marketing pli rpli. low penetration of pli and rpli in respective customer segments demands a...
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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
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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