Financial Daily from THE HINDU group of publications
Thursday, May 27, 2004
Financial Daily from THE HINDU group of publications Thursday, May 27, 2004 |
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Money & Banking
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Life Insurance Marketing - Rural Marketing Max New York Life mulls new biz models to expand coverage — Plans separate unit for rural insurance Our Bureau
Mr C.S. Rao, Chairman, IRDA, and Mr Anuroop `Tony' Singh, CEO and Managing Director, Max New York Life, in Hyderabad on Wednesday. They were in the city for the inauguration of the new premises of Max New York Life. — A. Roy Chowdhury
Hyderabad , May 26 HAVING succeeded in its efforts on building a strong proprietary agency distribution system, Max New York Life Insurance Company Ltd (MNYL), the Indo-American insurance joint venture, is now planning to aggressively pursue alternative and wider distribution mix. The insurance company, which has recorded cumulative insurance worth over Rs 11,000 crore by selling more than 2.85 lakh policies during the last fiscal, has achieved around 77 per cent of its business from the agency distribution system, while the alternative distribution network contributed the balance of around 23 per cent. ``Max New York Life is now focussing on widening its distribution mix by pursuing the franchisee model, bancassurance, rural business, direct sales force involving group insurance and telemarketing opportunities and also corporate alliances,'' the MNYL Chief Executive Officer and Managing Director, Mr Anuroop `Tony' Singh, said. He was addressing a press conference here on Wednesday after the Insurance Regulatory and Development Authority (IRDA) Chairman, Mr C.S. Rao, inaugurated the insurance company's second office in the twin cities and the 37th branch in the country. According to Mr Singh, the business contribution of the alternative distribution channel would be significant to the total volumes. While declining to divulge the business targets from the alternative mix, he, however, said the agency distribution remains the mainstay in the company's sales. As a part of its strategy to pursue alternative distribution mix, especially the bancassurance model, MNYL is seriously looking at equity-linked relations with large and small banks in both public and private sectors. Stating that it might take anywhere between 12 and 18 months for equity-based relation with a major bank to fructify, Mr Singh said that MNYL was also exploring the possibility of entering into alliances with local area banks for aggressively pursuing rural insurance business. Plans were to float an exclusive division to focus on the rural insurance segment. The company proposes to initially focus its attention on Punjab and to replicate the model across the country depending upon its success. To begin with, MNYL has started operations in three centres - Patiala, Bhatinda and Sangur. The company plans to implement hub and spokes model for addressing the rural market, Mr Singh said.
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