India’s Leading BFSI Companies 2017
SBI General Insurance Company Limited
The Indian insurance industry is set on a growth trajectory as a result of growing financial literacy. What are your views on the opportunities in the Indian insurance industry? In the coming years, the General Insurance (GI) industry will have a tremendous scope for growth. GI growth by various estimates is expected to be around 25%-30% in 2017. This growth is to be fueled by the Crop, Motor, Health, Personal Accident and Fire insurance segments. Also, the ‘Make in India’ initiative, Smart Cities initiative and several other reforms are likely to provide a boost to the manufacturing sector, which would translate to better business for property and marine cargo insurance. Further, with consumers becoming far more technically savvy and aware, a shift in the consumer mindset is expected. They will prefer to have an ‘Informed Purchase’ of Insurance products rather than a ‘Consultative Purchase’. The Indian government is increasingly focusing on adopting digital technologies in the financial industry. How, according to you, can the insurance industry transform their businesses using these technologies? In its current state, the industry is already moving towards increasing digital touch points for customer acquisition and customer servicing. Many experimental projects are being conducted on this front. The next frontier for insurance companies is to work towards datafication and using that to control the value chain more effectively. Sensors that test your health on a regular frequency, sensors that alert insurance companies about accidents and their location are some of the cutting edge technologies being tested across the world. They would fundamentally change how insurance is experienced and perceived. An example of this could also be trip delays which are covered under travel insurance. As flight/train delay data are now available digitally, would it make sense for insurance companies to expect that the customer files a claim for trip delay? Insurance companies can directly
pay the claim to the customer even without the customer filing for a claim. The growth of the Digital Space is acting as a catalyst for adoption of digital as a buying and servicing platform for insurers as well. Datafication (e.g. capturing driving behaviour or health outcomes) is still in a nascent stage, but over the medium to long term would likely play a strong role in influencing digital transactions. Social media offers a great servicing outlet for customers, as it is a convenient and user friendly medium. The general insurance industry is slowly adopting these trends, and as consumers are increasingly adopting e-commerce, companies will create more advanced, digital and alternate channels for their consumers. Brief us about your company’s new product launches planned for the current year. We have recently launched Long Term Two-Wheeler Insurance through the SBI network and are keenly working on bringing this coverage to two-wheeler owners across the country. The policy offers comprehensive coverage for two- wheelers, including damage to vehicle, third party liability and personal accident. We have also launched a comprehensive liability product - Broad Form Liability which has a wide range of inbuilt covers for comprehensive protection against the CGL and product liability risks. We have a few products both on the retail and commercial side planned for FY18. We are planning to improve and bring out a comprehensive health product for bank customers. We have received the regulator’s approval and in Q1FY18 would be launching the Home Contents Package cover for individuals intending to cover their home contents against all possible risks. On the commercial side, we intend to broad base our offering on the property insurance through various add on covers, apart from a few liability insurance covers.
Pushan Mahapatra Managing Director & Chief Executive Officer
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