TEAM KONQUERORS | IIM Kozhikode SEGMENTATION

(Trishul | Rituraj | Debayan) 2. Gender

1. Age
(22-32; 33- (Male/
Term Insurance
40; 41-50 ;51- Female/
A low cost life insurance plan, but for a fixed period of time
55;56-62;62 Other)
3. Income
Primary Research Secondary Research and above) (High
Disposable
*65% of Indians have income, etc)
20 interviews purchased a LIC policy, but
only 1 out of 5 Indians have
purchased a Term Insurance 4. Occupation
5. Education
Plan. (Source) (Employee at MNC,
(Financial
Business Owners,
Varied literacy high,
*A mkt. research firm study Others like Farmers,
demographics moderate, low)
(across India) states that IPQ (degree to laborers, seasonal
which an individual feels jobs)
protected) in India stands at a
40% female, 60% lowly figure of 35
male
*Term insurance uptake in TARGETING
urban India has been very -Individuals between the ages of 22-40 year olds.
low despite being the -Low risk individuals identified based on our data science and
Occupation: Job, cheapest form of financial machine learning algorithms.
Teacher, Business, protection -Offer premium at competitive rate to the low risk individuals.
etc.
-Working professionals working as employees in Multinational
Corporations, owners of MSMEs, teachers and professors in public
KEY INSIGHTS and private educational institutions
 Awareness about basic difference between life -Targeting moderate to high monthly income (50k – 2lakhs)
insurance and term insurance is still lacking among -Target institutional clients like MNCs and educational institutions
urban Indians. to offer term plans to their employees
 Many equate insurance products to investment PERSONA IDENTIFICATION
products, and thus a higher uptake of life insurance
products in India despite its higher premium cost. Persona 1: The Digital Enthusiast Millennial
 Most life insurance products are sold to consumers by *25-30 year old male or female *Unmarried
luring them about investment returns, though the *High on life, healthy individual *Employee at an MNC
reality is returns from life insurance products are bare *Income: 50,000-1lakhs p.m. *Comfortable with gadgets
minimal.
Pain Points: Why should I pay same premium as others?
 Necessary to undertake marketing campaigns to make
consumers understand the importance of insurance
aa
products, and not confuse them with investment Persona 2: The Newly Married/ Young Parent
products. *30-35 year old male/female *Income: 75000-1.5lakhs p.m.
 Targeting low-risk consumers with higher customer *Working individual (preferably MNC employee)
LTV (lifetime value) and offering them competitive *Comfortable with electronic gadgets 75000-1.5lakhs
premium prices as compared to competitors can be a key Pain Points: Proof of insurability challenges to renewal
strategy to maximize profitability
Persona 3: The Young Entrepreneur/ Business Owner
RESEARCH INSIGHTS
*30-40 year old male or female *Income: Variable
90%people have heard of term and life insurance but *Entrepreneur in urban areas/MSME owner
only 65%of them know the difference between the two *Recently incurred loans/liabilities for their business
indicating the need and scope of education regarding the Pain Points: Can’t afford both Life and Term Insurance
same

More than half respondents (55%) indicated that the POSITIONING

product should provide both: insurance and good
RoI
Need for Term Insurance: Stable income source, Paying
off liabilities, Children’s higher education, Good returns,
Low premium benefits
REFERENCES
* https://www.cmbinfo.com/cmb-cms/wp-
content/uploads/2012/03/HealthDoc_FINAL.pdf
* https://m.economictimes.com/wealth/insure/only-21-of-life-insurance-
policy-holders-have-term-insurance-survey/articleshow/68079476.cms
Position the product as a purely insurance product (flexible, low cost,
adjustable time period coverage, easy claims processing) that helps
millennial prepare for the unexpected in this VUCA world.
PRODUCT: (Persona 1: Annual Renewable Term Persona 2: Level
Term Persona 3: Return Premium Term). Focused on 3Ds (Death,
Disability and Disease)
PLACE: Through agents, apps (less paperwork), websites, KYC
PRICE: Competitive premium prices for healthy individuals (with high
customer LTV). No blanket premium rates. Customized premiums
using ML algorithms based on risk profile and actuarial science
PROMOTION: Social media, TV ads, News show, MNC KT sessions