Royal Sundaram Alliance Insurance will focus more on health and commercial sectors to increase their share in its overall business from 11% each to 25% each in the next 3-5 years. The company is looking at 10% growth in gross written premium (GWP) this fiscal.
The company also ruled out any name change at this point of time post exit of Royal & SunAlliance (RSA) of the UK a few months ago from the JV. Sundaram Finance, the major shareholder in the company bought out RSA’s 26% stake for R450 crore a few months ago.
MS Sreedhar, MD, Royal Sundaram, told reporters: “India is under-penetrated in terms of non-life insurance.
Against a global average of 3.1% to GDP, India’s coverage is 0.8%. South Korea and the US non-life coverage is pegged at 4.2% each. There is a huge potential, particularly in motor, health and commercial sectors.” He added: “While motor pool continues to be our bread and butter, the dependence on this particular area will come down from 74% now to 50% in the next three years, by increasing our focus towards health and commercial pools.”