CORPORATE AGENCY

Sachit Aggarwal

Indian Insurance Industry

• Indian Life Insurance Industry - US$ 41-billion

• 5th largest life insurance market.

• Growing at a rapid pace of 32-34% annually.

Source: Life Insurance Council

What is Corporate Agency?

• In 2000, IRDA introduced the concept of Corporate Agency

Corporate bodies like banks, firms; Cooperative Societies

can act as agent of Insurance companies to market their

insurance products.

• This channel of marketing is also known as ‘BANCASSURANCE’

majority of the corporate agents are Banks. Bancassurance is ‘distribution of insurance products

through a bank's network’.

Why Insurance Companies should look at Banks for Distribution of Insurance Products ?

Facts & Figures• Bancassurance expected to generate 40 % of private insurers premium

income by 2012 , as compared to current 25 % – 28% .

• In General insurance , presently 17% of insurance premium comes from bancassurance and in 2009 – 10 this industry collected gross premium of US$ 7.84 billion with growth rate of 13.42%.

• Bancassurance accounts for 67% of its total premium income, which is the highest among life insurers.

• In 2008-09, private insurers forked out US$ 44.64 million as commission for bancassurance.

(Towers Watson India , Bancasurrance Benchmarking survey 2009-10)

Bancassurance: WIN-WIN For Insurer, Banks & for Customers

Leveraging Joint BrandingLeveraging Joint Branding

Product CreationProduct Creation Product Fitment & Differentiation

Product Fitment & Differentiation

Reduced Distribution CostReduced Distribution Cost Additional offering at No extra cost

Additional offering at No extra cost

Leveraging Branch Network (REACH) & Client Base (DEPTH)

Leveraging Branch Network (REACH) & Client Base (DEPTH)

Holistic Financial offering to Client

Holistic Financial offering to Client

Value to InsurerValue to Insurer

Value to CustomerValue to Customer

Value to BankValue to Bank

Bancassurance Tie-Ups

Banks Insurance Company

BarclaysAxis Bank MetLife India

DBS Bank Tata AIG

Karur Vysya BankLord Krishna Bank Bajaj Aliianz

ABN-AmroCanara Bank

AmexAviva Life Insurance*

Corporation BankIndian Overseas Bank

Centurian BankVijaya Bank

LIC

*Aviva started the concept of Bancassurance in India*Aviva started the concept of Bancassurance in India

“There is no Stronger Force than an Idea whose time has come”

- VICTOR HUGO (19TH Century Novelist)

Banks & Insurers across the world have realized Bancassurance is the distribution channel , which could help them achieve economies of scale and boost their revenues in the 21st Century

Thank You

Thank You