Aviva Life Insurance Report
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Aviva Life Insurance is a joint venture between Dabur and Aviva. Aviva has 26% stake and Dabur 74% stake in the JV partnership. Aviva India employs close to 5000 people, over 20,000 Financial Advisers with 159 branches across the country. In 1999 the government opened the insurance sector by permitting FDI from private companies of up to 26%. The largest life-insurance company in India is still owned by the government (LIC). Insurance is also listed as the seventh Schedule to the Constitution of India where both centre and states can legislate. Insurance in many forms has been mentioned in Indian scriptures.
Currently India is a US$41 billion industry. Currently, in India only two million people (0.2 % of the total population of 1 billion) are covered under Mediclaim, whereas in developed nations like USA about 75 % of the total population are covered under some insurance scheme.
Reason to do business in India:
Attracted huge foreign investments
India is the 4th largest economy, in terms of purchasing power parity. Tenth most industrialised economy.
Political stability and broad consensus on reforms. Liberal and transparent foreign investment regime.
Well developed banking system.
Strong pool of technical manpower.
2nd largest English-speaking population.
Abundant, high-quality, cost-effective, competitive manpower. Over 100,000 IT professionals added each year.
India rated as the most attractive destination for offshore business
Job creation: a million direct & 2-3 million
Easy industrial licensing policy
Major financial factor reforms
Getting started is easy
Achieve more with less
The products of insurance sector in India:
• Home insurance
• Medical insurance
• Health insurance
• Vehicle insurance
• Life insurance
Top 3 insurance companies in India:
• Life Insurance Corporation of India
• Bajaj Allianz General Insurance
• ICICI Prudential Life Insurance
•Aviva was listed 11th in 2009.
And 13th in top companies to buy insurance India in 2011.
Aviva Life Insurance, currently ranked as one of the top 10 life insurers in India
International objective in India:
Aviva’s overall strategy is to increase the geographic focus. In Asia, Aviva will continue to pursue franchise growth though organic investment, focusing on their priority markets such as China and India. Aviva’s aim is to be a top 10 life insurer by leveraging their bancassurance expertise and transforming our agency sales force.
Aviva see that the fundamentals of Indian market is attractive. The low number of people taking up insurance and the rapid growth in the countries GDP in the long term will require insurers and savings industry.
Aviva India offers child plans which is beneficial factors such bright future for the children. It also provides saving for children e.g. education. India also has the highest levels of skilled engineers and IT individuals ready to enter the job market every year. India has a culture of educating their children to be an engineer or IT specialist.