Regulatory norms need to factor in impact on industry

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Vishwanath Nair: Feb 16 2013, 01:46 IST

While regulatory guidelines are made with good intent, they need to consider the impact on the industry, says AS Narayanan, chief distribution officer, Bajaj Allianz Life Insurance. In an interview with Vishwanath Nair, he talks about how Bajaj Allianz wants to leverage on technology to improve reach in rural and Tier II and III cities, as it grows 15-20% over the next two to three years. Excerpts:

How has the current financial year been for you so far? What is your outlook for FY14?

The last nine months have been fairly good for Bajaj Allianz Life Insurance. As on December 2012, we managed to bring in new business worth R1,804 crore compared with R1,595 crore in last year, which is a growth of around 13%. Our renewals this year were R2,500crore compared with R3,150 crore of the previous year. Overall, our gross written premium is R4,312 crore as on December 2012 compared with R4,740 last year. Forward, we expect to grow 15-20% in next 2-3 years, provided market and regulatory conditions remain stable.

What are you doing to increase your reach?

As a fallout of the recent guidelines, there was significant attrition in the individual agents. So, we are trying to increase distribution through various other avenues in addition to agents, like increasing bancassurance tie-ups and exploring online. In addition, we are enhancing our use of technology, thereby, reducing capital investment. An increased usage of technology will help in deeper penetration. Today, nearly 70% of our business comes from Tier II and III, which

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