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mI Products and Strategies for the Indian Market
Presentation by Mohammed Riaz, Aviva India
.
Aviva Life Insurance Company India Pvt. Ltd.
“Life is one long risk” Microfinance client in the
Philippines
Presentation by Mohammed Riaz, Aviva Life Insurance India
Aviva Global
 World’s oldest insurance company established in 1696
 Largest insurer in UK
 6th largest insurance group in the world
 Aviva’s India history dates back to 1834
 Ranked 35th in the Fortune 500 list of 2005
 India JV with Dabur India
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
families- Lot needs to be done
approx. 10 mn
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
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
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
Risks covered by Insurance
companies
 Of all the risks covered by the companies
greatest frequency is that of life risk
the
 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
mI products in India
Product type
Avg.S.A
Premium
Charged
Age-Range
Other Feature/s
Risk Product
15-20K
Rs. 150
18-55 yrs.
NA
Risk product with
return of premium
20-100 K
Rs. 50-500
18-50 yrs.
Premium paid is
returned upon
completion of
the policy
period
Guaranteed Return 50-100K
Products
Rs. 1000
18-45 yrs.
Guaranteed
returns are
assured upon
maturity of the
policy
Group Product
As per the
group profile
18-65
(uppermost
limit)
Credit cum
protection plans
40K
Rural Sector Livelihoods and Aviva
Product Mix
 Aviva has designed the products according to the needs of
the rural market depending on the different livelihood levels
Savings Highest and in
decreasing order
Easy Life Plus
Affluent
Anmol Suraksha
Entrepreneur
Amar Suraksha
Self-Employed
Jana Suraksha
Group Cover
Survivor
Subsistence
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
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
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
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
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
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
Thank You
For any comments or enquiries:
[email protected]

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