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Rural Insurance Scenario - A Research Based Presentation: By: Naren N. Joshi
Rural Insurance Scenario - A Research Based Presentation: By: Naren N. Joshi
Macro Study
Macro Study
Macro Study
The agent plays a major role in creating awareness, motivating purchase and rendering other insurance services
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Macro Study
78% of respondents prefer various combinations of life insurance like life + accident, life + loan, life + health + accident. Flexibility in Premium payments is important. Security of income and bulk returns, especially for daughters marriage and childrens education are major persuasions for taking life policy. While individuals are undecided about purchasing insurance from private players, members of different groups are favorably disposed to purchasing group insurance through a private player vetted by the group Herd mentalitySafety in numbers.
Macro Study
7500 accounts
12% of total no. of farmers in rural area
* E-choupals manned by a Sanchalak provided with computer and internet connectivity for procurement of agri produce and giving information on variety of services to villagers.
Micro Study
Study Phase
Develop a comprehensive description of available channels and their delivery capabilities in the context of rural insurance potentials Identify and understand the concerns of insurers and their strategies for facing the challenges that rural market presents Develop an Evaluation Framework as a basis for selection, design and operationalisation of distribution channels Primary research in the Muzaffarnagar District of UP for the feasibility of each available channel applying evaluation criteria Develop an activity based cost model to profitably operationalise the feasible channels
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Micro Study
1
Per Block
Tehsils Blocks
14
112
1031
8 74
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Panchayats Villages
Micro Study
Available Channels
Distribution Channels
Evaluation Criteria Reach Influence on target segment Trust & reliability Business acquisition capability Support requirements Financial transaction handling Operational discipline Customer servicing Feasible Channels
Banks Cooperatives
Panchayats Agents Post Offices
Cybermediaries
Industrial Fin Inst.
Eco Exchange Pts
Brokers
NGOs & SHGs
E-Bima
New Channel
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Micro Study
Insurers Resources
E-Bima
1
No of Channel Units per Block Av. No. of Agents per LIC Dev Officer : 37
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Micro Study
E-BIMA
Infrastructure
A Van
A Simputer with a Printer Video-Audio Facility
Human Resources
One Driver
Parks at Panchayat, Local School , Village Chaupal Visits 2 Villages and one haat a day Works 8 Hours a day
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Micro Study
Role
Other Benefits
Support to other Channels for Policy Servicing, Premium Collection, Policy Query Handling, Complaint Handling, Assistance in Claim Processing
Overcome limitations of channels
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Take Away
The rural market offers tremendous growth opportunities for insurance companies but their success will depend upon their ability to:
Develop viable and cost effective distribution channels; and Build consumer awareness and confidence
ING is one of the few private insurance companies highly committed to the rural insurance market in India . In fact, ING is currently running a pilot project in rural India.
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THANKS
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