ICICI Prudential is piloting the delivery of a term life insurance product with a savings component to groups of tea workers through intermediary agencies. The intention is to significantly reduce transaction costs and improve customer service and overall efficiency by using an aggregating distribution channel that is supported by technology. Intermediary agencies are trained to create awareness, enroll policyholders, collect premiums, facilitate claims settlement and provide customer service.
ICICI Prudential launched its Rural Business Channel in February 2007 and has established a strong service delivery infrastructure through more than 1000 micro-offices in India. It has established more than 288 rural offices and partnerships with other distribution channels such as microfinance institutions to increase access and service. Based on six years of microinsurance experience, the company has reengineered its delivery systems to improve the viability of microinsurance products.
This project is innovative as (1) it ties delivery channels closely with both the insurer and the insured and (2) it uses an online service delivery system to significantly reduce the costs of serving low-income persons. Reducing premiums is one of ICICI Prudential’s strategies to make microinsurance more affordable to low-income individuals.
Diagram 1 models the delivery system of this project. Given that tea workers cannot afford to miss a days work, a key feature of the system is the collection of premiums through service centres located at the tea gardens.
Date of last Learning Journey update: September 2011