Source: Financial Chronicle

Tata AIG General Insurance Company: Tata AIG General Insurance bullish on health business

Tata AIG General Insurance Company, the joint venture between Tata Group and American International Group (AIG), is expecting its health insurance business to pick up pace and has lined up offerings to differentiate itself in the competitive marketplace, said M Ravichandran, president (insurance), Tata AIG GIC.Tata AIG General Insurance Company, which commenced operations in India in 2001, at present offers a range of general insurance covers for businesses and individuals. It has exposure to areas like liability, marine cargo, personal accident, travel, rural-agriculture insurance and extended warranty. The company has an asset base of approximate $0.6 billion, a workforce of 2,523 employees and 9,446 agents. It is present in 98 locations across India."We are one of largest corporate players when it comes to insurance on account of our under-writing focus. But we entered health business just a few years back. This business will become big in years to come," Ravichandran said."There are many regulatory developments happening on this front and you could soon see products that front load premiums during the years when the customers can afford to pay. This may be one of the ways in which the health insurance market will evolve," he added.Irdai has recently launched a new digital motor insurance initiative known as e-Vahan Bima. Speaking on motor insurance, which is a big business for the company, the Tata AIG JV top official said that there could be big changes in the digital insurance space as a whole. "We have already implemented the QR code for our policyholders for all policies across the country. Policyholders can now have access to their policies in electronic form on their smartphones. We hope more states come forward and follow Telangana's footsteps. We are also hoping that this system will soon be introduced in other verticals of insurance too -- like health," said Ravichandran.Speaking on the drivers for growth in insurance market in the next financial year, the official said the 'Make in India' initiative, investment in infrastructure, smart cities initiative and increased consumption are going to be key. "These initiatives are likely to result in increased number of projects that are likely to come up, increased trace activity leading to growth in marine, increased growth in automobile sales leading to growth in auto insurance. Good sentiment would also lead to increased travel both within and outside India leading to buoyant travel insurance. The implementation of the seventh Pay Commission, which will increase the pay-scale and give more purchasing power to government employees, would also lead to more demand for automobiles, thereby contributing to growth in auto insurance market," said Ravichandran.The company is also working on a few benefit-based products under the health and automobile (two-wheeler) segments and people would soon hear more about them, the official [email protected]

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