A common database will help insurance companies to get a better understanding of the risks of underwriting any individual, says Dr. Amarnath Ananthanarayanan, CEO & MD Bharti AXA General Insurance Company Ltd.
During April-February 2010-11 Bharti AXA gross premium increased by 101 per cent. What has helped the company to achieve such a robust growth?
What we have done is focus on motor insurance which is now contributing approximately 60 percent of the total gross written premium (GWP) of the company. We have added features such as ambulance charges and hospital cash benefits in our motor insurance product making it a more comprehensive solution for our customers. We are also focused on SME as well as health especially on the micro insurance side.
How will the higher provisioning norms by IRDA affect general insurance industry?
This will increase the underwriting losses apart from requiring the insurance companies to pump in more capital to maintain the solvency ratio.
How do you see Bharti AXA’s new business premiums to grow in FY12?
We hope to grow by 60 percent in terms of GWP in the current financial year.
How will health Insurance portability affect your company? Do you have any plans in place?
We are looking forward to health insurance portability and hope to benefit positively from it. We think we are in a position to provide better service levels to our customers. What we are planning to do is to offer these customers unique products on the health insurance arena including our critical illness product as well as high deductible product.
How will a common database in the industry be beneficial for the insurers?
If the industry has a common database, it will help the insurance companies get a better understanding of the risks of underwriting. This will enable insurers to offer best price to their customers. Policyholders in good health will benefit from the existence of this database.
What made you think shifting your focus towards SME sector? How much revenue do you plan to generate from this sector? Why does Bharti AXA plan to cut exposure in motor and health insurance?
We are focusing more on the SME segment and will generate approximately 20 percent of our revenues from this segment. This does not mean we are losing focus or cutting our exposure to the motor and health segment. We will be growing our motor portfolio by 50 percent this year and our individual health segment by over 100 percent.
What are your expectations in the current fiscal? What new initiatives are you taking?
We hope to infuse another Rs. 200 crore capital this year. I expect to see an increase in the third party premium for commercial vehicles in the current fiscal. We will focus on providing innovative products and services to our customers.
Any new products in the pipeline?
Pay as you go motor insurance as well as Retirement health.
