Aegon expects new insurance product to boost online sale

http://www.moneyspidery.com/2012/02/02/aegon-expects-new-insurance-product-to-boost-online-sale/

New Delhi:  Life insurance firm Aegon Religare is looking to sell at least 15-20 per cent of its policies through online distribution within two years on the back of its new protection product.The company, which today announced the launch its new online protection plan ‘iTerm’, also said that is has filed for approval to start a plan focusing on the health segment.”We ventured into the online distribution segment in 2009 with launch of the Aegon Religare iTerm plan. Now we have a new and improved version of the plan.

“Currently around 10 per cent of our business, with regard to total plans sold, comes from the online segment. With the new and improved version we expect the numbers to go up to 15-20 per cent within 18-24 months,” Aegon Religare Life Insurance Chief Marketing Officer Yateesh Srivastava said here.

He also said that Aegon Religare has approched the sector regulator Insurance Regulatory and Development Authority for launching a new product.

“This will be a health plan. We have applied for the approval but at this moment I cannot say by when we are likely to secure it,” Srivastava said.

Regarding the new product, he said it will have the longest policy term in the industry and will extend to the age of 75 years for policyholders.

The entry age for the new iTerm is between 18-65 years and the maximum maturity would be 75 years. The minimum sum assured is Rs 10 lakh and the policy term is between 5 to 57 years.

The minimum premium for the ITerm plan is Rs 1,675 for regular policy and Rs 7,075 for single policy and the premium could be paid both in single or annual instalments.

The policy would be available in about 85 cities across the country where Aegon Religare has branches. For the new plan, customers can also avail facility for electronically uploading PAN cards and other documents.

The original iTerm launched in 2009 has sold over 19,000 policies and secured a total sum assured of Rs 9,410 crore.

“Off course, with added features, we expect the new iTerm to be even more successful. Besides, with internet penetration likely to reach 300 million citizens in India within two years, we expect a lot from the online segment,” Srivastava said.