Private general insurance company ICICI Lombard general Insurance, which has been one of the highest-valued companies in the industry, is now deepening penetration by building independent outreach in rural areas. In an interview with M Saraswathy, ICICI Lombard MD & CEO, Bhargav Dasgupta, talks about this strategy and growth plans. Excerpts:
The industry has been adjusting to a lot many new regulations. Do you see that impacting growth?
The regulatory changes were largely driven by context changes and most of it was positive. The key driver for industry growth is underlying economic growth. If the real Gross Domestic Product (GDP) growth is 7 per cent, then industry will grow 2.5-3 times the growth. Our view is that industry will probably grow plus minus 15 per cent. The new regulations are aimed at opening up of distribution side and will help ease the distribution set-up so as to drive penetration.
Banks have been asked to open up to more insurers. Do you see that happening?
I think it will take a bit of time. Most banks will consider opening up in due course. In next few years, we will see more and more banks opening up to multiple corporate agency structure. This is good for customers and industry. Hope that it will drive penetration. Each insurance company may have strengths in some areas and as banks tie up with more insurers, they will see value in each of the companies driving certain segments business for them. In the long-term it will be positive.
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