India has become the second largest contributor to UK-based Aviva?s growth in Asia Pacific region in life and pensions business over the last five years after Australia.
Speaking to FE from London, Philip Scott, group finance director, Aviva Plc, said Indian business recorded a 40% growth in total sales to Rs 1,796 crore in the first half of 2007. The sales in the previous year was Rs 1,392 crore.
?We have established a strong platform in India and have developed businesses in the emerging and rapidly growing life insurance and long-term savings markets in India. We will continue to increase our focus and resources into the region, which represents a significant long-term growth opportunity for us,?? he added.
According to Bert Paterson, managing director, Aviva India, the company is awaiting some reforms in the government policy that will let private players function as only Pension Fund managers (PFMs).
?We anticipate that this could be a significant growth area. Aviva is one of the leading providers of life and pensions products to Europe. Pensions contribute 30% of Aviva?s total long-term savings business internationally,?? he said. It is extremely disappointing to note that only PSUs have been selected to be PFMs. This is not in the spirit of liberalization. ?We hope that soon private players will also be invited to participate,?? he said. The insurance industry in India is growing at a healthy 20% CAGR since liberalization. The private insurers today have nearly 40% of market share. The Life Insurance Density (premium per capita) has increased from US$ 7.6 in 2000 to $33.2 in 2006 while the Life Insurance penetration (premium as % of GDP) has increased significantly from 1.77% in 2000 to 4.1% in 2006.
