Insurance heavyweight Aviva India is seeing a spurt in business from small and medium enterprises (SMEs) and expects the segment to come up on its own, a top official has said.
Insurance heavyweight Aviva India is seeing a spurt in business from small and medium enterprises (SMEs) and expects the segment to come up on its own, a top official has said. Anjali Malhotra, Chief Customer, Marketing & Digital Officer at Aviva India, told PTI that the SME line of business is trending at 6-10 per cent month-over-month and is shaping up well ever since the company identified its prospects and tied up with the Confederation of Indian Industry (CII) to address the sector last year. “The real focus on SME products began from last year for us. It is trending at 6-10 per cent on a month-over-month basis. It has started to come of its own as a driver of growth for us. We have been creating specific business propositions for them depending on their various requirements which take care of their business and family needs and create a balance between them,” Malhotra said. Last year, Aviva India tied up with CII to service its vast membership of SMEs and hoped to reach out to the 1.5 million-strong segment with tailor-made products. It had also said that the SME sector would generate 15 per cent of Aviva’s business within the next 3-5 years.
Aviva India, which now has over five lakh customers and registered premium income of Rs 466 crore in the April-September period, says it also hopes to maintain the 35 per cent business growth last year which has been its best-ever show since its journey in the country began 15 years ago. Malhotra said a pruning phase began in Aviva India from 2016 and several harsh steps were taken up which yielded a 35 per cent year-on-year growth for the company. “A lot of business metrics are looking up. Claim settlement ratio at 90.6 per cent for individual and 99 per cent for group are good achievements. Our agency and own channels are showing a lot of growth. We added brokers and channels which are generating good business for us. Together, the metrics are shaping up well”, Malhotra said.
Asked if last year’s growth could be replicated this year too, she said efforts are on to enhance reach and it has sounded out its partners in banks and Non-banking financial companies (NBFCs) and even nonfinancial services players to cater to a wider customer base. “If this momentum can be continued, we will grow,” she said. Aviva has also set out on a financial literacy drive across the country and the campaign will be intensified this year, she said.