Insurance In The Time Of ‘Home Economy’
Ruchika Varma, CMO, Future Generali India Insurance lists down mantras of what it will take for brands in General Insurance to win in the time of Covid-19
Coronavirus is not just a health crisis; it is a black swan event with wide implications across multiple dimensions. These implications are not just limited to loss of human life, severe economic contraction on a global basis & restructuring of businesses but also reshaping of intrinsic human behaviour and consumer preferences.
Indians by nature are savers (we have among the highest savings rate in the world). We save for a rainy day, accumulate wealth, are industrious and hardworking. We invest in low-yield but safe products like FDs, life insurance endowment and money back plans. But oddly, we don’t spend money on protection. Health Insurance, a product which has almost guaranteed usability in urban India, has sadly always been characterised by low penetration and limited demand.
The Covid-19 situation has turned this on its head. People are slowly waking up to the realisation that their health is also an asset that needs financial protection. While there is a positive inclination for health insurance, demand for the largest selling product in the general insurance industry i.e motor insurance is declining. Travel insurance, typically a high growth product, is non- existent. Consumer behaviour is changing and is reshaping the future of insurance.
In this new reality, what will make general insurance brands win in the market-place? Here are some mantras that I believe will help brands get sustainable competitive advantage in the new normal
There is a need to re-assess media plans. Social Distancing has led to online social connectivity. Visits to social media sites have increased by 19%, with a high increase even for those above 35 years. Facebook and WhatsApp continue their domination but platforms like ByteDance and TikTok are not far behind. There is 32% growth in visits to news sites, 11% growth in visits to health sites, digital consumption on mobile phones have increased by three hours, online gaming is seeing a 49% increase in total minutes spent. The implications for Insurance brands? Realign media and partnership plans to reflect these shifts in consumer behaviour.
We all know the world will never be the same again. Brands that embrace this, redefine their marketing strategies accordingly and consistently address consumer needs will create preference for themselves in this new world.
Tags : latest-stories Guest Column Covid-19 Future Generali India Insurance Ruchika Varma