• The density of the Indian Market
Market Insurance industry is $78
Density
Distribution Strategy :
DIVERSIFICATION
Bancassurance, Agency,
Partnership distribution,
Market
Direct, Group Geography
Key Considerations:
Market, Product, Company
• The insurance market is wide-
variables spread geographically
• Larger the coverage area, costlier
the direct distribution
Behavioural, Intermediary, • This massive potential can be fully
Enviraonmental explored using a diversified
distribution strategy
variables
• Urban area can be captured using
the digital medium and the rural
area can be taken care of by the
traditional distribution channel
• Low density calls for the use of
intermediaries to reduce costs
Market
Size
• Penetration pegged at 3.76%
• Massive potential yet to be
exhausted
• A mixed distribution approach
can be used
• Direct distribution can be done
at select/feasible places
• Intermediaries can be used for
the rest of the places
• This will help them increase
reach and reduce costs
Behaviour
• The new age consumers are
shifting the financial planning
paradigm
• Consumers want their
communications to be phygital –
physical + digital.
• Around 47% research insurance
schemes online as compared to
22% who rely on agents
• 49% have said that they prefer
online mode of purchase for
insurance, 32% still preferred to
call their agents and 18% still
expect company emails
• This diverse set of expectations
can be met with a diverse
distribution channel which is
adopted by ICICI life insurance
 Risks
04 Rapidly Changing
Consumer
Demands
The distribution system along with
the company needs to be agile

05 Digital Security
02 The world is Online purchases call for a strong
digital security
moving online
Negligible online presence
Lack of focus on online insurance
purchases

03 Uncertain Costs
Rapidly changing business
conditions
The need to adapt comes at a
cost

01 Consumers are
seeking self
service
65% modern consumers do not
feel the need of an insurance
agent and are willing to purchase
insurance online