 "General insurers expand teams for SME insurance")
Reliance General Insurance has started a new vertical for SME (small and medium enterprises). The company is looking to take the assistance of technology to have packaged products to meet their specific needs.
The insurer and several others are now beginning to have separate verticals and trained teams to look into the needs of SME clients. Rakesh Jain, CEO, Reliance General said, “We plan to have about 40 dedicated personnel in the SME vertical who would look into this business. We already have 10 people in the team.”
SME insurance cover is seeing a rise in India., with respect to the products offered and the companies that offer these products. Insurance executives said even the smallest of business interruptions could make a big hole in an SME's balance sheet.
Sanjay Datta, head of underwriting and claims at ICICI Lombard General Insurance explained that with banks putting a condition to have adequate protection for getting funds, SMEs are more forthcoming to take a policy.
He added that they also have a dedicated channel which looks into the SME business. It is not just insurers, but brokers as well, who are specifically looking to set up dedicated services for SMEs.
T L Arunachalam, director, Global Strategy and Special Projects, Bharat Re-Insurance Brokers, said they hold regular discussions with SMEs, to find out whether they are adequately insured or whether the cover that they have taken is adequate to cover the risks that they may be subject to.
At present, SME insurance comes under package insurance for corporates which forms a small part of the overall portfolio of the general insurance industry. Going forward, industry officials expect the business to form 20-25 per cent of their overall portfolio.
The insurer and several others are now beginning to have separate verticals and trained teams to look into the needs of SME clients. Rakesh Jain, CEO, Reliance General said, “We plan to have about 40 dedicated personnel in the SME vertical who would look into this business. We already have 10 people in the team.”
SME insurance cover is seeing a rise in India., with respect to the products offered and the companies that offer these products. Insurance executives said even the smallest of business interruptions could make a big hole in an SME's balance sheet.
Also Read
An SME cover gives the flexibility to pick and choose covers of one's choice in a single policy. The standard package policies include cover from burglary, equipment breakdown cost, accident cover and workmen's compensation, apart from public liability and recall covers for some segments like auto components.
Sanjay Datta, head of underwriting and claims at ICICI Lombard General Insurance explained that with banks putting a condition to have adequate protection for getting funds, SMEs are more forthcoming to take a policy.
He added that they also have a dedicated channel which looks into the SME business. It is not just insurers, but brokers as well, who are specifically looking to set up dedicated services for SMEs.
T L Arunachalam, director, Global Strategy and Special Projects, Bharat Re-Insurance Brokers, said they hold regular discussions with SMEs, to find out whether they are adequately insured or whether the cover that they have taken is adequate to cover the risks that they may be subject to.
At present, SME insurance comes under package insurance for corporates which forms a small part of the overall portfolio of the general insurance industry. Going forward, industry officials expect the business to form 20-25 per cent of their overall portfolio.