AVIVA LIFE to leave Indian shores

losers do!

Aviva Life may exit India. British insurer sees India as a less profitable market. It is searching for a buyer expecting response from Dabur India, the manufacturerof food products.

Like many other foreign insurers Aviva rushed to India after the Government allowed foreign investors in the $ 40 billion+ market in the year 2000. Life insurance penetration in India is about 3.4 % of gross domestic product in terms of total premium underwritten in a year which is much lower than 8.8 % in Japan and 8.7 % in Britain. 

Perhaps it is this scenario which lured Aviva to inter into Indian market  visualizing a huge untapped market in the life insurance industry. 

Further it found difficult to compete with the insurance giant LIC who have made sufficient inroad  into the market with their huge well trained agency force backed up by a well established office net work spread all over the country and LIC was a ‘Brand name’ as once said by our illustrious Finance Minister. LIC force should cash in on the Aviva story while prospecting.

R.K.Viswanathan