Reliance General Insurance Company, one of the youngest players in the over Rs 25,000 crore general insurance space, has drawn out aggressive retail plans.
KOLKATA: Reliance General Insurance Company, one of the youngest players in the over Rs 25,000 crore general insurance space, has drawn out aggressive retail plans.
Anticipating a change in business mix towards retail from next year as the gains from a detariff regime is expected to be felt, Reliance General Insurance is in advanced stage of talks with a host of banks for tie-ups in retail and SME products.
The company is looking at various financial services distribution houses for “mutually beneficial” partnerships on the Reliance Capital brand franchise.
Reliance General has grown its premium by 462% to Rs 912.23 crore in 2006-07. “Our key growth drivers have been fire, motor and health insurance, all of which have contributed to over 70% of our growth in the last financial year. Premium income from our group companies contributes a small volume of our overall business,” K A Somasekharan, CEO, Reliance General, said.
“With the detariff regime, there will be some realignment among different classes of business. At the same time, the benefits of detariffing would start coming from next year onwards. The business mix will shift towards retail with major contribution from auto, health and home,” Somasekharan said.
Meanwhile the company has started preparations for the second phase of insurance reforms to be introduced next year, with change in terms and conditions of all general insurance products. According to the CEO, the company is working on policy wordings that would be simple, unambiguous and customer friendly.
Being a late entrant and one of the very few private insurance companies without a foreign partner, Reliance General has no FDI plans at present.
On fresh capital infusion to take care of the aggressive growth he said, “Our solvency margin is more than required and we are committed to bring in additional capital requirements if any”.
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