Shriram General Insurance has deliberate to diversify its product portfolio by focusing extra on the non-motor segments like marine, fireplace, in the course of the present monetary yr, a prime official stated.
Motor insurance coverage has been the core of the business for the Jaipur-based agency accounting to about 92 per cent, firm Chief Underwriting Officer Shashi Kant Dahuja stated.
As a part of the diversification plan, the corporate would launch new insurance coverage merchandise below the hearth, marine, engineering segments, he stated.
- Read: Shriram General Insurance targets 30% progress, plans to rent 700 individuals
“The concept is to double our non-motor business to round 15 per cent in two to a few years from the present 7-8 per cent,” Dahuja advised PTI in an interplay.
The non-motor business was rising at 70 per cent, he stated.
To strengthen its presence within the non-motor business, he stated the corporate would launch merchandise in cyber insurance coverage, pay as you drive, theft and pet insurance coverage, quickly.
“As a business technique we do not wish to be excessively depending on one vertical and we additionally wish to diversify our merchandise slowly and enhance our non-motor portfolio to fifteen per cent over the following 2-3 years,” he stated responding to a question.
For the quarter ended June 30, 2023, Shriram General Insurance reported a revenue of Rs 98 crore, up by 37 per cent over the corresponding quarter of final yr.
The Gross Written Premium in the course of the quarter below evaluate was at Rs 560 crore, up by 39 per cent from Rs 401 crore registered in the identical interval of final yr.
Business outlook
On the general business progress focused, he stated the corporate has set a plan of rising 30 per cent in the course of the present monetary yr.
“This yr, we are going to develop the general business by 30 per cent. The common insurance coverage business grew by 12 per cent between April and August this yr, however our progress has been robust and we hope the momentum continues for the remaining months,” he stated.
On the surge in electrical automobiles within the home market, he stated the gross sales of EV insurance coverage insurance policies had been rising quicker and the corporate issued insurance policies value Rs 82 crore throughout final monetary yr.
“EV is an efficient business for us. Last yr, we wrote insurance policies value Rs 82 crore, whereas we have now achieved that mark within the first six months of the present monetary yr, we anticipate Rs 200 crore on this section, by the tip of this fiscal,” he stated.
Dahuja stated the corporate was additionally increasing its worker base with plans so as to add 700 individuals in the course of the present monetary yr.
“The progress in business can be pushed by aggressive recruitment of staff and brokers. We have 3,780 staff now and can recruit one other 700 within the present fiscal,” he defined.
“Similarly, we have now almost 63,000 brokers and that can enhance to 1.50 lakh over the following couple of years,” he stated.
On the medical coverage section, he stated the corporate would develop this section because it was witnessing traction available in the market within the ‘Benefit-based medical health insurance’ class.
“Shriram General Insurance may also develop its medical coverage section. Insurers supply two kinds of merchandise – indemnity based mostly and benefit-based coverage. The mostly identified medical health insurance is the indemnity-based medical health insurance which is popularly generally known as Mediclaim,” he stated.
The different product is the ‘Benefit-based medical health insurance which is a kind of well being protection that pays a predetermined, mounted quantity for particular medical companies or circumstances, the chief underwriting officer, stated.
“Shriram General Insurance has launched benefits-based well being merchandise which can be gaining traction available in the market. Benefits based mostly insurance policies are gaining reputation publish COVID-19 attributable to its distinctive options” Dahuja stated.
The distinctive options embody paying a ‘lump sum’ or ‘mounted quantity’ regardless of precise hospitalisation bills incurred with none deduction and questions requested for hospital payments, he added.
