Max New York Life to expand in Gujarat

Max New York Life (MNYL) is planning to introduce its hub and spokes model in Gujarat, Maharashtra and Haryana to up its penetration in the rural market.

The model will be introduced in three states as the insurance company eyes 78 per cent of the untapped rural market of Gujarat and two other states in the forthcoming years. The hub and spokes model of distribution is successfully running in Punjab where it was introduced first.

Abhinav Rahul, vice president of Corporate Communication, MNYL, told Business Standard, "We are planning to penetrate more into rural markets of Gujarat and other states, and for that we will introduce the hub and spokes model of distribution in Gujarat, Maharashtra and Haryana. "

MNYL claims to be the first insurance company in India to have introduced the hub and spokes model of distribution in Punjab. Rahul said that the model has helped the company penetrate rural market in the state further.

"It is the first of its kind model for rural marketing of insurance products, MNYL has opened 31 offices in Punjab including eight hubs in Bhatinda, Patiala, Phagwara, Gurdaspur, Moga, Sangrur, Hoshiarpur and Nawashahar. There are 23 spoke offices at the taluk level. The rural business has a strong team of over 330 employees and more than 2500 agents."

Under the scheme the company also ties up with 22 co-operative banks across India. "We are also thinking of tying up with local NGOs to penetrate rural parts of the state further. However, we cannot reveal at this juncture of time the names of the NGOs."

In the survey, 'India Financial Protection Survey' conducted by MNYL and National Council of Applied Economic Research (NCAER) across India, he said, "There is an immense opportunity sin rural Gujarat to create financial security among households. The survey also says in Gujarat's urban areas the awareness about the life insurance is 94 per cent but the ownership is only 44 per cent.