Q] ‘Bharat Ki Udaan Bandhan Se’ is the new message, and it focuses on inclusivity and empowerment. When you mention inclusivity, I've noticed that competitors like Future Generali have launched plans for LGBTQIA couples. Which segment of society does Bandhan aim to include?
When considering the Indian context, marketers often create cohorts and segments. However, in the insurance and financial services landscape across India, nearly 95% of the population lacks adequate coverage. This gap includes virtually everyone in the country, barring a select few. In identifying our role, we recognised the vast opportunity — 95% of the population does not have sufficient cover. We view this not just as an industry challenge but as a brand imperative. Over the past few years, we've focused on enhancing our digital capabilities to make insurance accessible to all, especially life insurance, which is a challenging topic because people generally avoid discussing death. We prefer a more optimistic outlook. There was considerable debate within the leadership team, but we concluded that our mission is to ensure no one is left unprotected. We aim to transform the fear of discussing death into a sense of security and certainty. Our brand promise, ‘Bharat Ki Udaan Bandhan Se,’ is often mistaken for a tagline, but to us, it represents a commitment to everyone we serve.
Q] What is the biggest transformation the brand has undergone since the change in identity?
For us, the change in identity itself represents a significant transformation. We are excited about this development due to the enthusiasm it has generated, both internally with our teams and externally with our stakeholders. The interactions we are now having in the market have been extremely positive, resulting in considerable goodwill. There is also a great deal of curiosity about the brand’s direction and its impact on our work. Overall, the experience has been exhilarating, but we are still very much at the beginning of this journey.
Q] I understand that you are pursuing an aggressive growth strategy and that you plan to recruit thousands of employees. Could you tell us which geographical areas you are focusing on?
So, Bandhan as a business has its roots in the East. We have traditionally been strong in the Eastern part of the country. And really, that's where we will be starting because we already have a significant presence there and we want to build on the bank of that distribution network and expand as Bandhan Group also expands into different parts of the country. However, our initial focus is on the eastern part of the country where people are not well insured. 95% of the country is insured, who's the 5% who are? Typically, the 5% are salaried individuals. But the self-employed form the backbone of a large part of India's economy.
The homemaker today provides a significant amount of value to her family, and this is also the person in the household, most likely to be uninsured. When a family loses a homemaker, it is a significant loss. No insurance product is going to help you deal with the emotional loss of losing a loved one. But we can step in and play a role there and at least, livening the financial burden, that comes from that. If you have other dependents, like your parents or her parents who take care of them, you need to start catering to the needs of those loved ones in your family.
Q] Women are a crucial segment for you. How do you plan to reach out to them? Will it be through direct channels or insurance brokers?
Our strategy with Bandhan will be multi-channelled. Leveraging the distribution network of the Bandhan Group is key. We have also dedicated the past few years to building our distribution capabilities through various partners. This includes aggregators and non-banking financial companies (NBFCs), in line with the growth in financial services across the country.
Customers increasingly expect more choices from their financial services providers. For instance, if I come to you for savings, but you also offer investment or insurance options, I am more inclined to discuss these with you because of the existing relationship and trust. Thus, our approach is about meeting customers at touchpoints where they already have established trust. So, when I mention a multi-channel approach, this is what I mean.
Q] What would be your marketing mix?
The marketing mix is determined by whom we're trying to reach. When I discuss the language of Bandhan today, there are two main approaches. On one hand, we target the consumer through all channels where we believe they will be receptive to the messaging and where there is a likelihood of conversion. This includes a combination of traditional media channels as well as below-the-line methods, where many conversations take place.
Most people today, when purchasing insurance, go through a consultation process before finalising their choice. Even when using an aggregator, the first step often involves collecting contact details to facilitate a conversation. This conversation aims to uncover why the customer is seeking life insurance, their needs, and what coverage is appropriate. Given the wide array of products available, it’s crucial to have a combination of marketing efforts.
Thus, below-the-line marketing will play a significant role in educating both the sellers, so they can provide accurate information, and the consumers, to help them differentiate between the various products and offers available.
Q] Your MD and CEO, Mr. Satish said last month that you're expecting a 100% to 200% jump in new business premiums. Of course, it's on a low base at this point. I want to understand what is your current market share and what is your target for 2025.
We don't have a market share target for the year; instead, we are focusing on a five-year horizon with the goal of becoming one of the top 10 insurance brands in the country. Achieving this would represent a significant leap for us. Therefore, we are aiming for substantial growth, potentially 100% to 200% year on year. While our base is currently smaller, and will grow over time, our drive and ambition remain undiminished. We intend to maintain this rapid growth rate even as our base expands.
Q] You mentioned that digital is a key component of the marketing mix. To what extent will it be a focus, and what does the current breakdown look like? What percentage of sales is happening online at this point?
Digital is crucial not only for driving sales but also for building foundational awareness and understanding of the product. It serves as an excellent medium for educating the public. For example, anyone conducting a Google search on basic insurance queries will find a wealth of content to guide them. Digital plays a dual role: it helps with both education and conversion.
In terms of education, digital platforms are essential for informing consumers about life insurance, a product often considered challenging or 'pushy' by many. Digital can simplify complex insurance jargon, making it more accessible, especially for those for whom English is a second or third language.
Once consumers are educated, digital's role shifts towards conversion. This involves streamlining the buying process to make it as smooth and seamless as possible, contrasting with the traditional paperwork-heavy methods.
Currently, digital channels are a significant part of our strategy, but specific percentages and exact breakdowns of sales and focus areas will depend on ongoing evaluations and adjustments.
Q] LIC’s market share has risen to approximately 65%, surpassing all private players combined. This dominance has persisted for a long time, largely due to its unmatched on-ground network across the country, which consistently delivers results. Can any level of digital focus ever come close to matching that? Is such a feat achievable in the future?
Marketing involves deeply understanding the consumer. Boardroom discussions often revolve around channel strategies and specific marketing initiatives, but the essence of marketing lies in comprehending the consumer's needs and behaviours. Whether through digital, traditional, or word-of-mouth channels, the goal is to gain insights into how customers interact with money and insurance. From this understanding, marketing efforts should aim to positively influence and engage consumers, adapting strategies to effectively connect with them.
Q] What are your most popular products and plans? What are the promising products you plan to launch in the coming months?
Traditionally, we have been recognised as a term insurance provider, and that has been our core strength. While term insurance will remain a central product for us, we are planning significant expansion into other categories.
In the future, we will focus on expanding our offerings in savings plans and investment-linked products. This will cover a broad spectrum of consumer needs: basic protection through term insurance, financial security with savings plans, and wealth growth with investment products. Our aim is to cater to various consumer goals, whether it’s seeking basic protection, saving for future returns, or investing for wealth accumulation. We are committed to developing products across these categories that align with the needs of our target audience.
Q] Is there going to be any expansion into other categories like health insurance or accidental insurance in the coming years?
In India, insurance is a separate entity. A life insurer cannot do health insurance. So, for now, we will be sticking to the life insurance category, but as and when regulations change, it will be an interesting area to explore.
