Marketing

PLIRPLI

Low penetration of PLI and RPLI in respective customer segments demands a focussed marketing strategy

Target market size for PLI

Target market size and Penetration in RPLI (number of policies as % of rural population)

Penetration in PLI (number of policies as % of total PSU employees)

Total Number of Employees: 2.86 crore

Total Rural Population: ~80 crores

Source: India Stat, India Post MIS reports on customer category wise data

Source: Provisional Census 2011, India Post MIS reports on RPLI state wise data

A structured framework would assist PLI and RPLI in developing a focussed marketing strategy

Marketing Framework

Marketing initiative

2

Marketing communication

3

Sales integration

4

Feedback and monitoring

5

Tools and Technologies

Provide Support

6

Brand management7

Reach out to prospective and current customers

Communicate the message to customers

Conversion into salesMonitor the performance to

make suitable changes

Marketing Organization1

Govern

Following key strategic initiatives have been identified for PLI and RPLI based on ‘As-is’ assessment

1 Establish a dedicated marketing team to plan, implement and administer marketing initiatives

2 Develop tailored marketing initiatives to reach out to prospective PLI and RPLI customers

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Develop orchestrated communication plan to create awareness about life insurance, publicize PLI and RPLI offerings and stimulate sales

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Integrate marketing activities with call center for lead generation and lead servicing7

Develop effective mechanism to monitor marketing initiatives and gather feedback from marketing staff and channel staff to modify marketing initiatives 8

Leverage customer relationship management (CRM) system to develop targeted marketing initiatives 9

Strengthen PLI and RPLI brands by establishing a brand identity, communicating brand promise and ensuring brand delivery

Align sales channels with PLI and RPLI customer segments for pre-sales and sales conversion

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Develop tailored marketing initiatives and communication plan for targeting migrant population

3 Develop a Tailored marketing strategy and initiatives to increase penetration of PLI in Army Postal Services

Summary of location based marketing initiatives

Marketing in townships

Marketing at training centers

Marketing at office clusters

Central and state PSUs have setup townships with necessary facilities such as housing, schools, shopping complex, banks, hospital, playgrounds, club houses etc.

Residents of such large townships spend most of their time within township and have limited interaction with outside areas

PLI can carry out focused marketing campaigns in such townships to effectively reach out to large number of government employees

Training centers of PSUs, nationalized banks, police, railway, post and armed forces provide induction training to new employees as well as refresher courses to existing employees on a regular basis

PLI can conduct awareness and publicity campaigns at these institutes especially to target new joining employees

Metro and urban areas have central business districts with clusters of Government and PSU offices. Examples include Churchgate in Mumbai, Dalhousie in Kolkata, Chanakyapuri in Delhi etc.

PLI should conduct marketing activities in such areas to improve brand awareness and visibility to government employees working in such office clusters

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Usage of various marketing mediums in location based marketing initiatives

TV marketing Outdoor marketing Print marketing Internet

marketingMobile marketing

Marketing in townships

Marketing at training centers

Marketing at office clusters

Outdoor marketing includes marketing using posters, banners, hoardings and kiosks

Print marketing includes marketing using leaflets, pamphlets, brochures and newspapers

Internet marketing includes marketing using emails, web banners, social media marketing and marketing on internal websites

Central PSUs have set-up large scale townships in various parts of India

Central PSUs have set-up large scale townships across India for its employees. The townships usually are established by PSU organization with plant operations in far flung areas

These townships are build near a plant and are self-sufficient with facilities such as residential units, hospitals, recreation areas, shops, schools, banks and post office. Some of them also have higher education institutes and cinema halls

Some of the biggest townships in India Include Bhilai, Bokaro, Rourkela, Durgapur, Bailadila and Neyveli. A few of these township are built jointly by multiple PSUs

Township residents are highly influenced by peer level marketing

Currently, insurance policies are being sold by individual agents of other insurance companies residing in these townships

Currently, PLI undertakes limited marketing activities in these townships

Bhilai

Neyveli

DurgapurRourkela

Key observations

Some of the largest townships in India

Name of township Number of employees

SAIL Bhilai township ~37,000

SAIL Bokaro township ~30,000

SAIL Rourkela township 50,000-55,000

SAIL Durgapur ~20,000-22,000

NMDC – Bacheli and Baila Dila townships ~12,000

Source: Company websites, secondary research

Bokaro

Bachili-Bailadila

1. Marketing in townships

Residents of large PSU townships spend most of the time in the township

Visit everyday/alternate day to buy everyday goods

Post Office

Shopping Complex

Bank

School

Playground

Hospital

Club House

Plant Entrance

Residential

Office & Plant Area

Visit once in 1-2 weeks for postal services and postal savings bank

Visit once in a week to withdrawals, deposits and to keep track of accounts

Visit daily/weekly for social gatherings and fitness activities

Visit once in 2-3 months for medical checkup or illness

25-30 hours a week spent with family and neighbors

Spend 5-10 minutes per day for wait time and security check

Spend 50 hrs. per week at office

Access intranet and emails

Interact with other employees at canteens

PSU employees residing in townships spend most of their time within the township. Typically, the township community members have a high degree of interaction among themselves and depend each other for advise on financial products

The most common places visited by employees and their families are shown above. Post office is just one of the visited places by the customer to avail a variety of postal services

Currently post office works in isolation and undertakes limited marketing initiatives in the township areas for PLI products

Elevator

Computer

Canteen

Note: based on interaction with residents of large PSU townships

1. Marketing in townships

Post office can undertake a 360 degree marketing approach in PSU townships to ensure extensive coverage

Post Office

Shopping Complex

Bank

School

Playground

Hospital

Club House

Plant Entrance

Residential

Office & Plant Area

A 360 degree marketing approach would involve engaging in marketing initiatives to target township residents at frequently visited locations using variety of marketing mediums such as print marketing, TV marketing, poster marketing, kiosk marketing and email marketing

A similar approach can be undertaken for smaller colonies (e.g. colonies in metro areas which have only residential units) to market PLI products

Kiosks marketing at banks

Organize painting or essay competitions for children

Banners at entrance gates

keep posters and hoardings

Newspaper/pamphlet based marketing, TV marketing for residential complexes

Health and wellness awareness posters at hospital

PLI awareness posters

Elevator

Computer

Canteen

Internet based marketing

Posters inside elevators and on canteen tables

Poster and banner marketing and kiosk marketing at shopping complexes

1. Marketing in townships

Description of select marketing initiatives in townships

TV marketing

Advertisements in local cable channels for PSU staff colonies

PSU townships/colonies avail TV channel services from local cable services operators

These cable services operators also provide local channels covering local news, local events and showcasing recently released movies

Evening news and movies are popular among staff and their families residing in the townships/colonies

Advertisements can be put up on local channels during popular programs to market PLI products

Outdoor marketing

Posters, banner and hoardings at public places

Put posters, hoardings, banners at public locations:

− PSU offices – near security gates and near lifts where people wait for longer time

− Staff canteens and messes in offices

− Public places within PSU townships/colonies such as playground, clubs and hospitals

Stalls/kiosks

Put stalls/kiosks at following locations:

− Locations which are frequented within staff townships/colonies such as shopping complexes so that people can be targeted individually as well as in groups

− Staff canteens in offices

Print marketing

Distribution in residential units

Circulate pamphlets, brochures, life insurance guides in staff colonies to create awareness about insurance and market PLI products

Pamphlets/leaflets/brochures can be sent with postmen visiting houses for postal delivery

1. Marketing in townships

PSUs have set up training institutes to provide training to its new as well as existing employees

All major PSU organizations have training centers scattered all over India to provide induction to new recruits as well as refresher courses to existing employees

Details of training centers if Indian Railways is provided below:

Training at Indian Railway

Indian Railways carries out massive training exercises for its ~14 Lakh employees

It has around 291 training centers located across India which provide specialized training to its employees

It has a total capacity to provide refresher training to nearly 4.5 Lakh employees every year

Every year, ~1 Lakh employees (~7% of the total workforce) are provided with refresher training in addition to induction to new recruits

The training provided consists of classroom training, technical as well as railway working rules, on-job training and independent working training in come cases

Details of training centers

Training center type Number Details

Grade A training centers 6Specilized engineering and general training to Grade A employees

Main training centers 56 Supervisor, electrical, civil, welding and technical training

Other training centers 235

Accounts training, basic and permanent way training, transportation and traffic training, diesel traction training, RPF training

Most of the training programs are resident training programs that last for 3 days – 7 days. Training centers are well equipped with all kind of facilities such as classrooms, technical labs, computer labs, library, hostels, playgrounds, gym / yoga rooms etc.

Typically, these training centers are categorized as per the cadres of the employees to whom training is provided (e.g. Group A employees training center, Supervisor training center etc.)

Employees assembled in large numbers provides opportunity to market PLI products to a focussed group. Further, marketing initiatives at each of the training center can be tailored as per the profile of the employees (Group A, Group B, Group C, Group D)

Marketing approach

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2. Marketing at training centers

Source: Secondary Research

PLI can target training centers with various marketing initiatives to educate PSU employees about PLI offerings

Hostels

Computer Lab

Post Office

Central office

Grounds

Distribute PLI pamphlets in hostel rooms

Organize talks to create life insurance awareness and market PLI products

Showcase PLI films between the lectures

Library

Classroom

Distribute health and wellness awareness leaflets

Mess

Gym and Yoga Center

Distribute pamphlets and leaflets

Distribute pamphlets and leaflets

Distribute pamphlets

Put PLI brochures with elaborate information

Put banners at playgrounds

Distribute PLI pamphlets

Marketing mediums can be tailored depending upon location and level of interaction. One of the best ways to market PLI products would be to showcase small 4-5 minute films between the classes or conduct a short guest lecture

Marketing at training centers could be an effective way to educate government sector employees about PLI offerings; Sales may not take place at training centers considering most of the employees would be residing at locations elsewhere in the country

2. Marketing at training centers

Government offices in the metro/urban locations is an attractive catchment area for PLI to market its products

Government offices

New Admin building

Inst. Of sciences

New India Insurance

Reserve Bank of India

Hig

h C

ou

rt

State PWD

Mumbai University

Maharashtra Police Mukhyalaya

Bus Stops

Major roads

Typically urban areas have one or more central business districts with cluster of government offices

PLI can undertake several marketing initiatives such as

− Put posters and banners on bus stops, railway stations and major roads

− Put customized posters (e.g. ‘Insurance for employees of Reserve Bank of India’) within organization premises

− Distribute pamphlets and brochures within the organizations

− Put stalls/kiosks in front of the entrance or within the premises of the offices

− Deploy marketing managers to go and meet senior officials of respective organizations for group sales

− Organize events such as ‘marathon competition for government employees’

Sample case study: South Mumbai central business district

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3. Marketing at office clusters

RPLI rural customers specific marketing initiatives and communication strategy

Developed tailored marketing initiatives to reach out to prospective RPLI customers

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While RPLI has seen significant growth in the past few years, it covers <3% of India’s rural population

Business growth in RPLI

FY08 FY09 FY10 FY11 FY120

20406080

100120140160

6274

99

122135

Total Policies in force (in lakhs)

Overall GDS EMPLOYEES DEPARTMENTAL EMPLOYEE

POSTAL ASSISTANT/PRI UN-EMPLOYED/SELF EMPLOYED YOUTH

SELF HELP GROUP OTHERS*

100.0 97.3

0.5 0.8 0.3 0.3 0.5

Channel wise contribution to number of policies sold in FY 12 ( in %)

CAGR 21% Uttaranchal, 10%

AP; 9%

TN; 5%

Maharashtra, 4%Kerala; 3%HP; 3%

Karnataka; 3%

Orissa; 2%

Rajasthan; 2%

Jharkhand; 2%

Gujarat; 2%

Haryana; 2%Chhattisgarh; 2%

Del; 1%MP; 1%Punjab; 1%

WB; 1%Assam; 1%J&K; 1% Bihar; 1% UP; 1% NE; 0%

RPLI penetration in different states

* Others includes Anganwadi workers, mail guard, ex life advisors, direct agents, ex servicemen, retired teachers, ASPO’S, IM’S

Summary of marketing initiatives

Marketing in villages

Marketing at yatras and Melas

Marketing through industry initiatives

Marketing through government development

programs

In rural areas, people spend their time at locations such as tea shop, primary health centers, gram panchayat, village choupals and post offices

RPLI should tailor its marketing initiatives (e.g. pamphlet distribution at tea shops, awareness campaign at village choupals) to target people residing in rural areas

Yatras and Melas in rural India provide a great opportunity for marketing RPLI as people congregate in large numbers from nearby as well as far flung villages

Large scale marketing campaigns at these Yatras and Melas would provide with better visibility and increase brand awareness of RPLI among rural population

Corporates (ITC e-choupal, Tata Group’ Kisaan Kendras, DCM Sriram’s Hariyali Bazaar) have established a strong presence in villages by providing products and services such as agricultural advisory, retail stores, financial services and public welfare

Leveraging these institutions would allow RPLI to leverage trust and infrastructure built by these institutions in rural areas

Government initiatives such as NeGP and MGNREGA have been launched to provide social infrastructure and employment in rural areas

These are typically managed and monitored by the educated people in the village. RPLI should target these initiatives to market RPLI products

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Marketing through Co-operative societies

Local level co-operative societies fulfill the financial services requirements of farmers. Primary agricultural credit societies are important channel in providing short term and medium term credit to farmers. Apart from PACS, co-operative societies have been formed to fulfill farmer needs such as buying fertilizers, selling agri/dairy outputs etc.

RPLI can target rural populace in particular farmer community by marketing through co-operative societies

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Marketing through NGOs, SHGs and MFIs

NGOs, SHGs and MFIs have strong connection with communities staying in rural areas. This can be used as nodal agencies to issue group policies to community members

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RPLI would be required to tailor marketing initiatives suited to rural ecosystem….

Temple

Gram Panchayat

Tea Shop

BazaarBranch Office

Primary Healthcare Center

Bus Stand

Radio

Television

Mobile

House

School

Rural houses

People visit weekly bazaars to buy grocery

Daily visit tea shop to socialize with other villagers

Mobile has reached every third rural household*

Rural people listen to radio in their leisure time

Television are also present in household with higher income

Visit regularly for savings, postal, remittance needs

Visit during illness with average visit time of 1 hour

Respected people of the village visit here every day

Long free time while waiting for bus

Rural areas are characterized by dispersed population, low penetration of technology and low awareness about financial services in particular insurance

Currently, branch post office undertakes limited marketing activities for RPLI. Some of the existing marketing initiatives by RPLI include conducting rural melas, putting wall paintings and putting posters near post office

1. Marketing in villages

*Source: TRAI press release. Data as on 31st January 2013

… to effectively market itself to rural populace

Temple

Gram Panchayat

Tea Shop

Bazaar

Branch Office

PHC

Bus StandWall Paint

Radio

Television

Mobile

House

School

Rural houses

PLI awareness posters and camps

Health and wellness awareness posters

Painting and essay competitions in rural government schools

Kiosks at weekly bazaar for insurance literacy

Pamphlets at tea shops to explaining RPLI products

Posters and banners at bus stands

Wall painting for RPLI

Publicize RPLI products over local radio stations

SMS based marketing in regional languages

Marketing at locations such as local taparis (tea shops), weekly bazaars, bus stands, primary healthcare centers would be extremely effective since marketing at such places encourages discussion among villagers

Key points to make rural marketing effective is marketing in local language and use of local influencers (doctors, teachers, credit society members etc.) to create awareness among villagers

1. Marketing in villages

RPLI advertisements on TV

RPLI should leverage melas and yatras to create awareness among rural populace

Others

Lodging and Boarding

Shopping areas

Food Counters

Entertainment

Puja thaliAarti bookShops

Bus StandRailway

Ghat Puja

Tents

Central mela location

Health awareness posters at medical camp Street plays to increase awareness about insurance

and RPLI

Kiosks with loud speakers at shopping premises RPLI advertisements of puja thalis for sale RPLI advertisements on aarti books for sale

Banners and hoardings near ghats/places of congregation

Medical camp

Travel

Kiosks / pamphlet distribution at railway stations / bus stand Posters on boats and at bust stands/railway stations

Pamphlet and leaflet distribution in strength Thalis with imprint of RPLI

Boats

Head Office

Some of the other prominent annual yatras include:

− Ratha yatra in Orissa (5-6 lakh visitors)

− Amarnath yatra in Kashmir in July-August (6-8 lakh visitors)

− Pandharpur yatra in Maharashtra in June (5-7 lakh visitors)

Kumbh melas (Ardha Kumbh, Purna Kumbh, Maha Kumbh and Simhasta melas)

− Kumbh melas (one of the four mentioned above) take place once in 2-3 years; Locations include Prayag, Nashik, Ujjain and Haridwar

− Visitors range from 80 lakh-3 crores

− Next melas are planned in 2015 (Nashik) and 2016 (Ujjain)

2. Marketing in yatras and melas

Leveraging industry initiatives – marketing strategy

Create awareness

Publicize products

Stimulate sales

SDIP/BPM can conduct talks/workshops at outlets to educate visitors about the need for insurance

Show short films to create insurance awareness

BPM can put RPLI posters at the outlets to increase brand visibility

SDIP can station an agent at large outlets (HKB outlets) and BPM at smaller outlets (e-choupals) at regular intervals (once a week/once a fortnight) to answer queries of the people interested in buying RPLI policies

SDIP/BPM should educate the local outlet staff (Sanchalaks/advisors) about RPLI benefits to generate word-of-mouth publicity of RPLI

For smaller outlets ( such as e-choupals), RPLI can pay referral commission to Sanchalaks

For bigger stores such as HKB and Tata Kisaan Sanasar, RPLI can stations their SDIPs/Direct Agents on specific days for sales

RPLI can also have broker tie-ups with some of these leading stores

ICICI Prudential has tie-up with Hariyali Insurance Broking Limited for distribution of their policies through HKB outlets:

− ICICI Prudential has leveraged strong brand and loyal customer bases of HKB in the regions such as Punjab, Uttar Pradesh, Haryana, Rajasthan, Uttaranchal, Andhra Pradesh and Tamilnadu

3. Marketing through industry initiatives

RPLI can use rural presence and influence of co-operative societies Rural regions have very low penetration of banks and other major financial institutions. This has lead to creation of many local level co-

operative societies which fulfill the financial services requirements of farmers. Primary agricultural credit societies are important channel in providing short term and medium term credit to farmers

Apart from financing institutions, co-operative societies have been formed to fulfill farmer needs such as buying fertilizers, selling agri/dairy outputs. These include IFFCO, Sugar co-operatives and dairy co-operatives

Type of co-operative society Number of cooperatives

Member population Benefits to members

Indian Farmers Fertilizer Co-operative (IFFCO) 48,000 5 crore

Helps farmers to increase their crop productivity by proving them fertilizers

Provide location specific research for efficient fertilizer practices

Sugar Co-operatives 280 3 crore Technical and managerial guidance to sugar factories

Advice to farmers on sugarcane agronomy and cultivation practices

Dairy Co-operatives 1,20,000 1.2 crore Provides range of products and services such as animal-care

services, cattle-feed products

80% dairy farmers are women

Primary Agricultural Credit Societies (PACS) 93,000 12 crore

Provide long, med-term and short term credit to customer

80-85% loans are for agriculture activities

Have lower lending rate due to subsidy by NABARD

4. Marketing through co-operative societies

Leveraging co-operatives – marketing strategy

Create awareness

Publicize products

Stimulate sales

SDIP should educate governing committee of co-operative societies about benefits of RPLI to encourage word of mouth publicity

Display RPLI posters in offices of the co-operative societies

Put advertisements of RPLI on products provided by these institutions such as fertilizer packets / sacs

Recruit agents from co-operative societies to sell insurance to members of the co-operatives as well as others

SDIP can conduct talks/workshops at outlets to educate visitors about the need for insurance

Show short films to create insurance awareness

IRDA is in the process of finalization of the guidelines on Mircoinsurance agencies in rural areas

− Currently, only insurance company agents, commercial banks, microfinance institutions, non-governmental organizations and self-help groups are allowed to sell micro-insurance policies

− As per the latest guidelines, Regional Rural Banks, District Co-operative Banks and Primary Agricultural Credit Societies (PACS) are likely to be allowed to become micro insurance agents

− Also, individuals which include shopkeepers, medical store owners, petrol pump owners and public telephone operators shall be allowed are likely to be allowed to become micro insurance agents

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RPLI can leverage national initiative such as MGNREGA to market RPLI to non-farm labourers in rural areas

The payout of wages is made by MGNREGA into the accounts of these employees which are usually the no-frills accounts opened with any bank or post office

− RPLI will have ready customer base with accounts existing with Postal Savings Bank

These households are provided with Job cards which can be used for KYC compliance to issue policies to these customers

Overview Value Proposition

Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) was introduced by the Government to provide employment opportunities to the rural population

All house holds which seeks employment approach the local Gram Rozgar Sahayak and obtain guaranteed employment within 15 days of registering

It is organized in the following manner with the apex governing body overseeing its operations at that level:

- Village Level – Work site supervisors

- Village Level – Gram Rozgar Sahayak (GRS)

- Block Level (group of villages) – Programme Officer

- District Level – District Programme Coordinator

- State Level – State employment guarantee council

- National Level – Central employment guarantee council

Key responsibilities of GRS include:

- Overseeing the registration for MGNREGA in village

- Work assignment and collating attendance records

- Updation of job cards

Key responsibilities of work-site supervisors:

- Supervise work sites and capture attendance

- Help illiterate to calculate wages earned

- Create awareness about rights and entitlement under MGNREGA

- Provide first aid services to workers

GRS and work-site supervisors are key influencers for MGNREGA workers

Coverage

CAGR of Households = 27%

5. Marketing through government development programs

Leveraging MGNREGA – Marketing strategy

Create Awareness

Publicize Products

Stimulate Sales

BPM with assistance from SDIP should organize workshops to educate the workers about the need for protection for their family

SDIP/BPM can explain the health hazards associated with their work environment and living conditions

SDIP should explain Block officers, GRS, worksite supervisors regarding the benefits of RPLI over other life insurers

GRS and worksite supervisors should convince the laborers to be part of the group insurance policy

For policies sold through GRS, worksite supervisors and Block officers, RPLI can pay referral commission

RPLI can tie-up with MGNREGA to provide bundled offering to laborers:

− Provide savings accounts with term insurance cover

− Deduct premium at the time of disbursement from government

5. Marketing through government development programs

Key customer segmentation for RPLI ….Segment type Attributes Financial Awareness and Ability

Farmers – large farm Owners Own more than 5 hectares farms Hire laborers Have high income on sale of crops on annual/semi annual

basis Income: >Rs. 2 Lakhs per year

Aware of banking and insurance products Typically have bank accounts Have savings in the banks for agricultural related

activities Sometimes take loan from local financial

institutions

Trade / service class / professionals Self employed and salaried population Financial services, retail, government employees Have regular monthly income Income: >Rs. 50k per year

Aware of banking and insurance products Have small savings for hard times also may have

insurance

Farmers – small and medium farm owners

Own small size farms work on own farms Have moderate income on annual/semi-annual basis Income: Rs. 25k - 2lakh per year

Aware of banking products. May have limited insurance information

Have limited savings. Often depend on credit from local financial institutions for agricultural activities

Farmers - laborers Work on farms of others Highly venerable due to low income and unavailability of

employment during some part of the year Income: < Rs. 25k per year

Not aware of banking and insurance products Do not have savings to support in hard times

Construction / manufacturing laborers

Daily wage based workers Work at construction sites, SME Higher risk of accidents at their work sites Income: <Rs. 50k per year

Little awareness of banking products. No awareness of insurance

Do not have savings to support in hard times

Source: ICSSR report, Deloitte research

~17% of employed population

~2.7% of employed population

~35% of employed population

~30% of employed population

~15% of employed population

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RPLI can segment migrants….

Types of migrant population

Permanent migrants Temporary migrants Cyclic migrants

Need for Migration and pattern

Migrate along with their family in search of better opportunities

Employed in services and transportation industry

Migrate to generate savings and return to village/shift to another region after 2-3 years

Employed in construction and manufacturing industry

Migration depends on farming season

Employed in farming related activities

Primary needs Savings Remittance Remittance

Examples Watchmen, hawkers, shop assistants in urban areas

Construction workers, truck unloading, handicraft, packaging

Harvest cutters, sugarcane cutters, pesticide spray workers

Opportunity and challenges

Usually have a relative residing in rural India who can assist with rural address proof

Reside in large groups in urban areas

Have trust in construction contractors who bring them to construction sites

Do not have sufficient KYC documents

Have trust in contractors who bring them to farming site

Contractors also assists them in remittance of money to their families

Targeted marketing initiatives

Marketing initiatives at migrant pockets within cities

Market RPLI products through labour contactors

Bundle insurance with remittance products

Market RPLI products through labour contactors

Sell in native villages of migrant population

Bundle insurance with remittance products

Prominent migration corridors

UP to Mumbai

Tamil Nadu to Mumbai

UP, Bihar to Delhi

UP rural areas to construction sites in Noida, Faridabad and Gurgaon

Rural Maharashtra and Bengal to Mumbai – at construction sites

UP to Punjab

Orissa to Andhra Pradesh

Total migrant population in India stands at 10 crore of which most of them are cyclic and temporary migrants

Main objective of their migration is to make earn a living before generating savings. These people can be targeted with short duration products

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Permanent migrants cannot be sold RPLI policies since RPLI policies can be sold only to permanent residents of villages. India Post may consider relaxing RPLI rules to allow insurance coverage to permanent migrant segment.

…and target them with tailored marketing strategy

Create Awareness Publicize Products Stimulate Sales

Temporary migrants

Cyclical migrants

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SDIPs in urban areas can conduct awareness campaigns at construction sites to educate migrants about health hazards, accidental hazards and vulnerability in case of death of earning member

SDIPs in rural areas can conduct awareness campaigns at farming sites to educate migrants about health hazards due to changing living conditions and vulnerability in case of death of earning member

SDIP can educate labour contractors about availability and benefits of RPLI

Posters can be put near worksites

SDIP can give small talks during lunch time or after work hours

SDIP can educate labour contractors about availability and benefits of RPLI

Posters can be put near worksites to publicize RPLI products

SDIP can give small talks during lunch time or after work hours

Contractors can be paid referral commission to drive sales

SDIPs/ Direct Agents shall coordinate with BOs/SOs to obtain residence proofs from villages

Short term group products are ideal for temporary migrants

SDIP/BPM should sell policies in native location

Contractors can be paid referral commission to drive sales

Note: In case of permanent migrants, permanent address proof should be of a rural area for the migrant to be eligible for RPLI

Product positioning for migrant customer segments needs to be communicated

Group TypeProduct positioning

Participatory Annuity Term Group term Riders

Temporary migrants

Illness and accident riders

Illness and accident riders are suitable due to higher probability of accidents at work sites and illness in due to poor temporary living conditions

Shorter term group term products would be most suitable as they are simple to understand and premium amounts are affordable

Cyclic migrants

Single premium products

Single premium products

Illness rider

Have a lump sum savings after returning from harvest season. Single premium term products would be most suitable

Illness riders are suitable as they are susceptible to illness due to changing living conditions across the year

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Indicates most suitable. Other products can also be sold