Bajaj Allianz eyes to increase rural biz pie to 20% in next 5yrs

Private sector insurer Bajaj Allianz General Insurance Company hopes to increase its rural business to around 20% in next five years from 6-7 % at present, and is planning big expansion in these regions, a senior official said.

Sri Tapan Singhel, MD & CEO of Bajaj Allianz General Insurance, said, “We aim to increase rural business pie to 20% from the present 6-7 % in next five years. So, we are planning to expand our presence significantly to achieve this.”  Despite the economic slowdown, the company will pursue its expansion plans in rural areas as rural economy remains vibrant, he added.

In addition, he said that car sales as well as FMCG products sales are increasing rapidly in rural areas. So, rural areas are going to drive the growth of general insurance industry in the future, for which we aim to increase our rural presence. Under penetration of insurance products in the area especially in non-life segment throws up a huge opportunity for the company.

The general insurance industry has witnessed deep discounts being offered by general insurers in recent months in commercial line and group health insurance segments, among others.

According to the data available with IRDA, Bajaj Allianz‘s gross written premium stood at Rs 1,506.36cr during the April-July’ 2013.

Despite the slowdown in industry growth, Bajaj Allianz is growing more than industry average, Sri Singhel said.

Bajaj Allianz General Insurance Company Limited is a joint venture between Bajaj Finserv Limited (formerly part of Bajaj Auto Limited) and Germany's Allianz Group. Bajaj Finserv with 74% is the major stakeholder in the JV. 

Source: http://www.insuringindia.com