Promoters of Tata AIG Life Insurance Company would pump in around Rs 400 crore in the current financial year, said managing director Trevor Bull.
Tata AIG Life has chalked up an expansion of its footprint in India. It is increasing the number of offices in India by three times. The company had 72 in March 2007 and is adding another 120 by July-end. It plans to add another 100 between August 2007 and March 2008 to take the number close to 300.
Bull told the Hindustan Times: “Money is never a problem with Tata and AIG. At board meetings I am always asked if I need more money than what I ask for.” Promoters had infused Rs 30 crore in March 2007.
He said the company would invest around $100 million (around Rs 410 crore) in network expansion and the promoters would need to infuse a similar amount in the company this year. He added that it could be lot more if things work out well.
Bull has worked for AIG in Japan and Korea before his assignment in India. He said the company was following a hub and spoke structure for its expansion in India. “We take a major office and look at its customers. If someone from that office has got a few customers in a different location we try to create a office there to serve those customers and also get more from the area,” Bull said.
Tata AIG Life is also increasing the base of agents by 2,000-3,000 per month. It had 28,000 in end-March. Bull said, “We are reaching out to our customers through all the channels, including banks and micro-insurance.”
He said Tata AIG Life already had 11,000 lives insured through micro-insurance and three products under the micro-insurance banner. The company also offers to package products of Tata AIG General Insurance Company under the micro-insurance package. Bull said, “The micro-insurance products have an average premium of $25 (Rs 1,000) a year.”
Bull said the company did not yet sell policies online but would be doing so soon. It also plans to tie up with more banks.