Insurance Marketing: Where’ve all the marketers gone?

Do you know what is the most important insurance in India? No, it is not Life Insurance, Health Insurance, Home Insurance or Retirement Insurance. It is the insurance when you failed to pay premium at the right time, you’ll end up paying more fine to the police than to the insurers.

It is the vehicle insurance I’m talking about. As per the Society of Indian Automobile Manufacturers, total vehicle sales in India last year was 9,648,094. Insurance of all the motor vehicles plying on the public road is mandatory under Indian Motor Vehicles Act. That automatically translates to 9 million new motor insurance policies every year.

1 insurance policy every 3 seconds. That’s the opportunity. But do the insurance majors really care to capture a major share of this motor insurance market? You can easily remember many of the great ads for health insurance, life insurance or retirement plans by major insurance providers. But have you ever seen an ad for a motor insurance?

I’ve seen Reliance Retail marketing ICICI Lombard’s two-wheeler insurance in its Reliance Fresh stores. Other than that I haven’t seen any major marketing initiative for this vehicle insurance segment.

I really have no idea why the insurance marketers mostly ignore this vehicle insurance market. Is it that kind of a low margin business? Are the insurance companies not interested in increasing their market share in this segment? Do you have any idea?

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