Marketing Strategy
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Transcript of Marketing Strategy
Life InsuranceAlternative Distribution Channels
Worksite Marketing in Selected Markets
A Paper presented to the Global Conference of Actuaries
New Delhi, 15-16th February 2005
John Mungall, FFAAEGON
What is Worksite Marketing?
• Selling products through the affinity of an employer relationship
• Leverage vendor’s relationships with employers
• Delivery via web, phone, mail, and face-to-face.
• Varies by market
Why Worksite Marketing?
• Opens up large market• Benefits from employer
endorsement• Employer moral responsibility• Government initiatives• Discount, comfort,ease of purchase
& payment
The US Market
Definition: “Voluntary, employee-paid, insurance and financial products, paid by payroll deduction”
In force premiums of US$11.6 billionTop company sold $1.1 billion of new
business in 2002
US Products
• Life – top up to employer plan• Health – “gap fill” to employer paid
benefit, e.g., to cover $2000 deductible
• Disability income• Critical illness• Vision, dental
US Case Study
Who? Major retailer, US wide store network
Why? Health benefit cost reduction => 10,000 associates lost entitlement to benefit
What? Broker designed package of medical, term, dental benefits,with low & high options. Paid by payroll deduction
US Case Study (2)
How? Brochure issued by desk-drop. Call centre engaged, website set up, to handle enrolment
What next? Employees sign to acknowledge receipt of brochure. One-to-one advice sessions.
By second renewal, take-up increased to 60%
Provider success criteria
• Strategic focus – bottom line accountability
• Distribution – separate distribution team
• Product – depth and quality• Administration – “price to play”
Why Worksite Marketing? – India
Crucial issues:• Employer benevolence• Replacement of employer paid benefits• Payment by payroll deduction• Gov’t initiatives, e.g., demographic
imperative, health & pensions• For vendors, how to get to the decision
makers in employers?
Life InsuranceAlternative Distribution Channels
Worksite Marketing in Selected Markets
A Paper presented to the Global Conference of Actuaries
New Delhi, 15-16th February 2005
John Mungall, FFAAEGON