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. Aviva Life Insurance Company India Pvt. Ltd. mI Products and Strategies for the Indian Market Presentation by Mohammed Riaz, Aviva India.

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Presentation on theme: ". Aviva Life Insurance Company India Pvt. Ltd. mI Products and Strategies for the Indian Market Presentation by Mohammed Riaz, Aviva India."— Presentation transcript:

1 . Aviva Life Insurance Company India Pvt. Ltd. mI Products and Strategies for the Indian Market Presentation by Mohammed Riaz, Aviva India

2 “Life is one long risk” Microfinance client in the Philippines Presentation by Mohammed Riaz, Aviva Life Insurance India

3 Aviva Global  World’s oldest insurance company established in 1696  Largest insurer in UK  6 th largest insurance group in the world  Aviva’s India history dates back to 1834  Ranked 35 th in the Fortune 500 list of 2005  India JV with Dabur India

4 Microfinance in India  Micro Finance demand is of Rs. 495 billion & the total credit supply is to the tune of Rs. 50 billion.  Approx. 75 mn. poor households are BPL or marginally above it  The varied mF initiatives touched approx. 10 mn families- Lot needs to be done

5 R & S Sector: An Opportunity  72% of the Indian pop. resides in rural India  Informal sector contributes to 64% of the Indian GDP  High propensity to save in rural India. Rural folks save upto 33% of their income  Insurance is a viable long term protection and saving tool  Delivering assurance through credible partnership will build trust

6 mI in India  mI is a value added service to the existing gamut of micro financial services  Essentially an extension of insurance services for the urban and rural poor  Channel of delivery is mainly through mFIs, NGOs, Banks, Co-operatives, ICT and SHGs  mI is livelihood protection for the underprivileged  mI is a long term capitalization opportunity

7 mI: Brief Statistics  Total of 83 products (42 LI and 41 Non LI products) (source: WP 2005, ILO)-this includes retail as well as group solutions  Out of the 42 life insurance products 23 are pure risk products  Most life products are designed to cover an extended contract duration (ranging from 3 to 20 years)  PSU insurance cos: still playing a predominant role in coverage of rural sector.  In 2002-03, 36 million new lives has been covered by PSU as compared to 1 mn. lives by private companies

8 Risks covered by Insurance companies  Of all the risks covered by the companies the greatest frequency is that of life risk  Followed by Accident within which the order is Disability, Accidental Death and Accidental Expenses  Other risks covered but not very common are Health Care, Livestock and risks associated with agriculture

9 mI products in India Product typeAvg.S.APremium Charged Age-RangeOther Feature/s Risk Product15-20KRs. 15018-55 yrs.NA Risk product with return of premium 20-100 KRs. 50-50018-50 yrs.Premium paid is returned upon completion of the policy period Guaranteed Return Products 50-100KRs. 100018-45 yrs.Guaranteed returns are assured upon maturity of the policy Group Product40KAs per the group profile 18-65 (uppermost limit) Credit cum protection plans

10 Rural Sector Livelihoods and Aviva Product Mix Subsistence Survivor Self-Employed Entrepreneur Affluent Group Cover Jana Suraksha Amar Suraksha Anmol Suraksha Easy Life Plus Savings Highest and in decreasing order  Aviva has designed the products according to the needs of the rural market depending on the different livelihood levels

11 Understanding Client Requirements To serve poor people, microinsurance must be:  Need Specific  Easy to understand  Flexible : Should provide flexibility esp. in case of credit protection  Affordable (With premiums as low as Rs. 140 for retail products our products are certainly meant to cater to the masses of the lower segments)-The A2P factor plays a very crucial role  Process for delivery is as important as the right product

12 Servicing clients of ml  Our mI strategy emphasizes the right products delivered through flexible processes  With regards to processes Aviva ensures that our partner has the following:  A client base with regards to bringing economies of scale  A dedicated workforce able to sell the concept of insurance to their clients  An MIS system capable of handling timely data inputs critical for insurance delivery like Premium collection, remittance, lives covered, product type  Claims documentation and administration capabilities

13 Aviva’s Track Record  Coverage via business partners India to name few Basix, Vimo SEWA, VWS.  Covered more than 3,60,000 lives group & 20000 individual lives thru partners  S.A to the tune of approx. Rs. 320 crores  Total claims settled are 500 plus  Claim settlement period across institutions has been an average of 10-15 days

14 ml & Aviva  Aviva via its experience has come to believe strongly in the virtue and the potential of the sector.  Aviva leverages upon the strengths of its business partner networks to deliver ml into the hinterlands  Henceforth rural insurance business is a serious Business and Social Intervention area, with a long term perspective of the company

15 Improvising and Improving: Making mI more accessible Typically the value addition sought by clients is:  A better understanding of their income levels and cycles  Better understanding of the risks faced  Better understanding of their social setup and hierarchies  Simplified products that can be upgraded to their changing needs and lifestyles

16 mI: Need for a dedicated effort  mI is closely linked to the concept of credit in mF  mI is linked to the income and social lifecycles of the poor clientele that is serves  mI requires the delivery of structured products & process for the market capable of upgradation over a period of time  mI as a concept is thus exposed to the vagaries of unorganized sector  mI hence necessitates a separate set of attention from the quadrangle: Regulators, Insurers, delivery partners and the ultimate insured the poor clients

17 Thank You For any comments or enquiries:

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