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NIA targets premium income of Rs 12,000 crore

The general insurance industry has been incurring underwriting losses. Motor Third Party (MTP) and the health segments are accounting for the bulk of these. The focus for the next three years is to bring down underwriting losses and reach a break-even - GS.

NIA targets premium income of Rs 12,000 crore
AFTER A SUCCESSFUL stint as the head of the Chennai head - quartered, United India Insurance Co., G
Srinivasan (GS) assumed charge as Chairman cum Managing Director of the New India Assurance Co Ltd (NIA), the leader in the general insurance sector. In the current year, NIA targets to achieve Rs 12,000 crore premium income- Rs 10,000 crore in India and the balance from abroad.  

Today, NIA operates in 22 countries and is looking for enhancing its market presence in these countries and for expanding into new territories including Canada, Qatar, the Middle East and Latin America. 

New products in health and motor segments

Talking on focus areas, GS said: “we will be introducing new products in the health and motor segments. We will streamline the operations across the company and strive towards speedier settlement of claims through efficient claims processing systems and simplified procedures.” 

GS pointed to the low penetration of general insurance; just 0.67 per cent of GDP. “We are strong in the corporate segment. Large and medium sized companies are already with us. We plan to be active on the fast developing retail segment. We are strengthening the agency force and training them. 

“Bancassurance is another focus area. IRDA is fine-tuning the regulations. Once these are in place, we will expand our tie-ups with banks that have large number of branches.  

Focus on micro offices

“We are also focusing on micro offices. We plan to open around 300 micro offices in small towns.

There are an estimated 70,000 business correspondents present in villages across country. They arefocusing on bank products also. We have put a system in place and are training them to sell insurance products also. We are developing several micro insurance products that can be sold by these. These are simple, vanilla products of use to the common man,” said GS. 

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