1. Bancassurance – Indian context Stuart Purdy, Managing Director, Aviva India Federation of Indian Chambers of Commerce and Industry, New Delhi Monday, 18 th October 2004

3. Life Market Shares April-August 2004 Total Pvt. Players : Rs 1256.7 Cr

4. Industry Evolution No. of Players Distribution Focus Regulatory Environment Up to 1999 1999 till 2002 2003 onwards LIC Monopoly No Private Players allowed Agency only 800K LIC agents LIC of India Act Insurance Act 1938 Private Players allowed 12 new insurers Agency model replicated Little confidence in BA IRDA Act 1999 Primarily Agency driven regulations 12 Private Players LIC loses 12% share Confidence in BA BA takes 20% + share among Private Players Alignment of most Banks for exclusive arrangements BA regulations become clearer Multiple models allowed- CA, Referral, Broking

5. Bancassurance- Indian Opportunity Source: RBI Annual Report, Aug 02 All Data for Yr 2000-01 Total Household Savings of Rs 2,76,813 Cr

9. Critical Success Factors Management Focus and Commitment to shared objectives Staff Motivation Product fitment and differentiation Successful integration of insurance in Banking activity Leverage of the Bank’s brand Sales structures and resources from Bank and Insurer Choice of sales model and process Value to Insurer Value to Bank Value to Customer

10. Future trends in Bancassurance Current Scenario Short term Medium term Long term Insurers partnered with Select Banks under Corp Agency or Referral Some Banks yet to firm up partnerships Change in regulations could impact current arrangements Most Banks have short-term agreements; a stage of realignments may occur Stage of Polarisation: Emergence of winners Strong alignments with Banks with cross investments and exclusivity Broking arrangements 2004-05 2005-08 2010 onwards Mergers and Acquisitions could impact the industry