India is fast emerging on the world map as a strong economy and a global power. The country is going through a phase of rapid development and growth. All the vital industries and sectors of the country are registering growth and thus luring foreign investors. And insurance sector is one of them. With a huge population and large untapped market, insurance happens to be a big opportunity in India. According to sources large segment of rural India is still untouched because of long distances, poor distribution and high return costs.
In the recent past, Aviva has joined hands with Basix and Royal Sundaram Alliance General Insurance in 2002 for retail sale of Insurance products in rural area of the country. At this point of time, Chief Executive Officer and Managing Director of Aviva Life Insurance, Mr. T.R. Ramachandran, said that there is a potential for life insurance business in rural India as the market is still untapped. He further added that as of now company have no plans to enter non life insurance business.
The company plans to sell insurance products in rural India through Basix branches at an affordable cost and by way of selling insurance product at a door step. They have lined up plans to aggressively increase their market share by cost-effective distribution models. The company plans to launch this format in 60 branches and 1200 common service centre across 11 states by the end of this financial year for achieving its goal of tapping rural market in India.
Aviva Life Insurance Company is a joint venture between India’s Dabur group and UK’s Aviva group. Dabur group is one of the India’s oldest and largest groups of Companies and is a leading producer of conventional healthcare products. Aviva group is one of the largest insurer and of the Europe’s leading life and general insurance service provider. Aviva’s prime business consists of long term savings, fund management and general insurance. Dabur group holds 74% shares whereas Aviva group holds 26% in Aviva Life Insurance Company. Aviva Life Insurance Company is the pioneer to introduction of contemporary unit – linked products and have set off many inventive sales approach, including the model of Bancassurance and financial health check services.
