WCRC India’s Inspirational Brands: Shriram Life Insurance
Shriram Life Insurance is part of the Chennai based Shriram group. Shriram group is a conglomerate which has significant presence in financial services viz., commercial vehicle finance, consumer finance, life and general insurance, stock broking, chit funds and distribution of financial products such as life & general insurance products and mutual fund products.
Chosen Category for Inspirational Brands: Life Insurance
Shriram Group has an overall customer base in excess of 12 Million, more than 60,000 employees across 3,000 offices, net profit of Rs. 22 billion with Assets under Management (AUM) in excess of Rs.1,25,000 Crores. Shriram Transport Finance Co Ltd and Shriram City Union Finance Ltd are two of the leading group companies, which are also listed in the stock exchanges.
Product/Service Offering:
Shriram Life Insurance Co Ltd, (SLIC) is an IRDAI approved Life Insurance Company and offers individual and group life insurance products. Product range includes life insurance products in both traditional and unit linked platforms. Life insurance product range includes term plans, Savings plan and pension plans and plans are available both in off line and on line distribution models.
Country of Origin:
India
Promoter/Director:
Shriram Life is a joint venture between Shriram Capital Ltd, Chennai and Sanlam South Africa.
Company Vision & Mission
The Shriram Life Insurance Company was founded with the objective of reaching out to the “common man” with products and services that would be helpful to him as he sets out on the path to “prosperity”.
Operational efficiency, integrity and a strong focus on catering to the needs of the average Indian , by offering him high quality and cost-effective products and services, are the core values that drive the organisation. These values have been strongly adhered to over the decades and are now an integral part of the organisation’s DNA.
The company prides itself on its deep understanding of the customer. Each product or service is tailor-made to specifically suit the needs of the customer. It is this guiding philosophy of putting people first that has brought the group company closer to the grassroots and has made it the preferred choice for all truck financing requirements amongst the customers
Ethos of the brand:
The Shriram Life Insurance Company was founded with the objective of reaching out to the “common man” with products and services that would be helpful to him as he set out on the path to “prosperity”.
The company prides itself on its deep understanding of the customer. Each product or service is tailor-made to specifically suit the needs of the “Aam Aadmi” customer
Total Number of Employees in the Company:
Head count is 4164 as on 31st October 2018
Countries the brand is present:
Shriram Life is present in India. JV Partner Sanlam of South Africa has global presence. In addition to having dominant presence in the South African countries, Sanlam is also present in Malaysia, UK, US and Netherlands
The unique value proposition of the product: the functional, emotional and differentiating product benefits that have contributed to providing an enduring brand experience to customers?
The Shriram Life Insurance Company was founded with the objective of reaching out to the “common man” with products and services that would be helpful to him as he set out on the path to “prosperity”.
Operational efficiency, integrity and a strong focus on catering to the needs of the average Indian , by offering him high quality and cost-effective products and services, are the core values that drive the organisation. These values have been strongly adhered to over the decades and are now an integral part of the organisation’s DNA.
The company prides itself on its deep understanding of the customer. Each product or service is tailor-made to specifically suit the needs of the customer. It is this guiding philosophy of putting people first that has brought the group company closer to the grassroots and has made it the preferred choice for all truck financing requirements amongst the customers.
Brand perse is directly attached to the customer segment by having all its products, services mapped to the need of the mass market customer segment.
What are the physical, character and personality attributes of the brand that have evoked and inspired consumers’ self-expression and personal identity?
Shriram Life identifies itself as a life insurance provider for the common man. Being part of the Shriram group, which always focused on the “financial inclusion “customer segment, SLIC understands the uniqueness of this mass market customer group. Shriram Life has understood the segment through the experience of the group and has devised products and process to match to the requirement of the segment. Affordability of premium, Easy accessibility to avail the product are kept in mind while devising the delivery mechanism.
The distribution model is developed based on the “niche” customer segment.
An insight into the brand marketing strategies that have effectively penetrated consumers’ psyche, established a meaningful relationship with the target audiences and ensured positive brand perception.
In addition to the geographical expansion, SLIC top management, supported innovation in products and distribution of life insurance. The other key initiatives, innovation in products and technology enabled distribution are presented briefly in the table below.
|
Sl No |
Innovation |
Brief description |
|
1 |
Telenor Suraksha |
Life insurance cover for mobile phone subscribers a first of its kind initiative in India. Life insurance cover was offered to the subscribers of Telenor. More than 15 million lives were offered life insurance cover under this initiative. Technology and telecom were leveraged for delivery of both issuance and death claims |
|
2 |
Cash Back term plan –Truck Drivers |
A Customised plan for truck driver segment, which is normally regarded as high risk segment in the life insurance industry. A simple and easy to understand product with ease of distribution process was initiated. More than 10,000 truck drivers are offered life insurance cover monthly and over 3 lakhs drivers have been provided life cover over the last 3 years. Policy issuance is on OTC template and is made available to the truck drivers at the STFC Branches. Technology enabled issuance. |
|
3 |
Sure Buddy |
Another first of its kind initiative. Free life insurance cover for Smart phone owners subscribing to the “Sure Buddy” App |
|
4 |
Micro Finance Customers segment |
Customised offering of group insurance product to the borrowers of Micro Finance Institution. MFIN, the industry body has recognized Shriram Life as one of the top players in this financial inclusion segment. In this ongoing program, in association with Micro Finance companies, more than 6 million lives have been provided life insurance during 2016-17 and 2017-18. |
|
5 |
Life cover for Gold Loan customers |
Customised product offering for Gold Loan customers, through OTC issuance process using technology. More than 2 lakhs lives were covered under this scheme. |
What is the level of significance the brand accords to utilizing social media as a competitive edge?
- SLIC has adopted technology in the business. Some of the business applications include
- Online B2C portal – New Business, renewals
- Mobility applications – customers, Distributors
- Call center-Multilingual capability
- B2D Portal – Business Partner portal
- B2C portal for partners.
- We use data analytics in the field of New product, customer segment identification, Claims.
- With the data analytics application specific to Persistency, we moved our 13th month persistency over the last few years from 45% to 61%. Also data analytics is used in underwriting of New Business.
Outline few key marketing endeavors in the past decade that you feel have been landmark initiatives in reinforcing the legacy of the brand’s promise to influence consumer intent and enhanced the brand’s propensity to drive affirmative consumer action.
- All our brand building activities are focused on our building our customer base in the
- MarCom and activities are linked to engagement with the customers
- Some of the recent activities include 1) Orissa 2) UP Ashish
How has the brand derived strength from innovation as a sustainable differentiating strategy adding to long-term brand equity? Please provide a few instances of measures implemented towards this goal.
Shriram life as a brand is focused on Common Man segment . Most of the business is sourced by providing life insurance cover to the non urban and rural population.
IRDAI, the industry regulator has prescribed a minimum of 25% of policies to be sourced from rural, wherein SLIC due to its unique brand positioning, has the rural contribution always above 50%. Secondly, SLIC also works with institutions that work for welfare of women like SEWA Bank, MICRO Finance institutions. SLIC is a very active service provider for this needy customer segment
What are the key leadership values that drive the brand.
- Understanding the customer segment
- Empowerment
- Direction setting and delegation
What type of employee satisfaction programs are conducted by the brand.
1. Monthly get togethers
2. Team Meetings
3. Branch visits by Head Office Senior management
How much does your brand emphasise on employee training & development, kindly elaborate.
For middle and senior level recruitment
- Adequate care and scrutiny done at the recruitment level to ensure fitment of the employees into Shriram culture.
- Induction coupled with initial handholding time by the first line manager
- Structured remuneration , Fixed, Variable and ESOPs above certain level
At Field Sales level
- Centralized joining and induction training
- Well-structured compensation structure, Fixed Pay and Incentive schemes.
- Automated payment of incentive scheme
- Well defined career path for the Front Line and first line managers level
- Leadership training to middle management
- Able to contain attrition during 2017-18 to around 55%. (95% in 2016-17)
Training through Shriram Leadership Academy, an online self paced learning initiative in insurance, personal investments.
16% of our total workforce are women.
What are your brands most effective intangible motivational tools for employees.
- Rewards and recognition programs
- Direct connect by Senior most management team with the field team through visits to branches
- Open and transparent culture
- Automated career progression system
Kindly elaborate on your existing & potential CSR activities.
- SLIC has a well-established CSR Policy and Mr Manoj Jain is a part of the 3 member CSR Committee
- Thrust areas include, Promotion of education, vocational training for underprivileged sections, Health care including eradication of hunger, poverty, Welfare of commercial vehicle drivers, Skill development .etc…
- We have contributed in the rehabilitation efforts in Kerala post the deluge
Which area of social responsibility is more significant for your brand
Eradication of hunger, poverty, primary education of underprivileged and welfare of commercial vehicle drivers are dear to us as a part of our CSR.
About Shriram Group
Shriram Life Insurance Company Limited
About Shriram Group
Shriram Life Insurance is part of the Chennai based Shriram group.
Shriram group is a conglomerate which has significant presence in financial services viz., commercial vehicle finance, consumer finance, life and general insurance, stock broking, chit funds and distribution of financial products such as life & general insurance products and mutual fund products.
Shriram Capital Limited (SCL) is the overarching holding company for the Financial Services and Insurance entities of the Shriram Group. Shriram Capital was created with the primary objective of optimizing synergies across Group companies, apart from playing a significant role in the Risk Management and Leadership development of these entities.
SCL is the main promoter of the two high-growth listed companies of Shriram Group, namely Shriram Transport Finance Company Ltd, the largest asset financing company in India, and Shriram City Union Finance Ltd, a leader in Retail Finance across a wide range of products. SCL is also the promoter of Shriram Life Insurance Company Ltd, Shriram General Insurance Ltd, Shriram Fortune Solutions, Shriram Insight Share Brokers and Shriram Wealth Management. SCL’s main role is to promote these companies, induct and strengthen leadership teams, provide strategic inputs and direction to help and nurture them to grow into large and profitable enterprises.
Shriram Group has an overall customer base in excess of 12 Million, more than 60,000 employees across 3,000 offices, net profit of Rs. 22 billion with Assets under Management (AUM) in excess of Rs.1,25,000 Crores. Shriram Transport Finance Co Ltd and Shriram City Union Finance Ltd are two of the leading group companies, which are also listed in the stock exchanges.
About Shriram Life Insurance Company Limited
Shriram Life Insurance commenced operations in 2006. Synonymous for its efficient use of capital and low operational costs, SLIC has been true to the Group‘s philosophy of financial inclusion. A JV between Sanlam, South Africa and Shriram Group, SLIC’s aim is to offer life insurance plans and solutions that cater to a wider demographic.
Shriram Life continues with the group philosophy of servicing the common man. The products, process and distribution mechanism are designed to meet the larger objective of serving the underserved. In all the lines of business, i.e. Individual and Group business, Shriram Life focuses on the common man and business model is designed with the focus on common man.
Brief History
Shriram Life Insurance Co Ltd, (SLIC) is an IRDAI approved Life Insurance Company and offers individual and group life insurance products. .
From the commencement of business in 2006 to 2012, SLIC primarily focused on providing life insurance cover to the customers of Shriram Group companies namely Shriram Transport Finance Co Ltd (STFC), Shriram City Union Finance Ltd (SCUF) and Shriram Chits. Life Insurance offerings are confined to customers of Shriram Group companies till 2012. Mr Manoj Jain has taken charge as CEO and whole time director of Shriram Life insurance in 2012 and post which he diligently developed a model for sourcing customers from the open market with a clear focus on developing Shriram life as a brand beyond the southern states.
Currently, Shriram Life has 600+ branches pan India with more than 11700 employees. Although originated from Chennai, SLIC has a pan India presence with about 45% of the business coming from other than south India
Nature of business
Shriram Life Insurance Co Ltd, (SLIC) is an IRDAI approved Life Insurance Company and offers individual and group life insurance products. Product range includes life insurance products in both traditional and unit linked platforms. Life insurance product range includes term plans, Savings plan and pension plans and plans are available both in off line and on line distribution models.
Company Initiative and Culture
The Shriram Life Insurance Company was founded with the objective of reaching out to the “common man” with products and services that would be helpful to him as he set out on the path to “prosperity”.
Operational efficiency, integrity and a strong focus on catering to the needs of the average Indian, by offering him high quality and cost-effective products and services, are the core values that drive the organisation. These values have been strongly adhered to over the decades by the Shriram Group and are now an integral part of the organisation’s DNA. It is this guiding philosophy of putting people first that has brought the Shriram group and SLIC closer to the grassroots.
The company prides itself on its deep understanding of the customer. Each product or service is tailor-made to specifically suit the needs of the “Aam Aadmi” customer
Entrepreneurial spirit
Although Shriram life has its roots in Chennai, SLIC has a large distribution network across south India due to the presence of Shriram Group companies. After the initial offering of life insurance products to Shriram group customers, it was felt around 2011 & 2012 the need for expanding beyond south and beyond Shriram Group customers. The need to grow business with the continued focus on Aam Aadmi segment, need for diversification of customer base as a business risk management mechanism, distribution diversification and the quest for growth beyond Shriram group, led to the decision to expand distribution beyond South India.
Mr Manoj Jain, who earlier spearheaded the retail financial distribution in Shriram Group has been given this mandate and moved to SLIC as CEO and whole time director in 2012. Mr Manoj Jain, after taking charge in 2012, set out on the mission of setting up retail distribution network for life insurance product distribution.
There were multiple challenges encountered during the implementation. Some of the challenges include low brand visibility of Shriram group in Northern states, attracting the right kind of talent with low fixed salary, setting up network of branches in Tier 2/3 towns etc..
Mr Manoj Jain diligently spent time in identifying the leadership position for each of the identified states, i. e. Bihar, Jharkhand, Uttar Pradesh, Madhya Pradesh, Chhattisgarh, Kerala, Orissa and West Bengal and these 8 states are identified as focus states considering the life insurance market, customer segment. Set up a good rewards and remuneration structure, sales hierarchy for the field and Support hierarchy at the zonal and head offices. Thirdly, shortlisting of branch locations based on SLIC customer segment, geography, market potential and in this process the group philosophy of focussing products and services on common guided the selection of locations.
At the head office, he has set up the support functions by identifying the right team members, more so for the critical functions like Head- HR, CFO, CIO and CMO and built a stable team.
During all these expansion process, SLIC continued to maintain the conservative and very cautious approach to expenses in branch set up, Staff cost and other over heads. The non-compromising approach helped in SLIC retaining the position of life insurance Company with the lowest paid up capital in India.
Quick decisions are taken in recruitment of senior resources and shortlisting of locations and this is followed by speed of execution in setting up the branch and commencement of business.
Table: Changes in key business parameters
|
Parameter |
Then in 2012 |
As on 31st March 2018 |
As on 30th June 2018 |
|
Branch Network |
200 +, in South India |
600+ Pan India |
600+ Pan India |
|
Industry Ranking on Policy count |
14 |
8 |
5 |
|
Gross Premium Rs in Crs |
625 |
1497 |
299 |
|
Assets Under Management Rs in Crs |
1800 |
3550 |
3550+ |
|
Business from Shriram Group |
90% |
55% |
75% |
|
Contribution of South India |
80% |
52% |
55% |
From a near zero presence, SLIC today has more than 350 Sales Units in rest of India.
Table: Constant growth in geographical presence
|
2013-14 |
2014-15 |
2015-16 |
2016-17 |
2017-18 |
2018-19 |
|
|
Count of Sales Units |
131 |
271 |
317 |
335 |
290 |
360 |
With the stable leadership team, scaled up the branch count from near zero to 335 by the end of 2016-17. 2017-18 was a year of consolidation and the non-performing locations were closed or merged with other branches. With the learnings the in the current year, expansion plans are in place, which will take the number of sales units to 360 by end of FY 2018-19.
Key attribute of Mr Manoj is in carrying the team along in the path of his vision. He is firm, quite at speed with execution and expects and supports the team to deliver the plan. He is a hands on leader, with deep connect with all stake holders including employees at all levels, partners. Highly empathetic about sales person and will push the rest of the organisation to support in maximising the sales outcome. He is instrumental in the roll out of automated career progression plan for Front line managers, which has ensured that the performers are rewarded on an automatic basis both monetarily as well as in career progression. This is also aimed at mitigating the risk of high attrition which is normally prevalent in the life insurance industry
In his quest for building a team, he has set up a training centre for residential training to the staff members across all levels. Life insurance being a knowledge driven business, he ensured not only quality induction but also periodical knowledge and skill building session. Under his aegis, Shriram Leadership Academy, a Shriram group initiative, has launched online e learning system.
In the initial years, products offered by Shriram Life are more towards meeting the Shriram Group customers’ requirement. Post the expansion phase in 2012, the product portfolio has been thoroughly reviewed and worked to launch guarantee return products, which cater to the requirement of the large middle class customer segment
Brand Positioning – Strategic direction, digital initiatives, Innovation and global impact
In addition to the geographical expansion, Mr Manoj has initiated, supported innovation in products and distribution of life insurance. The other key initiatives, innovation in products and technology enabled distribution are presented briefly in the table below.
|
Sl No |
Innovation |
Brief description |
|
1 |
Telenor Suraksha |
Life insurance cover for mobile phone subscribers a first of its kind initiative in India. Life insurance cover was offered to the subscribers of Telenor. More than 15 million lives were offered life insurance cover under this initiative. Technology and telecom were leveraged for delivery of both issuance and death claims |
|
2 |
Cash Back term plan –Truck Drivers |
A Customised plan for truck driver segment, which is normally regarded as high risk segment in the life insurance industry. A simple and easy to understand product with ease of distribution process was initiated. More than 10,000 truck drivers are offered life insurance cover monthly and over 3 lakhs drivers have been provided life cover over the last 3 years. Policy issuance is on OTC template and is made available to the truck drivers at the STFC Branches. Technology enabled issuance. |
|
3 |
Sure Buddy |
Another first of its kind initiative. Free life insurance cover for Smart phone owners subscribing to the “Sure Buddy” App |
|
4 |
Micro Finance Customers segment |
Customised offering of group insurance product to the borrowers of Micro Finance Institution. MFIN, the industry body has recognized Shriram Life as one of the top players in this financial inclusion segment. In this ongoing program, in association with Micro Finance companies, more than 6 million lives have been provided life insurance during 2016-17 and 2017-18. |
|
5 |
Life cover for Gold Loan customers |
Customised product offering for Gold Loan customers, through OTC issuance process using technology. More than 2 lakhs lives were covered under this scheme. |
Financial Performance of slic for the last 3 years
|
|
|
|
Rs in lakhs |
|
31-03-2018 |
31-03-2017 |
31-03-2016 |
|
|
Annual Revenue /Premium Income |
149704 |
120794 |
40143 |
|
EBITDA |
9928 |
2489 |
2642.34 |
|
Income before taxes (PBT)/EBIT |
9316 |
1610 |
2269 |
|
Profit after Taxes (PAT) |
8788 |
1680 |
1838 |
|
Total Equity |
58098 |
51761 |
50188 |
|
Total Assets |
372585 |
314043 |
261303 |
|
Return on Capital Employed |
15.85 |
2.75 |
4.49 |
|
Total Full time employees(Numbers) |
11717 |
11864 |
13964 |
|
Capital Employed/Net worth |
58772 |
58640 |
50492 |
Exhibit: MFIN Report – Insurance Claims – Industry Report Q317-18