ING Vyasa to penetrate MP market

ING Vysya Life is planning to tap markets of Madhya Pradesh and Chhattisgarh to clock a premium income of Rs 14 crore next year.

The company, which started its operations in 2004, has opened its branches in Indore and Bhopal, and will soon open branches in Jabalpur, Gwalior and Raipur to tap rural markets.

It is in talks with various state cooperative banks to sell its products. The company expects to sell 3,500 policies by the end of December this year in Madhya Pradesh.

Though the company is yet to find out ways to expand base in rural market, which offers huge potential, the company is upbeat on its products and well-trained workforce.

"We will go to rural market through non-government organizations, self-help groups and cooperative banks as we did in Southern and some North Indian markets," said Frank Koster, managing director of the company here. He was in the town to inaugurate its Bhopal office. ING's life insurance operations in Madhya Pradesh also include Nagpur town.

He said, "Madhya Pradesh is the fast growing market for ING Vysya Life. We started our operations in Indore and Bhopal last year. We will open two more offices in Gwalior and Jabalpur. Cities like Indore, Bhopal, Jabalpur, Gwalior and Raipur are the nodal points in Madhya Pradesh to penetrate the rural markets."

He however was clueless when asked how will his company enter through these channels "� cooperative banks when a huge some of money, according to a report, has been eroded. Similarly despite 3.85 lakh self-help groups in the state their performance is not up to the expected level in absence of consolidation unlike those in Southern India.

He also hinted at focusing on pension product and unit-link products for the state market. The company has unit-linked plan in 50-50 ratio. "We do not have purely unit-linked plan, off-late the focus has to be laid upon the unit-linked plans and pension products," said Mr Koster.

The company has posted 35 lakh premium income from Bhopal and 65 lakh premium income from Indore. "By December end our business will touch Rs 7 crore from Madhya Pradesh which is expected to be doubled by next year," said Anurag Shrivastava, branch head Bhopal.

ING Vysya Life has 600 insurance advisors in Madhya Pradesh and company plans to increase the strength more to go aggressive in the markets. The company claims to have a strong national presence with a network of over 11000 insurance advisors in 45 cities. ING Vysya functions in life insurance, banking and mutual fund. ING is a global financial institution of Dutch origin and has a controlling stake in Bangalore Vysya Bank of Bangalore.