Betting on retail customers
28 June 2004
Chennai: Earning more than half of its Rs262 crore premium income from the retail segment (Rs140.5 crore) the city-based Royal Sundaram Alliance Insurance Company continues its bet on the retail segment.
"We see a significant opportunity in the retail insurance segment. Over the next five years, retail will constitute two-thirds of our business from about 50 per cent today. This is more in line with the developments in the Indian economy than with the company's strategy," says managing director Antony Jacob.
He adds, "We also see encouraging prospects in the small and medium businesses category. In the past, a number of entrepreneurs took risks with protecting their assets."
Looking back on the years after opening up the general insurance sector for private players, Jacob predicts an extremely positive outlook for the industry as a whole.
"The general insurance industry valued around Rs16,000 crore now is growing at an annual rate of around 15 per cent. With increased awareness and education, the overall penetration of general insurance will increase significantly."