History of AIG Life insurance of corporation

Tata-AIG Life Insurance Company is a joint venture between the Tata Group (74% equity stake) and
American International Group Inc. (AIG) (26% equity stake). The company offers a broad range of life
insurance products to individuals and groups. The products offered to individuals are variations of term
life with or without a savings element, e.g., endowment policies and money back policies. Tata-AIG Life
has been in operation since April 2001 (incorporated on Aug 23, 2000). While the company itself is
relatively new, the Tata group is widely known in Indian households.
The Tata Group is one of the oldest and largest industrial conglomerates in India. Established in 1868, it
has interests in engineering, consumer products, chemicals, financial services, hotels, information
technology and telecommunications. With over 80 companies, and with revenues close to 1.8% of the
country’s GDP, the Tata brand is very well respected across the socioeconomic classes. Most
importantly, it manufactures a large variety of goods that are highly visible to low-income households,
like consumer goods, trucks and automobiles that bear the Tata logo. Having been around for over a
century, the name Tata introduces immediate credibility in its microinsurance operations. Agents selling
micro insurance products are able to assure potential clients that such a large conglomerate would have
little interest in stealing their miniscule (in relative terms) premiums. AIG is the one of the world’s
largest insurers. Aside from its massive pool of in-house technical capacity, it has experience working on
micro insurance in Uganda.7 Although Tata is the largest shareholder in Tata-AIG, AIG manages the
company with strategic guidance from AIG’s Hong Kong office.