Insurance firm, Max Life Insuranceplans to increase its marketing and advertising spend by 20% in FY20, Aalok Bhan, CMO, Max Life Insurance told ETBE. “Despite not increasing ad spend last year, we witnessed a 21% increase in the sale of insurance premium in FY19. this year we expect 20% -25% increase in sales, on the back of increase in ad spend,” Bhan added.
The company claims that insurance being a distribution led business, its advertising skewed more towards below-the-line (BTL) activities which includes billboards, experiential marketing, among other, followed by digital. Of the total advertising expenditure, 50% is diverted towards digital and the remaining 50% is split between ATL and BTL mediums. According to the company it ad spends on above-the-line (ATL) mediums including TV, print and radio is a lot less. “We want to be in the space where our customers are. Hence I have a bigger presence of digital as my consumers are also there, ” he explained.
Max Financial’s subsidiary, Max Life Insurance claims to have 83% renewal rate at the end of the 13th month, while the rejection rate is about 1.2%. As per the company 98.7% claims are paid. Of this 45% of the claims are paid within 24 hours. “Last fiscal, we cleared 15,000 claims worth Rs 452 crore. What this means is that we cleared a claim every five minute,” Bhan added.
As per Bhan, 40%-45% of Max Life Insurance’s customers research about products and services, on digital, first. This is followed by consumers buying insurance offline. “Sale of policies on digital have shown promise. One in four people buy through digital. We expect the platform to occupy a considerable space in our sales pie in the times to come,” he added. Ends
In February, 2019, Max Life Insurance in collaboration with Kantar IMRBreleased a study titled, ‘Ïndia Protection Quotient’ (IPQ). The study revealed that while 65 % of respondents (4,566) owns life insurance the percentage of term insurance owners is just 21%. To further spread awareness about the study, Max Life Insurance tied up with NDTV as a media partner, besides 98.3 FM Radio Mirchi.