Spread of Life Insurance Agents Across Locations in India

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2 Spread of Life Insurance Agents Across Locations in India (A Report on Region wise, State wise and District wise spread of Agency Licenses in India) INSURANCE INFORMATION BUREAU OF INDIA Insurance Information Bureau of India (IIB) Hyderabad November, 2013 Spread of Life Insurance Agents Across Locations in India

3 Spread of Life Insurance Agents Across Locations in India

4 Foreword Distribution channels are the extended arm of life insurers. The life insurance industry in India is dominated by the agency channel which constitutes 97% of the individual policies sold therein. Agents play a valuable role in the life insurance industry. They not only help insurers access clients but also perform the tough job of persuading clients to provide for life contingencies and long term savings through life insurance. While the number of life agents in the country appears large with about 38 lakh valid agency licenses as reflected in the Agency Portal of IRDA, out of whom around 24 lakh agents are active in insurers books, it is largely felt that there are imbalances in the distribution of this resource. There are also notions prevalent in the sector that the agency force is concentrated in the more prosperous and urban locations and segments of the population, with relatively lower focus on rural and low-income clientele. Poor coverage and inadequate distribution network form the classical chicken and egg syndrome and the industry needs to break out of this. Policy makers of the country have consistently attempted through mandates and supportive interventions to correct this anomaly. One of the recent efforts in this direction is the Guidelines on Common Service Centres 2013 whereby insurers have been empowered to reach out to the rural population through the CSC Network. This report attempts to throw insights into some of the perplexing patterns in the spread of agency channel across the country. It also tries to understand the relationships that exist between parameters such as GDP and Population with agency penetration in different locations. I am sure that the findings of this report will substantially benefit all the stakeholders of the life insurance industry and can also act as a guidepost in enhancement of financial inclusion and development of the sector. This report in addition assists insurers as a directory in identifying potential locations for their proposed offices. T.S. Vijayan Chairman, IIB Spread of Life Insurance Agents Across Locations in India

6 Introduction IIB, in its endeavor to emerge as a world class analytics organization, has been undertaking quite a few initiatives to provide useful information to the Indian Insurance Market. An attempt has been made in this report to collate the Life Insurance Agency Penetration at the Regional, State and District level, for the entire Country and correlate the same to the economic predictors like GDP and Population and Insurance indicators such as Number of Policies, Number of Offices and New Business Premium. The resultant analysis is expected to provide useful insights for the Indian Life Players to do a dipstick test of their presence and evaluate options. IIB will also play a significant role in the strategic decision making process of Insurers and Intermediaries in assisting them with similar inputs on the market characteristics. Further, IIB has been entrusted with the responsibility of operating the Mortality and Morbidity Investigation Centre (MMIC) for the Indian Insurance Market under due guidance and scrutiny of Institute of Actuaries of India and IRDA. IIB has recently been vested with the operations of the Central Index Server for the Insurance Repository (IR) framework, launched by the Hon ble Finance Minister on 16th of Sept, This server will enable IRs to activate the e Insurance Accounts with ease and non-duplication. This step is expected to catapult the Financial Inclusion objectives of the Insurers into a new plane. We, at IIB, rededicate ourselves to the service of providing critical inputs to the insurance community through analytical reports like this. We welcome valuable feedback from all stakeholders. R. Raghavan CEO, IIB Spread of Life Insurance Agents Across Locations in India

8 Contents Executive Summary 1 Charts & Comments: State wise - District wise Life Insurance Agency Penetration 7 Region wise Life Insurance Agency Penetration 37 State wise Life Insurance Agency Penetration 41 Study of Bottom 120 Districts in Life Insurance Agency penetration 47 Study of Top 50 Districts in Life Insurance Agency Penetration 55 Region wise & State wise Agency Penetration vis-a-vis Demographic & Insurance Parameters 61 Detailed numbers... Tables: State wise - District wise Life Insurance Agency Penetration 65 Appendices 87 Methodology 89 Statistical Analysis 90 Reference / Acknowledgements 95 Disclaimer: Maps wherever used are not to scale. IIB does not make any representation in regard to the authenticity, completeness, reliability or accuracy of Maps used in various sections of this Report. Spread of Life Insurance Agents Across Locations in India

10 Executive summary This Report: a) Provides Regionwise, Statewise and Districtwise details of Life Insurance Agency penetration in the country. b) Identifies bottom 120 districts in agency penetration out of the total 611 districts in the country, as also the top 50 districts. c) Also provides the corresponding rank of each district on financial inclusion count as provided by CRISIL Inclusix Report to enable a comparison. d) Compares the agency penetration of each location with the GDP and number of life insurers offices therein. e) Is about valid life insurance agency licenses as per the IRDA Agency Portal which number to over 37 lakhs. The number of active agents as per the records of life insurers however is less than 24 lakhs. Agency penetration, for the purpose of this report, is defined as the number of valid life insurance agency licenses per thousand population. 1. Agency Penetration of bottom 120 districts of the Country is less than 1/4th of the national average A study of the bottom 120 districts of the country among 611 districts covered under the study reveals glaring imbalances in the distribution of agents across locations in the country. While the top 50 districts of the country have more than 7 agent licenses per thousand population, the bottom 120 districts have an average of 0.76 agent licenses per thousand population a poor 1/10th of the top 50 and less than 1/4th of the national average which is 3.15 Spread of Life Insurance Agents Across Locations in India 1

11 2. Bottom 120 districts are largely concentrated in East, North-East and the Northern regions of the Country More than half of the bottom 120 districts are from East and North-East Regions with another onethird coming in from the North. The West and South together account for barely 10% of the same. Region wise Summary of Bottom 120 Districts in India: Region Total Number Number of Districts of the Region figuring in of Districts Bottom 120 of the country in the Region (%age of Total Districts of the Region) North East (41%) East (24%) North (19%) West 64 6 (9%) South (5%) Total (20%) 63 of the bottom 120 districts also figure in the similar list of bottom ranked districts of the Country in terms of financial inclusion as per CRISIL Inclusix*, indicating that many of these districts suffer from a severe under-penetration of banking and other financial services as well. {CRISIL Inclusix -- A Report published by CRISIL on financial inclusion ranking of districts in India}. The bottom 120 districts cover more than 10% of the population but have only 2.5% of the Agency Licenses. They house only 4% of country s insurance offices. Spread of Life Insurance Agents Across Locations in India 2

12 3. The Red Square... A huge geography in the heart of the country in the shape of a square which is quite thickly populated, happens to be severely underpenetrated, as evident from the map above. It covers 7 States with a total population of Crore. The square covers disturbed areas, inaccessible tribal/forest locations etc where the general level of incomes and education is lower. This geography perhaps calls for a special set of regulatory and business initiatives customized to the profile of the population inhabiting it. Spread of Life Insurance Agents Across Locations in India 3

13 4. Way to go... The untapped potential in the underpenetrated states works out to over 2 Lakh Agents. The new business premium from these agents is projected to be worth Rs 3300 crore. A Regression Analysis of GDP and Population with number of Agency licenses within each state indicates the extent of under-exploitation of potential in the laggard states. The analysis indicates a potential for 20% increase of agents numbering to 2,15,855 in these 9 states. Based on the state-wise average New Business Premium per agent, this translates into an additional NB premium of Rs Crore (Please see table below). Projection of State wise potential for number of agency licences State/U.T. Projected Actual Incremental NB Premium Potential for Number of Number of Potential of the State additional Agency Agency (No. of (F.Y '12) NB Premium Licences Licences Agency (Rs. Crores) for the State Licences) due to increase in Agency Licences (Rs. Crores) Uttar Pradesh ,174 Bihar West Bengal Chhattisgarh Madhya Pradesh Jammu & Kashmir Meghalaya Arunachal Pradesh Mizoram TOTAL ,312 (Table covering all the under-exploited States on Page 97). Spread of Life Insurance Agents Across Locations in India 4

14 5. Poorer locations face extra hurdles... While appetite for insurance could be relatively low among the low-income segments, thereby causing under-penetration of agency, it is true that the poorer states/districts could also suffer from additional disadvantages such as: a) non-availability of qualified agent-candidates in these locations, b) problems of access requiring the candidates to travel very far for agency training and tests, c) low ticket sizes, and d) Agency recruitment costs and viability issues for life insurers. 6. Top 50 Districts corner close to one-third of Agency Licenses in the Country... The Top 50 Districts, which are less than 8% of the total number of districts, alone have 29% of the All India Life Agency Licences and 26% of the total Insurer offices. Five smaller states Kerala, Haryana, Punjab, Himachal and Karnataka cover half of the "Top 50" districts in terms of Agency penetration. Spread of Life Insurance Agents Across Locations in India 5

15 7. West on top, East at the last... Region-wise, West has highest presence of Agents on a per-thousand population basis, followed by the South. The East stands last in this respect with the northern region being only slightly better. Though North-east appears to do alright, the averages are skewed due to the weight and good performance of Assam. Ex-Assam, the averages of North-east are actually unimpressive. This will become more evident when we look at the state-wise and district wise numbers. 8. Higher the GDP better the Agency Penetration... Coming to state-wise averages, the states with relatively higher GDP have fared better than the rest. While states/uts such as Kerala, Himachal, Maharashtra, Delhi and Chandigarh are on top, states such as Bihar, UP, Chhattisgarh, MP and a couple of NE states figure at the bottom of the heap. The agency licenses have shown a strong correlation with both GDP and population numbers of respective states, but the correlation with GDP is much stronger at 0.98 compared to 0.89 with population. This is only expected because affordability and awareness of insurance are in many ways related to income levels. 9. Agency penetration is also strongly correlated to the presence of life insurers offices It is evident from the study that life insurers are focusing their activities more in the relatively affluent locations. The presence of their offices as well as the agency penetration supports this observation. There are many districts in the country with populations well above a lakh but having no life insurers office. Spread of Life Insurance Agents Across Locations in India 6

16 Section I Charts & Comments: State wise - District wise Life Insurance Agency Penetration Spread of Life Insurance Agents Across Locations in India 7

17 Spread of Life Insurance Agents Across Locations in India 8

18 5.1. Andhra Pradesh: NATIONAL AVERAGE Andhra Pradesh is one of the above-average states in agency penetration. Also, to its credit, none of its 23 districts falls in the bottom-120 districts in the country. {Please refer Table 6.1 for detailed figures}. Spread of Life Insurance Agents Across Locations in India 9

19 5.2. Arunachal Pradesh: NATIONAL AVERAGE Arunachal Pradesh is below-par when compared with the national average. Significantly, while 9 of its 15 districts figure among the bottom-120, two of them are among top-50 districts in the country. It may be noted that both the top and bottom districts are very thinly populated. Dibang valley s population is just of the 12 life insurer offices in the state exist in Papum Pare district alone. The thin spread of agencies in the state can perhaps be attributed to sparse population and tough terrain. {Please refer Table 7.2 for detailed figures}. Spread of Life Insurance Agents Across Locations in India 10

20 5.3 Assam: NATIONAL AVERAGE Assam is an above average performer and the best so far as north-east is concerned. Assam lifts the otherwise abysmal NE averages owing to the state s shining performance and its huge population. It has 237 out of 343 life insurer offices in the North east. {Please refer Table 7.3 for detailed figures}. Spread of Life Insurance Agents Across Locations in India 11

21 5.4. Bihar: NATIONAL AVERAGE Bihar, as evident from the picture, is a big red patch. This big state, is a belowpar performer which has 1.57 agents per thousand population against country s With 9% of the country s population, it has only 4% of the life agency licenses in the country. 14 of its 38 districts figure in the bottom-120 districts of the country, while none its districts figures among the top-50. Except one district viz. Patna, all the districts of the State fall below the National Average. {Please refer Table 7.4 for detailed figures} Spread of Life Insurance Agents Across Locations in India 12

22 5.5. Chhattisgarh: NATIONAL AVERAGE Chhattisgarh is also among the laggards which average far below the national average. There is a concentration of offices and agents in three of its districts. 50% of its offices and agents are located in Raipur, Durg, and Bilaspur. Districts like Dantewada, Narayanpur and Bijapur are quite populous but have few offices. {Please refer Table 7.5 for detailed figures}. Spread of Life Insurance Agents Across Locations in India 13

23 5.6. Goa: NATIONAL AVERAGE Goa is one of the top performers with both its districts figuring in the top 50 districts of the country. {Please refer Table 7.6 for detailed figures}. Spread of Life Insurance Agents Across Locations in India 14

24 5.7. Gujarat: NATIONAL AVERAGE While Gujarat averages above above the nation, the performance as evident from the graph is quite diverse across districts within the state. Three of the districts of the state figure in the bottm 120 of the Country {Please refer Table 7.7 for detailed figures}. Spread of Life Insurance Agents Across Locations in India 15

25 5.8. Haryana: NATIONAL AVERAGE Haryana ranks among top performers in the country with 5 of its 19 districts figuring among top-50 of the country. {Please refer Table 7.8 for detailed figures}. Spread of Life Insurance Agents Across Locations in India 16

26 5.9. Himachal Pradesh: NATIONAL AVERAGE Himachal Pradesh is surprisingly among top performers in the country. As many as 5 out of its 12 districts figure among India s top-50 districts. {Please refer Table 7.9 for detailed figures}. Spread of Life Insurance Agents Across Locations in India 17

27 5.10. Jammu & Kashmir: NATIONAL AVERAGE J&K is among the laggard states in terms of agency presence. 7 of its 16 districts are among bottom- 120 districts of the country. A couple of them have virtually negligible agency presence despite notso-thin populations. While the towns of Jammu and Srinagar have a good coverage of agents, equally populous towns such as Anantnag and Baramulla appear underexploited. {Please refer Table 7.10 for detailed figures}. Spread of Life Insurance Agents Across Locations in India 18

28 5.11. Jharkhand: NATIONAL AVERAGE Jharkhand is also a relative underperformer. 9 of its 24 districts figure among the bottom-120 districts of the country. 53 % of the state s agents fall in 4 districts Bokaro, Ranchi, Dhanbad and East Singhbhum. {Please refer Table 7.11 for detailed figures}. Spread of Life Insurance Agents Across Locations in India 19

29 5.12. Karnataka: NATIONAL AVERAGE While Karnataka is an above-average state with four of its districts among top-50 of the country, there are, equally, certain under-exploited pockets. Three of its districts figure among bottom-120 of the country. The graph does not show a level picture; rather, it is slopy indicating huge inequalities in district wise agency penetration. Five of its districts Bangalore, Dakshina Kannada, Dharwad, Belgaum and Mysore cover more than 50% of agents in the state. {Please refer Table 7.12 for detailed figures}. Spread of Life Insurance Agents Across Locations in India 20

30 5.13. Kerala: NATIONAL AVERAGE A whopping 50%, i.e. 7 out of 14 Districts of Kerala figure in Top-50 of the country not surprising that Kerala ranks among the Top 5 States in the country in terms of Agency penetration. In fact, agency penetration of all the 14 districts except Malappuram is above the country s average figure of 3.15 {Please refer Table 7.13 for detailed figures}. Spread of Life Insurance Agents Across Locations in India 21

31 5.14. Madhya Pradesh: NATIONAL AVERAGE Madhya Pradesh, one of the bigger states, is an under performer with the state s average being a dismal figure of 2.19 as compared to country s average figure of of the 50 Districts of the state figure in the bottom-120 districts of the country. 1/3rd of the Life Insurer offices operational in the state are concentrated in just four districts of the state, namely Indore, Bhopal, Gwalior & Jabalpur. {Please refer Table 7.14 for detailed figures}. Districts such as Chhindwara, Chhatarpur, Sagar and Balaghat though populous seem to be underexploited. Spread of Life Insurance Agents Across Locations in India 22

32 5.15. Maharashtra: NATIONAL AVERAGE While Maharashtra averages above the nation, three of its districts can be seen to occupy a position in the bottom-120 of the country and a vast majority of the districts appear to be under-performers; the state s average being lifted up by a few locations such as Mumbai, Pune and Thane. {Please refer Table 7.15 for detailed figures} Spread of Life Insurance Agents Across Locations in India 23

33 5.16. Manipur: NATIONAL AVERAGE Manipur is also among the NE states which have turned out an under par performance. Imphal West turns out to be the only district to have shown a respectable penetration of agents. This district also has 6 of the 10 life insurance offices. 4 districts have one office each, while Chandel, Ukhrul, Senapati and Tamenglong districts have no insurer office present, though they have populations ranging between 1.5 to 3.5 lakhs. {Please refer Table 7.16 for detailed figures}. Spread of Life Insurance Agents Across Locations in India 24

34 5.17. Meghalaya: NATIONAL AVERAGE Meghalaya fares poorly with an average of Except East Khasi hills, the other 6 districts have a very low presence of Insurers with 3 districts not having even a single office. West Khasi Hills has a population of 3.85 lakhs but no life office. Similarly, East Garo hills with 3.17 lakhs and South Garo Hills with 1.42 lakhs also have no life office situated within these districts. Quite understandable that agency penetration is so low. {Please refer Table 7.17 for detailed figures}. Spread of Life Insurance Agents Across Locations in India 25

35 5.18. Mizoram: NATIONAL AVERAGE Mizoram has all the 8 districts, except one, in the red. All the 8 life insurance offices in the state are located in Aizawl district which above shows good penetration levels. {Please refer Table 7.18 for detailed figures}. Spread of Life Insurance Agents Across Locations in India 26

36 5.19. Nagaland: NATIONAL AVERAGE 8 of the 11 districts in the state are in bottom-120 districts of the country and all of them show a very negligible presence of agents. Dimapur alone has nearly 4000 of the roughly 5000 agents in the state and only 3 of the districts, namely Dimapur, Kohima and Mokokchung have insurer offices. {Please refer Table 7.19 for detailed figures}. Spread of Life Insurance Agents Across Locations in India 27

37 5.20. Odisha: NATIONAL AVERAGE Though Odisha is bracketed among the lesser developed states in India in general, it is surprisingly ahead of national averages in respect of agency penetration; even though it has 3 districts in the bottom-120 list. {Please refer Table 7.20 for detailed figures}. Spread of Life Insurance Agents Across Locations in India 28

38 5.21. Punjab: NATIONAL AVERAGE With a high rate of agency penetration, Punjab gets counted amont the top states of the country and four of tis 20 districts figure among the country s top 50 districts. Two of its districts, however, figure in the bottom 120 list. {Please refer Table 7.21 for detailed figures}. Spread of Life Insurance Agents Across Locations in India 29

39 5.22. Rajasthan: NATIONAL AVERAGE This state has a below-average agency penetration and many of its districts are highly under-penetrated. {Please refer Table 7.22 for detailed figures}. Spread of Life Insurance Agents Across Locations in India 30

40 5.23. Sikkim: NATIONAL AVERAGE The average penetration of the state is good but the agency penetration is highly skewed due to good penetration in one district East Sikkim, which has 10 out of the 12 offices in the state. {Please refer Table 7.23 for detailed figures}. Spread of Life Insurance Agents Across Locations in India 31

41 5.24. Tamil Nadu: NATIONAL AVERAGE This is a frontrunner state with good penetration levels except for a few small pockets {Please refer Table 7.24 for detailed figures}. Spread of Life Insurance Agents Across Locations in India 32

42 5.25. Tripura: NATIONAL AVERAGE West Tripura district, which has about half the population of the state, has a good agency penetration, but the other three are under-penetrated. {Please refer Table 7.25 for detailed figures}. Spread of Life Insurance Agents Across Locations in India 33

43 5.26. Uttar Pradesh: NATIONAL AVERAGE UP, which is the most populous state in the country, cuts a swathe of red with a majority of its districts showing poor levels of agency penetration. As many as 16 of the 70 districts of the state figure among the bottom-120 districts of the country and there is just one district Pratapgarh which is among top-50 of the country. {Please refer Table 7.26 for detailed figures}. Spread of Life Insurance Agents Across Locations in India 34

44 5.27. Uttarakhand: NATIONAL AVERAGE This hill state is above average in agency penetration but there are two districts figuring in bottom-120 list. {Please refer Table 7.27 for detailed figures}. Spread of Life Insurance Agents Across Locations in India 35

45 5.28. West Bengal: NATIONAL AVERAGE Though this state has a below-average agency penetration but, to its credit none of this large state s districts figure among the bottom-120. {Please refer Table 7.28 for detailed figures}. Spread of Life Insurance Agents Across Locations in India 36

46 Section II Region wise Life Insurance Agency Penetration Spread of Life Insurance Agents Across Locations in India 37

48 Region Population Count of Life Agency Agency Licences Penetration West 17,39,93,598 7,14, South 25,04,84,871 10,09, North East 4,55,66,893 1,34, North 43,50,33,549 12,27, East 29,56,06,165 6,92, All-India Average 1,20,06,85,076 37,78, REGIONS: 1. Western Region consists of States viz. Gujarat, Maharashtra, Goa and Union Territories viz. Diu, Daman, and Dadra & Nagar Haveli. 2. Southern Region consists of States viz. Andhra Pradesh, Karnataka, Kerala, Tamil Nadu and Union Territories viz. Andaman & Nicobar Islands, Pondicherry and Lakshadweep. 3. Northern Eastern Region consists of States viz. Arunachal Pradesh, Assam, Manipur, Meghalaya, Nagaland, Sikkim and Tripura. 4. Northern Region consists of States viz. Haryana, Himachal Pradesh, Jammu & Kashmir, Madhya Pradesh, Punjab, Rajasthan, Uttarakhand, Uttar Pradesh, and Union Territories viz. Chandigarh and Delhi. 5. Eastern Region consists of States viz. Bihar, Chhattisgarh, Jharkhand, Odisha and West Bengal. The Region-wise graph highlights the imbalances across regions. While West and South are frontrunners, North east, North and East fall below the national average. The intra-region patterns can be seen in subsequent pages. Spread of Life Insurance Agents Across Locations in India 39

50 Section III State wise Life Insurance Agency penetration Note: In the charts following, Maroon color is used to depict the Average figure of agency licenses per thousand population for a particular Region/ State, while the All-India Average figure is depicted by an Orange dotted line cutting across the various State graphs. Spread of Life Insurance Agents Across Locations in India 41

52 State wise Agency Penetration figures: Sr. State Population Count of Life Number of Agency No. Agency Insurer Offices Penetration Licences 1 CHANDIGARH 10,54,686 10, GOA 14,57,723 13, DELHI 1,67,53,235 1,45, KERALA 3,33,87,677 1,89, HIMACHAL PRADESH 68,56,509 37, HARYANA 2,32,23,182 1,16, PONDICHERRY 11,88,848 5, MAHARASHTRA 11,23,72,972 4,71,469 1, PUNJAB 2,86,72,667 1,17, TAMIL NADU 6,96,67,736 2,84, GUJARAT 5,95,77,139 2,28, ANDHRA PRADESH 8,46,65,533 3,19, SIKKIM 6,07,688 2, UTTARAKHAND 1,01,16,752 35, KARNATAKA 6,11,30,704 2,09, ODISHA 4,19,47,358 1,40, TRIPURA 36,71,032 11, ANDAMAN & NICOBAR ISLANDS 3,79,944 1, ASSAM 3,11,69,272 97, DADRA & NAGAR HAVELI 3,42,853 1, WEST BENGAL 9,13,47,736 2,67, NAGALAND 19,80,602 5, RAJASTHAN 6,77,52,781 1,79, MANIPUR 27,21,756 7, DAMAN & DIU 2,42, JHARKHAND 3,29,66,238 74, ARUNACHAL PRADESH 13,61,522 2, JAMMU & KASHMIR 1,07,30,216 23, MADHYA PRADESH 7,25,97,565 1,58, UTTAR PRADESH 19,72,75,956 4,02,899 1, CHATTISGARH 2,55,40,196 47, MIZORAM 10,91,014 1, MEGHALAYA 29,64,007 4, BIHAR 10,38,04,637 1,63, LAKSHADWEEP 64, ALL-INDIA AVERAGE 1,20,06,85,076 37,78,199 10, Spread of Life Insurance Agents Across Locations in India 43

54 1. Many of the states falling on the northern/eastern belt such as west Bengal, Bihar, Jharkhand, Chhattisgarh, Madhya Pradesh, Rajasthan, Uttar Pradesh and Jammu & Kashmir are trailing below the national average, whereas all the southern and western states are above the national average. 2. Agency penetration in populous states such as Bihar, UP and Chhattisgarh is drastically below the national average. Spread of Life Insurance Agents Across Locations in India 45

56 Section IV Study of Bottom 120 Districts in Life Insurance Agency penetration Spread of Life Insurance Agents Across Locations in India 47

58 7.1 Region wise summary of Bottom 120 Districts in India: Region Total Number of Districts Number of Districts in Bottom 120 covered in Study (%age of Total Districts) North Eastern Region (41%) Eastern Region (24%) Northern Region (19%) Western Region 64 6 (9%) Southern Region (5%) Total State wise summary of Bottom 120 Districts in India: State/U.T. Total Number of Districts Number of Districts in Bottom 120 covered in Study (%age of Total Districts) Lakshadweep 1 1 (100%) Mizoram 8 7 (88%) Nagaland 11 8 (73%) Arunachal Pradesh 15 9 (60%) Meghalaya 7 4 (57%) Manipur 9 5 (56%) Jammu & Kashmir 16 7 (44%) Jharkhand 24 9 (38%) Bihar (37%) Andaman & Nicobar Islands 3 1 (33%) Madhya Pradesh (32%) Uttar Pradesh (23%) Chhattisgarh 18 5 (28%) Uttarakhand 13 2 (15%) Gujarat 25 3 (12%) Punjab 19 2 (11%) Karnataka 30 3 (10%) Odisha 30 3 (10%) Maharashtra 34 3 (9%) Rajasthan 32 2 (6%) Total Spread of Life Insurance Agents Across Locations in India 49

59 1. The average figure of 0.76 for Agency Licences per '000 population in case of Bottom 120 Districts in the country is significantly lower than All-India Average of North, North East & Eastern Region together have 90% of the Bottom 120 Districts. In fact, Eastern Region & North East Region alone account for 50% of the Bottom 120 Districts. 3. Bottom 120 Districts (roughly 20% of the total) together have less than 4% of total Insurer Offices. State/Union Territory District name District Count of Number of Agency Rank as per Population Life Agency Insurer Penetration CRISIL Licenses Offices Inclusix Report* ANDAMAN & NICOBAR ISLANDS NICOBAR 36, ARUNACHAL PRADESH KURUNG KUMEY 89, ARUNACHAL PRADESH EAST KAMENG 78, ARUNACHAL PRADESH LOWER DIBANG VALLEY 53, ARUNACHAL PRADESH TIRAP 1,11, ARUNACHAL PRADESH UPPER SUBANSIRI 83, ARUNACHAL PRADESH UPPER SIANG 35, ARUNACHAL PRADESH TAWANG 49, ARUNACHAL PRADESH WEST KAMENG 87, ARUNACHAL PRADESH WEST SIANG 1,12, BIHAR ARARIA 28,06, BIHAR SHEOHAR 6,56, BIHAR WEST CHAMPARAN 39,22, BIHAR KATIHAR 30,68, BIHAR BANKA 20,29, BIHAR SITAMARHI 34,19, BIHAR MADHEPURA 19,94, BIHAR PURNIA 32,73, BIHAR KISHANGANJ 16,90, BIHAR SUPAUL 22,28, BIHAR JAMUI 17,56, BIHAR SHEIKHPURA 6,34, BIHAR ARWAL 6,99, BIHAR KAIMUR (BHABUA) 16,26, CHATTISGARH BIJAPUR (CG) 2,55, CHATTISGARH NARAYANPUR 1,40, CHATTISGARH JANJGIR-CHAMPA 16,20, Spread of Life Insurance Agents Across Locations in India 50

60 State/Union Territory District name District Count of Number of Agency Rank as per Population Life Agency Insurer Penetration CRISIL Licenses Offices Inclusix Report* CHATTISGARH DANTEWADA CHATTISGARH KAWARDHA GUJARAT DAHOD GUJARAT NARMADA GUJARAT THE DANGS JAMMU & KASHMIR BANDIPUR JAMMU & KASHMIR KUPWARA JAMMU & KASHMIR POONCH JAMMU & KASHMIR PULWAMA JAMMU & KASHMIR REASI JAMMU & KASHMIR RAJAURI JAMMU & KASHMIR KARGIL JHARKHAND GARHWA JHARKHAND CHATRA JHARKHAND LATEHAR JHARKHAND PAKUR JHARKHAND SIMDEGA JHARKHAND SAHIBGANJ JHARKHAND GODDA JHARKHAND JAMTARA JHARKHAND KHUNTI KARNATAKA YADGIR KARNATAKA KOPPAL KARNATAKA RAMANAGAR LAKSHADWEEP LAKSHADWEEP MADHYA PRADESH ALIRAJPUR MADHYA PRADESH SHEOPUR MADHYA PRADESH BARWANI MADHYA PRADESH DINDORI MADHYA PRADESH SHIVPURI MADHYA PRADESH SINGRAULI MADHYA PRADESH TIKAMGARH Spread of Life Insurance Agents Across Locations in India 51

61 State/Union Territory District name District Count of Number of Agency Rank as per Population Life Agency Insurer Penetration CRISIL Licenses Offices Inclusix Report* MADHYA PRADESH ASHOK NAGAR MADHYA PRADESH UMARIA MADHYA PRADESH KHARGONE MADHYA PRADESH MANDLA MADHYA PRADESH KATNI MADHYA PRADESH RAJGARH MADHYA PRADESH SHAJAPUR MADHYA PRADESH RAISEN MADHYA PRADESH HARDA MAHARASHTRA NANDURBAR MAHARASHTRA GADCHIROLI MAHARASHTRA JALNA MANIPUR TAMENGLONG MANIPUR UKHRUL MANIPUR CHURACHANDPUR MANIPUR CHANDEL MANIPUR SENAPATI MEGHALAYA SOUTH GARO HILLS MEGHALAYA EAST GARO HILLS MEGHALAYA WEST KHASI HILLS MEGHALAYA RIBHOI MIZORAM LAWNGTLAI MIZORAM CHAMPHAI MIZORAM LUNGLEI MIZORAM SAIHA MIZORAM KOLASIB MIZORAM SERCHHIP MIZORAM MAMMIT NAGALAND KIPHIRE NAGALAND MON NAGALAND LONGLENG NAGALAND PEREN Spread of Life Insurance Agents Across Locations in India 52

62 State/Union Territory District name District Count of Number of Agency Rank as per Population Life Agency Insurer Penetration CRISIL Licenses Offices Inclusix Report* NAGALAND TUENSANG NAGALAND PHEK NAGALAND ZUNHEBOTTO NAGALAND WOKHA ODISHA MALKANGIRI ODISHA SONAPUR ODISHA NUAPADA PUNJAB NAWANSHAHR (Shahid Bhagat Singh Nagar) PUNJAB KAPURTHALA RAJASTHAN DHOLPUR RAJASTHAN KARAULI UTTAR PRADESH BAHRAICH UTTAR PRADESH KAUSHAMBI UTTAR PRADESH SIDDHARTHNAGAR UTTAR PRADESH SANT KABIR NAGAR UTTAR PRADESH MAHARAJGANJ UTTAR PRADESH BUDAUN UTTAR PRADESH FIROZABAD UTTAR PRADESH GONDA UTTAR PRADESH HARDOI UTTAR PRADESH ETAH UTTAR PRADESH KANNAUJ UTTAR PRADESH SHRAWASTI UTTAR PRADESH UNNAO UTTAR PRADESH CHITRAKOOT UTTAR PRADESH MAHOBA UTTAR PRADESH JYOTIBA PHULE NAGAR UTTARAKHAND CHAMOLI UTTARAKHAND RUDRAPRAYAG BOTTOM 120 AVERAGE (*District ranking out of total 632 Districts in India - as per recently published CRISIL Inclusix Report on Financial Inclusion). Spread of Life Insurance Agents Across Locations in India 53

64 Section V Study of Top 50 Districts* in Life Insurance Agency penetration (*Districts with population exceeding 2 Lakh) Spread of Life Insurance Agents Across Locations in India 55

66 Region wise summary of Top 50 Districts: Region Number of Districts Northern Region 21 Southern Region 14 Western Region 7 North Eastern Region 6 Eastern Region 2 TOTAL 50 State wise summary of Top 50 Districts: State/U.T. Number of Districts KERALA 7 HARYANA 5 HIMACHAL PRADESH 5 KARNATAKA 4 PUNJAB 4 MAHARASHTRA 3 ARUNACHAL PRADESH 2 ASSAM 2 GOA 2 GUJARAT 2 MADHYA PRADESH 2 TAMIL NADU 2 ANDHRA PRADESH 1 CHANDIGARH 1 DELHI 1 JAMMU & KASHMIR 1 MANIPUR 1 NAGALAND 1 ODISHA 1 UTTAR PRADESH 1 UTTARAKHAND 1 WEST BENGAL 1 TOTAL 50 Spread of Life Insurance Agents Across Locations in India 57

67 1. Agency penetration for Top 50 Districts at 7.47 is double the National Average of The Top 50 Districts, which has 12% of the country s Population alone have 26% of the total Insurer offices & 29% of the All India Life Agency Licences. 3. Half of the Top 50 Districts are only from five states viz. Haryana, Himachal Pradesh, Karnataka, Kerala & Punjab. Again, together they have one-third of the Insurer's office presence amongst Top 50 District Insurer offices. State/Union Territory District name District Count of Life Number of Agency Rank as per Population Agency Insurer Penetration CRISIL Licences Offices Inclusix Report* PUNJAB FATEHGARH SAHIB ANDHRA PRADESH HYDERABAD GOA NORTH GOA CHANDIGARH CHANDIGARH NAGALAND DIMAPUR MAHARASHTRA MUMBAI HARYANA FARIDABAD TAMIL NADU CHENNAI HARYANA GURGAON DELHI DELHI HARYANA PANCHKULA WEST BENGAL KOLKATA HIMACHAL PRADESH SHIMLA KERALA PATHANAMTHITTA PUNJAB RUPNAGAR TAMIL NADU COIMBATORE MANIPUR IMPHAL WEST KERALA ERNAKULAM PUNJAB JALANDHAR ODISHA KHORDA GOA SOUTH GOA KERALA KOTTAYAM KERALA ALAPPUZHA KERALA THRISSUR HIMACHAL PRADESH HAMIRPUR Spread of Life Insurance Agents Across Locations in India 58

68 State/Union Territory District name District Count of Life Number of Agency Rank as per Population Agency Insurer Penetration CRISIL Licences Offices Inclusix Report* KERALA THIRUVANANTHAPURAM ASSAM BONGAIGAON GUJARAT AHMEDABAD UTTAR PRADESH PRATAPGARH HIMACHAL PRADESH KULLU HARYANA AMBALA HIMACHAL PRADESH SOLAN UTTARAKHAND DEHRADUN MAHARASHTRA PUNE KARNATAKA UDUPI MAHARASHTRA THANE KARNATAKA DAKSHINA KANNADA MADHYA PRADESH BURHANPUR MADHYA PRADESH ANUPPUR KARNATAKA BANGALORE PUNJAB AMRITSAR ASSAM KAMRUP GUJARAT VADODARA HARYANA PANIPAT HIMACHAL PRADESH KANGRA KARNATAKA DHARWAD JAMMU & KASHMIR JAMMU KERALA KANNUR UTTAR PRADESH LUCKNOW PUNJAB LUDHIANA TOP 50 AVERAGE (*District ranking out of total 632 Districts in India - as per recently published CRISIL Inclusix Report on Financial Inclusion). Spread of Life Insurance Agents Across Locations in India 59

70 Section VI Region wise & State wise Agency Penetration vis-a-vis Demographic & Insurance Parameters Spread of Life Insurance Agents Across Locations in India 61

72 Region wise comparision of Percentage share of Life Insurance Agency Licenses, Population, GDP, Number of Offices, New Business Premium & Number of Policies: Region %age share %age share %age share %age share of %age share %age share of India's of of All-India All-India of All-India in All-India Population India's GDP. Offices Licences NBP NoP North West East North East South NORTH WEST EAST NORTH-EAST SOUTH Spread of Life Insurance Agents Across Locations in India 63

73 4. State/U.T. wise comparision of Percentage share of Population, GDP, Number of Offices, Life Insurance Agency Licences, New Business Premium & Number of Policies: State/UT %age share of %age %age share %age share of %age share %age share All-India share of of India's All-India of All- in All- NBP India's GDP. Licences India Offices India NoP Population Maharashtra West Bengal Uttar Pradesh Andhra Pradesh Tamil Nadu Gujarat Karnataka NCT of Delhi Kerala Madhya Pradesh Rajasthan Bihar Punjab Odisha Haryana Assam Jharkhand Uttarakhand Chhattisgarh Himachal Pradesh Chandigarh Jammu & Kashmir Goa Tripura Nagaland Puducherry Manipur Meghalaya Arunachal Pradesh Sikkim Andaman & Nicobar Islands Mizoram Spread of Life Insurance Agents Across Locations in India 64

74 Section VII Tables : State wise - District wise Life Insurance Agency Penetration Spread of Life Insurance Agents Across Locations in India 65

76 7.1. Andhra Pradesh: District name District Count of Life Number of Agency Population Agency Licences Insurer Offices Penetration HYDERABAD VISAKHAPATNAM KRISHNA SRIKAKULAM CUDDAPAH WARANGAL KARIM NAGAR KHAMMAM GUNTUR PRAKASAM WEST GODAVARI CHITTOOR NELLORE NALGONDA NIZAMABAD ANANTHAPUR VIZIANAGARAM EAST GODAVARI KURNOOL ADILABAD MAHABUB NAGAR MEDAK K.V.RANGAREDDY A.P. AVERAGE Arunachal Pradesh: District name District Count of Life Number of Agency Population Agency Licences Insurer Offices Penetration DIBANG VALLEY PAPUM PARE EAST SIANG LOWER SUBANSIRI CHANGLANG LOHIT UPPER SIANG UPPER SUBANSIRI WEST SIANG Spread of Life Insurance Agents Across Locations in India 67

77 WEST KAMENG EAST KAMENG TAWANG KURUNG KUMEY LOWER DIBANG VALLEY TIRAP STATE AVERAGE Assam: District name District Count of Life Number of Agency Population Agency Licences Insurer Offices Penetration BONGAIGAON KAMRUP JORHAT SIBSAGAR DIBRUGARH CACHAR TINSUKIA GOLAGHAT NALBARI LAKHIMPUR KARBI ANGLONG DHUBRI HAILAKANDI KARIMGANJ MARIGAON NORTH CACHAR HILLS (DIMA HASAO) BARPETA SONITPUR DHEMAJI GOALPARA DARRANG KOKRAJHAR NAGAON ASSAM AVERAGE Spread of Life Insurance Agents Across Locations in India 68

78 7.4. Bihar: District name District Count of Life Number of Agency Population Agency Licences Insurer Offices Penetration PATNA BHOJPUR BHAGALPUR MUNGER BEGUSARAI MUZAFFARPUR SARAN AURANGABAD (BIHAR) SAHARSA NALANDA DARBHANGA GAYA LAKHISARAI ROHTAS GOPALGANJ SIWAN JEHANABAD SAMASTIPUR VAISHALI EAST CHAMPARAN KHAGARIA NAWADA MADHUBANI BUXAR MADHEPURA ARARIA PURNIA SITAMARHI WEST CHAMPARAN KISHANGANJ KATIHAR BANKA SHEOHAR ARWAL JAMUI KAIMUR (BHABUA) SUPAUL SHEIKHPURA BIHAR AVERAGE Spread of Life Insurance Agents Across Locations in India 69

79 7.5. Chhattisgarh: District name District Count of Life Number of Agency Population Agency Licences Insurer Offices Penetration BASTAR KORIYA DURG RAIPUR KORBA BILASPUR (CG) DHAMTARI SURGUJA KANKER RAIGARH MAHASAMUND RAJNANDGAON JASHPUR JANJGIR-CHAMPA DANTEWADA BIJAPUR KAWARDHA NARAYANPUR CHATTISGARH AVERAGE Goa: District name District Count of Life Number of Agency Population Agency Licences Insurer Offices Penetration NORTH GOA SOUTH GOA GOA AVERAGE Gujarat: District name District Count of Life Number of Agency Population Agency Licences Insurer Offices Penetration AHMEDABAD VADODARA SURAT GANDHINAGAR VALSAD NAVSARI BHARUCH RAJKOT JAMNAGAR Spread of Life Insurance Agents Across Locations in India 70

80 MAHESANA ANAND BHAVNAGAR SABARKANTHA KHEDA PORBANDAR KACHCHH JUNAGADH PATAN AMRELI SURENDRANAGAR BANASKANTHA PANCH MAHALS NARMADA DAHOD THE DANGS GUJARAT AVERAGE Haryana: District name District Count of Life Number of Agency Population Agency Licences Insurer Offices Penetration FARIDABAD GURGAON PANCHKULA AMBALA PANIPAT KARNAL KURUKSHETRA ROHTAK JIND HISAR YAMUNA NAGAR KAITHAL SIRSA SONIPAT FATEHABAD JHAJJAR MAHENDRAGARH BHIWANI REWARI HARYANA AVERAGE Spread of Life Insurance Agents Across Locations in India 71

81 7.9. Himachal Pradesh: District name District Count of Life Number of Agency Population Agency Licences Insurer Offices Penetration SHIMLA HAMIRPUR KULLU SOLAN KANGRA BILASPUR KINNAUR UNA MANDI SIRMAUR LAHUL & SPITI CHAMBA HIMACHAL PRADESH AVERAGE Jammu & Kashmir: District name District Count of Life Number of Agency Population Agency Licences Insurer Offices Penetration JAMMU SRINAGAR LEH KATHUA UDHAMPUR ANANTHNAG DODA BARAMULLA BUDGAM PULWAMA POONCH RAJAURI KARGIL KUPWARA BANDIPUR REASI J & K AVERAGE Spread of Life Insurance Agents Across Locations in India 72

82 7.11. Jharkhand: District name District Count of Life Number of Agency Population Agency Licences Insurer Offices Penetration EAST SINGHBHUM BOKARO RANCHI DHANBAD LOHARDAGA SERAIKELA-KHARSAWAN DEOGHAR GUMLA RAMGARH HAZARIBAG KODERMA PALAMAU GIRIDH DUMKA WEST SINGHBHUM GODDA GARHWA CHATRA SAHIBGANJ LATEHAR SIMDEGA JAMTARA PAKUR KHUNTI JHARKHAND AVERAGE Spread of Life Insurance Agents Across Locations in India 73

83 7.12. Karnataka: District name District Count of Life Number of Agency Population Agency Licences Insurer Offices Penetration UDUPI DAKSHINA KANNADA BANGALORE DHARWAD UTTARA KANNADA BAGALKOT SHIMOGA GADAG DAVANGERE CHICKMAGALUR MYSORE KODAGU HASSAN MANDYA HAVERI BANGALORE RURAL BELGAUM TUMKUR BIJAPUR CHIKKABALLAPUR BELLARY GULBARGA CHITRADURGA KOLAR RAICHUR BIDAR CHAMRAJNAGAR KOPPAL RAMANAGAR YADGIR KARNATAKA AVERAGE Spread of Life Insurance Agents Across Locations in India 74

84 7.13. Kerala: District name District Count of Life Number of Agency Population Agency Licences Insurer Offices Penetration PATHANAMTHITTA ERNAKULAM KOTTAYAM ALAPPUZHA THRISSUR THIRUVANANTHAPURAM KANNUR IDUKKI KOLLAM KOZHIKODE PALAKKAD KASARGOD WAYANAD MALAPPURAM KERALA AVERAGE Madhya Pradesh: District name District Count of Life Number of Agency Population Agency Licences Insurer Offices Penetration BURHANPUR ANUPPUR INDORE BHOPAL GWALIOR JABALPUR UJJAIN BETUL SIDHI REWA SATNA RATLAM MANDSAUR DEWAS GUNA SHAHDOL NEEMUCH Spread of Life Insurance Agents Across Locations in India 75

85 District name District Count of Life Number of Agency Population Agency Licences Insurer Offices Penetration CHHINDWARA CHHATARPUR BALAGHAT SAGAR BHIND HOSHANGABAD SEONI NARSINGHPUR MORENA EAST NIMAR DHAR JHABUA SEHORE DATIA PANNA VIDISHA DAMOH BARWANI TIKAMGARH KHARGONE HARDA KATNI UMARIA SHAJAPUR MANDLA RAISEN SHIVPURI RAJGARH SHEOPUR ASHOK NAGAR DINDORI ALIRAJPUR SINGRAULI M.P. AVERAGE Spread of Life Insurance Agents Across Locations in India 76

86 7.15. Maharashtra: District name District Count of Life Number of Agency Population Agency Licences Insurer Offices Penetration MUMBAI PUNE THANE NAGPUR KOLHAPUR SANGLI CHANDRAPUR NASHIK SATARA RAIGARH SINDHUDURG AHMEDNAGAR AMRAVATI AURANGABAD AKOLA BEED DHULE JALGAON RATNAGIRI SOLAPUR WARDHA BHANDARA LATUR GONDIA YAVATMAL NANDED BULDHANA PARBHANI WASHIM HINGOLI OSMANABAD NANDURBAR JALNA GADCHIROLI MAHARASHTRA AVERAGE Spread of Life Insurance Agents Across Locations in India 77

87 7.16. Manipur: District name District Count of Life Number of Agency Population Agency Licences Insurer Offices Penetration IMPHAL WEST BISHNUPUR IMPHAL EAST THOUBAL CHANDEL CHURACHANDPUR UKHRUL SENAPATI TAMENGLONG MANIPUR AVERAGE Meghalaya: District name District Count of Life Number of Agency Population Agency Licences Insurer Offices Penetration EAST KHASI HILLS JAINTIA HILLS WEST GARO HILLS EAST GARO HILLS RIBHOI WEST KHASI HILLS SOUTH GARO HILLS MEGHALAYA AVERAGE Mizoram: District name District Count of Life Number of Agency Population Agency Licences Insurer Offices Penetration AIZAWL CHAMPHAI KOLASIB SERCHHIP LUNGLEI MAMMIT SAIHA LAWNGTLAI MIZORAM AVERAGE Spread of Life Insurance Agents Across Locations in India 78

88 7.19. Nagaland: District name District Count of Life Number of Agency Population Agency Licences Insurer Offices Penetration DIMAPUR KOHIMA MOKOKCHUNG WOKHA PHEK ZUNHEBOTTO PEREN TUENSANG MON LONGLENG KIPHIRE NAGALAND AVERAGE Odisha: District name District Count of Life Number of Agency Population Agency Licences Insurer Offices Penetration KHORDA CUTTACK JAGATSINGHAPUR SUNDERGARH GANJAM SAMBALPUR DEBAGARH ANGUL BALESWAR DHENKANAL JHARSUGUDA KENDRAPARA KENDUJHAR BALANGIR BHADRAK PURI NAYAGARH GAJAPATI JAJAPUR KORAPUT Spread of Life Insurance Agents Across Locations in India 79

89 District name District Count of Life Number of Agency Population Agency Licences Insurer Offices Penetration RAYAGADA BARGARH KALAHANDI MAYURBHANJ KANDHAMAL NABARANGAPUR BOUDH NUAPADA SONAPUR MALKANGIRI ODISHA AVERAGE Punjab: District name District Count of Life Number of Agency Population Agency Licences Insurer Offices Penetration FATEHGARH SAHIB RUPNAGAR JALANDHAR AMRITSAR LUDHIANA MOHALI (SAHIBZADA AJIT SINGH NAGAR) GURDASPUR FIROZPUR BARNALA BATHINDA HOSHIARPUR FARIDKOT MUKTSAR MOGA PATIALA SANGRUR MANSA NAWANSHAHR (SHAHID BHAGAT SINGH NAGAR) KAPURTHALA PUNJAB AVERAGE Spread of Life Insurance Agents Across Locations in India 80

90 7.22. Rajasthan: District name District Count of Life Number of Agency Population Agency Licences Insurer Offices Penetration PALI AJMER KOTA RAJSAMAND JAIPUR GANGANAGAR CHITTORGARH UDAIPUR JODHPUR BHILWARA BIKANER ALWAR SIKAR JHUJHUNU CHURU BARMER SIROHI BUNDI HANUMANGARH DUNGARPUR SAWAI MADHOPUR TONK JAISALMER NAGAUR BANSWARA BHARATPUR DAUSA JALOR JHALAWAR BARAN KARAULI DHOLPUR RAJASTHAN AVERAGE Spread of Life Insurance Agents Across Locations in India 81

91 7.23. Sikkim: District name District Count of Life Number of Agency Population Agency Licences Insurer Offices Penetration EAST SIKKIM NORTH SIKKIM SOUTH SIKKIM WEST SIKKIM SIKKIM AVERAGE Tamil Nadu: District name District Count of Life Number of Agency Population Agency Licences Insurer Offices Penetration CHENNAI COIMBATORE TIRUCHIRAPPALLI ERODE KANCHIPURAM NAMAKKAL MADURAI KANYAKUMARI TIRUVALLUR KARUR SALEM PERAMBALUR THANJAVUR NAGAPATTINAM VIRUDHUNAGAR TIRUNELVELI TUTICORIN NILGIRIS DHARMAPURI DINDIGUL SIVAGANGA PUDUKKOTTAI TIRUVANNAMALAI RAMANATHAPURAM CUDDALORE VELLORE THENI TIRUVARUR KRISHNAGIRI ARIYALUR VILLUPURAM TAMIL NADU AVERAGE Spread of Life Insurance Agents Across Locations in India 82

92 7.25. Tripura: District name District Count of Life Number of Agency Population Agency Licences Insurer Offices Penetration WEST TRIPURA SOUTH TRIPURA NORTH TRIPURA DHALAI TRIPURA AVERAGE Uttar Pradesh: District name District Count of Life Number of Agency Population Agency Licences Insurer Offices Penetration PRATAPGARH LUCKNOW GAUTAM BUDDHA NAGAR GHAZIABAD KANPUR DEHAT KANPUR NAGAR HATHRAS CHANDAULI VARANASI GORAKHPUR ALLAHABAD JHANSI MEERUT AGRA BAREILLY SANT RAVIDAS NAGAR (BHADOHI) FAIZABAD ALIGARH JALAUN SONBHADRA DEORIA BALLIA MIRZAPUR HAMIRPUR AZAMGARH ETAWAH BASTI Spread of Life Insurance Agents Across Locations in India 83

93 District name District Count of Life Number of Agency Population Agency Licences Insurer Offices Penetration JAUNPUR BALRAMPUR SAHARANPUR RAEBARELI BANDA SHAHJAHANPUR SULTANPUR FARRUKHABAD AMBEDKAR NAGAR MUZAFFARNAGAR MORADABAD GHAZIPUR BULANDSHAHR LALITPUR BAGPAT PILIBHIT KUSHINAGAR FATEHPUR MAINPURI BIJNOR BARABANKI AURAIYA SITAPUR MATHURA MAU RAMPUR KHERI BAHRAICH HARDOI BUDAUN MAHARAJGANJ ETAH KANNAUJ JYOTIBA PHULE NAGAR MAHOBA UNNAO Spread of Life Insurance Agents Across Locations in India 84

94 District name District Count of Life Number of Agency Population Agency Licences Insurer Offices Penetration GONDA SANT KABIR NAGAR FIROZABAD SIDDHARTHNAGAR CHITRAKOOT SHRAWASTI KAUSHAMBI UTTAR PRADESH AVERAGE Uttarakhand: District name District Count of Life Number of Agency Population Agency Licences Insurer Offices Penetration DEHRADUN NAINITAL PITHORAGARH ALMORA BAGESHWAR PAURI GARHWAL UDHAM SINGH NAGAR HARIDWAR CHAMPAWAT TEHRI GARHWAL UTTARKASHI RUDRAPRAYAG CHAMOLI UTTARAKHAND AVERAGE Spread of Life Insurance Agents Across Locations in India 85

95 7.28. West Bengal: District name District Count of Life Number of Agency Population Agency Licences Insurer Offices Penetration KOLKATA BANKURA DARJILING HOWRAH HOOGHLY BARDHAMAN NORTH 24 PARGANAS EAST MIDNAPORE WEST MIDNAPORE SOUTH 24 PARGANAS NADIA JALPAIGURI MALDA COOCH BEHAR BIRBHUM PURULIYA SOUTH DINAJPUR MURSHIDABAD NORTH DINAJPUR WEST BENGAL AVERAGE Spread of Life Insurance Agents Across Locations in India 86

96 Section VIII Appendices... Spread of Life Insurance Agents Across Locations in India 87

98 Methodology: Agency Licenses data has been sourced from IRDA s Agency Portal maintained by the NSE IT. Chronology to the report-making is put below: Data on District wise agency licenses in India was obtained from NSE IT, who provided details of the licenses for 617 districts. On a scrutiny, it was noticed that there were duplicates and errors in the names of Districts in the Portal. In an attempt to cross check the accuracy of the given data, the MOSPI (Ministry of Statistics & Programme Implementation, Govt. of India) database of Districts was accessed and the two lists were compared. It was noticed that against 632* districts existing in the country (*considering New Delhi as a single unit) as per MOSPI Database, NSE IT list showed only 617 Districts. On a detailed examination the following discrepancies in the supplied list were noticed: o o o o Same District appearing twice/thrice due to spell mismatch. A few places which are actually cities were considered as Districts for eg. Bhubaneswar city which falls under Khordha district was shown as Bhubaneswar district. In case of newly formed states viz. Jharkhand, Uttarakhand, etc. same districts were figuring in both the States. A few bifurcated districts continued to be shown as single unit, for eg. Yadgir district which was newly carved out from Gulbarga is not figuring in Portal. Similarly, Paschim Medinipur & Purbi Medinipur districts were formed out of the erstwhile Midnapore but the Portal continues to show Midnapore only. Also Kamrup district which is bifurcated as Kamrup Metropolitan & Kamrup Rural still continues to be shown as a single unit viz. Kamrup. Post a detailed purification exercise/iterations it was observed that agency licenses data for only 568 unique districts was available with NSE IT. Thus, a total of 64 Districts were identified missing in the NSE IT Database after the exercise. The database could not provide the number of Agency licenses in accordance with the MOSPI list of Districts because the dropdowns in the Portal were not updated. At that point, NSE IT was requested to inform whether the district wise categorization could be done on PIN code basis. Since 84% of the Agency addresses had PIN codes, it was noted that agency licenses could be re-categorized district wise based on the list of PIN codes falling under each district as per Postal department s classification. Thus district wise numbers of agency licenses was arrived at afresh on the basis of PIN Codes for the said 84% of the cases. For the remaining 16% where PIN Codes were not available, the original classification of NSE IT was retained. Post mapping of the district wise agency licences data with Postal PIN codes, as also doing the required purification, the current Report covers 611 unique Districts for which agency numbers have been provided. Based on the data thus obtained, the Agency licenses numbers have been worked out on a Region wise, State wise & District wise basis. Spread of Life Insurance Agents Across Locations in India 89

99 The district wise agency penetration in terms of the number of agents per thousand population of the Districts was then computed and the district wise number of life insurance offices was obtained from the IRDA. The list of Bottom 120 districts (numbering about 20% of the total) and the list of Top 50 Districts in the country was then drawn up on the basis of agency penetration rate. In order to understand the extent of penetration of banking and other financial services in the said bottom 120 districts, a reference was made to CRISIL Inclusix (an index to measure India s progress on financial inclusion). The corresponding CRISIL Inclusix rank of each district in the Bottom 120 was also displayed in the tabulation for easy comparison. The correlation between State wise agency license numbers and other Insurance & demographic parameters such as New Business Premium, Number of Policies, Insurer offices, Population & GDP was worked out and tabulated. A regression curve was plotted using Population & GDP of each State as independent variable, and Agency licenses as a dependent variable. The states with relative under- & over-exploitation of potential for Agency were worked out on the basis of the same. Statistical Analysis: 1. Significant Correlations: Sr. No. Parameters Correlation figures 1 Between Agency Licences & New Business Premium Between Agency Licences & Number of Policies(NoP) Between Agency Licences & Insurer Offices Between Agency Licences & Population Between Agency Licences & GDP Between Number of Policies(NoP) & New Business Premium Between GDP & NB Premium Between Insurer Offices & NB Premium Between Insurer Offices & Number of Policies(NoP) Between Population & Number of Policies(NoP) Regression: Population GDP Number of Agency Licences N Valid Missing Skewness Std. Error of Skewness Kurtosis Std. Error of Kurtosis Spread of Life Insurance Agents Across Locations in India 90

100 KMO and Bartlett's Test Kaiser-Meyer-Olkin Measure of Sampling Adequacy..500 Bartlett's Test of Sphericity Approx. Chi-Square df 1 Sig..000 Total Variance Explained Component Initial Eigen values Extraction Sums of Squared Loadings Total % of Variance Cumulative % Total % of Variance Cumulative % Extraction Method: Principal Component Analysis. Since the Skewness & Kurtosis values were working out on a higher side, GDP & Population figures were transformed using Log-transformation. Component Matrixa Component 1 Log GDP.988 Log Population.988 Extraction Method: Principal Component Analysis. a. 1 components extracted. Model Summary* Model R R Square Adjusted R Square Std. Error of the Estimate 1.989a a. Predictors: (Constant), REGR factor score 1 for analysis 1 b. Dependent Variable: Log Number of Agency Licences ANOVA* Model Sum of Squares df Mean Square F Sig. 1 Regression b Residual Total a. Dependent Variable: Log Number of Agency Licences b. Predictors: (Constant), REGR factor score 1 for analysis 1 Spread of Life Insurance Agents Across Locations in India 91

101 Coefficients* Model Unstandardized Standardized Coefficients Coefficients t Sig. B Std. Error Beta 1 (Constant) Factor on GDP & Population a. Dependent Variable: Log Number of Agency Licences Case Summaries* State Number of Agency Licences Predicted values Highly Under-tapped States 1 Jammu & Kashmir Uttar Pradesh Bihar Chhattisgarh Meghalaya Mizoram Arunachal Pradesh Andaman & Nicobar Islands Total N Moderately Under-tapped States 1 Uttarakhand Madhya Pradesh Rajasthan Gujarat Jharkhand West Bengal Nagaland Karnataka Total N Spread of Life Insurance Agents Across Locations in India 92

102 Case Summaries* State Number of Agency Licences Predicted values Moderately Over-tapped States 1 Punjab Haryana Maharashtra Sikkim Andhra Pradesh Tamil Nadu Total N Highly Over-tapped States 1 Himachal Pradesh NCT of Delhi Chandigarh Goa Odisha Tripura Manipur Assam Kerala Puducherry Total N Total N Spread of Life Insurance Agents Across Locations in India 93

103 State/U.T. Projected Actual Incremental NB Premium Potential for Number of Number of Potential of the State additional Agency Agency (No. of (F.Y '12) NB Premium Licences Licences Agency (Rs. Crores) for the State Licences) due to increase in Agency Licences (Rs. Crores) Uttar Pradesh ,174 Bihar West Bengal Chhattisgarh Madhya Pradesh Jammu & Kashmir Karnataka Rajasthan Jharkhand Gujarat Meghalaya Uttarakhand Arunachal Pradesh Mizoram Nagaland Andaman & Nicobar Islands TOTAL ,843 Spread of Life Insurance Agents Across Locations in India 94

104 References / Acknowledgements: 1. District wise number of Agency Licenses (Life) as on 2nd July, 2013 from the Agency Portal of IRDA maintained by NSE IT, Mumbai. 2. List of Districts adopted from Postal PIN Code directory sourced from GPO, Mumbai. 3. Population figures are taken from MOSPI (Ministry of Statistics & Programme Implementation), Govt. of India database. 4. GDP Figures are as on 1st March, 2012 taken from MOSPI, GoI. Figures of States viz. Madhya Pradesh, Rajasthan, Mizoram, Sikkim, Gujarat, Maharashtra & Chandigarh are for year: 2010-'11, as the figures as on 1st March, 2012 are not available on the website. 5. CRISIL's Inclusix Report (an index to measure India s progress on financial inclusion). 6. New Business Premium and Number of Policies relate to F.Y '12 under Individual portfolio. Source - IRDA Annual Report. 7. Number of Life Insurance Offices as on 31st March, 2013, sourced from Life Department, IRDA. Spread of Life Insurance Agents Across Locations in India 95

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