The Marketing mix of Aviva Life Insurance analyses the 4Ps of Aviva’s marketing strategy, which includes the Product, Price, Place, and Promotion of Aviva Life Insurance. Aviva Life Insurance is a well-known company in the insurance business, and this multinational company has its headquarters in London, United Kingdom. Aviva was founded in 2000, and its current CEO is Mr. Mark Wilson. It has a vast customer base of over 53 million across 28 countries. It has various subsidiaries and joint ventures across multiple countries. It is the 5th largest insurance company globally and the most significant in the UK.
In India, it has operated as a joint venture named Aviva India with the Indian conglomerate Dabur Group since 2002. Allianz is a major competitor for Aviva’s general insurance brand in the UK. Aviva Life Insurance faces good competition from LIC, Max Life Insurance, and Bajaj Allianz in India.
About Aviva
- Type: Public limited company
- Industry: Insurance, Financial services
- Founded: 2000
- Founder: CGU plc and Norwich Union plc
- Headquarters: London, United Kingdom
- Area served: Worldwide
- Key people: George Culmer (Chairman) and Amanda Blanc (CEO)
- Number of employees: 29,000
Table of Contents
Aviva Life Insurance Product Strategy
Life insurance plans and health insurance plans are vast areas across which several variants and different markets of insurance products are categorized as follows:
- Fixed-term protection plans: Aviva Life Shield Platinum
- Endowment plans: Aviva money back, Aviva freedom life advantage, and Aviva life saver advantage
- Aviva Health Secure: online health plan to match up to the fast-growing online market.
- Children’s plans: Aviva Young Scholar Advantage and Aviva Young Scholar Secure.
- Aviva i-shield
These products are intricately designed to suit the needs of the customer. Customers can choose products based on their age, ability to pay premiums, and desire to create retirement funds.
Aviva Life Insurance company offers a diverse range of life insurance products tailored to meet various customer needs. The new Product Mix of Aviva Life Insurance in 2023, is as follows (Source)
- Term Life Insurance: These policies provide coverage for a specified term, offering financial protection to beneficiaries in the event of the policyholder’s death during the term. Aviva offers various term life plans, some of which may include options for critical illness coverage.
- Whole Life Insurance: Unlike term insurance, whole life policies offer lifelong coverage. These policies also have a savings component, allowing the policyholder to accumulate cash value over time, which can be borrowed against or withdrawn under certain conditions.
- Universal Life Insurance: This flexible policy combines life insurance coverage with investment savings. Policyholders have the flexibility to adjust the premium and death benefit amounts.
- Child Life Insurance: These plans are designed to offer financial security for children. They typically provide life insurance coverage and may include education and health-related benefits options.
- Health and Critical Illness Insurance: Aviva offers plans that specifically cover critical illnesses and medical expenses, providing financial support in case of significant health issues like cancer, heart attack, or stroke.
- Retirement and Pension Plans: These products are designed to help individuals save for retirement, offering options for accumulating retirement savings and annuity products for regular income post-retirement.
- Group Life Insurance: Tailored for businesses, these plans provide life insurance coverage to employees as part of their benefits package. They can include term life, health, and other types of insurance under a group policy.
- Investment-Linked Policies (ILPs): ILPs combine life insurance with investment components, where a portion of the premiums go towards life cover, and the remaining is invested in various funds chosen by the policyholder.
Aviva Life Insurance Place Strategy
The distribution network is essential for a company in the insurance business because the direct sales force forms the foundation of the business. Apart from the online channel and direct marketing of these, its partnerships through various financial planning advisors and private sector banks are the other channels for sales. Aviva Life Insurance has more than 121 offices across India and close to 3000 employees, besides having a solid list of agents on board.
Well over the years online and social marketing channels for selling insurance policies have also become popular among target market wherein by just minimal details and hassle-free procedure you get an insurance plan.
Here’s the Place Strategy of Aviva Life Insurance:
- Global Presence with Local Focus: Aviva Life Insurance operates in various countries, offering tailored insurance solutions to meet the specific needs of different regional markets. This approach allows them to cater to local preferences and regulatory requirements while leveraging their global expertise.
- Multi-Channel Distribution: Aviva utilizes a multi-channel distribution approach, including independent financial advisors, brokers, direct sales, and online platforms. This diverse channel strategy ensures that their products are accessible to a wide range of customers with varying preferences.
- Strategic Partnerships and Alliances: Aviva forms strategic partnerships with banks, financial institutions, and other corporations. These alliances enable them to reach a broader customer base and offer their products through bancassurance and other cooperative models.
- Digital Platforms and Online Presence: Recognizing the importance of digital accessibility, Aviva has invested in robust online platforms. These platforms enable customers to purchase policies, make claims, and manage their insurance portfolios conveniently online.
- Customer Service Centers and Local Offices: Aviva maintains customer service centers and local offices in key markets. These centers provide personalized assistance, address customer queries, and offer support for claims processing, enhancing the overall customer experience.
Aviva Life Insurance Pricing Strategy
Rather than the price, a person, while selecting a product range from a company before getting insured, looks at the claims settled successfully by the company. Aviva has a claim settlement ratio of 83.07% for 2014-2015. To get one crore insurance cover, you need to pay a premium of Rs 480 per month, and the same plan in HDFC’s standard life is Rs 535 per month. Reliance Life offers 450 per month, but these have a lower settlement ratio than Aviva.
But in India, Aviva is far behind LIC, which has a claim settlement ratio of 97.73%. This is a significant issue where Aviva is suffering in customer conversions. So, low premiums don’t lure customers these days. Every one of the insurance companies uses value-based pricing, and they provide an X value for their insurance plans. But in the end, if the cost efficiency and claim settlement ratio are less than the maximum value, the company is affected overall.
Aviva Life Insurance employs a dynamic and customer-centric pricing strategy intricately designed to balance its competitive advantage, product features, and positioning in the insurance market while addressing the diverse needs of its clientele. Here’s its Pricing Strategy:
- Risk-Based Pricing: Aviva adopts a risk-based pricing model, which considers individual risk factors such as age, health, lifestyle, and occupational hazards. This approach ensures that premiums are calculated based on the likelihood of claims, allowing for competitive pricing and responsible risk management.
- Tiered Product Offerings: Recognizing customers’ varied financial capabilities and needs, Aviva provides tiered insurance products. This stratification allows customers to choose policies that best suit their budget and coverage needs, from basic coverage options to premium plans with additional benefits.
- Bundling and Customization Options: Aviva offers customization and bundling options, allowing customers to tailor their policies with riders and additional coverages. This flexibility adds value for the customer and enables Aviva to price policies more attractively by combining services.
- Competitive and Market-Conscious Pricing: Aviva’s pricing strategy is attuned to industry trends and competitor pricing in a highly competitive market. They ensure their products are competitively priced to offer good value while not compromising on the quality of service and coverage.
- Value-Based Pricing for Specialized Products: Aviva employs value-based pricing for specialized insurance products like specific investment-linked policies or high-value life insurance. This approach reflects these products’ additional benefits, such as investment growth potential and extensive coverage.
- Dynamic Pricing Adjustments: Aviva regularly reviews and adjusts its pricing strategy in response to external factors like regulatory changes, market dynamics, and economic conditions. This agility ensures that their products remain appropriately priced and relevant in changing environments.
Aviva Life Insurance Promotion Strategy
Aviva’s Indian subsidiary has been promoting Aviva through various advertisements across multimedia, print, social media platforms, marketing, etc., and has gotten cricketer Sachin Tendulkar to become the brand ambassador since 2007. The firm contributes to society through numerous corporate social responsibility initiatives mainly targeted towards education. Aviva especially carries out promotions through brand ambassadors and some hard-hitting messages. Below is an ad by Aviva that is very much “to the point” and shows the importance of life insurance.
https://www.youtube.com/watch?v=TkyoCHCZlKw
Its primary competitors in India are the Indian insurance giants LIC (Life Insurance Corporation of India), Max Life Insurance, National Insurance, Bajaj Allianz, and HDFC Standard Life. Brands like LIC do have some ambassadors and social media presence, too, like singer Abhijeet, for introducing new plans, but they don’t have that face of the brand. However, Max’s life insurance advertisements portray a mascot, which got them good attention. In this business marketing, campaigns need to be focused on building a brand image and an emotional connection with customers.
Some Recent Video ads and Print ads of Aviva Life Insurance are:
Aviva News Section | Aviva India
Multiply your wealth ULIP Plan – Aviva Signature Investment Plan – YouTube
AVIVA: Reality Check (Best Retirement Ad Campaigns) – YouTube
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This was a very useful detail provided by you, but as you must be aware that service marketing mix has 8 P’s . Will you please add those too?