improve your agency strength this year. Would you not want to tap the bancassurance model?
Bancassurance has a good reach and readily available customer bases. But India, where penetration is among the lowest and stagnant for over a decade, agency channel to us is a good alternative to increase penetration as its reach is beyond the recognised banking areas. Both channels complement each other as agency reach is beyond the bancassurance customers. It also has an edge for the fact that it provides personalised doorstep service and assists in informed decision making.
Considering that India Inc has been largely cutting down on their employee strength or are reducing new jobs due to the current slowdown, what impact does it hold on the general insurance industry?
General insurance industry is dominated by retail businesses like motor and health. The downturn in the economy has impacted segments under fire and engineering business, especially those which relate to fresh investments in the corporate sector. However, general insurance is still expected to grow at 15-16% in the current year.
What kind of corporates do you intend to target for your business?
Our underwriting approach has been risk-based. For us, the individual risk and its characteristics hold more importance. If a risk is good we will underwrite it. Having said so, with are further cementing our relationship with our existing clients by diversifying into new product lines like liability, marine.
What are your expansion plans for the year?
We plan to grow by diversifying our product lines with special focus on health and weather insurance. Currently, we are growing a bit higher than the market due to the new product lines we ventured into. While we continue to remain focused on our existing client base, special emphasis is being laid towards acquiring new clients through new product segments.