Aegon Religare Life Insurance set for launch; calls for pitch

Although the company is a late entrant on the insurance scene in India, it has aggressive plans to take on the established players. The ad spends are pegged at Rs 15-20 crore

Ranbaxy Group’s financial arm, Religare, has aggressive plans for the life insurance space. For this purpose, it has entered into a joint venture with the well known international entity, Aegon. The resultant company, Aegon Religare Life Insurance, is currently on an agency hunt.

In the race for the business are Mudra, O&M and Contract, which have already made their pitch before Aegon Religare. Once the company decides on the creative outfit, it will start the search for a media buying and planning agency. Being a new entrant into the cluttered life insurance space in India, Aegon Religare plans to spend two years building the brand, and the next few taking on the giants in this space. The company will roll out its products in the first half of 2008.

The first year’s ad spends are pegged at Rs 15-20 crore, which seems to be the general norm in the life insurance space.

Aegon Religare Life Insurance set for launch; calls for pitch

Pradeep Pandey

Commenting on Aegon Religare’s strategy, Pradeep Pandey, head, marketing, branding and communication, Aegon Religare Life Insurance, says, “We expect our agency to achieve a two-fold objective for us – to build awareness on the one hand, and credibility on the other.” Pandey admits that Aegon Religare is a late entrant and it will be a task for the company to appeal to the masses, particularly the most sought after group: males, aged 25-40. In this age band, the younger lot are particularly important to insurance majors, and this will also be the case for Aegon Religare.

According to Pandey, Aegon Religare will initially be pitched against SBI Life Insurance, Aviva Life Insurance and Max New York Life, three players that spend roughly the same on advertising as Aegon Religare intends to. But, says Pandey, big spenders ICICI Prudential, HDFC Standard Life and Reliance Life Insurance will also be taken on in due course. These players are believed to have ad spends of more than Rs 40 crore.

The company plans on using a healthy mix of ATL (television, press, outdoor and radio) and BTL (events, DM and innovative activities).

Aegon Religare plans to offer various forms of insurance, including life insurance, pension plans, health plans and, eventually, mutual funds. Aegon Religare Life Insurance is 44 per cent owned by Religare, while Aegon holds 26 per cent. The remaining stake belongs to Bennett, Coleman & Co. Ltd (BCCL).

Have news to share? Write to us atnewsteam@afaqs.com