Bajaj Allianz General eyes 40% rise in premium by 2003-04  ( March '25,2003, BS)

Bajaj Allianz General Insurance, which sold 10 lakh policies in the last two years, aims at collecting premiums valued at Rs 400 crore by fiscal 2003-04, a 40 per cent rise on a year-on-year basis. The company also hopes to post a premium income of Rs 285 crore in 2002-03.

Bajaj Allianz, which faced losses from the motor insurance business, is also planning to focus on other segments.

“The motor insurance business contributes more than 50 per cent to our total portfolio. We want to cut this down to 45 per cent during the next fiscal which will definitely help reduce losses. We will be focussing on health, small and medium manufacturing units and personal accident segments,” said Sam Ghosh, chief executive officer of the company.

Bajaj Allianz is planning to hike its share in health insurance to 10 per cent from 5 per cent, and in small and medium manufacturing units’ insurance to 5 per cent (2 per cent).

“We are also chalking out strategies to increase business from overseas travel insurance to 10 per cent from 4 per cent currently,” Ghosh said.

The company has introduced products in retail, infrastructure, health and industrial segments. It is also planning to launch credit insurance in the next two-three months.

“We have worked out the credit insurance plan with two Allianz AG subsidiaries and the product will be unveiled in May this year,” he said. Ghosh also hinted at increasing the company’s capital base to Rs 200 crore by fiscal 2004-05 from Rs 110 crore at present.

The company, which currently has three products in the personal accident segment, is in negotiations with its partner Allianz AG to launch more products in this category.

“We are trying to make out ways for launching new products in the health segment. We are in talks with Allianz AG which has already introduced these products worldwide and has witnessed a good response. Products such as optical insurance cover and dental insurance cover will be launched in the next two years,” said Ghosh.

“The market for hospitalisation insurance cover is well penetrated and there is really nothing much to exploit from this segment after three-four years. We may launch a product which will cover medical expenses in non-hospitalisation cases,” he added.

Ghosh was in Ahmedabad on Monday to inaugurate the company’s second regional office in Gujarat after it opened its first regional office in Vadodara.