Challenges and trends

The brand is confident of leveraging the trust associated with its parentage. According to Ramachandta, the same values that are dear to the constituent brands are the values that will be used to differentiate the agency in the crowded and high decibel insurance space. In addition, as far as competition is concerned, the company feels that Tata AIA Life is in the business of protection against life risks. “More than just the companies in the life insurance category, true competition is the mindset of prospects, who believe that either coverage is unnecessary or the coverage against risks is adequate,” he explains.

Thus, the challenge the company faces stems from the awareness deficiency among consumers. The spokesperson adds, “India is under-insured. More than the challenges of reaching the customer, the true challenge lies in category need creation and awareness of the protection gap that Indians have. The challenge for the industry is to highlight the inadequacy of the first insurance purchased, most likely as a tax break at the early stage of their working career.”

According to IRDA, there are currently 23 life insurance companies in India and as far as the conventional plans of Life Insurance policies are concerned, there is a growth of 11 per cent in policies and 22 per cent in premium as in February 2012, according to the Ministry of State for Finance.