Insurance grabs shelf space

MUMBAI: For decades, life insurance was symbolised by the ubiquitous agent who cornered prospects into buying a policy. A few years ago, banks discovered there were better margins in mobilising premiums for insurers than in raising deposits.

Now, retailers are discovering that customers who walk into buy groceries can be sold policies worth millions.

Shopassurance was pioneered in the UK, where retailers Tesco and Marks & Spencer and pharmacist Boots have been selling insurance for years. In South Africa too, retail chain Pick ‘n’ Pay has been selling insurance.

This trend is now catching on in Asia. In Phillipines SM Malls is turning out to be significant distributor of insurance products.

According to a report on insurance distribution by consultancy firm Watson Wyatt, in Indonesia, shopassurance is a new developing channel. According to the report, US insurer Cigna is targeting a 50% increase in premium in Indonesia following its tie-up with French retailer Carrefour of France.

The retailer’s outlets in 21 locations will be used to sell life insurance to customers holding Carrefour credit cards.

In the US, Bajaj Allianz Life Insurance had made an attempt to sell life insurance at retail outlets through a tie up with Shoppers’ Stop.

However, this channel is expected to get a big push with the entry of Future Group (formerly Pantaloons).

It has sold over 3.5 lakh credit cards to customers who walk into the group’s ‘Big Bazaar’ and ‘Food Bazaar’ outlets. Future Group’s partner Generali has already tasted success with this model in Asia.

The group sold close to 15% of its policies to supermarket customers in the Phillipines. Insurers say the medium requires a set of simple, easy-to-understand products. These include accident policies and term insurance covers. In the UK, retailers also sell auto and travel insurance.