IIPM PUBLICATION
What is it about the Indian markets that warrant such a major expansion drive?
With the industry growing at 177% for the period of April-July 06, the Indian insurance market is expected to hit $25 billion in 2010; assuming a 7% real annual growth in GDP. In fact, today India has an insurable population of 300 million with only 15% insured. Changing lifestyles are also a sign of the increase in the potential of the market, as some of these factors help people plan for their financial security. Any growing economy where a large chunk of the population is under-insured and has low penetration will surely experience rapid demand. }
The biggest challenge for MetLife’s growth and expansion in India comes from...?
The challenge has been in earning the trust of the consumer, in building a brand in a market which is so diverse and yet distinct. Understanding the heterogeneous Indian diaspora was one of the biggest challenges that we faced. However, today with our knowledge and expertise we have introduced innovative product options. In addition, we needed to educate the Indian customer. But before that could happen, we needed to educate our own team of financial advisors. Instead of selling policies, we wanted our team to offer solutions based on individual needs of the customer. MetLife currently has 43 offices across the country and we plan to scale up in order to tap the full potential of this huge market.
What are the different distribution channels that MetLife will focus upon?
MetLife has a multi-channel approach to distribution and is well capacitated on the individual and group side of business. We have financial advisors working in the agency sales channels. We work through banks and corporate agents on the third part distribution arrangements. Our direct sales force are geared to do the talking on the employee benefit space and also work through brokers in this space. We also have an approval to market insurance through a telemarketing channel.
What are the challenges and opportunities that the untapped rural markets pose?
There are many challenges that we face in the market. Limited infrastructure facilities in terms of banking, access to information, telecommunications, low presence of medical facilities are some of the hurdles that one has to overcome. The best way to tap the rural market is to partner with establishments/ communities that have a significant presence there. MetLife is already doing sizeable sales in the Indian rural market and is reaching out to the people in the rural parts of India, primarily through the Bancassurance model, and through the NGOs.
For Complete IIPM Article, Click on IIPM Article
Source : IIPM Editorial, 2006
An IIPM and Malay Chaudhuri – Arindam Chaudhuri Initiative
What is it about the Indian markets that warrant such a major expansion drive?
With the industry growing at 177% for the period of April-July 06, the Indian insurance market is expected to hit $25 billion in 2010; assuming a 7% real annual growth in GDP. In fact, today India has an insurable population of 300 million with only 15% insured. Changing lifestyles are also a sign of the increase in the potential of the market, as some of these factors help people plan for their financial security. Any growing economy where a large chunk of the population is under-insured and has low penetration will surely experience rapid demand. }
The biggest challenge for MetLife’s growth and expansion in India comes from...?
The challenge has been in earning the trust of the consumer, in building a brand in a market which is so diverse and yet distinct. Understanding the heterogeneous Indian diaspora was one of the biggest challenges that we faced. However, today with our knowledge and expertise we have introduced innovative product options. In addition, we needed to educate the Indian customer. But before that could happen, we needed to educate our own team of financial advisors. Instead of selling policies, we wanted our team to offer solutions based on individual needs of the customer. MetLife currently has 43 offices across the country and we plan to scale up in order to tap the full potential of this huge market.
What are the different distribution channels that MetLife will focus upon?
MetLife has a multi-channel approach to distribution and is well capacitated on the individual and group side of business. We have financial advisors working in the agency sales channels. We work through banks and corporate agents on the third part distribution arrangements. Our direct sales force are geared to do the talking on the employee benefit space and also work through brokers in this space. We also have an approval to market insurance through a telemarketing channel.
What are the challenges and opportunities that the untapped rural markets pose?
There are many challenges that we face in the market. Limited infrastructure facilities in terms of banking, access to information, telecommunications, low presence of medical facilities are some of the hurdles that one has to overcome. The best way to tap the rural market is to partner with establishments/ communities that have a significant presence there. MetLife is already doing sizeable sales in the Indian rural market and is reaching out to the people in the rural parts of India, primarily through the Bancassurance model, and through the NGOs.
For Complete IIPM Article, Click on IIPM Article
Source : IIPM Editorial, 2006
An IIPM and Malay Chaudhuri – Arindam Chaudhuri Initiative
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