AEGON Religare Life Insurance is looking to use the online channel as a major route to drive business growth in 2013-14. At a time when the sector averages for business from the online segment are hovering at 8 to 10 per cent, AEGON Religare sources around 30 per cent of business volumes from its eSales platform.
Speaking to Business Standard, Rajiv Jamkhedkar, MD & CEO, AEGON Religare Life Insurance, said, "We expect to see this contribution to volumes to grow, as we expect online sales to grow by 50 per cent next year." He said the focus would be to develop exclusive products for the online platform, rather than putting existing offline products on the online channel. AEGON Religare is among the first companies to have built a product portfolio exclusively for the eSales platform. The company has products in areas of health insurance, term plan and unit-linked products.
"In the online channel, we have a platform offering multiple products. We will continue to develop exclusive products for the online channel. For the time-being, we have three products and some riders, and it is enough for now," he said.
While other players are going aggressive on putting all products online, AEGON Religare will go slow on this front. The company is offering basic policies on the online platform and is looking to expand the portfolio, only when the need arises.
"We will have basic needs, covered in the online for the time-being. The product suite online will be simple, with good value and based on needs of the individuals. In three years, the channel has grown and we are bullish on it," Jamkhedkar further said. He added that they did not want to confuse the customer by offering too many products online.
On the revenue front, the company is looking to grow on new premiums and renewal premiums. "We foresee growth of 15 per cent in the top-line in the next three years. Online will contribute a big portion to this," said the chief executive.
In 2013-14, AEGON Religare will focus on multi-channel distribution, including individual agents, direct-to-customer initiative and third-party channel. The company is looking to break-even in 2015-16. It has infused Rs 1146 crore capital till now and will infuse more according to business needs.