Aviva Life plans tie-up with co-op banks

Recently in Prague

Aviva Life Insurance is planning to join hands with the cooperative banks in India to expand its reach besides augmenting its direct sales force significantly.

“Bankassurance has been one of our strongholds in India and we prefer to make cooperative banks a channel to reach the countryside in India,” Mr Bert Paterson, Managing Director, Aviva Life Insurance India, told Business Line during the International Insurance Summit held recently in Prague.

Fool-proof-strategy

The company has done lot of homework and a “fool-proof strategy” is already in place for partnering with the rural banks, he added.

The UK-headquarted company has already tied up with the Basix Group for its micro insurance product.

“In addition, banks would be a prime channel for us and the details about the partnerships would be made public soon,” Mr Paterson said.

Currently, Aviva (which holds 26 per cent stake in the joint venture company with Dabur) has tie-ups with Centurion Bank of Punjab, ABN Amro, American Express Bank, Lakshmi Vilas Bank and IndusInd Bank, among others.

Bankassurance

Bankassurance in India is becoming competitive with leading private banks and some public sector banks going on their own to tap the insurance potential.

“Aviva had pioneered the concept of bankassurance in India and we would strive to be in the lead.

“We are devising a totally different strategy in this regard,” he said.

The company will also strengthen its distribution channel.

“Currently, bankassurance accounts for 60 per cent of our distribution while remaining 40 per cent done by our direct sales force.

“We want to recruit over 3,000 personnel to strengthen our direct sales force,” Mr Paterson said.

More products

On the product front, the company, which recently launched ‘Grameen Suraksha’ a micro insurance product for BASIX customers, would add more products to suit rural customers soon.

“We will be launching more products in this segment,” he added.

The company is also willing to infuse more capital into its Indian operations.

“We had invested Rs 199 crore in January 2007 and plan to infuse more capital over the next two years,” he said while declining to disclose approximate figures.

On the relationship with Dabur Group in India, Mr Paterson said they shared “excellent” understanding.

“We have also worked out the modalities of relationship between the two companies in the likely 100 per cent FDI regime in the future,” he added.


Source: The Hindu Business Line