 "G Srinivasan")
Public sector general insurer New India Assurance, which tripled its net profit to Rs 644 crore in the first half of this financial year, is eyeing total premium of Rs 15,000 crore by the end of March 2014. Chairman and Managing Director G Srinivasan, in an interview with M Saraswathy, talks about the company’s growth strategies. Edited excerpts:
New India has set a total premium target of Rs 15,000 crore. Are you on track to meeting that target?
In the last financial year, the company collected total premium of Rs 12,500 crore, which included Rs 2,500 crore from abroad. This year, the target is to achieve Rs 12,000 crore from India and Rs 3,000 crore from abroad. We have already collected Rs 7,000 crore of global premium in the first half of the financial year. Indian operations have seen a slight slowdown. However, we believe New India will increase its market share this year.
Though it is a challenging target, I am hopeful we will achieve our target. In terms of the different segments, retail has driven our growth, especially motor, marine hull and miscellaneous lines.
This year has seen some natural calamities. Will these increase your losses?
Though there were cyclones in the east coast, fortunately, these have been benign from a general insurance perspective, except agriculture insurance. In Odisha, we had a loss of about Rs 35 crore. This year, the Uttarakhand calamity was a big factor behind the industry’s losses. We had a loss of Rs 186 crore. The floods in Gujarat resulted in a Rs 40-crore loss for us.
By the end of this financial year, we will see a drop in the incurred claims ratio, management expenses, underwriting losses and the combined ratio, while the investment income will rise.
The company has embarked upon a plan to work with corporate customers. Which companies have you tied up with?
We are working with the Institute of Chartered Accountants of India and the Institute Of Company Secretaries Of India to provide insurance products to their members. We are also talking to the Institute of Cost Accountants of India for a similar project.
New India and Bharat Petroleum Corporation signed a memorandum of understanding to provide a package of three policies to registered transporting contractors of the oil major. We have business-to-business relationships with portals. Once we establish portals and give it to these customers, they can take policies in a hassle-free manner.
New India had earlier planned to enter three markets abroad. What is the status on that front?
We had planned to enter Myanmar, Canada and Qatar. For Myanmar, we have secured the approval from the Indian government. Now, we need an approval from the Myanmar regulator. That should happen in two-three months. For Qatar and Canada, we are awaiting an approval from the Indian government; the approval is expected soon.
The finance minister had asked state-owned insurers to open micro-offices in rural areas and settle claims through Lok Adalats. Have those norms been met?
We will have 1,000 micro-offices by the end of this financial year. We have already opened 700 offices; we’ll open 300 more. This target will be completed by February. Through Lok Adalats, a total of 12,500 motor claims, worth Rs 205 crore, were settled.
