New India Assurance expects 1/4th of biz to come from abroad in 3-4 years

New India Assurance, the country?s largest general insurer, expects about one-fourth of its total business to come from its overseas operations in the next 3-4 years as it is hopeful of opening three representative offices abroad by the next financial year.

At present, about 20% of the Mumbai-based insurer?s business comes from overseas operations in over 20 countries. ?We expect that, in the next 3-4 years, 25% of our total premium would come from overseas,? New India Assurance Co CMD G Srinivasan told FE.

The company garnered R12, 500-crore premium in the last financial year and, out of that, R2,500 crore came from its overseas business. It has targeted R15,000-crore premium in the current financial year out of which R3,000 crore would be overseas premium.

According to Srinivasan, New India Assurance would see share of its international business rise in the next 3-4 years as the three representative offices ? one each in Myanmar, Qatar and Canada ? would come up by fiscal 2014-15.

?The launch of the proposed overseas offices will depend on how fast we get the necessary clearances from the finance ministry and regulators. I am confident of opening the Myanmar office this fiscal itself. But if things do not happen within FY14 for Canada as well as Qatar, by FY15, the two offices would certainly come up,? he said.

The PSU general insurer said its international operation in 22 countries did well in the first half of this fiscal and recorded a profit of R132 crore during the period.

Although the company expects health and motor insurance businesses to primarily boost its premium growth, it is also planning to expand travel insurance portfolio as number of policies sold in this segment is rising.

At present, the insurer has broadly two products in travel insurance segment ? one for overseas travel insurances and other for domestic travelers.

?Our business from travel insurance is pretty small and it would remain very small as a percentage of the company?s total business. But we are now witnessing an increase in the absolute number of policies. So, we are currently working on more variations of existing products,? Srinivasan said. He said the company was planning to roll out at least two new products in travel insurance segment by next fiscal.