The Hindu Business Line : Bajaj Allianz aims at Rs 125-cr premium income in South

BAJAJ Allianz General Insurance (BAGI) hopes to notch up a premium income of Rs 125 crore by the end of the current fiscal in the southern zone consisting of Tamil Nadu, Kerala and Karnataka.

This would be a growth of 50 per cent on its previous year's premium income of Rs 80 crore. The growth was expected to come largely from Karnataka and Tamil Nadu, said Mr Jitendra K.Bagga, Zonal Manager (South).

He said that though BAGI entered Bangalore late, its growth from the region is expected to buck the estimated potential and the company has in less than five months of the current fiscal earned a premium income of Rs 22.4 crore. The region consisting of Bangalore, Mangalore, Hubli and Mysore had accounted for Rs 36 crore of BAGI's pan-India gross premium income of Rs 500 crore during last year.

Talking to Business Line, Mr Bagga said BAGI was making efforts to expand its retail share in the business, which currently accounted for only 20 per cent of its total premium income. He said Bangalore like Chennai, which had earned a gross premium income of Rs 30 crore last year, has been a growth driver in the southern zone, but it had a high exposure of 38 per cent of its total exposure in motor insurance.

"We are working overtime to achieve an ideal mix of portfolios to reduce the claims burden," Mr Bagga said adding that the company was strengthening its distribution channels, which also includes online policy issuance at the point of sale as also place of intermediaries. This would help increase its portfolio in this segment. The retail sector (households for fire, theft and others risks) was expected to get a boost with the increasing consumption growth in durable goods. Currently corporates, small and medium enterprises and motor insurance dominate its product mix.