ICICI Lombard off to a good start in new fiscal

ICICI Lombard General Insurance Company has mopped up over Rs 100 crore in new corporate business. A significant percentage of corporate renewal of insurance covers take place in the first week of April.

ICICI Lombard's ability to secure Rs 100 crore is significant in view of the greater acceptance of private insurance companies among the corporate sector. In the fiscal ended March 31, 2004, ICICI Lombard mopped up about Rs 506 crore business income, which reflects more than 100 per cent growth as compared to the previous year when it secured business worth about Rs 210 crore.

"Private insurance companies' ability to pay large claims has helped improve their credibility in the corporate sector," said senior officials at ICICI Lombard. The company paid up about 20,000 claims amounting to over Rs 200 crore in fiscal 2004.

Of the Rs 506 crore business underwritten in fiscal 2004, close to 40 per cent came from small-to-medium enterprises (SME) and the retail sector. The balance 60 per cent constitutes corporate risks on the books of ICICI Lombard.

Meanwhile, ICICI Lombard is also growing its motor portfolio, which today accounts for 6-7 per cent of its entire book. It had earlier taken a conscious decision not to increase this risk when its brought down its exposure to about two per cent.

"We are growing our motor portfolio since we now understand the risk," said company officials. Motor insurance is a vital part of the retail business especially when one considers that retail lending is growing at the rate of 40 per cent in the banking sector.