Ing-Vysya To Begin Operations Soon

ING-Vysya Life, following receipt of the R3 certificate, the final nod from the Insurance Regulatory and Development Authority (IRDA), will commence operations in about a month, said N N Joshi, chief advisor of ING Insurance International BV. The company will initially market conventional products that will gradually be upgraded to suit specific customer requirements.

Company sources said a major chunk of its products will be tailor-made to suit needs of self-employed clients - the major segment of Vysya Bank's client. The company's portfolio will also include insurance variants specially targeted at the salaried middle-class.

In fact, general products that are similar to products from other insurance companies will take care of the general segment of salaried class, explained officials.

ING-Vysya has set a target of 20 lakh customers and a 15,000 strong advisor network, in ten years.

Capitalised with an initial investment of Rs 125 crore and an authorised capital of Rs 300 crore, the life venture is to leverage on ING's insurance expertise and Vysya's retail distribution network and its IT and other infrastructure and its presence in South India. The company expects to break even in the eighth year of operation.

ING Insurance has a client base of over 50 million since it acquired ReliaStar (May) and Aetna Financial Services (July) and is the world's second-largest life insurer. Vysya Bank has over 480 retail outlets and a 20 lakh customer base. It netted Rs 44.30 crore in 1999-2000.