Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
Srinivasan Varadharajan
Actuaries
- Enhanced risk owing to similar bundling - Disablity and Mortality
- Complementary bundling offers natural hedge - Term and Annuity
- Lower expenses and competitive pricing
- Multiple effects of risk owing to building of riders
- Moral hazard
Distributor
Provider/Seller
- More attractive and
- Satisfy Multiple need
easier to sell than individual
in single offering
products
- Attractive and innovative
- More commission
products
with lesser effort
- Basket bundles offer
speed to market
Consumer
- Single policy satisfies multiple needs
- Reduced fixed costs and hence cost advantage
- Hassle free - One application
- Additional products with no additional requirements
- Bundled product purchase over a period of time
Diagram 1
some of them:
Other
Finance
Provider
Life &
Annuity
Provider
P&C
Provider
E- Commerce Portal
Distributor 2
Distributor 1
Term Insurance
Endowment
Whole Life
ULIP
Variable Life
Universal Life
VUL
Annuities
Variable annuities
VA Guarantees
Accident benefits
Disability benefits
Premium waiver benefit
Long Term Care
Reverse mortgages
Bank deposits
Mutual funds
Insurance
?
?
?
?
?
?
?
Savings
Market
based
return
?
?
??
??
?
??
?
??
?
?
?
?
Guaranteed
Return
Commission
Agreement 1
Commission
Agreement 2
Regular
income
?
?
?
?
?
?
?
?
?
?
?
?
?
?
?
??
Customer 1 Customer 2
Reduce overheads
Thus, it is necessary for an insurer to continuously revisit
their product offering designs and leverage
opportunities through innovative bundling.
References:
1. Manakkal Kartik, Renuka Sridhar & Shrinivas
Susarla (2006), Provider or Distributor An Insurer's
Dilemma, The Actuary India, October 2006.
2. Stefan Stremersch & Gerard J. Tellis (2002),
Strategic Bundling of Products and Prices: A New
Synthesis for Marketing, Journal of Marketing,
January 2002.
3. http://www.newyorklife.com/custom_whole_life_
insurance/
4. http://www.sunlife-usa.com/spotlight.cfm?page=3
5. https://www.allianzlife.com/ProductsServices/
Annuities/Variable/HighFiveOverview.aspx
6. The Economic Benefits of Bundling Payment
Protection Insurance with Primary Credit Products by Maarten Janssen1, Nils von Hinten-Reed and Ewa
Mendys
7. ABI RESEARCH PAPER 6 Customer Agreed
Remuneration - Research into the market impact of
encouraging Customer Agreed Remuneration
January 2008 Source: http://www.abi.org.uk
8. Guidance received from Mr. Biju Simon, Actuary, ING
Life Insurance India.
Srinivasan Varadharajan is a Life and Pensions Domain Consultant with a combined experience of over 15 years in Life
Insurance industry and Information Technology services. He holds FLMI (LOMA, USA) and, AIII (Associate of Insurance
Institute of India) Certifications. He has experience in Estimation, Requirement Development, Requirement Management,
Gap Analysis and, Quality Control activities apart from Insurance Industry business areas. His work experience spans
across India, United States and the United Kingdom. He holds a graduate degree in Mathematics.
The opinions expressed and conclusions reached by the authors are their own and do not represent any official position of
Wipro Technologies. Unless explicitly stated, the information and views expressed in this article may not be construed as
those of Wipro Technologies.