Money & Banking

Tata AIA Life sees significant scope for protection business: Yusuf Pachmariwala

Shobha Roy Kolkata | Updated on December 23, 2019 Published on December 23, 2019

Yusuf Pachmariwala, EVP and Head Operations, Tata AIA Life

Witnesses close to 106% growth in retail protection business this year, says official

Tata AIA Life Insurance expects good growth in the sale of protection policies, backed by growing awareness among consumers.

As on November 2019, protection plans contributed nearly 26 per cent of the individual annualised new premiums when compared to 8 per cent in FY17.

According to Yusuf Pachmariwala, EVP and Head Operations, Tata AIA Life, the company has witnessed close to 106 per cent growth in retail protection business so far this year when compared to last year.

“As per IRDAI estimates, almost 95 crore Indians are either underinsured or are not insured. So, there is significant potential for protection business. There is a huge market, and that is our focus area…we would like to see our protection business growing,” Pachmariwala told BusinessLine, pointing out to the huge opportunity in the business.

Protection gap

Talking about the protection gap in the country, he highlighted a report put out by Swiss Re, which points out that for every ₹100 cover required, only a cover of ₹8 is taken, translating to a gap of close to 92 per cent.

However, millenials, typically in the age bracket of 31 to 40 years, are realising the need for protection cover, he added. “Selling and issuing protection plans is slightly complicated when compared to other businesses. Our entire focus is on how to make it easy for our consumers and distributors to buy and sell protection plans,” he said.

The company has, therefore, adopted digital initiatives in a big way. It has digitalised all its internal processes and services to make it easier for consumers. Adopting digital initiatives has helped Tata AIA onboard more customers or add more volumes without significantly increasing the company’s headcount, thereby translating into better efficiency.

“Our ease-of-doing business initiatives have made the process of buying and selling of protection solutions easier and quicker. The use of technology in sales and services has also made the process very transparent, which appeals to consumers,” he said.

The company’s omni channel strategy, with a healthy mix of agency and bancassurance channels, has also enabled it to penetrate into Tier II and III markets for growing its protection business.

The company’s recently launched ‘Rakshakaran Hero’ campaign (where the company plants a tree for every policy bought) has also given a lot of traction, particularly on social media sites.

Published on December 23, 2019
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