable reference number as

maintained in the advertising register in accordance with regulation 3 (v) (a)

of the regulations.

8. Where material is filed with the Authority in accordance with the

‘advertisement regulations’, in other than English/Hindi language, true

translation of the same in English/Hindi duly certified by an Authorised

officer of the insurer, is to be enclosed.

9. Advertisements filed in accordance with Regulation 3(v) of the

‘advertisement regulations should be filed within 30 days of its release.

10.In Unit linked business, advertisements should also adhere to the

advertisement norms prescribed in circular no: 032/IRDA/Actl/Dec-2005

dated 21st December, 2005.


CONCLUSION

Insurance Advertising encourages brokers and sellers to earn for them by

selling more and more insurance products of their company. They try to convince

the customer and fulfill their demands and provide services according to their need.

Satisfaction of the customer is the utmost policy in this field of Insurance

Advertising. They use various methods to attract attention which may include

media, banner display, visual interaction, etc. Product advertising describes the

benefits from the product that it will give after it is being taken into consideration.

The other Insurance Advertising used is Institutional Advertising. It describes the

financial strength and stability of the company. Companies advertising may be

national, local or corporative; it entirely depends on the target of market and size.

Advertising and marketing are very competitive when it comes to personal

general Insurance Industry. The better you make strategy, the better you are as a

competitor. It entirely depends on the current scenario of the market as how the

likings and disliking of the common people are going in the world. Companies

have to keep themselves updated all the time for Insurance Advertising purpose.

An effective advertisement in any area of business often holds a special allure for

those who are approaching the task of advertising in their own fields. While it's

certainly common knowledge that there are a number of elements that go towards

creating a great advertisement, the initial look, as well as the less overt visual

elements, can seem to contain the secret of the advertisement's success.


Bibliography

Books:

Theories and Practices in Insurance

Insurance watch

Business world

Business today

Webliography

www.insuremagic.com

www.licindia.com

www.insurancewatch.com

www.insuranceonline.com

Search engines:

www.google.com

www.ask.com

www.rediff.com

http://www.rediff.com/

http://www.ask.com/

http://www.google.com/

http://www.insuranceonline.com/

http://www.insurancewatch.com/

http://www.licindia.com/

http://www.insuremagic.com/


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Advertising Project Final

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