Focal Point
‘Health insurance is the most
important coverage for individuals’
G. Srinivasan of New India Assurance talks about what it takes to be an internationally “A” rated direct insurer.
He shares insights about the company’s new products and distribution channels. He also has a few words of wisdom
for the millennials, and stresses on the increasing need for health insurance in India.
G. Srinivasan
Chairman-Cum-Managing Director,
The New India Assurance Co. Ltd.
Q The only internationally A rated
direct insurer of India. Please tell our
readers what reasons do you attribute
behind this achievement?
We are the only internationally “A-“rated
direct insurer of India . The ratings reflect
New India’s balance sheet strength,
which A.M. Best categorizes as very
strong, as well as its adequate operating
performance, favourable business
profile and appropriate enterprise risk
management. The rating reflects the
market dominance, profitability and
financial strength of the Company.
Q NIA is the largest non-life insurer
in the country. But you also need to
maintain the competitive edge. What
are the new product /policy offerings
from NIA?
New India has launched many innovative
products recently. We launched the
Griha Suvidha Policy, a very simple
product. The highlight of this product is
the simplicity and ease to the customer in
providing the details and description of
contents and also hassle-free process of
claim administration. The Top Up Product
of New India in the Health Insurance
sector helps to meet the need of high sum
insured in health Insurance Policies.
Product innovation and ability to do
business at a cost lower than competition
are essential strategic approaches that
the Company undertakes, for creating
competitive advantages in this dynamic
business environment. Keeping this in
view, we have finalised “Title Insurance”
which is the latest innovative product
providing risk cover in the real estate
sector in view of the newly introduced
RERA Act. The Company also proposes
to come out with various competitive
products in the Health and the Motor
segment, to cater to various segments of
the society.
Q Motor and health constitutes almost
65-70% of the industry. But still the
penetration is too low. What is your
message to millennials? Do you think
this segment would start providing
reasonable economic profit this year?
The Industry as well as the regulator
(IRDAI) have taken various measures to
improve the levels of awareness.
My message to the millennials would be
to ensure that each vehicle owner must
always have a Motor policy which is also
a legal requirement as per the Motor
Vehicles Act. Further, I would like to add
that in today’s era, health insurance is
the most important coverage that any
individual must have in view of the high
costs of many complex lifesaving medical
procedures available nowadays.
Our country today is having a young
demography with high disposable
incomes with younger earning population
and therefore this segment actually
provides good amount of business to the
industry. As the business grows and more
youngsters come into insurance net, this
segment would be more profitable.
Q Critical illness covers have become
the flavour of the season with even life
insurers jumping on to the bandwagon.
Do you see this segment gaining in
popularity going forward?
Critical Illness Cover is a niche product
with significant commercial potential.
The product has very good marketability
prospects and presents great commercial
viability too. This segment is definitely
going to gain popularity as most of the
critical illnesses are high cost treatments
and therefore a cover against it is very well
in demand.
Q Digital as a distribution channel has
been gaining prominence over time.
How do you rate its prospects? What
is your digital strategy, particularly to
attract younger policyholders?
The digital and e-governance initiatives
by Government of India have provided
a large boost to the non-conventional
Digital Distribution Channel. Customers
can get their policy document online
in minutes. Currently we are offering
online facility for health, motor and other
personal lines. In online, we are planning
to launch more basic and simple products
which can be readily bought online.
We have equipped our marketing team
also to issue online policies through our
portal. We are also active in social media
platforms. We are also offering 10%
discount on first time purchase of policies
online on some selective products.
www.outlookmoney.com February 2018 Outlook Money
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