Aviva's iLife, which is an online term insurance product, is the cheapest term insurance available for a 30 year old in India. Gaurav Rajput, Director Marketing, Aviva is thrilled with the volume of buyers since the product was launched in May this year. Mr Rajput is focused on creating better user experience and better calculators on a soon to be revamped website.

Gaurav Rajput answers questions on the data security and other issues of the online buying process in an exclusive interview with us. Here's the responses by Gaurav Rajput- Director Marketing, Aviva India

What does Aviva do for data security and privacy for it's online sales?

We have taken all the steps to ensure that the data of our customers is completely secured. We have enabled SSL – Security Sockets Layer, which ensures that data is encrypted before it’s transferred from the application server, where the Aviva i-life application is hosted. All the customer data related to our online sales is stored in the Aviva Data center, which can be accessed only from the application server. We are also certified by WIPRO on vulnerability based testing for SQL injections.

How much cost benefit for buying online and not going through an agent accrues to the customer?

Online plans are cheaper than offline plans for two reasons. One, there is no intermediary. The saving on the cost of intermediation is passed on to the customer. Two, the perceived risk of death is significantly lower with higher persistency (this is because they have opted for the product themselves). So companies are able to offer the online customer a better deal.

What is the overall response and future plan for Aviva i-life? What is the digital strategy of Aviva?

We have received phenomenal response for Aviva i-life since we launched the product in May. In the first 6 months of its launch, more than 11,000 people have purchased the product, which is a significant number. We have also expanded its presence to 65 cities in India.

Aviva i-life has also received an excellent response from the media. It has been rated highly by leading financial publications and experts, with most mentioning it as the cheapest term plan across several age groups.

At Aviva, we seek to ensure prosperity and peace of mind to our customers through our products and services. In line with the same philosophy, we are working on further improving the customer journey for our online products. Right from advice to low costs, simplistic purchase experience purchase experience with jargon free documentation, complete product suite including health and savings, we will be looking at providing a differentiated experience to the customers.

Is there a concern that the online distribution channel will impact the offline distribution channel of agents and bancassurance?

The online channel is at a nascent stage and is not going to have a major impact on the offline distribution channel of agents and bancassurance as of now.

For complicated products like a ULIP, a customer will require the help of an agent to explain to him the product features, charges and benefit illustration. This is because financial literacy in India is still low and customers need an advisor to conduct financial health check/risk analysis before recommending products based on their needs. Even in a country like the UK which has a very dense Internet penetration, independent financial advisers is the largest channel of sales for investment, savings and retirement products.

How entry of LIC into the online term insurance segment will impact the distribution channel?

The entry of LIC into the online term insurance segment is a welcome development because LIC is the market leader with a tremendous reach. Insurance penetration in very low, just 4% of GDP which means that most earning members in this country do not have any kind of financial protection for their families incase something unforeseen happens to them. LIC’s entry will only help expand the market and grow the popularity of term insurance and protection as a category.

What is the grievance redressal mechanism for online buyers? Especially since there are no agents helping the customer.
We have a dedicated team for our online customers. Any buyer who has a query can write in to onlinepolicy@avivaindia.com and (can expect a response within 48 hours).

Customers can also call at our toll free number 1800-180-2266 for any queries or issues. Also, these products are regulated by the IRDA and all customer grievances are managed as per the guidelines laid down by the regulator.

During the chat, Mr Rajput also highlighted how Aviva India is leveraging the social platforms to reach out to the online buyers. Check out their Facebook page here. They believe that a good education is undoubtedly the best gift and is the bridge between our child’s today and her future prosperity.

(Gaurav Rajput, Director Marketing, Aviva India is responsible for the overall marketing strategy including Brand marketing, Communications, Channel marketing, Analytics and Product propositions. Gaurav brings with him a rich experience of over 13 years and was associated with Citibank and with leading media houses and advertising groups and has diverse work experience in the field of marketing and advertising.)

Please Search Here for more stories of your interest. Thanks.

Subscribe to our feed and get updates in your email inbox Send your feedback and any questions to editor@personalfinance201.com. Thanks.