The Hindu Business Line : Aviva to use India biz model for Lanka venture

Insurance major Aviva intends to use its business model in India to give shape to its nascent venture in Sri Lanka, a market it entered recently by acquiring a stake in Eagle Insurance.

Aviva is especially keen to expand its Sri Lankan operations through bancassurance tie-ups, a route that it has tapped effectively in India, where it runs its business in partnership with Dabur.

A number of such tie-ups are currently in place in India, several of which were worked out recently.

Mr Bert Paterson, MD, Aviva Life Insurance, India, indicated at the Aviva meeting in Cairo recently that the insurance group would draw on its Indian experience to increase its presence in the island state. The latter is a growing market, in which Eagle is the third-largest player.

Foray details

Aviva, it may be mentioned, entered Sri Lanka by taking a critical stake in Eagle earlier this year. Eagle was previously owned (majority ownership) by NDB Finance Lanka, which in turn was wholly-owned by Capital Development & Investment Co Ltd or CDIC.

Under the deal, CDIC sold about 58 per cent of its shares in NDB Finance to Aviva.

"Bancassurance will be a key tool in the hands of Eagle," Mr Paterson mentioned while referring to the group's arrangements with a host of banking partners, especially those that operate in non-metro markets. A significant part of Aviva's overall business in India is on account of these arrangements.

Eagle has already started forging partnerships with banking entities. It recently entered into an arrangement with Standard Chartered Bank, said Mr Deepal Sooriyaarachchi, MD, Eagle Insurance, adding that talks are going on with others.

The Lankan insurer, it is pointed out, is a publicly-traded entity, which along with other insurance players expects the local market to grow rapidly.

By 2021, about 18 per cent of Sri Lanka's population will be in a critical age-bracket, which may well lead to certain major issues.

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