Money & Banking

To raise awareness, general insurers eye year-long multimedia campaign

Shobha Roy Kolkata | Updated on December 24, 2018 Published on December 24, 2018

Steering committee of insurers formed to contribute ₹75 crore for the ad campaign

The general insurance industry in India, which has been reeling under pressure due to rising underwriting losses and higher claims, plans to come up with a year-long multimedia advertising campaign to improve awareness around general insurance. The campaign is likely to be rolled out by April 2019.

Steering committee

According to R Chandrasekaran, Secretary General, General Insurance Council, a steering committee has been formed with representations from both public and private general insurers. The general insurance companies have committed to contribute 0.05 per cent of their gross premium, or approximately ₹75 crore, towards the ad campaign. “The committee will discuss and come out with a plan in the next two to three months. And if everything goes well, then hopefully by April 2019 we should be able to finalise the ad campaign,” Chandrasekaran told BusinessLine.

Back in 2012, the general insurance industry had come out with a campaign – ‘Kar Lo Insurance, Kar Lo Rewind’ – which highlighted the role general insurance can play in putting things together after a mishap or accident.

“There are a number of government plans and PM schemes that have been announced in recent years. The ad campaign will look into all of those and give a clearer message to consumers,” he said.

It is to be noted that the life insurance industry has also come together and committed close to ₹100 crore towards an ad campaign, with a view to spread awareness around life insurance and removing misconceptions around the products.

“Along with the Life Insurance Council, we are also working on coming up with a company- and product-agnostic ad campaign to help improve awareness. Once the knowledge level of the people goes up, then they will buy the products voluntarily,” he said.

According to market sources, the ‘Mutual Funds Sahi Hai’ ad campaign has been a runaway success for the industry. It has not only improved awareness but also brought in inflows, particularly from small retail investors through the SIP route. In fact, the inflows have been rather steady despite markets being volatile.

Insurance being still underpenetrated in the country, the industry is looking to promote it more actively, the source added. General insurance is still largely equated with motor and health to a great extent, and not many people are aware of the other products. A ‘lively and catchy’ ad campaign would help reach out to the masses, said Tajinder Mukherjee, Chairman and Managing Director, National Insurance Company.

“Now, when you talk about insurance the laymen only know life, they do not even think about general insurance. The idea is to bring the concept of general insurance to the people, as it can help make them more resilient to any kinds of mishaps,” she said.

While an investor in mutual funds and life insurance gets something in return, in the case of general insurance, it only offers protection. So, the challenge of creating awareness and getting to see a visible impact will be much higher for the general insurance industry, she added.

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Published on December 24, 2018
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