Customer-Centric Marketing: Revolutionising the Insurance Industry

The general insurance sector divides the market into two main segments: corporate and retail. Given that the Indian economy is one of the fastest-growing globally, with a growth rate of around 7 to 7.5%, and is undergoing significant formalisation, the corporate segment is well-positioned for success, shared Rathin Lahiri, Head – Marketing & CSR, SBI General Insurance in an exclusive interaction with Srajan Agarwal of Elets News Network (ENN).

How do you differentiate SBI General Insurance from other players in the market in terms of brand positioning?

The general insurance sector remains under penetrated. For instance, nearly half of all vehicles in India lack insurance coverage. Similarly, health insurance saw a surge post- COVID, with more people now opting for it. Many employed individuals still rely on corporate health coverage rather than having personal insurance. On the other hand, household insurance is even less prevalent, typically only being considered when securing a home loan.

Despite homes being one of our most valuable assets, this sector remains underinsured. Establishing trust is crucial for any brand offering insurance products. Customers commit to long-term contracts spanning 10, 15, or 20 years, so they need assurance that the insurer will honor their commitments. SBI stands out as one of India’s most trusted financial brands, ensuring to customers that we uphold our promises now and in the future.

Another key differentiation lies in our clear and straightforward communication. Given our diverse customer base across India, we prioritise making our product information easily understandable. Additionally, we take pride in our high claims payout ratio, which reflects our commitment to delivering on our promises.

With SBI General Insurance, customers receive reliable insurance products and the peace of mind that comes with knowing we will support them when it matters most.

What steps are you taking to ensure customer-centric approach in your marketing strategies?

We serve approXimately four crore customers, which represents a substantial volume. Our extensive distribution network includes private sector banks, State Bank of India, other public sector banks, regional rural banks, and fintech platforms like PhonePe and PolicyBazaar. Our customers span the entire country and come from diverse segments.

One critical aspect of our differentiation is our ability to communicate effectively with customers in their preferred language and format. This ensures that our message resonates with them, regardless of location or background.

Additionally, we recognise that India is a highly price-sensitive market. To address
this, we collaborate closely with our product team to ensure our products are competitively priced. Affordability and value are central to our strategy, making our products accessible to a broad audience. These factors—effective communication, competitive pricing and brad focus—are key to our differentiation in the market.

How does SBI General Insurance integrate sustainability into its core business operations and strategies?

As part of the SBI group, sustainability is our core focus. One of the primary ways we’ve
integrated sustainability is through digitisation. Given the large volume of paperwork involved with our four core customer—from proposal forms to payment receipts and reminders—the environmental impact of paper consumption can be significant. We have digitised our processes to address this, allowing customers to receive documents and communications via WhatsApp, email, and SMS. This shift has greatly reduced our paper usage and supports our sustainability goals.

Another aspect of our sustainability efforts involves a pricing strategy for sustainable products. For instance, we offer more attractive, environmentally friendly pricing for commercial projects that prioritise sustainability. This approach encourages organisations to adopt eco-friendly practices, such as using EV vehicles, by providing them with beneficial pricing.

Additionally, our Corporate Social Responsibility (CSR) initiatives are aligned with sustainability objectives. We carefully select CSR activities to ensure they contribute to our sustainability goals and reflect our commitment to environmental and social responsibility across the organisation.

How do you foresee the role of marketing evolving in the insurance industry, and how is SBI General Insurance preparing for these changes? The role of marketing varies significantly depending on the organisations and sector.

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In our sector, a primary focus of marketing is customer education. We aim to help customers understand the importance of balancing potential returns with risk management. For example, medical expenses in major cities can be exorbitant. Without health insurance, a single week in the hospital could deplete all your savings. In contrast, a health cover costing just a few thousand rupees can provide essential protection. Educating customers about these benefits is crucial.

Another important aspect of our marketing strategy is our multilingual approach and multi- channel distribution. We ensure our products are accessible through various channels, enhancing availability and meeting diverse customer needs. This widespread distribution is key to building demand.

We also work closely with our product team to ensure our offerings provide value. We explore opportunities to bundle features and negotiate with vendors to keep pricing
competitive. The more affordable we make our products, the more effectively we can reach a broader audience.

Finally, we emphasise our reputation as a trusted brand. We highlight our success stories and customer satisfaction with our claims processing. For instance, in our health insurance sector, we operate an in-house call center dedicated to efficient health claims processing, maintaining high service standards. This focus on trust and service quality is integral to our marketing efforts.

As the Government of India promotes the “Insurance for All by 2047” campaign, what are your views on this initiative?

From both an individual and national perspective, managing risk is crucial, not just focusing on returns. Individuals need to balance the pursuit of returns with effective risk management. On a national scale, it’s important for insurance companies to handle the cost of risk management, possibly through reinsurance or other strategies. The government’s ambitious goal of providing insurance for all by 2047 is a significant step forward, but there’s still a long way to go.

One major factor driving increased insurance penetration has been the Covid-19 pandemic.

The pandemic has highlighted the importance of health insurance, even for younger individuals who previously felt invulnerable. Health insurance has become more accessible and affordable, and securing it at a younger age can lead to lower costs compared to purchasing it later in life when health issues may arise.

To advance this goal, the government has allocated two states to each insurance company for focused efforts. We are working extensively in Haryana and Meghalaya, partnering with State Bank of India, regional rural banks, schools, and local community committees.
Our strategy includes raising awareness through digital channels such as social media and WhatsApp, utilising local languages to effectively reach and educate diverse populations. With their extensive reach, social media platforms like Instagram can sometimes be more effective than traditional media in spreading awareness about insurance products.

How does the leadership at SBI General Insurance foster a positive and inclusive workplace culture? Can you discuss any programs or initiatives that have been particularly effective in motivating employees?

The general insurance industry is experiencing a robust growth rate of approXimately 13 to 14% annually. SBI General Insurance, however, is surpassing this average with a growth rate of 17 to 18%. This significant expansion creates numerous opportunities for the right talent across various functions, including sales, product development, marketing, and alternative distribution channels.

At SBI General Insurance, we have numerous examples of individuals who started in entry- level sales and quickly advanced to leadership positions. These success stories demonstrate that hard work and dedication can lead to rapid career progression within the company.

Additionally, we have a well-structured rewards and recognition program. High performers are rewarded with opportunities to attend annual recognition events, offering them professional and personal enrichment.

Overall, SBI General Insurance offers a dynamic and supportive work environment with ample career growth and development opportunities. We are also recognised as a great workplace, reflecting our commitment to employee satisfaction and success.

What is your business growth path? And what are your way forward plans?

The general insurance sector divides the market into two main segments: corporate and retail. Given that the Indian economy is one of the fastest-growing globally, with a growth rate of around 7 to 7.5%, and is undergoing significant formalisation, the corporate segment is well- positioned for success.

On the retail side, rising per capita incomes and increasing workforce participation are
key drivers. With India’s median age at 28, many individuals are starting families, which
increases their need for insurance coverage. This demographic shift is a significant trigger for insurance adoption as people look to secure the future for themselves and their families.

Our company strategically leverages these trends by offering simple, value-oriented products that appeal to a broad audience. We provide excellent claims support to ensure that any claims are processed efficiently. We also measure our performance through Net
Promoter Scores (NPS), allowing us to monitor customer satisfaction and promptly and promptly and continuously address any issues.

By keeping the customer experience at the core of our operations and maintaining a strong brand presence, we are well-positioned to capitalise on the growth opportunities within the insurance sector.