Edelweiss Tokio life to focus on customer centricity

New Delhi: Edelweiss Tokio Life Insurance, a joint venture between Edelweiss Financial Services and Japanese Insurance major Tokio Marine Holdings announced that it has set a target of insuring 5 million lives by 2015.

The company opened its 13th branch in the country and first in Delhi which follows launching of its operations in Gujarat, Maharashtra, Chandigarh, Punjab and Haryana. The company plans to launch 9 more branches during the current financial year, totaling upto 22 branches - all in North and Western India and extend them to South and Eastern India next year. This would be expanded to 64 branches by FY 14 and 75 branches by FY 15.
Jun Hemmi, Executive Director of Edelweiss Tokio Life Insurance said, "Our entire business model is built on the principles of customer centricity, cost efficiencies and agent productivity.
He also informed that the company plans to add 50 thousand agents over a period of five years and told that nine of the insurance products have already been approved by IRDA and seven are under approval.
He further said that the hyper growth the industry has seen in the last decade has also resulted in several inefficiencies creeping in. As the 24th entrant into the market and the first one after the regulator has changed guidelines governing the industry, we have the opportunity to learn and build the appropriate systems and processes right from inception.
Talking about the industry scenario and the company's approach he said, "India has among the lowest penetration of life insurance in the world. However, by 2020 India is expected to emerge as one of the top three life insurance markets. The country has among the highest savings rate in the world and about 20 per cent of which gets invested into life insurance. Despite some recent re-adjustments in the industry, we believe that the opportunity in the life insurance space is huge. What has changed following the new guidelines mandated by Insurance Regulatory and Development Authority (IRDA) is the renewed focus on product innovation and competitive pricing. We believe that it also needs a new method of selling which focuses on customers and their needs. Our entire orientation is based on this premise."
While talking about future plans, he informed that they plan to enter asset management business. He also said the weak point of Japanese institutional investors is that they are reluctant to invest in India because of currency fluctuation.
Yash Prasad, Chief Agency Officer said, "We have put in place the most stringent agent recruitment and training processes in the industry. Our personal finance advisors have to undergo rigorous training specially designed to blend the Indian context and our international experience.
In terms of duration, it is three times that mandated by IRDA. This is expected to lead to higher customer satisfaction. The entire focus would be to develop a long term relationship with our customers rather than achieve a short term sale."
In a brief conversation with us about the competition in the life insurance business he said our customer centric approach will gain us more customers and added that life insurance sector is coming towards achieving its purity which will help in growth of the industry.
Both JV partners in the company -- Edelweiss and Tokio Marine -- together have committed a paid up capital of Rs 550 crore, which is among the highest by any private sector life insurance company at start up stage.