General insurance companies have set their sights on the wide distribution network and huge subscriber base of telecom operators to sell their products.
TRAI Insurers have written to the Department of Financial Services to allow them to approach the Telecom Regulatory Authority of India.
“We will able to use the wide distribution network of telecom companies to sell basic insurance products, such as health and personal accident covers,” said Tapan Singhel, MD and CEO of Bajaj Allianz General Insurance.
According to the Ericsson Mobility Report 2014, mobile phone penetration in the country during the first quarter of 2014 was at around 63 per cent or 790 million mobile subscribers.
According to Singhel, if the distribution of insurance products is allowed through telecom operators, then they can sell the products and facilitate premium payments through mobile phones.
Insurers cite the example of Bharti Airtel which entered into an arrangement with South African insurer Sanlam Insurance in 2012 for the distribution of insurance and health funding products in Africa.
Semi-urban, rural areas By tapping into the telecom operators’ wide network and subscriber base, insurers can reach out to semi-urban and rural areas to improve insurance penetration for micro-insurance products.
According to data from the General Insurance Council, the insurance penetration of general insurance, expressed as a percentage of gross domestic product, is estimated at 0.73 in 2012-13.
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Published on June 19, 2014
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