The Hindu Business Line : ING Vysya Life to tap rural market via MFL network

ING Vysya Life on Wednesday enrolled Madras Fertilizers as corporate agent to use the latter's infrastructure to penetrate the rural life insurance market in South India.

At a news conference, Mr Sukumar N. Oommen, Chairman and Managing Director, Madras Fertilizers, said that the company had over 6,500 dealers and over 100 field staff who dealt with over one lakh farmers.

The company is to start its agency business with a dedicated team of 10 officers, he added.

ING Vysya Life CEO and Managing Director, Mr Frank Koster, said that a study had found that the life insurance business had good potential in rural India because people had a strong savings habit and a high level of awareness about life insurance.

Mr Koster said a recent product, Safal Jeevan, had been designed specifically for the rural market.

He added that the company's products were internationally tested ones from the ING group's product basket.

ING Vysya Life's agreement with Madras Fertilizers was described as an "alternate channel" of distribution.

The bulk of the company's business comes from the traditional distribution route of insurance agents.

Other distribution channels like banks and alternate channels accounted for about 17 per cent of the business last year, and official said that was expected to increase in the current year.

ING Vysya Life recorded an income of Rs 102 crore in 2003-04. Mr Koster said that the company's business had grown rapidly and he expected it double in the current financial year.

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