“We are targeting the empowered youth”

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Bajaj Allianz Life Insurance has successfully used a hub-and-spoke distribution model to gain fast penetration across the country. Small towns and local recruits are the pillars of this distribution plan. Sanjay Jain, head of marketing at Bajaj Allianz Life Insurance, has spearheaded the strategy for the past four years. In this interview to Alokananda Chakraborty of The Financial Express, Jain—who has worked with The Coca-Cola Company in marketing and sales for eight years—talks about the recent changes in the life insurance industry.

Just half a decade of competition has turned the insurance industry in India upside down. What kind of changes have you noticed in the last five years in terms of marketing and distribution in this business?

Customers today have varying requirements and need specific plans to fulfill those requirements. So marketing is focusing on customised solutions rather then mass selling. Marketing activities have increased today because of the competition in the insurance sector and various mediums are used to win the attention of the customers—be it in urban areas or in rural. Not only mass media but on-ground activities have also increased helping players come in direct contact with customers and offer them need-based savings and insurance solutions.

Of course, the entry of private players has improved the customer experience and services in the industry. The private sector of the industry has grown over 100% for the last few years. In the process, private players have taken over 30% of the life insurance market. In fact, in some months in this financial year, the private sector’s share was as high as 50% of the total market. The growth and the acceptance of the private sector is increasing rapidly and would continue to do so because of the innovative, flexible and customised products and services.

How does the brand Bajaj Allianz compare itself with its competitors—in terms of recall, sale of policies and premium income?

Bajaj Allianz Life Insurance is the largest private sector insurance player for this FY (financial year) in terms of policies issued. We have issued over 25 lakh policies this FY alone. Since inception we have issued over 55 lakh policies. In premium income, we are the second largest private sector player and have logged in over $1 billion in new business premiums this FY alone.