Bharti Axa to reduce dependence on car insurance

During April-December period, motor insurance coverage contributed around 73 per cent of its total organization

Bharti Axa General Insurance will progressively minimize its dependence on motor insurance section and will target a lot more on industrial and wellness insurance coverage lines in its bid to derisk its development prospective customers, a prime firm official mentioned.

“We will target more on commercial and health insurance coverage segments going ahead to enhance their share in total organization. This will support us to lessen dependence on motor segment,” Bharti Axa Common Insurance coverage MD and CEO Amarnath Ananthanarayanan stated.

Throughout April-December period of existing monetary year, although motor insurance coverage contributed around 73 per cent of the total business, overall health and personal accident contributed 13 per cent and commercial lines at eleven per cent. In the standard insurance sector, the motor insurance segment contributes about 45 per cent of the complete organization.

When asked about the loss ratio, a crucial indicator of profitability of a general insurance coverage company, he mentioned loss ratios are most likely to be better in this fiscal compared to prior fiscal.

The basic insurance firm stated that it will come up with new customised offerings for dealers and retail customers in motor insurance coverage section in the recent 12 months.

“We will also file 2 new items in the wellness insurance segment in 2014,” Ananthanarayanan stated. He also explained that the firm would broaden its footprint in the country with opening of 29 branches in 2014.

Speaking on the profitability, Ananthanarayanan said the business would be rewarding on entity level in the subsequent financial yr. Bharti AXA Basic Insurance coverage is the joint venture amongst Bharti Enterprises and AXA group of France, in which 74 per cent stake is currently being held by Bharti group. It has a premium collection of Rs 1,183.55 crore during April-January time period of this fiscal.

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