Insurers should learn from Telecom companies to penetrate rural areas

Today, India stands at second position in population with 1.21 billion people. Still, sixty years after Independency, healthcare access in rural areas is still one of country's greatest challenges. 

The reasons being unevenly distributed healthcare facilities, unavailability of trained healthcare personnel, poor quality of drugs and lack of diagnostic tools. Every year more than one million Indians die, maximum of them being children and women. 

Overall, less than fifteen per cent Indians has health insurance. Rural health insurance is less than ten per cent. Insurance companies should learn from telecom companies in penetrating rural areas. 

In late 90s, when telecom companies started venturing into rural markets, they faced big obstacles due to lack of infrastructure. Unshaken, they first established mobile networks and then studied the needs of rural population and then customized their products for rural markets like cheap handsets and tariffs. 

The companies approached customers at their doorsteps with attractive tariffs and products. The result being, nowadays even poorest of the farmers have cell phones. Insurance companies could learn from telecom companies to penetrate rural regions. 

In the first place, insuring companies should understand the rural customer needs, streamline services, control cost, good customer service and cheap pricing. As the maximum of people in rural areas has limited buying capacity, insuring companies should bring in products at affordable rates just like the telecom companies did.

Mudra Max Out of Home campaign for IndiaFirst Life Insurance a big hit

Public sector insurer-IndiaFirst Life Insurance has recently completed Out of Home campaign for its ‘IndiaFirst Money Back Health Insurance Plan’ with the help of agency Mudra Max.

The campaign starts with a whacky teaser followed with a reveal through billboards, gantries, bus queue shelters, facades, etc. directed at focus on the four key product features.

India’s largest LED site at Gurgaon’s Cyber greens is showcasing the ad. Brand bearing was even more dominant at all major airports through iconic. The company has become the first brand name to go live on Hyderabad aerobridge.

Art insurance concept makes its entry in the Indian insurance market

The concept of art insurance is new in the Indian insurance market, and many companies are experimenting with this elite field. 

Since last five years, the art market in India has developed rapidly and had grown more than five hundred times in sales. Prosperous young entrepreneurs, wealthy people are choosing art as an investment.

Art insurance in general covers the risk like damage during framing, restoration, transit and risks related with handling the art piece within gallery premises. It also covers accidental damages, natural disasters and damage due to terrorism.

Insurance companies are of the view that  only 10-15% art insurance market has been tapped yet.

Insurers can target auction houses, galleries, private collectors and art funds. Private insurers, Tata AIG, ICICI Lombard and Bajaj Allianz are the main players in this field in India.

Future Generali planning to rope in a bank as partner

Future Group is planning to partner with a bank as an investor in its life insurance subsidiary; Future Generali India Life Insurance Co. Ltd. 

Future Generali is a joint venture between the India based Future Group led by Kishore Biyani, and the Italy based Generali Group. Future Generali is both in the Non-Life and Life businesses as Future Generali India Insurance Co. Ltd and Generali India Life Insurance Co. Ltd.  

The company doesn’t intent to sell any of its stakes in Future Generali India Life Insurance. The bank will be the strategic partner, providing not only funds but also its distribution channels.

Syndicate Bank and Bank of India have shown interest, and the company is in talks with Syndicate Bank. The company has also declared its intention to sell its shareholdings in Future Capital Holdings to release capital, which will be used to expand business.

According to a Future Group official, “The bank would have a stake of around 20 per cent in the life insurance company to begin with. As fresh infusions of equity are made, our stake in the venture will keep falling, but we do not plan to sell any of our shares in the venture.”

LIC chairman to be decided in two weeks

An official of Indian Finance Ministry has confirmed that the government is now all set to nominate a full time chairman for LIC of India in a week or ten days.

When former LIC Chairman, T.S.  Vijayan's 5 year position terminated in May, additional secretary (Finance Ministry), Mr. Rakesh Singh was appointed as the temporarily Chairman. Subsequently, LIC’s MD, D. K. Mehrotra, was asked to take command of LIC.

In the month of June, a selection board under Economic-Affairs Secretary R. Gopalan short-listed four likely candidates for the post of chairman.

According to reports, the shortlisted candidates are currently acting Chairman D. K. Mehrotra, Executive Directors A. K. Sahoo, K. B.  Saha, T. T Mathew and Managing Director Thomas Mathew.