Claim-it In: Premium for Every Space

By
Debdutta Mitra
MBA (Marketing & Sales)
Section-A
Roll no-13
2022-24

Submitted to
Dr. Ramesh Kumar Bagla

AMITY BUSINESS SCHOOL

MARKET ANALYSIS
According to IBEF (Indian Brand Equity Foundation), India ranks fifth among the growing
insurance markets globally, particularly in life insurance, with an impressive annual growth
rate of 32-34%. However, it has witnessed intense competition within the industry, driving
the emergence of new and innovative insurance products and services.
According to IRDAI (Insurance Regulatory and Development Authority of India), India's
share in global life insurance market was 2.73 per cent and for non-life insurance market it
was 0.79 per cent in 2019. On a global scale, life insurance accounted for 46.34% of total
premiums with non-life insurance making up the remaining 53.66% in 2019. Notably, India
stood out with a significantly higher share of 74.94% attributed to life insurance, contrasting
sharply with its non-life insurance share of 25.06%. Within a span of a decade, India is
expected to be ranked 6th in terms of largest insurance market globally surpassing South
Korea, Canada, Germany and Italy. With the COVID-19 pandemic, the scenario highlighted
the vital role that health insurance plays in strengthening the healthcare sector
According to Invest India, as of 2021, India's insurance premium volume reached USD 127
billion, with life insurance comprising 76% and non-life insurance 24% of the total. In 2021,
India experienced a 1.5% increase in total insurance premiums, surpassing the global average
of 9%. As of March 2022, India boasts a total of 67 insurance companies, comprising 24 life
insurers, 26 general insurers, 5 stand-alone health insurers and 12 re-insurers (those who
provide insurance to insurance companies).
According to Invest India data, insurance penetration in India has shown a consistent rise,
climbing from 2.7% in 2000 to 4.2% in 2021. Specifically, the life insurance sector boats a
penetration rate of 3.2 % during the same period, which is double that of emerging markets
and slightly surpasses the global average.
According to IBEF, India's insurance sector stands as a premium industry witnessing
remarkable upward growth and the growth of this sector is directly proportional with rising
incomes and a high sense of awareness among stakeholders. According to Invest India, as
India approaches the rank of the 9th largest life insurance market and the 14th largest non-life
insurance market worldwide, the collective market is projected to chieve a value of USD 200
billion by 2027.
CURRENT TRENDS
Insurance sector is now looking for various degrees of personalization and in a diverse
country like India, different people have different needs. According to an article in The
Economic Times, the insurance industry is experiencing a notable evolution propelled by
technological advancements. Forecasts indicate a sustained growth for the sector, especially
in rural regions, over the coming years. As consumer preferences move towards
customization, there is a rising demand for tailored insurance solutions, with individuals
showing a preference for personalized options over standardized packages.
According to a report by GlobalData.com, such forms of personalization have introduced the
concepts of inclusive insurance and gig insurance in the broader general insurance market.
While prisoners are not considered as consumers, they are often an overlooked aspect when it
comes to identifying prospects for making sales or service. Despite being a significant portion
of the population, prisoners are typically not considered as consumers in the traditional sense.
However, they still have a right to being engaged in consumption activities in special
circumstances.
The needs of prisoners arising from consumer behaviour are not adequately recognized by
business and policymakers. This oversight might stem from various factors such as social
stigma, legal restrictions etc. Many of these prisoners have a high extent of suffering losses
with Value at Risk (a measure of possible loss on an investment). Hence, addressing their
issues will not only benefit them but also contribute to social goals such as equality and
ensure proper ethical practices of a business.
According to NCRB data, natural deaths have increased by 24% from 2016 to 2021 and
government. According to the NCRB report for 2021, India has 1319 prisons with an actual
overall capacity of 4,25,609. However, the number of prisoners were reported to be 5,54,034
(i.e. an occupancy rate of 130.2%). There were 2,116 deaths reported in the year 2021 out of
which 1879 (i.e. 88.79%) accounted for natural ones. Among the 1879 natural deaths reported
by the states, 1796 occurred due to illness, while 83 deaths happened to ageing. Of those
1796 deaths due to illness, 493 (i.e. 27.4%) were caused by heart diseases and 294 (i.e.
16.4%) deaths happened due to lung diseases.
Percentage of natural deaths in prisons
(Source: NCRB)
Heart diseases
Lung diseases
27%
32% Cancer
TB
Kidney illness
Liver illness
Brain Haemorrhage
HIV
16% Other
2%
3% 5% 6%
4%
4%
CLAIM-IT IN
A life insurance policy set for prisoners and their family members all-over India covering risk
of natural deaths. It will comprise of various low-cost plans suited for the needs of the
prisoners and their family members who will be nominees.
These plans will consider factors such as income background and age group of the prisoners'
families to offer different coverage options. The insurance provider will collaborate with
prison departments across various different states and union territories (UTs) in India. This
collaboration is crucial for accessing prisoner information, understanding their demographics,
and facilitating the distribution and management of insurance policies within the prison
system.
Once the collaboration is established, the insurance policies will be officially launched in
association with various prison departments. This launch may involve an awareness
campaign within the prison facilities to educate prisoners and their families about the
available Insurance options and their benefits. The policies will cover the risk of natural death
of the insured prisoners and provide financial compensation to their nominated family
member(s) in the event of the insured prisoner's death.
Recognizing that prisoners come from diverse socio-economic backgrounds and age groups,
the insurance provider will offer different policies tailored to meet the specific needs of
different demographics based on factors such as income level and age.
However, as terms & conditions, insurance claims will be valid for "Natural deaths that
occur within the premises of the jail". This exclusion clause ensures that the coverage is
specifically for incidents during the jail period and the policy is termed "null" for deaths
occurring during parole period and after bail. Following the policyholder's natural death
within the jail premises, the family members can file a claim within the insurance company
via designated channels and they have to show evidence proving that the death was "natural
and within prison premises". After verification of the claim, the insurance provider will
then verify the claim and disburse the agreed-upon compensation to the beneficiaries.
 MARKETING MIX
PRODUCT

Age 18-30 30-45 45-60 Above 60

group
Yearly
income
Upto Rs 1 lakh Rs 50 per Rs 75 per Rs 100 per Rs 150 per
month month month month

Coverage Rs 15 lakhs

Rs 1 lakh to Rs 75 per Rs 100 per Rs 150 per Rs 200 per

month month month month
Rs 2 lakh

Coverage Rs 20 lakhs

Rs 2 lakh to Rs 3 Rs 100 per Rs 150 per Rs 200 per Rs 300 per

lakh month month month month

Coverage Rs 25 lakhs

Above Rs 3 lakhs Rs 150 per Rs 200 per Rs 300 per Rs 400 per
month month month month

Coverage Rs 30 lakhs
PRICE
The price of the insurance policy will include the monthly installment paid for the premium
as mentioned. As mentioned, the price has been set keeping in mind the annual household
income of majority of prisoners. The premium amount will vary depending on the type of
policy chosen by the policyholder. Tax percentage will be 18% in GST and is exclusive of the
installment charges.
If there is any delay in payment of premium, a default fee of Rs 50 per week will be charged
to encourage timey payments from policyholders. If the payment is delayed by 2 months, the
insurance contract is considered "null". The policyholder will be refunded the paid amount,
but with a deduction of 10% from the total amount paid. In addition to the premium and late
payment charges, there will be an additional charge d Rs 10 for the underwriting and
consultancy services provided by the insurance company.
PLACE
Jail premises serve as an important venue for prisoners who can meet their families within a
controlled environment which facilitates support and communication. Insurance personnel
will be coordinating directly with jail authorities, facilitating smoother communication and
resolution of issues. With this, prisoners can inform their families of the insurance policies
and ensure that he/she and his/her nominee is able to complete the necessary procedures in a
smooth manner.
The insurance office and the residence of nominees also act as "PLACE" as all formalities
related to claim of policy following the policyholder’s death will take place there after the
necessary verification is done by the insurance company.
PROMOTION
Promotion of the product can only take via limited means. Physical interaction adds a
personal touch, making the insurance policy more relatable and understandable. it allows for
answering questions and addressing any doubts or misconceptions directly. The insurance
company representative will first speak of the benefits to the jail authorities.
After they are convinced for the same, the representative will have to go inside the jail
premises and promote the offerings via verbal communication directly to the prisoners who
will have no to little access to major media channels such as TV and newspaper. The
representative can also promote his offering when the prisoners consult their families on the
same before taking any decision.
PEOPLE
The insured prisoners and their nominees are the most vital aspect of the policy. It is essential
to communicate the benefits to them in a clear and concise manner and ensure that they
understand all procedures related to coverage and claim. Also, jail department officials need
to be kept in loop even after they give all clearances and this will ensure smooth
implementation and cooperation from authorities to access prisoners.
The sales team must maintain proper coordination between the jail department and prisoners
to prevent conflicts of interest. They need to navigate sensitively to ensure that the policy
benefits both parties without compromising security or ethics. This involve clear
communication channels and compliance to regulations along with transparency.
PROCESS
The insurance company representatives will liaise with prison authorities, targeting facilities
with high occurrences of natural inmate deaths. If the jail administration approves,
representatives will engage directly with groups of high-risk prisoners. They will identify
upcoming family visits for these individuals and offer personalized explanations of the policy
during individual sessions. if prisoners choose to purchase a policy, the representatives will
maintain regular contact to address any concerns and ensure transparency. Crucially, they will
work together to avoid conflicts of interest between the prisoners and the jail authorities,
fostering trust and credibility in the process.
PHYSICAL EVIDENCE
It will include the jail environment and the visitors' room, which serve as the backdrop for
appointments, instilling a sense of security and professionalism. If the nominee visits the
insurance office, the location also becomes part of the physical evidence, emphasizing
accessibility.
Even the policy documents are important as they showcase the terms and benefits in a clear
manner. They should be well-designed and easy to understand, enhancing credibility. Product
brochures, if any, should also include helpline numbers for customer support and assistance.
SWOT ANALYSIS
STRENGTHS
Market development strategy: As this is a new market for an existing product that is
becoming popular, there are chances of finding new prospective takers.
Will have many prospective takers: This type of insurance policy is relatively inexpensive.
This could motivate more prisoners to come forward and purchase the policy.
WEAKNESS
Limited faith and literacy among target audience: There may be challenges with convincing
prisoners of the value of the insurance policy and understanding its offerings. This is due to a
general sense of distrust for authority or a lack of education among prison population.
OPPURTUNITIES
Large Potential Market: There could be a significant number of prisoners who may purchase
the insurance policy considering the rate for natural deaths
Increases brand image: Such policies could improve public image of the insurance company
and can also improve the social and ethical framework of the firm
THREATS
Red tapism among prison officials: Any approval from a government body is very time
consuming and complex when it comes to implementation. This may hinder the process at the
initial stags itself.
SEGMENTATION
The Customer segments will primarily be male jail inmates due to their higher risk of natural
deaths in general. This insurance will cater to different age and income groups among
inmates. The age groups will include 18-30, 30-45, 45-60 and 60 and above. Income groups
will consist of below Rs 1 lakh, Rs 1-2 lakh, Rs 2-3 lakhs and above Rs 3 lakh annually. The
policy will initially cater to only male inmates on a trial basis as males generally have a
higher death rate than females globally in general, according to a report by Population
Reference Bureau.

TARGETING
While the target market is small, these policies will address the needs faced by prisoners and
their dependents as it will provide financial support to them in case of risk circumstance of
natural death within the prison premises.
By launching policies for female inmates and juveniles later will also address their needs
compared to male prisoners. With this, it will hence include all types of imprisoned persons,
irrespective of gender and age, who don’t have access to financial protection against risks.

POSITIONING
The focus is on targeting a specific market segment via application-based positioning (i.e. the
service will be tailored to the unique needs and circumstances of the target audience).
However, since the market for prisoner insurance is not widespread the strategy is more about
developing this niche market. Hence, this product falls into a niche category, meaning it
serves a specialized audience with specific requirements. The value proposition of the
insurance policy is mostly centred around its low price, as it caters to a segment who have a
limited purchasing power.
REFERENCES
INSURANCE INDUSTRY REPORT by Indian Brand Equity Foundation
INSURANCE SNAPSHOT by Invest India
Indian Insurance in the Global Scenario by IRDAI
Personalised Insurance: The Future of the Insurance Industry by Raghavendra Rao, The
Economic Times (June 21, 2023)
India General Insurance Market Size and Trends by Line of Business, Distribution,
Competitive Landscape and Forecast to 2027 by GlobalData
Prison Statistics India–2021 Executive Summary by NCRB
Around the Globe Women Outlive Men by Population Reference Bureau (September 1, 2001)