ICICI Lombard to focus on govt business in FY05

ICICI Lombard General Insurance Company will focus on government business to grow its premium income in fiscal 2005. ICICI Lombard, the largest private insurance company in the country today, has set up offices in all state capitals.

ICICI Lombard chief executive officer Sandeep Bakhshi said: "State government business would be a very important part of our business strategy."

At present, this segment contributes about 3-4 per cent of the total premium income. North-east is a key part of ICICI Lombard's strategy since it is an untapped market, he added. Many state governments are most progressive and development is high on their agenda, said Bakhshi.

State governments have insured not only their state employees but also certain segments of the population. Maharashtra, Gujarat among others for instance have insured the well-beings of school children.

The Gujarat government has also insured landless labourers and farmers. Many state governments are buying personal accident cover and health insurance products for their employees.

Recently many states bought personal accident covers for those actively participating in election duty. ICICI Lombard has also witnessed demand for its weather insurance products from various state governments.

"This would be our fastest growing area this year as demand is exceeding our ability to set up the necessary foot-print to embark on these policies country-wide," said Bakhshi.

Weather insurance products are sold through banks, financial institutions and micro-finance organisations.

State governments are also keen to buy the weather insurance product since the current crop insurance scheme does not provide cover for all crops, said Bakhshi. "We are in talks with two major states for this product," he added, declining to identify the names.