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M. Somasekhar

With most of the private insurance companies, besides the public sector players, present in the State, access to public data would spur activity in the rural insurance sector, according to Mr A. Vijayaraghavan of Sathguru Management Consultants.

HYDERABAD, March 22

INSURANCE companies with plans to offer customised products to rural markets could find Andhra Pradesh an interesting area to operate in.

The State has not only built up sound data bases on basic issues such as health, agriculture and other key indicators, but has also taken a proactive approach in offering them for use.

With most of the private insurance companies, besides of course the public sector players, present in the State, this access to public data would spur activity in the rural insurance sector, according to Mr A. Vijayaraghavan of Sathguru Management Consultants (SMC).

The data-based approach would be useful in devising customised insurance products or even banking products. The recent decisions to shift the Insurance Regulatory Development Authority (IRDA) and also set up the Institute of Insurance Risk Management (IIRM) at the proposed `Financial District' in Hyderabad is expected to give a push to this sector. SMC is working with the Andhra Pradesh Industrial Infrastructural Corporation (APIIC) and the State Government to conceptualise facilities in the Financial District, which is coming up over a 100-acre land.

Mr Vijayaraghavan told Business Line that the State had expressed willingness to share crucial data on health, agriculture etc with research institutes such as the IIRM.

These, in turn, would collaborate with private players to devise customised products.

Recent reports have indicated that ING Vysya is firming up its initiative to launch products for the rural segments in the State towards the end of the month.

The diversification into rural markets would also open up more employment opportunities for the educated youth in the insurance sector.

Along with the entry of insurance companies, the information technology infrastructure that needs to be put in place would offer new job avenues, he said.

Post-signing of the MoU between IRDA and APIIC on February 25 this year, a meeting of 12 major insurance companies in the country was organised in Hyderabad.

In addition to discussing the proposed infrastructure facilities in the Financial District, the scope for customised products in insurance and banking for rural areas was also discussed, he said.

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