Apr 20
Joint Indian-U.S. Firm Offers Micro-insurance in Rural India
Max New York Life insurance company is in negotiation with a general underwriter for support on a venture into the field of micro-insurance. Max New York Life Insurance Company Ltd. is a joint venture between New York Life and Max India Limited, a large Indian multi-business corporation. “We are in discussions with a general insurance company on the product package, pricing and the distribution model after which we will present the proposal for the Board’s approval,” said Gary Bennett, Max New York CEO.
Micro-insurance is a marketing design for delivering affordable insurance products to people in rural areas. Government regulations permit a life insurance company to tie up with one general insurance company for offering a composite product to uninsured rural Indian residents. The composite policy would provide life insurance, health and personal injury insurance, weather or crop insurance, and coverage for “livestock, hut and dwellings.”
Government regulations on micro-insurance also require that the products carry low premium be easily comprehensible plans, with frequent modes of payment. The goal for Max New York is to offer their micro-insurance plans through non-government organizations (NGOs) and community self-help groups.
According to Bennett, “The next phase of development of the life insurance industry will be in rural areas. India is becoming a focused destination showing value of investments and growth in business.” The joint venture has grown rapidly in four years, claiming 1.2 current customers. In 2002 they had 600 employees in nine cities, compared with 2,500 workers operating 109 offices in 81 cities today.
(No Ratings Yet)
Loading ...
Print This Post
April 25th, 2007 at 10:09 pm
Interesting and exciting news about the expansion of insurance marketing into new areas of the world! One question… should the last paragraph read “claiming 1.2 million current customers…” instead of “1.2 current customers.” It makes more sense, and is a considerably more impressive figure. =)