Plans to set up partnerships with organisations like MFIs, self-help groups, NGOs, banks and institutions working towards financial inclusion, to grow in the rural market
After witnessing an above average growth in the life insurance business over the last three years, the Anil Dhirubhai Ambani (ADAG) is now planning to foray the rural market – reported The Economic Times. Reportedly, the Reliance Life Insurance (RLI) is targeting rural areas to earn INR500 crore from new premium over the next three years, against the current INR10 crore.
Sam Ghosh, CEO of Reliance Capital, the parent company for ADAG’s life insurance business, said that the group is also planning to pump an additional INR300 crore equity capital into the life business. With this the total equity base of RLI becomes INR3,000 crore.
“Reliance Life will be tapping the rural market with group savings insurance policies. There is significant opportunity for the market to move to the next level, that is from a plain group term product to savings linked product,’’ Mr. Ghosh added.
RLI is planning to introduce group insurance products in the rural micro-insurance market, now bundled with loans distributed through micro finance institutions. A top ADAG offcial said: “Reliance Life plans to leverage technology to drive down transaction costs. We are in the process of setting up partnerships with organisations like MFIs, self-help groups, NGOs, banks and institutions working towards financial inclusion to grow the rural reach,” reported the newspaper.