Bundling Free Health Insurance with Product

Category : Best Innovation – Finance (Innovation in Insurance)


Innovation Title : Bundling Free Health Insurance with Product

Organization : Carnival Assure Limited


Insurance penetration is only 0.40% against GDP in Bangladesh and still decreasing since 2017. Among insurance products, Health insurance has the lowest penetration. From initiation, Carnival Assure aimed to maximize the insurance penetration by bundling insurance with regular commodity products to make it more rewarding for the consumers. It helps to increase the perceived value of the product as well as amplifies the product’s stickiness. Carnival Assure proposed Square Toiletries Limited a health insurance bundling concept with their diaper brand Supermom, which is one of the leading diaper brands in Bangladesh and currently competing with several local and internal  brands.

■ Achieving Customer Loyalty with an innovative solution that has not been done previously.
■ Ensuring Repeat Purchase.
■ Designing meaningful relevant offering with the product which creates buzz in the market.
■ Increasing sales of Large Packs of the diaper (22 pieces – 28 pieces) as these ensure volume (it was 15,000 large packs/month and Square wanted an additional 5,000 packs/month).
■ Customer Data.

The Idea
■ Diapers are for protecting the hygiene of a baby. Supermom wanted to extend its role by protecting the expenses of the parents caused by the health issues.
■ 3 months – 3 years old kids are prone to several health issues and have to visit physicians constantly for checkups. Supermom wanted to take care of the portion of those regular expenses.
■ Monthly free health insurance for the child & parents bundled with large packs, was the idea. With each purchase of a Supermom Large pack, customers will get a Tk. 20,000
worth of Free Out-patient and In-patient insurance coverages for 30 days.

Value Addition
■ Carnival Assure made simple and paperless onboarding to ensure consumer convenience.
■ Paperless claim through Carnival Assure Website or assisted claim process through call center.
■ 24/7 call center support.
■ Reminder for renewal on the 25th day.
■ Doctor Consultation Fee and Diagnostic Test coverage (Tk. 1,000/Month) Hospitalization Coverage (Tk. 10,000/Month).

Result and Impact
■ More than 500k+ kids and parents got insured through this bundle program till December 2021.
■ Tk. 4,000k+ worth of Hospital Bills, Doctor Fee & Diagnostic bill settled.
■ 2% additional market share gained after this campaign launched.
■ Supermom large pack sales hit 20,000 units per month.
■ Every day on an average 200 customers call received for the insurance related queries.
■ More than 500k+ unique customer data collected which Square Toiletries can use for direct consumer communication for their other products.