Bajaj Allianz Life, the joint venture between Bajaj Auto Group and Allianz AG, was one of the earliest life insurance companies in the country.
Bajaj Allianz Life, the joint venture between Bajaj Auto Group and Allianz AG, was one of the earliest life insurance companies in the country. It is also one of the largest private sector insurers. And amidst the fierce competition in the market, the company has gone through two changes at the helm in recent times. Four months ago, Kamesh Goyal, who was spearheading the general insurance unit for seven years, took charge as country manager and CEO of Bajaj Allianz Life. Now, he has been given additional responsibility as regional CEO, Allianz Middle East and North Africa. Goyal talks to DNA Money’s Nandini Goswami on his new role and challenges for the life company over the next couple of years.
Do you still extend assistance to Bajaj Allianz General?
I spent a good amount of time, almost seven years in Bajaj Allianz General Insurance. It is being spearheaded by a competent chief at present. Being a country head, I do sometimes lend my help for tapping big customers.
How different is it to run Bajaj Allianz Life?
The life insurance business is much bigger, with a larger number of people, more channels of distribution and with increasing number of branches. I am part of a team which is already well set. The challenge is how to continue the blazing growth which has been happening for the past three years.
Have you made any particular product changes?
I entered the company at a juncture when it was in the process of withdrawing its best selling product. The actuarially funded products contributed almost 76% of the total life portfolio of the company. Although we had almost all the products, the focus was mainly on one kind of product. It is now a conscious decision to work on different segments. For example, in the period from October-January 2007-08, not a single product has contributed more than 27% of the premium.
What kind of growth are you aiming for?
We are a multi-product company and the intention is to work on a balanced portfolio. Till now, we have done a new business premium of Rs 5,000 crore this year, and hope to get big numbers in the last month. I would not be comfortable on predicting target numbers.
How important is market share, given aggressive competition from new entrants?
Bajaj Allianz Life has a market share of 7%. I would be happy with a 10% market share in 3-5 years. We’ve done it in the general insurance venture and it’s my personal philosophy that while an insurance company should grow its top line, it should also protect its bottom line growth.
What about cost control?
Perhaps the greatest challenge will be to manage costs while building a market share. High rentals and salaries have all contributed to increasing costs. Currently we are well positioned, with costs comprising 14-15% of the gross written premium. I would like to lower this in few years. This can be done by increasing market share and increasing productivity per employee and reducing wastage. There can be no room for complacency.
Does market volatility worry you?
Our life business is driven primarily by the increase in income level rather than the stock market. And looking at Ulips from a long-term perspective, there is no cause for worry.
Are there any plans to list Bajaj Allianz?
We have no immediate plans of listing and capital is not a problem for us. Both the insurance outfits generate good returns. As far as Bajaj Allianz Life is concerned, we have a capital of Rs1,000 crore at present and may infuse some additional amount in March, going by the growth in business.
Your plans for Middle East and North Africa?
I am yet to know the details of my assignment in these countries, but India, along with the Middle East, is the fastest growing region for Allianz globally.
g_nandini@dnaindia.net
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}