Corporate players which are not eligible to enter the insurance sector on their own might, find distribution of insurance products - a lucrative second option.

The stringent entry norms specified by the Insurance Regulatory Development Authority (IRDA) for insurance sector has forced many prospective players, not eligible to enter the segment, to look at other options like distribution and marketing of insurance products.

There is a growing breed of players in the country today - looking at selling and distributing insurance products. Most private sector and foreign banks are not the only one looking at making quick bucks on the side. Even corporate houses are making a beeline into the insurance segment, in a bid to tap this `high margin low risk' business.

One such corporate house looking at health product distribution is Ahemedabad based Cadila Pharmaceuticals. With its wide network of marketing and distribution and 49 years of its strong brand equity in the market, Cadila Pharmaceutical is considering a diversification into the managed healthcare market.

The company is planning to market the entire range of general insurance products in a phased manner, with special focus on `health-related products'.

It is planning to start the operation by establishing regional business centres in almost all the state capitals in a phased manner. It plans to make use of its connectivity through hospitals, doctors, wholesalers, retailers and its field force to tap the existing business opportunity.

With over five marketing divisions in the branded formulations segment and a generic strategic business unit (SBU), Cadila Pharmaceutical has other business activities like veterinary and natural products covering herbal, plant tissue culture, hybrid seeds, bio-fertilisers, dry flower and potpourri collections, pharmaceutical machinery manufacturing, hospital disposables encompassing a wide spectrum of hospital products, specialty chemicals, bulk drugs and travel business.

Currently for the non-life segment, the distribution channel in the country is almost negligible. As compared to the distribution network of LIC, which includes over 5.9 lakh active agents and over 18,800 development officers supported by over 2,048 servicing branches, GIC and its subsidiaries do not have a strong network base to fall back on. According to industry observers, the non-life products have not successfully penetrated into the Indian market owing to the non-availability of proper distribution channel.

Thus to market and take the non-life products to the doorstep of prospective policyholders, most corporates, non banking financial entities and foreign banks are finding distribution of insurance products a major revenue earner.

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