I HAVE been a member of the extended financial services fraternity since 1991. First, as an agency partner to leading financial services brands, during my stint at Ogilvy, as the head of their financial services practice. And then, as a marketer, in the financial services industry.
Nearly a quarter of a century has passed, but one observation stays with me, through all these years.
Money! A category that is a key driving force in the life of every living human being, every citizen of the globe. A category that should need no ‘sell’. And still, despite the efforts of an entire industry, across decades, the penetration levels of the Indian financial services industry remains abysmal. What with the mutual fund category notching a modest 5-6% penetration, equity, yet at a 2-3% penetration, banking at a 45-50% penetration, and life insurance at a 15-16% penetration. While the actual penetration numbers could be a bit here or there, the fact remains that a category that makes the world go round, a category that needs no selling, in fact does not reflect the reality in its penetration levels and consumer base. The untapped opportunity is humongous.
While there could be many reasons attributed to this under penetration, I do believe that a key reason is the fact that we have yet not been able to clearly define or establish a “hum aapke hain kaun” relationship with mass India. Or, more specifically, we have not addressed the question, “What role can we play in your life”. Not surprising then, that our category is referred to as a category that is sold, not bought.
While my current mandate cuts across all shades of the financial services industry, currently my mind is more preoccupied with the life insurance category, and a mission that we have just embarked upon. So I am taking the liberty to pen my thoughts on this category and its efforts, over the decades.
Not surprisingly, the “hum aapke hain kaun” factor seems to hold true here too.
The fact is that life insurance can play a very noble role in the lives of people on whom their loved ones are financially dependent. The fact is that life insurance can help assure and secure your dreams and the dreams of your loved ones. The fact is that while all other asset classes help you live your dream, over a period of time, through regular nurturing, only insurance can ‘guarantee’ the dream that you insure, from the day you pay the first premium, even if fate comes in the way of your building for your dreams, in person.
But still, if you ask a common man what is the role that life insurance can play in his life, the answer may be far removed from the truth. Is it a mode for saving? Is it an avenue for investment? Is it for protection solution? Or, is it just another tax savings instrument? The fact that over 50% of the category sales happen in the last financial quarter of January to March, each year, lends me to believe that life insurance is predominantly sold and bought as a mere tax saving instrument.
What explains this obvious mismatch between perception and reality? The fact is that the life insurance industry, post nationalization, has been around for well over 50 years. There are over 20 companies promoting insurance and over 2 million agents in the business. Despite the efforts and investments of an entire industry, an industry that historically boasts of one of the highest ad spends, it is alarming to note that insurance penetration rests at a mere 4% of India’s GDP. This 4% too is an illusion plagued by circumstances of under-insurance or inadequate insurance.
So, a category that deserves to be a valued part of every household, has in fact only harnessed just a few drops in this ocean of opportunity. Why?
Over the years we have reached out to mass India, repeatedly. But yet not succeeded in explaining the invaluable role that we can play in their life. Is it because of the two mindsets that co exist in today’s India?
At one end Indians, per se, are believers in the philosophy of karma. At a cultural level we Indians have been ardent believers in destiny. It is an easy explanation for unfortunate events and often a convenient excuse for lack of effort. Karma! C’est la vie! Jo hona hai, hoga. Honi ko kaun rok saktha hai….
On the other hand, today’s young and globally aspiring Indian is confident, at times over-confident. He believes that he can win the world, single-handedly. He possibly believes that he can out-run or dodge fate, because he has confidence in himself. The world of reality shows and talent shows where an ordinary man can make it to the centre stage, overnight, does give rise to this new enthusiasm in young ideas. Today’s Indian may have started to believe in his immortality.
But the fact is somewhere in between, I believe. Life is uncertain. There is no denying that. There is no getting away from it.
As individuals, we all have two options. To await fate, to flow with the tide, to curse luck, to take life as it comes, while living every day with the fear of what the next day will be. Or, to live life at your terms. With confidence. A confidence that comes from the realisation and spirit that yes, no one can predict the future. But only you can and should decide how you want to live your life.
And that’s where insurance can help. The act of taking insurance, helps bring financial certainty in an uncertain world. Financial certainty that can help you live your today, with the confidence that your dreams for your loved ones will come true, irrespective of what fate has in store for you.
As a category, over the years, we have skirted the reality called uncertainty. We have either painted life and therefore life insurance as a “happy smiling family”, or, gone the other extreme to frighten you with the eventuality of death, which we Indians prefer not to talk about, or acknowledge.
Today, I believe, the need is to provoke the ordinary Indian into self-realisation of the important role that we can play in his or her life. To acknowledge that life is uncertain and that we can help bring financial certainty in their lives. To promote self-confidence because we can help protect your dreams for your loved ones. We strengthen you to face life with a smile. With confidence.
It is time for us, as an industry, to get life insurance the respect it deserves. Life insurance holds immense relevance in a common man’s life irrespective of his life-stage. The nobility of this profession should in fact place advisors on the same pedestal as doctors or medical professionals.
We must work to prove this oft heard joke wrong—What’s the best way to lose a friend? Become an insurance agent. Is this the job of one player or one brand? We can all wait for the tide to rise, so that all boats rise, and we all benefit from this perception shift. Or, let us all, one by one, in our own ways, pick the gauntlet and make it our mission.
A mission to answer the question “hum aapke hen kaun”. A mission to have Indians realise that we help them to be strong, despite adversities. A mission to bring respect for our category and our agents or advisors. A mission to convert this category from a “sold” category, to a “bought” category. A category that is bought for the right reasons. And for all seasons. To borrow a line from an old campaign for the Indian army, “Do you have it in you?”
By Ajay Kakar
The author is chief marketing officer – financial services, Aditya Birla Group
