Aegon Life, Aegon’s joint venture in India has announced a restructuring of its business. The move will sharpen its focus on protection insurance and direct-to-customer distribution – including its award winning e-Business.
As the pioneer of e-Business in India's insurance market, about one-third of Aegon Life's business is currently generated from e-sales.
Customers have responded positively to digital products and services, as well as e-sales processes. And the company ‒ already a recognized leader in the direct-to-consumer business and four-time winner of Fintelekt's 'e-Business Leader' ‒ is well-positioned to build on its direct-to-customer strategy.
Specialist direct-sales force
Direct-to-customer distribution is made up of the company's e-sales channel supported by a specialized direct sales force. The company will exit traditional agency and third-party tele-sales channels, whilst seeking to forge new alliances with e-commerce players and online distributors of financial services.
Featured in an interview with the Economic Times in India, KS Gopalkrishnan, CEO of Aegon Life, said the company was moving away from agency to the direct-to-customer offer. "We will be focusing on new-age distribution channels, like fin-tech companies, as online is becoming the preferred channel of distribution," he said.
Aegon has reiterated its commitment to its joint venture with The Times Group, which is the largest media conglomerate in India. Aegon Life's strategy and ambition in India is now fully aligned with Aegon's corporate strategy.
"As a Group, we are bullish about the prospects for life insurance in India, and we are excited that we now have a clearly differentiated strategy," says Douglas Henck, Aegon Asia's CEO.
Growing digital-savvy market
By 2020, India is projected to be the youngest country globally with 64% of its population of working age. And, the country is increasingly on-line with over 400 million internet users.
As such, Aegon considers Asia to be a growth engine, and has identified three rapidly-growing customer segments: High Net Worth (HNW) individuals, aging affluent customers, and ascending affluent customers.
Aegon Life targets the ascending affluent market who actively seek information independently and understand the value of life insurance to protect their families and loved ones.