1 / 16

Rural Insurance Scenario – A Research based presentation

Rural Insurance Scenario – A Research based presentation. By : Naren N. Joshi Chief Representative ING Insurance International B.V. Venue : 19 October, 2004 FICCI 9 th Conference on Insurance New Delhi. Rural Insurance Research.

temira
Download Presentation

Rural Insurance Scenario – A Research based presentation

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Rural Insurance Scenario – A Research based presentation By : Naren N. Joshi Chief Representative ING Insurance International B.V. Venue : 19 October, 2004 FICCI 9th Conference on Insurance New Delhi

  2. Rural Insurance Research • FORTE- A collaboration between FICCI and ING Insurance, has conducted two research studies to understand the realities of the rural insurance market space • Macro Level Study – conducted through MART “Rural Insurance : Issues, Challenges & Opportunities” • Micro Level Study – conducted through James Martin & Co “Developing a Rural Distribution Strategy for Insurers”

  3. Macro Study Objectives of the Research • Understand rural customers’ current knowledge, attitudes and practices regarding savings, loans and insurance • Identify existing factors, if any, prohibiting the purchase of insurance policies • Profile potential rural customer segments in terms of attitudes, behavior and demographics • Develop a broad, cost effective distribution strategy

  4. Macro Study Key Findings of the Research • Rural sector offers a huge business opportunity for insurance companies • Savings ratio is a healthy 30% of income across all socio economic segments • Awareness about Life Insurance is near universal • 27% of CWEs already have a life policy • 51% of all respondents have expressed intention to purchase a life policy • There are a total of 124 million rural households • Nearly 20% of all farmers in rural India own a Kissan Credit Cards. The 23 million credit cards issued till date offer a huge data base and opportunity for insurance.

  5. Macro Study Key Findings of the Research (contd.) • Delivery infrastructure in the form of District Cooperative Banks, Cooperative Societies, NGO’s and Self Help Groups already exists in most villages. • Rural connectivity through IT. • E-choupal of ITC and other similar initiatives are available as additional delivery channels of insurance • An extensive rural agent network for sale of Life insurance products exists • The agent plays a major role in creating awareness, motivating purchase and rendering other insurance services

  6. Macro Study Key Findings of the Research (contd.) • 78% of respondents prefer various combinations of life insurance like life + accident, life + loan, life + health + accident. • Flexibility in Premium payments is important. • Security of income and bulk returns, especially for daughter’s marriage and children’s education are major persuasions for taking life policy. • While individuals are undecided about purchasing insurance from private players, members of different groups are favorably disposed to purchasing group insurance through a private player vetted by the group… Herd mentality…Safety in numbers.

  7. Macro Study Complementary Delivery Systems * E-choupals manned by a “Sanchalak” provided with computer and internet connectivity for procurement of agri produce and giving information on variety of services to villagers.

  8. Micro Research Study

  9. Micro Study Study Phase • Develop a comprehensive description of available channels and their delivery capabilities in the context of rural insurance potentials • Identify and understand the concerns of insurers and their strategies for facing the challenges that rural market presents • Develop an Evaluation Framework as a basis for selection, design and operationalisation of distribution channels • Primary research in the Muzaffarnagar District of UP for the feasibility of each available channel applying evaluation criteria • Develop an activity based cost model to profitably operationalise the feasible channels

  10. 1 5 14 112 1031 Micro Study District Muzaffarnagar - Span of a Block District Per Block Tehsils Blocks 8 Panchayats 74 Villages

  11. Banks Cooperatives Panchayats Agents Coop Banks Post Offices Cooperatives Cybermediaries Panchayats Industrial Fin Inst. Agents Eco Exchange Pts Brokers NGO’s & SHG’s Micro Study Distribution Channels Available Channels Evaluation Criteria Feasible Channels Reach Influence on target segment Trust & reliability Business acquisition capability Support requirements Financial transaction handling Operational discipline E-Bima Customer servicing New Channel

  12. Micro Study Suggested Strategy Model DISTRICT COORDINATOR (1) Insurer’s Resources BLOCK COORDINATOR (14) Coop Bank E-Bima Agents Cooperatives Panchayats 3 1 20 5 8 No of Channel Units per Block Av. No. of Agents per LIC Dev Officer : 37

  13. Micro Study E-BIMA • Infrastructure • A Van • A Simputer with a Printer • Video-Audio Facility • Human Resources • One Driver • Two sales cum administrative staff / agent • Site and Mode of Operation • Moves Village to Village • Parks at Panchayat, Local School , Village Chaupal • Visits 2 Villages and one haat a day • Works 8 Hours a day

  14. Micro Study Role and Benefits of E-BIMA • Role • Awareness Programmes • Relationship Building and Management • Business Acquisition • Policy Servicing and Business Retention through Premium Collection facilities • Other Benefits • Support to other Channels for Policy Servicing, Premium Collection, Policy Query Handling, Complaint Handling, Assistance in Claim Processing • Overcome limitations of channels

  15. The rural market offers tremendous growth opportunities for insurance companies but their success will depend upon their ability to: Develop viable and cost effective distribution channels; and Build consumer awareness and confidence ING is one of the few private insurance companies highly committed to the rural insurance market in India . In fact, ING is currently running a pilot project in rural India. Take Away

  16. THANKS

More Related