AEGON Religare to expand distribution business

AEGON Religare Life Insurance (ARLI) announced its business plans for the financial year 2010-2011 on Thursday. The company plans to grow its topline in financial year 2010-11 backed by expansion of its current distribution.

According to Rajiv Jamkhedkar, managing director and chief executive officer, AEGON Religare Life Insurance, the company has been following a multi-channel distribution strategy comprising agency distribution, and direct distribution, apart from business alliances comprising banks, brokers and corporate agents. "The focus for this year would be to expand distribution by increasing the branch network, hiring more life advisors and relationship managers and increasing the footprint of third party distribution with the focus on acquiring a bank partner. This would be backed by enhancing its integrated customer management strategy and developing new product lines," he said.

The company will be adding more branches to its existing branch network, spread across the country. It also plans to increase the life advisor base to 20,000 and hire over 800 relationship managers in this fiscal year. In addition, the company will also focus on increasing third party distribution through fruitful business alliances.

This increased distribution will help the company target an increase in topline to a total received premium of Rs 500 crore as compared to a total received premium of Rs 166 crore achieved in FY 2009 -10.

"Last year was a challenging year and we used this opportunity to test our distribution models and we ended the year with all channels producing excellent results. We successfully closed 2009-10 with a total received premium of Rs 166 crore which was a significant increase over the previous year and in line with our business plan. Going ahead we plan to invest in our existing distribution model to meet our business topline while keeping a firm eye on business efficiency and productivity. We will aim to build a significant and profitable business and be the preferred partner for all our distribution channels," Jamkhedkar added.