Tata AIG eyes 90% rise in premium income

Tata AIG Life Insurance Company Ltd is expecting a 85-90 per cent growth in its total premium income in 2006-07.

"We will be looking at a 85-90 per cent increase in total premium income. Increase in the first year premium income (FPI) is expected to be around 70 per cent this year," said Joydeep Roy, director, alternate channels/chief distribution officer, Tata AIG Life Insurance.

The company had targeted 100 per cent increase in premium income to more than Rs 800 crore in 2005-06.

During the first eight months of 2005-06, it recorded a 102 per cent year-on-year growth in total premium income at Rs 678 crore whereas FPI grew by 79 per cent at Rs 351 crore.

The company was all set to launch around six products during the current financial year, he said.

"Two products are likely to be unit linked insurance product (ULIP), two would be rural products and remaining two would be accident health product or rider. We have already applied to the Insurance Regulatory and Development Authority (Irda) for their approval," he added.

The company would shortly apply to the Irda for approval for another couple of products, he noted. Meanwhile, the company is very comfortable with its exposure in capital market.

"Irda has strong rules about investments in capital market. Currently, we are very comfortable with our investments in the capital market," he noted.

The company had firmed up significant network expansion plans. The company would be opening 20-25 new offices during 2006-07.

"Currently, we have 85 offices in cities. We will be adding 20-25 new offices at strategic locations to cater to a large customer base. Among the states to get new offices will be Madhya Pradesh, Rajasthan, Tamil Nadu," he said.

Tata AIG Life will also be doubling its 'mobile vans' for reaching to remote customers.

"The company has experienced tremendous response with its mobile vans that are being used for selling products as well as collecting premiums. We are planning to double the number of vans to eight vans during the year," added Roy.

Currently, 35-40 per cent of the company's business comes from bancassurance, 45 per cent form agencies and remaining from other channels including corporate agents.