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Tata AIA Life Insurance Company Ltd.

Tata AIA Life and Citibank Partner to Serve Insurance Needs of Over 18.4 Million Households in India

Partnership to address protection gap estimated at over INR 150 trillion

Jan 20, 2015   17:15 IST 
Mumbai, Maharashtra, India

Citibank and Tata AIA Life today announced they are focused on serving the life insurance and wealth management needs of the global Indian community who have a desire for higher coverage through innovative products and an affinity for simple digital delivery. This is a growing base of approximately 18.4 million households[1] across 14 cities[2] in India that has a large protection gap, estimated at over INR 150 trillion[3].

 

The protection gap compares the life insurance cover and savings consumers have to what they should have. In India, for every INR 100 needed for a family’s income protection, only INR 7.4 is currently provided for, leaving a protection gap of 92.6 percent[4].

 

The long-term Bancassurance partnership in India will address this market opportunity to serve the discerning needs of these global Indians by providing a suite of traditional and unit-linked insurance products that offer wealth management, life protection, saving and retirement solutions. The sales process will be enabled through a digital framework that will minimize documentation, remove hidden charges and increase transparency in the buying process.

 

Naveen Tahilyani, CEO & Managing Director, Tata AIA Life, said, “This partnership is a reflection of our promise of ‘making Good happen’ and aims to enhance the value proposition to Citibank’s customers. We will offer solutions based on the priorities, needs and circumstances of customers backed by best-in-class technology and service infrastructure. I am confident with our customized products, unique technology support for sales and services, and Citibank’s expert relationship managers, we will enhance the customer experience to a new level."

 

Kartik Kaushik, Country Business Manager, Consumer Banking, Citibank India, said, “Our extensive experience with consumers indicate they are primarily looking for financial solutions that are not only simple, transparent and innovative, but are delivered flawlessly over the digital highway at a time and place of their convenience. Our partnership with Tata AIA Life aims to fulfil these very unique needs of our customers with a first-of-its-kind tablet application that integrates the online-offline delivery process impeccably.”

 

The tablet application is a paperless, automated sales interaction process that converts the cumbersome process, requiring 30-plus physical signatures per insurance policy, into a simple sign-on process. The solution provides complete need analysis to assess the customer’s insurance needs and give product recommendations basis prioritization of one’s financial goals and scenario analysis to understand the annualized financial impact. The solution allows for seamless upload of documents to provide an error-free proposition through the digitized platform.

 

The unified integration of the online-offline sales process provides real-time instant servicing options at Citibank branches, including the provision of tax receipts and fund value statements, along with servicing other frequent requests of customers. The dynamic feed also updates policy values on Citibank customer statements.

 

Currently, 78 percent of individuals with an annual income ranging from INR1,500,000 to INR12,500,000 has life cover below INR 10 million while 63 percent of individuals with an annual income ranging from INR300,000 to INR1,500,000 has life cover below INR 5 million. Both these segments strongly consider themselves under insured. Furthermore, these consumers are long-term investors with an investment horizon of over 15 years and a focus on investing in family protection, tax saving, marriage planning for one’s children and retirement, making insurance products an ideal option, according to a recent Nielsen survey[5]. As per McKinsey, individuals with an annual income ranging from INR300,000 to INR1,500,000 constitutes 16 million households with 37 percent in the top 14 cities, while individuals with an annual income ranging from INR1,500,000 to INR12,500,000 constitute 2.4 million households in India.

 

This relationship in India is an outcome of AIA Group Limited (“AIA”), one of the two joint venture partners in Tata AIA Life Insurance and, Citibank N.A. (“Citibank”) reaching an agreement on an exclusive Bancassurance partnership across 11 markets in the Asia-Pacific region, namely India, Hong Kong, Singapore, Thailand, China, Indonesia, Philippines, Vietnam, Malaysia, Australia and Korea.

 

About Tata AIA Life:

Tata AIA Life Insurance Company Limited (Tata AIA Life) is a joint venture company, formed by Tata Sons Ltd. and AIA Group Ltd. (AIA). Tata AIA Life combines Tata’s pre-eminent leadership position in India and AIA’s presence as the largest, independent listed pan-Asia life insurance group in the world spanning 17 markets in Asia Pacific. Tata Sons holds a majority stake (74 per cent) in the company and AIA holds 26 per cent through an AIA Group company. Tata AIA Life Insurance Company Limited was licensed to operate in India on February 12, 2001 and started operations on April 1, 2001.

 

About Tata

The Tata group’s mission is to improve the quality of life of the communities it serves globally, through long-term stakeholder value creation based on leadership with trust.

 

Founded by Jamsetji Tata in 1868, the Tata group is a global enterprise headquartered in India, and comprises over 100 operating companies, with operations in more than 100 countries across six continents, exporting products and services to over 150 countries. The revenue of Tata companies, taken together, was $103.27 billion (around Rs624,757 crore) in 2013-14, with 67.2 percent of this coming from businesses outside India. Tata companies employ over 581,470 people worldwide.

 

Good corporate citizenship is part of the Tata group’s DNA. Sixty six percent of the equity of Tata Sons, the promoter holding company, is held by philanthropic trusts, thereby returning wealth to society. As a result of this unique ownership structure and ethos of serving the community, the Tata name has been respected for more than 140 years and is trusted for its adherence to strong values and business ethics.

 

Each Tata company or enterprise operates independently and has its own board of directors and shareholders, to whom it is answerable. There are 32 publicly-listed Tata enterprises and they have a combined market capitalisation of about $140.98 billion (as on September 11, 2014), and a shareholder base of 3.9 million. Tata companies with significant scale include Tata Steel, Tata Motors, Tata Consultancy Services, Tata Power, Tata Chemicals, Tata Global Beverages, Tata Teleservices, Titan, Tata Communications and Indian Hotels.

 

About AIA:

AIA Group Limited and its subsidiaries (collectively “AIA” or the “Group”) comprise the largest independent publicly listed pan-Asian life insurance group. It has operations in 17 markets in Asia-Pacific – wholly-owned branches and subsidiaries in Hong Kong, Thailand, Singapore, Malaysia, China, Korea, the Philippines, Australia, Indonesia, Taiwan, Vietnam, New Zealand, Macau, Brunei, a 97 per cent subsidiary in Sri Lanka, a 26 per cent joint venture in India and a representative office in Myanmar.

 

The business that is now AIA was first established in Shanghai over 90 years ago. It is a market leader in the Asia-Pacific region (ex-Japan) based on life insurance premiums and holds leading positions across the majority of its markets. It had total assets of US$159 billion as of 31 May 2014.

 

AIA meets the long-term savings and protection needs of individuals by offering a range of products and services including life insurance, accident and health insurance and savings plans. The Group also provides employee benefits, credit life and pension services to corporate clients. Through an extensive network of agents, partners and employees across Asia-Pacific, AIA serves the holders of more than 28 million individual policies and over 16 million participating members of group insurance schemes.

 

AIA Group Limited is listed on the Main Board of The Stock Exchange of Hong Kong Limited under the stock code “1299” with American Depositary Receipts (Level 1) traded on the over-the-counter market (ticker symbol: “AAGIY”).

 

About Citi:

Citi, the leading global bank, has approximately 200 million customer accounts and does business in more than 160 countries and jurisdictions. Citi provides consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, transaction services, and wealth management. 
 
Additional information may be found at www.citigroup.com | Twitter: @Citi | YouTube: www.youtube.com/citi | Blog:http://blog.citigroup.com | Facebook: www.facebook.com/citi | LinkedIn: www.linkedin.com/company/citi

 

About Citi India:

Committed to India for over 110 years, Citi takes pride in being a premier locally embedded financial institution, backed by an unmatched global network. Citi's presence in India spans 44 branches across 28 cities. Citi is a very significant foreign investor in the banking and financial services sector in India. Citi is an employer of choice in India offering consumers and institutions a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, brokerage, treasury and trade services, securities and fund services and wealth management. In line with our commitment to make a positive difference in the communities we work, Citi India's citizenship program targets its strategic efforts in the priority areas of Financial Capability & Asset Building, Microfinance, Enterprise Development, and Youth, Education & Livelihoods.

 

Additional information may be found at: www.citibank.co.in | Facebook: www.facebook.com/citiindia | Twitter: @Citi | YouTube:www.youtube.com/citi | Blog: http://new.citi.com |

 

DISCLAIMER:

Tata AIA Life Insurance Company Limited (IRDA of India Regn. No. 110) CIN U66010MH2000PLC128403 Registered & Corporate address: 14th Floor, Tower A, Peninsula Business Park, SenapatiBapat Marg, Lower Parel, Mumbai – 400 013.

- Insurance is the subject matter of the solicitation.

- For complete details please contact our Insurance advisor or visit nearest branch office of Tata AIA Life or call 1-860-266-9966 (local charges would apply) or 1-800-267-9966(toll free no) or write to us at [email protected]. Visit us at: www.tataaia.comor SMS 'LIFE’ to 58888.

- Contract of Insurance  is between Tata AIA Life and the insured and not between the bank and the insured

- Participation by the bank’s clients in the insurance product is purely on a voluntary basis.

- Citibank does not underwrite the risk or act as an insurer

- The Citibank N.A. is a Corporate Agent for Tata AIA Life Insurance Co. Ltd. Under license number 1137144

- For detailed terms & conditions, please visit www.citibank.com/India. Citibank N.A.

- Business address of Citibank: First International Financial centre (FIFC), 8th Floor, C-54 and 55. G Block, BandraKurla Complex, Bandra (East), Mumbai – 400 051

 

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· IRDA of India or its officials do not involve in activities like sale of any kind of insurance or financial products nor invest premiums.

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