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  1. Royal Sundaram to focus more on health, commercial sectors; eyes 10% growth in GWP

Royal Sundaram to focus more on health, commercial sectors; eyes 10% growth in GWP

MS Sreedhar, MD, Royal Sundaram, told reporters: “India is under-penetrated in terms of non-life insurance.

By: | Chennai | Published: September 25, 2015 12:40 AM

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.”

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