IFFCO-Tokio premium income drops

IFFCO-Tokio General Insurance Company (ITGI) is likely to see its premium income dropping to Rs 1,100 crore by the end of this financial year from Rs 1,152.21 crore last year.

The company suffered mostly in the institutional segment, which contributes 40 per cent to its business.

"De-tariffing is the main reason for the drop in premium income and its effect is more prominent in our institutional business, where our income declined by more than 20 per cent," said Masahiro Ogawa, director-operations.

The company is now planning to shift focus to retail business. "This year, the retail segment will contribute around 60 per cent of our business compared with 55 per cent last year. In future, we will concentrate more on retail as there is less competition in the segment," he added.

The company is looking for 75 per cent of its business coming from retail segment. "We will be more selective in the corporate segment, while trying to add more specialised products for the retail segment in our portfolio," Ogawa said on the sidelines of a seminar organised by the Bengal Chamber of Commerce and Industry.

The company has already launched specialised products including those for fine arts collectors and galleries, and errors & omissions policy for the ITeS sector.

"These are very niche products targeted at specific category of customers. We will like to remain unique in terms of product range," he said.

In the retail segment, the company expects the premium income to be around Rs 660 crore, up from Rs 634.60 crore last year.

The retail portfolio of the company, which is a joint venture promoted by Indian Farmers Fertiliser Cooperative (IFFCO) and Japan's Tokio Marine and Fire Insurance Company, also includes individual health insurance, personal accident cover, travel accident cover and micro-insurance for the farmers.

Speaking about the possible increase in the premium charges, the director added that it might increase the rates from the next year depending on the industry scenario.

"Usually it takes a couple of years to adjust after de-tariffing as the market trends on premiums have changed, and once that is over and the industry is stable, we might increase the premium rates particularly in the retail segment," Ogawa added.